By Lindsay Torrico
As Generation Z enters the workforce, companies are grappling with how to cater to their remote preferences and entrepreneurial spirit.
According to the World Economic Forum, Gen Z will account for nearly one-third of the global workforce by 2025. But what does that mean for the future of work and how should banks respond?
It’s no secret that Gen Z wants to work for companies that value flexibility and digital transformation. Banks, like every industry, are making shifts in their in-office policies — with more than two out of three banks offering workers either complete flexibility or some hybrid-work arrangement. The financial services industry has also made great strides in embracing innovation with mobile banking, artificial intelligence and personalized digital experiences.
But there has been less focus on utilizing another powerful recruiting tool for Gen Z: purpose. Deloitte’s 2023 Gen Z survey found that a key motivating factor for this generation is companies that embody purpose. In other words, they want to work for companies that they believe are doing good in the world.
To win the hearts and minds of Gen Z, here are three effective strategies to attract this values-driven generation:
Lead with your values. This generation places significant emphasis on working for companies that are good global citizens and demonstrate integrity. On the job search, 39 percent of Gen Zers say they’ve turned down employers who do not align with their values, according to Deloitte. That means that your mission, values and impact in the community must be highly visible on your website and reinforced in your communications. A good example is Fifth Third Bank, which highlights its latest sustainability report on its homepage and makes community impact a core part of its social media presence.
Give them a voice in your corporate social impact. Not only is Gen Z looking for banks to show their commitment to solving societal challenges, but they also want to be empowered to be part of the solution. Gen Z employees report having the least meaningful work (14 percent) and least autonomy at work (21 percent) compared to other generations. To recruit and retain Gen Z staff, banks need to position them to be pioneers of change even in the very early stages of their careers. Start by looking for opportunities to listen to their perspectives. Invite their input on the charities and causes that the bank supports, and the products and services offered to youth customers.
Embrace diversity and inclusion. Gen Z is the most diverse generation to enter the workforce, with 48 percent representing a racial or ethnic minority, according to Pew research. These young people expect to work for employers that make it clear that they appreciate diversity and honor inclusiveness. Banks that have a diverse workforce have an advantage. But it goes beyond diversity. They want to work for companies that have a culture that celebrates diversity as a strength, encourages employees to be authentic, and builds a sense of belonging across a range of differences. For some banks, employee resource groups have been an invaluable resource for staff to build community, advocate for inclusion, and drive social impact. For instance, Bank of America has eleven ERGs with more than one in four employees serving as a member of at least one employee network. From the Asian Leadership Network to the Disability Action Network, these groups are leading courageous conversations, building strong ties with communities, creating forums to ideate on business strategy, and broadening views of diversity.
As Gen Z floods the workforce, this is an inflection point for the banking industry to ensure it reflects the values, practices and culture this generation is looking for. The banks that are vocal about their values and CSR strategies, embrace inclusion and empower young employees to contribute to making a difference will be well-positioned to attract and retain this new generation.
While it’s not easy — harnessing the passion of this generation could pave the way for a more inclusive, forward-thinking and impact-driven industry where all employees can thrive and succeed.
Lindsay Torrico is executive director of the ABA Foundation.
