Talent in Banking 2015 France in Focus - UK Financial Services Insight - Deloitte
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Talent in Banking 2015 France in Focus UK Financial Services Insight
Report contents
France in Focus
• Macroeconomic and industry context
• Survey findings
2 © 2015 Deloitte LLP. All rights reserved.Macroeconomic and industry context 3 © 2015 Deloitte LLP. All rights reserved.
French youth unemployment, already high, rose post-crisis, to the fourth among 21
EMEA markets surveyed, behind Spain, South Africa and Italy, in 2014
Overall and youth unemployment, France, 2008-2014
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2008 2009 2010 2011 2012 2013 2014
Overall Youth (Aged 15-24)
4 Source: OECD © 2015 Deloitte LLP. All rights reserved.Average wages in France recovered pre-crisis levels in 2011, before dipping and
recovering again
Growth in average real wages (US$), France, 2008-2014
$4,000 12.0%
10.0%
$3,500
8.0%
$3,000
6.0%
$2,500
4.0%
$2,000 2.0%
0.0%
$1,500
-2.0%
$1,000
-4.0%
$500
-6.0%
$0 -8.0%
2008 2009 2010 2011 2012 2013 2014
Average wages (monthly, US$) Growth in average wages (US$; % annual)
Note: Average wages (monthly): average gross earnings per worker per month
Growth in average wages (annual): percentage change in hourly wages in US$ over previous period
Figures are converted to US$ using an average exchange rate
5 Source: Economist Intelligence Unit © 2015 Deloitte LLP. All rights reserved.Total banking assets fell by over 25 per cent between 2008 and 2014, owing to the
recession and increased tax and regulation1
Total banking assets in billion US$ and as % of real GDP, France, 2008-2014
$10,000 450.0%
$9,000 400.0%
$8,000
350.0%
$7,000
300.0%
$6,000
250.0%
$5,000
200.0%
$4,000
150.0%
$3,000
100.0%
$2,000
$1,000 50.0%
$0 0.0%
2008 2009 2010 2011 2012 2013 2014
Total banking assets (billion US$) Total banking assets as % of real GDP
Note: Total banking assets for 2010-2014 are Economist Intelligence Unit estimates
Figures are converted to US$ using an average exchange rate
Source: Total banking assets – Economist Intelligence Unit; GDP - OECD
1 http://www.fbf.fr/en/french-banking-sector/overview/overview-of-the-french-banking-industry © 2015 Deloitte LLP. All rights reserved.
6Survey findings 7 © 2015 Deloitte LLP. All rights reserved.
French banks do not rank highly in popularity in comparison to other markets,
despite being home to several large, global banks
Popularity of banking as a career choice, globally, 2015
China
Hong Kong
Singapore
UK
Italy
Spain
Brazil
Sweden
Russia
Switzerland
India
Czech…
Australia
Poland
Middle East
Norway
Canada
US
Ireland
Finland
South Africa
Turkey
Belgium
France
Netherlands
UAE
Mexico
Denmark
Germany
Austria
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider
working for], your five ideal employers”. Sector popularity is calculated as the number of times individual employers in
specific industries are short-listed among the five “ideal employers.”
8 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.Banks’ popularity has plunged since 2008, while FMCG’s and technology firms’
continue to grow
Eight most popular industries for business students in France, 2008-2015
25.0%
Fast Moving Consumer Goods
20.0%
Banks
Software and computer services
15.0%
Fashion, Accessories and Luxury
Goods
Media and Advertising
10.0%
Auditing and Accounting
Retail
5.0%
Consumer Electronics and
Household Appliances
0.0%
2008 2009 2010 2011 2012 2013 2014 2015
Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider
working for], your five ideal employers”. Sector popularity is calculated as the number of times individual employers in
specific industries are short-listed among the five “ideal employers.”
9 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.The popularity of FMCG among business students is driven by local heroes, LVMH
and L’Oreal, and international tech giants, with no place for banks in the top five
Most popular employers, French business students, 2015
LVMH 25.0%
L'Oreal Group 19.3%
Google 18.2%
Apple 13.4%
Canal + 12.2%
Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider
working for], your five ideal employers.”
10 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.American investment banks bag no fewer than three of the top five popularity spots
for banking-inclined students, with BNP Paribas and SocGen taking the other two
Most popular employers, French banking-inclined students, 2015
J.P. Morgan 39.1%
BNP Paribas 38.2%
Goldman Sachs 29.9%
Morgan Stanley 25.4%
Société Générale 25.3%
Survey question: “Choose the five employers you most want to work for [from the list of employers you would consider
working for], your five ideal employers.”
11 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.‘Work/life balance’ and ‘job security’ rank very low for French banking-
inclined students compared to the top billing they get globally
Career goals of French banking-inclined students, 2008-2015
70.0%
To be competitively or intellectually
challenged
60.0%
To have an international career
50.0% To be a leader or manager of people
To have work/life balance
40.0%
To be secure or stable in my job
30.0%
To be a technical or functional expert
20.0% To be entrepreneurial or
creative/innovative
To be autonomous or independent
10.0%
To be dedicated to a cause or to feel
0.0% that I am serving a greater good
2008 2009 2010 2011 2012 2013 2014 2015
Survey question: “Below is a list of nine possible career goals. Which are most important to you? Please select a
maximum of 3 alternatives.” Importance of goals is then calculated as the percentage of students choosing each career
goal on their shortlist of top three goals.
