Talent in Banking 2015 Germany in focus · German banking-inclined students' top 10 aspirations and expectations, 2015 ... 16 Source: Universum Talent Survey 2015; Deloitte Analysis

© 2014 Deloitte LLP. All rights reserved.

Talent in Banking 2015

Germany in focus

UK Financial Services Insight

Report contents

2

Germany in focus

• Macroeconomic and industry context

• Survey findings


Macroeconomic and industry context

3

4

After a slight post-crisis increase, both overall and youth unemployment have fallen

to below 2008 levels

Source: OECD

0%

5%

10%

15%

2008 2009 2010 2011 2012 2013 2014

Overall and youth unemployment, Germany, 2008-2014

Overall Youth (Aged 15-24)

5

Average wages are improving, with wages reaching a post-crisis peak in 2014

Source: Economist Intelligence Unit

Note: Average wages (monthly): average gross earnings per worker per month

Figures are converted to US$ using an average exchange rate

$0

$500

$1.000

$1.500

$2.000

$2.500

$3.000

$3.500

$4.000

2008 2009 2010 2011 2012 2013 2014

Average wages (monthly, US$)

CAGR: 0.53%

Growth in average real wages (US$), Germany, 2008-2014

6

German banking assets fell by 40 per cent in the six years following the financial

crisis, with Landesbanken being bailed out and having to shrink their balance sheets1

Source: Total banking assets – Economist Intelligence Unit; GDP - OECD

Note: Total banking assets for 2010-2014 are Economist Intelligence Unit estimates

Figures are converted to US$ using an average exchange rate

0,0%

50,0%

100,0%

150,0%

200,0%

250,0%

300,0%

350,0%

400,0%

450,0%

$0

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000

$14.000

2008 2009 2010 2011 2012 2013 2014

Total banking assets in billion US$ and as % of real GDP, Germany, 2008-2014

Total banking assets (billion US$) Total banking assets as % of real GDP

1http://www.ft.com/cms/s/0/92a9493a-0dd4-11e4-b149-00144feabdc0.html#axzz3jCYVQMbv


Survey findings

7

Similar to France and the Netherlands, Germany’s diversified economy makes

banking one of many attractive career opportunities for business students

8Source: Universum Talent Survey 2015; Deloitte Analysis

6,2%

7,0%

7,8%

8,0%

8,8%

9,3%

10,2%

10,3%

10,4%

11,2%

11,5%

12,4%

13,3%

13,4%

13,9%

14,1%

14,7%

15,5%

16,0%

16,1%

16,4%

16,9%

16,9%

18,0%

18,5%

19,4%

21,5%

22,6%

25,4%

31,2%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0%

Austria

Germany

Denmark

Mexico

UAE

Netherlands

France

Belgium

Turkey

South Africa

Finland

Ireland

US

Canada

Norway

Middle East

Poland

Australia

Czech…

India

Switzerland

Russia

Sweden

Brazil

Spain

Italy

UK

Singapore

Hong Kong

China

Popularity of banking among business students as a career choice, globally, 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.”

Banking regained its third-place position among German business students in

2015, a strong position in an economy as diversified as Germany’s

9

Eight most popular industries for business students in Germany, 2008-2015


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.”

Source: Universum Talent Survey 2015; Deloitte Analysis

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

2008 2009 2010 2011 2012 2013 2014 2015

Automobiles and Parts

Fast Moving Consumer Goods

Banks

Software and computer services

Management and Strategy

Consulting

Transportation and Logistics

Retail

Auditing and Accounting

10

Most popular employers, German business students, 2015

Four out of the top five most popular employers are local car makers; Google, the

most popular employer worldwide, is the only non-auto company to break through


working for], your five ideal employers.”


15,5%

15,9%

18,8%

21,1%

21,3%

Volkswagen

Google

Porsche

Audi

BMW Group

11

Most popular employers, German banking-inclined students, 2015

J.P. Morgan is the most popular employer among banking-inclined students.

Sparkassen-Finanzgruppe trails Deutsche Bank, despite employing six times more


working for], your five ideal employers.”


17,3%

19,7%

24,4%

26,8%

29,4%

Professional services firm

Sparkassen-Finanzgruppe

Goldman Sachs

Deutsche Bank

J.P. Morgan

12

Career goals of German banking-inclined students, 2008-2015

Leadership and being challenged are the top career goals for banking-inclined

students; ‘work/life balance’ and ‘job security’ rank lower than they do globally

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.


