When the oldest members of Generation Y, born roughly in the1980s, began graduating from college, a collective groan was heardon investment desks throughout Wall Street.

Gen Y is the stereotypical tag attached to the rookie investmentbankers that comprise the current pool of new hire candidates. Manybankers have claimed that Gen Y-ers have an excess sense ofentitlement, are pampered, arrogant and lazy. They want to do workon their terms and receive a constant stream of feedback.

I remember literally being petrified of senior staff. On thecontrary, Gen Y (or Generation Why?) has been raised to askquestions and be assertive. As confident, independent thinkers,they look to modify existing protocols. Not to mention, Gen Ys areoftentimes referred to as “trophy kids,” a term that reflects thetrend in competitive sports where mere participation alone isenough for a reward.

Recently, I spoke with a managing director and the feedback Ireceived on this generation's new analyst class was: “They walkinto the place like they own it, they aren't interested in doingthe stuff we really need them to do. They want to be the associate,the VP from day one. However, without doing the nuts and bolts workdown there in the analyst pool, how are they going to know how thedynamics work? Yes, this stuff can be tedious, but it's a learningexperience. It's a necessary rite of passage.”

When the economy tanked, millions of Gen Y-ers reinventedthemselves to show how much and how quickly they can add value totheir organizations in the most efficient manner. The talent poolis changing. I've always had the belief that change tends to begood; it inspires evolution. But change needs to be managed andintegrated otherwise the result is conflict and distrust. Conflictscan arise with Gen Y hires that have been tagged as having anundeserved sense of entitlement, unrealistic expectations, anopinionated view, lack of loyalty, a lazy attitude, as beingpampered, an arrogant approach and a needy disposition.

This type of judgement can be viral – stated once and thenrepeated many times throughout the business. An opinion, even onebased on the briefest experience, can become fact through sheerrepetition. An entire generation of analysts surely cannot belabeled with one broad brush stroke.

I have come to appreciate that it's not so much that there is anauthority or respect issue, but an approach issue. Senior bankersare used to analysts being in the engine room not wanting orpushing for an invite at the captain's table. Gen Y is keen to takeon responsibility, to be involved and to have a say that is heard.They believe they are good enough to take on the task. I am keen toencourage such behavior as it sends the analysts up the learningcurve quicker. However, this sometimes overly enthusiasticapproach can cause a head-on clash of cultures or generations.

Generational divides can best be managed in a number of ways.Improved training. Stimulating, value-add training can lead toemployee appreciation and helping them transition into the existingculture of a bank. The training must drag the analysts out of thetext book and spoon fed environment they have become accustomed towhile in education.

This is a job. It requires judgement, thought, analysis and apitch to clients. Training must mirror this environment and developthis behavior through live cases studies and deal-based transactioncases currently in the market. Get them to do rather thanjust learn and repeat. The real world does not just regurgitate acircular set of prescribed deal scenarios. Each one isdifferent in its own way. The analysts must be given the trainingprovision to get the technical foundations in place and then beallowed to apply them to current deal scenarios.

Better management and delegation of projects. Gen Y analystsmust be shown the reasons why their work is bringing value to aproject, rather than being assigned to a project without anymeaningful context or support.

Continuous feedback. Gen Y professionals thrive on constructivecriticism and positive reinforcement and some level of continuedfeedback can help motivate and engage these analysts.

Gen Y must pick its battles. They should not question everylittle decision or process but question only when appropriate. Theestablished bankers must be given time to transition into dealingand managing this generation. Some banks will train their new staffon how to transition into work. We need to focus on gettinganalysts to think about the impact of their actions, theirco-workers and the banks they work for.

The older generation must adapt too. This is a generationalevolution. It is not like this is the first time generationalbehavior has shifted. Imagine what the senior bankers back in the1980s thought of the new recruits back then. I remember these guysbeing labeled as yuppies. Each new generation causes its ownconflict with the established regime.

At the end of the day, these analysts are probably some of thebest qualified, most well-rounded analysts we've seen in decades.Their extra-curricular activities are wide ranging and theirqualities and self-beliefs make them incredibly mobile.

Geoff Robinson is head of investment banking at 7city.Contact +44 (0)845 0727620 or [email protected]