12 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.French banking-inclined students want technical expertise and to be challenged
much more than their peers, and care less about being innovative or altruistic
Career goals of French banking-inclined students vs all business students, 2015
38.1%
To be competitively or intellectually challenged
52.7%
48.9%
To have an international career
52.6%
41.6%
To be a leader or manager of people
45.6%
51.6%
To have work/life balance
43.2%
26.7%
To be secure or stable in my job
25.0%
11.7%
To be a technical or functional expert
21.7%
30.7%
To be entrepreneurial or creative/innovative
19.9%
21.0%
To be autonomous or independent
19.0%
28.8%
To be dedicated to a cause or to feel that I am serving a greater good
18.7%
All business students Banking-inclined students
Survey question: “Below is a list of nine possible career goals. Which are most important to you? Please select a
maximum of 3 alternatives.” Importance of goals is then calculated as the percentage of students choosing each career
goal on their shortlist of top three goals.
13 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.Banking-inclined students aspire, and expect, to work hard, earn a good salary
and progress quickly, and also to get a good name on their CV
French banking-inclined students' top 10 aspirations and expectations, 2015
French banking-inclined students’ top 10 French banking-inclined students’ top 10
aspirations, 2015 expectations, 2015
Prestige 1st Challenging work 1st
Challenging work 2nd Good reference for future career 2nd
High future earnings 3rd High future earnings 3rd
Good reference for future career 4th Financial strength 4th
Leaders who will support my
5th Prestige 5th
development
Recognising performance
6th High level of responsibility 6th
(meritocracy)
Opportunities for international
7th Competitive base salary 7th
travel/relocation
Financial strength 8th Performance-related bonus 8th
Attractive/exciting products and Recognising performance
9th 9th
services (meritocracy)
Leaders who will support my
High level of responsibility 10th 10th
development
Students were asked to choose up to 12 attributes, out of a total of 40, that they most sought for their five shortlisted “ideal employers.” The ten attributes that scored most highly for
banking-inclined students are shown in the green bars – “aspirations”. Deloitte extracted the extent to which banking-inclined students expected to find each of these top ten aspirations
in their shortlisted “ideal” banks. Each blue bar represents the proportion of banking-inclined students who expect to find this attribute at the bank(s) that appears on their shortlist of five
“ideal employers”. Please note that because the number of aspirations students can choose is capped at 12, while the expectations are uncapped up to 40, the proportions of students
expecting a particular attribute is likely to be higher those recording an aspiration for that attribute. Survey question: Aspirations – which of these are most important to you? Please
select a maximum of three alternatives [in each of the following four categories: Employer Reputation and Image; Job Characteristics; People and Culture; and Remuneration and
Advancement Opportunities. Expectations – which of the following [40 attributes] do you associate with your chosen employer(s).
14 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.French banking-inclined students expect to be paid almost 12 per cent more than
their business school peers
Expected average annual salary (EUR), French business students, 2015
Investment banking-inclined € 38,922
Banking-inclined € 38,862
Insurance-inclined € 36,104
All business € 34,729
Survey question: “What is your expected salary before taxes (excluding commission and bonus) at your first employment
after graduation?”
15 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.French banks do even worse than their global peers in attracting women into
banking, while investment banks are slightly worse than global peers
Student demographics, globally and in France, 2015
Business students (global) 61.1% 38.9% Business students (France) 58.3% 41.7%
15.4 % drop off 31.6% drop off
Banking-inclined students Banking-inclined students
51.7% 48.3% 39.9% 60.1%
(global) (France)
28.0% drop off 29.2% drop off
Investment banking-inclined Investment banking-inclined
44.0% 56.0% 41.3% 58.7%
students (global) students (France)
Female Male Female Male
16 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved.Appendix - methodology 17 © 2015 Deloitte LLP. All rights reserved.
Appendix – Methodology This report is based on the Universum Talent Survey 2015. Universum has been researching students’ career intentions since 1988. In 2014-15, it surveyed about 1.2 million students and professionals drawn from over 2,000 universities and institutes of higher education in 55 countries. Deloitte examined the survey results from 211,000 business students in 30 markets: in the Americas, Brazil, Canada, Mexico and the US; in APAC, Australia, China, Hong Kong, India and Singapore; and in EMEA, Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Middle East (defined by Universum as Egypt, Lebanon, Kuwait, Qatar and Saudi Arabia), the Netherlands, Norway, Poland, Russia, South Africa, Spain, Sweden, Switzerland, Turkey, the UAE and the UK. The number of markets included in global and regional averages varies between 23 and 30. Business students were presented with a list of employers from a range of industry sectors. Students selected “ideal employers” from the initial list in a three-stage process. First they chose an unlimited list of companies for which they might consider working. Next they narrowed the choice to a maximum of five “ideal employers”. Finally, they were asked to select companies they had applied to or were considering for an application. Using the rankings by business students of the companies they would most like to work for, their “ideal employers”, Deloitte analysed their preferences across different industries over the eight academic years from 2007-08 to 2014-15. For this survey, business students are defined as students of business-related subjects. “Banking-inclined students” are a subset who put at least one bank (retail, investment or universal) in their top five “ideal employers”. “Investment banking-inclined students” are a subset of “banking-inclined students” who put at least one investment bank in their top five “ideal employers”. Using Universum’s detailed questionnaire, Deloitte analysed the motivations, aspirations and expectations of banking-inclined students in relation to a career in banking. This analysis includes a comparison of what makes banks attractive to students (“aspirations”) with what they associate with banks as employers (“expectations”). 18 © 2015 Deloitte LLP. All rights reserved.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. © 2015 Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.
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