Generation Z banking staff are departing the sector at accelerated rates compared to other industries, choosing start-up positions and remote working arrangements instead.
This emerges from fresh KPMG research involving sector leaders, which discovered that nearly half of financial services companies have witnessed a surge in younger workers resigning, as reported by .
The consultancy established that amongst banks specifically, this proportion climbs to 54 per cent, based on a survey of 150 director-level professionals from across the financial services industry.
The most frequently cited reason – mentioned by 42 per cent – was a preference for operating within more 'entrepreneurial' start-up settings.
Concurrently, the study revealed that 35 per cent referenced aspirations for more adaptable career paths, including freelancing or running their own businesses.
Gen Z hung up on office attendance
Additionally, 34 per cent indicated that employees from this age group sought some form of remote working opportunities – which has become less prevalent in sectors such as banking.
Virtually every organisation polled confirmed they are implementing proactive measures to halt the exodus of Gen Z personnel, including initiatives to re-examine workplace attendance requirements.
According to Karim Haji, KPMG's global and º£½ÇÊÓƵ 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 emerged consistently in Gen Z surveys as a primary driver.
Earlier in February, City AM highlighted a Times-commissioned study of 18 to 27 year olds, revealing that merely one in ten desire full-time office presence.
Meanwhile, June research from recruitment firm Reed discovered that remote employees face greater likelihood of being overlooked for promotions and salary increases compared to their office-based counterparts.
Regarding office attendance, Haji commented: "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."
