Gaps in Millennials’ communication and ‘soft’ skills may be hurting their prospects of breaking into the senior ranks of financial services organisations, results from a recent survey of industry leaders show, though a willingness to upskill may bode well for these emerging leaders.

The survey report, Adapting to a Changing Workforce, authored by specialist financial services recruitment firm Profusion, tabled perspectives from seasoned industry insiders on the emergence of the ‘Millennial manager’, and the broader demographic shift occurring within financial services (FS) firms’ management teams as Baby Boomers and Gen Xers hit retirement age.

Profusion canvassed perspectives from FS industry leaders on their Millennial – those born between 1981 and 1996 (currently aged between 28 and 43) – peers, including their unique skill sets and areas for growth as people managers.

While respondents praised Millennials’ formidable tech expertise and ability to strategise creatively, they also acknowledged deficiencies in several core leadership skills.

“Despite proactively seeking out training opportunities in their technical skills, the biggest area of development is in soft skills and emotional intelligence,” the report authors wrote.

Respondents identified “growth opportunities” for Millennials in several areas – communication skills, stakeholder management, empathy, resilience and ability to lead difficult conversations.

While most Millennials were proactive in seeking out opportunities to learn and expand their technical skillsets, borne out during Covid lockdowns when opportunities to interact were limited, few were willing – or indeed aware of the need – to build the soft skills necessary to round out their management abilities.

As one respondent noted: “Most of [sic] millennials will source skills training, education etc… quite proactively, but not for the soft skills (which ironically is the area they are most lacking).”

With the study framed around the post-Covid operating environment, a number of respondents also noted potential deficiencies in Millennials’ ability to lead multi-generational workforces, as well as challenges building and maintaining relationships in a hybrid work environment.

One respondent was particularly blunt on the matter: “The leadership style of millennial managers needs to be developed. One of the first things we do is send people on leadership courses.”

An “overreliance” on digital communications media, and notably email – a trait found to be typical among Millennial managers – may challenge young managers’ ability to effectively communicate with their charges. The study authors, indeed, noted that this was “a clear development opportunity for Millennial leaders”.

Industry feedback, more broadly, underlined significant opportunities to develop communication skills within this cohort – including opportunities to refine presentation skills and integrate more data into decision-making.

“Consistent feedback from the market was also highlighting the skills development in crafting formal correspondence both internal and external,” the report authors wrote.

Ultimately, Profusion concluded, “Millennial leaders, much like all new leaders, are required to develop a depth of soft skills in order to become successful in leading teams and taking on greater responsibility”.

This will demand a willingness from Millennials to broaden their skills beyond technical expertise, and a investment from FS firms’ current leaders in nurturing and rounding out their budding managerial talent.

Profusion’s full report can be accessed here.