Pay is not a major factor in career choices among graduates in the financial services industry, according to a new report from recruitment company Grad Mentor, supported by Zurich.

“We spoke to all graduates about salary and it was clear that it was not a big driver at this stage in their career,” the report says.

“However, the graduates that had been in their roles longer wanted to be clear on what the future expectations or earning capacity was.”

The study involved 16 financial services businesses in NSW, Victoria and WA.

Grad Mentor MD Alisdair Barr says the research aims to provide a best-practice management framework to counter the negative outcomes often experienced in graduate resourcing.  

“Attracting, retaining and engaging the next generation is vital to the future of the financial advice profession,” he said.

“So building successful and enduring relationships between the graduate and the firm is key.”

Mr Barr says the finding on pay is surprising.

“To remain competitive, firms need to take a fresh approach to compensation that reflects new values, attitudes and lifestyles of graduates,” he said.

“A more efficient outcome for both sides will focus on the ‘softer’ types of remuneration, including flexible working styles, business improvement and ongoing professional development.”

The report also examines equity options for graduates.

“All the firms we interviewed were different and many of them did not have any clear pathway to ownership or ability to offer such,” the report says.

“However, there was an underlying driver in the smaller firms for the graduate to see that there may be an opportunity to build something longer-term within the firm.”