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While the banking sector was once a prestigious workplace, this perception has shifted among newer generations. Based on leadership feedback, we observe a significant exodus of young talent from the banking industry, leading to recruitment challenges. In this blog post, we will delve into the reasons behind this trend and propose viable solutions to effectively engage and retain young professionals.
1. Why is the banking sector less appealing to young professionals today?
The Changing Prestige of the Banking Sector
Historically, banking jobs were considered elite, offering stability, competitive salaries, and career growth. However, recent years have seen a shift in preferences: younger individuals now view the tech and telecommunications sectors as more promising. According to a KPMG study [1] , these industries offer faster-paced environments, higher salaries, and significantly more flexibility.
The “Outdated” Perception of Banking
Post-pandemic, employees prioritize flexibility in work arrangements, whether in terms of daily/weekly schedules or partial or full remote work options. Younger generations, in particular, are more assertive and creative in this regard compared to their predecessors. Rigid banking atmospheres, fixed schedules, and dress codes are more alienating than attractive when choosing a workplace.
The “Small Cog” Syndrome
A 2022 global report by PwC [2] suggests that younger banking employees are less satisfied with their career prospects than their older colleagues. Today’s youth seek more influence and faster promotions at work. The hierarchical nature of the banking sector leaves many feeling their opportunities are limited or that they must wait too long to make a meaningful impact.
2. Why is addressing this issue urgently important?
“Retain your talent. Recast your brand. Build innovation at the center of what you do—this is the future of commercial banking”, states a study by Accenture. Moreover, to keep pace with fintech competitors, banks need to prioritize creativity. (3)
Creativity Begins with Corporate Culture
Companies that foster creative thinking, value fresh ideas, and facilitate structured dialogue with employees will likely attract thoughtful young talent. Building an employer brand is crucial for banks. They need to craft a Brand Value Proposition more aligned with young professionals’ expectations.
Widening Generational Gap
As the ‘baby boomer’ generation retires, bridging the gap between the sizeable X and Y generations and the smaller, differently-attuned Gen Z becomes crucial. Quality knowledge transfer and collaborative thinking thrive best in actively collaborative work environments.
3. What’s the Solution?
Digital Transition
Embracing digitization can provide more room in the banking sector for flexible work and roles demanding higher creativity.
Learning and Development through Gamification
Continuous training and development remain crucial for the young workforce, but the method matters. Tailored, enjoyable knowledge transfer techniques are preferred over traditional methods like lectures. Gamified learning offers an innovative approach to effective employee development.
Strengthening Collaboration
Authentic value creation arises when team members think and work in synergy.
Supporting Employee Dialogue
An inclusive, supportive, and collaborative environment fosters spontaneous horizontal and vertical communication among employees. While a suggestion box is a start, innovative methods allowing direct communication between employees and HR or management should be explored.
4. Innovative Employee Retention Tool – Motivive
The Motivive Employee Motivation Platform offers tools and processes for companies to engage young professionals, enhance their commitment, introduce intergenerational dialogues and collaborative practices, and ensure their long-term retention.
Motivive is a next-gen web application built on gamification. This real-world proven method has been integrated into business operations, developed with the assistance of psychologists, UX/UI experts, and enriched by over 20 years of leadership experience.
Discover how Motivive can support your company!
Request a live demo from our colleague!
Cited sources:
[1] KPMG (2019): Future-Proofing the Banking Workforce
[2] PwC (2022): PwC’s Global Financial Services Report
[3] Accenture (2022): Commercial Banking Top Trends in 2022