Gen Z banking employees are leaving the industry at faster rates than other professions, opting for start up jobs and remote work instead.
That’s according to a new KPMG survey of bosses in the sector, which has found that almost half of financial services firms have experienced an uptick in younger employees quitting.
The consultancy found that for banks that figure reaches 54 per cent, in a poll of 150 people at director level from the financial services sector.
The most common justification – given by 42 per cent – was a preference for working in more ‘entrepreneurial’ start up environments.
Meanwhile, the survey found that 35 per cent cite a desire for more flexible careers, such as freelancing or self-employment.
Gen Z hung up on office attendance
And 34 per cent said that workers in this generational cohort wanted some degree of remote working – which is no longer as common in sectors like banking.
Almost every firm surveyed said that they are taking active steps to stem the loss of Gen Z staff, including moves to reassess office attendance policies.
According to Karim Haji, KPMG’s global and UK head of financial services: “Gen Z employees are clearly signalling a desire for more autonomy, variety and entrepreneurial experiences.
“The challenge for financial services firms now is how to create an entrepreneurial experience for a social media generation in a heavily regulated environment.”
How do you retain Gen Z?
Remote working has come up repeatedly in surveys of Gen Z as a key motivation.
Back in February, City AM reported on a Times-led survey of 18 to 27 year olds, which found that just one in ten want to be in the office full-time.
And research from the recruiter Reed in June found that remote workers are more likely to be passed over for promotions and pay-rises than their office-working peers.
Haji added, in relation to office working: “Office presenteeism gets a lot of airtime, but the reality is that most financial services firms have made strides in offering flexibility that goes far beyond remote working, whether that’s staggered hours, flexible contracts or better wellbeing support.
“That’s to be applauded, but alongside that, firms must keep pace with the changing values and expectations of young talent.”