24th February 2014
We ain’t got no education
I was having a very interesting conversation last week about graduate training programs for those wishing to enter the financial advice profession.
As an industry, we have to encourage new entrants-despite the obstacles that regulation and associated costs throw up.
I understand that with one government sponsored scheme nearly a thousand applied to the scheme yet over half fall at the first hurdle, and that is because in a large part they seem unable to coherently read and write.
Now we should be aware that the individuals applying for this aided scheme are graduates!
They have somehow managed to access university education without some very basic and essential educational and life skills, only to exit with a degree; but not the ability to read, write, and matriculate in a consistent way and to a standard that would be acceptable to an employer looking to recruit a graduate entrant.
Things get worse it would seem, as those who are successful in getting on this government-aided scheme continue to drop out along the way. This has reached such an extent that by the end of the programme, the final number of qualified graduates available to put out to firms on a three-month internship has reduced from a starting point of 1,000 to just over 100.
The future of financial services lies in firms being able to recruit good quality, intelligent individuals with the ability to communicate well.
But where are they?
We would be interested in hearing from firms who have tried to recruit new entrants, regarding their experience and the outcome
Do tell us:
How many have you rejected to get the right person?
Can they read and write to your expected standards?
Are they numerically able to do the job?
Are they reliable?
Have interpersonal and social skills?
And most importantly, are they willing to learn?
It is simply crazy for the UK education system to allow individuals to enter university if they are not able to read or write, add and subtract to at least a minimum standard.
In the USA recent research has shown that becoming a financial adviser was ranked as the 5th best profession to aspire to by Careercast.com and 6th by Yahoo Finance.
There may be some good reasons why the best graduates are not attracted, let’s hope that in putting together this information from various businesses’ experiences of bringing graduate trainees on board, we can understand more and begin to correct the problems in the education and training system. Only then will the push for new blood into the industry have a chance at being successful.
Innit!
Comments (5)
There are areas in financial services that certainly require specialist and advanced knowledge but not, I would contend, in the IFA arena.
One of the reasons our educational system is failing is the continual demand for graduate skills (or perceived skills) when no such need exists. The other main contributor to this argument is the old dilemma of educational knowledge and skills and the miss-match with employers needs. This is not new! I would therefore suggest that we (as older employers!) review our expectations of young people. We do not need graduates to empty bins, nor do we need 10 GCSEs to become firefighters! What we (as IFAs) need are young open minds, with core skills (perhaps in different areas to us), who wish to learn and pursue a people orientated career.
Ken Hayden 05/03/2014 09:19
Indeed there is. What planet are you on? I have 2 nephews, both graduates with proper degrees from a good Russell University.
Both started in financial services with world renowned firms - one an international US bank, the other an asset management firm. Both started on 30k salary as fresh graduates. After 3 years this tripled.
What firm in our field can afford this?
Your tale doesnt surprise me in the least. First ask what type of degree these numpties had. Then ask from which seat of learning. Too many attend the University of Oswaldtwistle to study Macram Knitting and then come out believing they are masters of the Universe. Added to this there is another attribute which is often lacking - the work ethic and being prepared to 'get down and dirty' to do everything and anything. Arriving at 9am and clocking off at 5pm is not an option.
The problem is that under the present system too many win a coconut and the idea of a degree has been devalued. I think it is now more than 50% who go to what is now called University. In my day it was 4% and Polytechnics werent called University.
As to the question of who will fill our shoes just rely on economics. If its worthwhile the gap will be filled, but I do wonder whether it will be filled by youngsters with no experience of anything. Even apprenticeships today have been dumbed down. They seem to be of one year or 18 months duration. A true apprenticeship takes 5 years at least. These werent only apprenticeships in engineering, but in accountancy, and the law called articles that could be commenced by a school leaver. The stock exchange had their own system of buttons, but they all took a darn site more than a year. In addition many had to pay for the privilege of being taken on much like present system of University loans!
Harry Katz 05/03/2014 09:32
In the main graduates come into financial services to help people. After maybe a year they leave because they don't want to spend the majority of their time ticking boxes and looking over their shoulders being micro-managed by regulation. This is a major problem!
To answer your questions:
How many have you rejected to get the right person? - Most of them.
Can they read and write to your expected standards? - Usually not. I make it very clear at interview what will be expected of them. Those not prepared to shape up aren't selected.
Are they numerically able to do the job? - Sometimes.
Are they reliable? - The ones who are not are usually filtered out at the interview stage. In 35 years I've only had to fire 3.
Have interpersonal and social skills? - The ones who don't have them usually don't proceed past the initial telephone interview, or even past the letter I receive from them...
And most importantly, are they willing to learn? - If not, those who get past the interview shape up or leave.
This may give the impression I'm a tyrant. I hope not, but I'm not prepared to accept second best. The shortest serving of my team has been with me a little over 5 years.
Richard Brown 05/03/2014 10:13
Derek Bradley 06/03/2014 13:01
Yes indeed. The above posts are a very sad reflection of the decline in the UK, not just in education.
Even our most famous and prestigious seats of learning are slipping down the world rankings.
This is what happens when you permit a con man to con you. Remember Blair's mantra of "Education, education, education". It is on a par with the rest of that man's utterances.
Harry Katz 07/03/2014 09:16
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