White Paper
Why Alternative Investment Education Is the Next Competitive Advantage
This white paper explores the forces driving the expansion of alternative investments and the increasing interest of younger investors.Business Thought Leadership
July 14, 2026
In May and June, familiar graduation rituals returned to campuses. Tassels flipped, and families took photos on sunlit lawns. And university leaders handed diplomas to a generation that has lived through extraordinary disruption.
Recent graduates who have enthusiastically accepted your job offers are preparing to walk through your doors. While you have successfully competed for this early-career talent, getting them to sign the offer letter is only the beginning. Financial services offer what Gen Z values: meaningful work, professional credibility, long-term earning potential, and a chance to help individuals and businesses.
However, the pressing question is whether your firm is prepared to help your newly accepted cohort stay and grow. Industry data reveals a daunting attrition rate for young financial advisors, demanding a stronger focus on retention over mere attraction. Furthermore, according to The American College of Financial Services, one in three Gen Z new hires in finance find their onboarding ineffective. One in four report that their workplace training is ineffective. BambooHR’s 2025 benchmarking report also found that 40% of Gen Z employees walk away from onboarding disappointed.
For HR and L&D leaders, this is a clear signal. You can no longer treat onboarding as a transactional sequence of portals, forms, and compliance videos. For your incoming Gen Z hires, onboarding represents the first real proof point of your employment promise.
It is tempting to compare Gen Z to Millennials and assume early-career expectations are simply becoming more demanding. But that misses a larger demographic shift. Millennials entered finance during an era defined by acceleration. The message was clear: move quickly, compete hard, earn the title, and climb. In many forms, the traditional “up-or-out” model shaped success.
Gen Z approaches work differently.
Deloitte’s 2026 Global Gen Z and Millennial Survey found that Gen Z favors gradual growth, lateral skill-building, and long-term sustainability over rapid promotions. Instead of asking how fast they can move up, many ask if they can build a sustainable career at your firm.
I seek steady progress | I seek fast-paced growth | I am willing to move laterally to find the right role | I prioritize flexibility and purpose over title speed and advancement | I am willing to accept a more junior title to find the right long-term fit |
|---|---|---|---|---|
44% | 25% | 12% | 11% | 9% |
Source: Deloitte Global 2026 Gen Z and Millennial Survey
If your onboarding frames the experience as “sink-or-swim,” your new Gen Z employees may assume the organization is not built for long-term development. If it is framed as a guided entry into a serious profession, the story changes.
Firms cannot afford to overlook the social dimension of onboarding. Many of your incoming Gen Z graduates experienced remote learning, social fragmentation, and post-pandemic uncertainty. They seek not just flexibility, but true connection.
BambooHR reports that 41% of Gen Z employees feel disconnected or isolated during onboarding. In high-stakes industries like finance or insurance, that sense of isolation quickly becomes a performance issue.
You must consider designing connections into the onboarding process. One practical step is assigning an integration buddy before Day One. Ideally, this is a peer who is one or two years ahead and remembers what it feels like to be new. They can answer the informal questions new hires hesitate to ask, like what to wear on office days or how team meetings really work. These informal interactions create psychological safety, which creates momentum.
The period between offer acceptance and start date is critical for your new class. Many are entering the workforce carrying real financial pressure from cost-of-living concerns, housing costs, and student debt. This gives HR teams an opportunity to turn pre-boarding into reassurance.
Instead of waiting until orientation, proactively communicate available support. Highlight 401(k) matching contributions, student loan repayment assistance, emergency savings programs, and wellness tools. Crucially, suggest and offer pre-onboarding licensure study materials for those needing licenses in their first few months. These details are not administrative extras; they are signals of care and credibility.
Gen Z prefers hybrid work, but they want in-office time to feel intentional. If you bring your new hires into the office only to place them in a cubicle with digital compliance modules, the message is confusing. The commute must have a purpose. Focus early office days on culture-building, manager access, team lunches, and shadowing. Replace dense compliance information dumps with shorter, mobile-friendly modules and scenario-based learning. The goal is to make onboarding more effective, not just easier.
To replace outdated parts of your orientation model, implement a progressive integration plan.
Focus on core integration, culture familiarization, and establishing a strong relationship with an assigned peer. | Introduce AI tool training to streamline workflows, deepen complex product knowledge, and begin structured licensure preparation. | Transition into client-facing scenarios, independent work, and managerial check-ins regarding long-term career trajectory. |
The latest class of graduates has earned the diploma, and now they are looking for the next structure to help them grow. The firms that will retain this accepted class of Gen Z talent will design onboarding as a relationship-rich, career-connected, technology-aware integration experience. This means clearer expectations, stronger peer support, and smarter learning design. With the right onboarding playbook, your cautious recent graduates will become confident practitioners and long-term contributors to the firm’s growth.
Q: How does the high attrition rate for young advisors impact early-career strategies? A: High attrition indicates a fundamental flaw in retention efforts. Firms must pivot from emphasizing a fast-paced "up-or-out" lifestyle to promoting long-term, sustainable career development.
Q: Why should we include AI training in the initial onboarding phase? A: AI training should be introduced to help your newly accepted Gen Z hires streamline tasks and adapt to modern financial workflows.
Q: When is the best time to start discussing required licensure? A: Start during the pre-boarding phase. Offering pre-onboarding study materials reduces financial and performance anxiety, giving your new hires a structured head start.
If you're interested in exploring how Kaplan's extensive range of financial education and professional development solutions can empower your workforce and foster growth, contact us.
White Paper
Why Alternative Investment Education Is the Next Competitive Advantage
This white paper explores the forces driving the expansion of alternative investments and the increasing interest of younger investors.
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