0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

2008 2009 2010 2011 2012 2013 2014 2015

To be a leader or manager of people

To be competitively or intellectually

challenged

To have work/life balance

To have an international career

To be secure or stable in my job

To be entrepreneurial or

creative/innovative

To be autonomous or independent

To be a technical or functional expert

To be dedicated to a cause or to feel

that I am serving a greater good

13

Career goals of German banking-inclined students vs all business students, 2015

Banking-inclined students are not as interested in ‘innovation’ as their business

school peers

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.


10,9%

10,9%

21,9%

22,1%

31,6%

44,6%

46,6%

51,0%

55,9%

8,2%

11,9%

22,5%

30,4%

43,2%

34,8%

57,2%

38,4%

47,2%

To be a technical or functional expert

To be dedicated to a cause or to feel that I am serving a greater good

To be autonomous or independent

To be entrepreneurial or creative/innovative

To be secure or stable in my job

To have an international career

To have work/life balance

To be competitively or intellectually challenged

To be a leader or manager of people

All business students Banking-inclined students

14

German banking-inclined students' top 10 aspirations and expectations, 2015

Banking-inclined students in Germany do not expect banks to supply the

supportive managers and ‘leadership opportunities’ to which they aspire


Students w ere asked to choose up to 12 attributes, out of a total of 40, that they most sought for their f ive shortlisted “ideal employers.” The ten attributes that scored most highly for

banking-inclined students are show n in the green bars – “aspirations”. Deloitte extracted the extent to w hich banking-inclined students expected to f ind each of these top ten aspirations

in their shortlisted “ideal” banks. Each blue bar represents the proportion of banking-inclined students w ho expect to f ind this attribute at the bank(s) that appears on their shortlist of f ive

“ideal employers”. Please note that because the number of aspirations students can choose is capped at 12, w hile the expectat ions 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 – w hich of these are most important to you? Please select a maximum of three alternatives [in each of the follow ing four categories: Employer Reputation and Image; Job Characteristics; People and Culture; and Remuneration and

Advancement Opportunities. Expectations – w hich of the follow ing [40 attributes] do you associate w ith your chosen employer(s).

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Professional training and

development

Leadership opportunities

Good reference for future career

Challenging work

Market success

Financial strength

High future earnings

Competitive base salary

Leaders who will support my

development

Recognising performance

(meritocracy)

Top 10 aspirations

10th

9th

8th

7th

6th

5th

4th

3rd

2nd

1st

Market success

High level of responsibility

Professional training and

development

Interaction with international

clients and colleagues

Recognising performance

(meritocracy)

High future earnings

Competitive base salary

Good reference for future career

Challenging work

Financial strength

Top 10 expectations

15

Expected average annual salary (EUR), German business students, 2015

German banking-inclined students expect to earn almost 14 per cent more than their

business school peers; the investment banking-inclined expect 20 per cent more

Survey question: “What is your expected salary before taxes (excluding commission and bonus) at your first employment

after graduation?”

€ 42.438

€ 44.536

€ 48.339

€ 50.823

All business

Insurance-inclined

Banking-inclined

Investment banking-inclined


The combination of a wide range of career options, combined with the perception

of a better ‘work/life balance’ outside banking, leads to a gender disparity

Source: Universum Talent Survey 2015; Deloitte Analysis 16

Student demographics, globally and in Germany, 2015

49.3% drop off

36.4% drop off

44,0%

51,7%

61,1%

56,0%

48,3%

38,9%


students (global)

Banking-inclined students

(global)

Business students (global)

Female Male

28.0% drop off

15.4 % drop off

29,1%

36,5%

57,4%

70,9%

63,5%

42,6%


students (Germany)

Banking-inclined students

(Germany)

Business students (Germany)

Female Male


Appendix - methodology

17

Appendix – MethodologyThis 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 211,000business 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

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Deloitte LLP is the United Kingdom member f irm of DTTL.

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Talent in Banking 2015 Germany in focus · German banking-inclined students' top 10 aspirations and expectations, 2015 ... 16 Source: Universum Talent Survey 2015; Deloitte Analysis