Navigating the Gen Z Workforce for Banking Talent

Navigating the Gen Z Workforce for Banking Talent

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Navigating the Gen Z Workforce for Banking Talent

In just two short years, employees of the Gen Z generation will make up 27% of the workforce in the U.S.  With those numbers, HR and talent acquisition professionals in banking can’t afford to ignore their employment aspirations and preferences. The good news is that now more than ever, Gen Z is interested in banking career opportunities —just at the right time to help banks manage their talent shortage issues. In this article, we’ll explore strategies for navigating the Gen Z workforce in banking, including how to attract Gen Z employees, bank training that engages them, and ways to create an inclusive environment for future bank talent success.

Defining Gen Z

Gen Zers are typically defined as those born between 1997 and 2012, which makes them 12 to 27 years old in 2024. As each generation comes of age, the ways in which they differ from previous generations become clear. However, with Gen Z, it’s fair to say many of the gaps are wider. Gen Z is more racially and ethnically diverse, more digitally-forward, and likely to be more highly educated than any other previous generation. All of these characteristics come together to shape Gen Z employment preferences. And, they are not simply another generation in the workforce; they are also customers who are defining the future of banking.

Gen Z in the Workforce

Over the ten years that Gen Zers have been in the workforce, their qualities and preferences as employees have emerged, such as:

  • Short attention spans, which can make it challenging to keep them engaged in traditional work settings. Employers need to find innovative ways to capture and maintain their interest.
  • Highly dependent on digital tools. Employers need to adapt to this reliance on technology and provide a tech-friendly work environment.
  • Eager to acquire new skills and continue to learn. Employers should invest in bank training and development programs to keep them engaged and help them grow both personally and professionally.

Challenges in Engaging Gen Z

Prior to the pandemic, many in Gen Z were not interested in banking career opportunities, and that had a negative impact on banks’ talent pipelines. Perceptions of modern banking jobs as staid, inflexible and limited to linear career progression didn’t appeal to this generation. Two additional aspects of the banking industry that also kept Gen Z employment preferences for bank jobs at a minimum include:

  • The measurable lack of diversity, equity, and inclusion in banking, which continues to be an issue. The percentage of minority employees in banking, as well as the ratio of women in executive and senior-level banking roles compared to women in the banking workforce, remain disproportionate to the overall U.S. workforce.
  • Skepticism and distrust about corporate social responsibility in the banking industry. Gen Z wants to align themselves with companies that have a positive impact on society.

However, there are signs that Gen Z’s perceptions of banking career opportunities have shifted dramatically. The pandemic changed Gen Z in significant ways and now, many value stability and high compensation in a job. According to the CFA Institute’s Global Graduate Outlook Survey, finance has surpassed both healthcare and medicine as the top ranked profession by Gen Z, and is seen as the most stable career post-pandemic. As a result, banking industry professionals who are responsible for shaping talent strategies and ensuring the industry remains attractive to the next generation of workers have a ready-made opportunity to bring Gen Z banking employees into their workforce.

Effective Recruitment Strategies

To effectively recruit Generation Z, banks can leverage innovative strategies that align with the preferences and values of this tech-savvy generation. First, an active and authentic online presence is crucial. Gen Z is highly connected and relies on digital platforms for information. In fact, Gen Zers turn to social media as their top source for career information. Utilizing social media channels, particularly platforms like Instagram, TikTok, and LinkedIn, can help showcase the institution’s culture, values, and opportunities. Engaging and interactive content, such as employee testimonials and behind-the-scenes glimpses, can capture their attention.

Second, embrace technology throughout the recruitment process. Leveraging AI-driven recruitment tools, chatbots, and virtual reality experiences can streamline the application process, making it more efficient and user-friendly. In addition, showcasing the institution’s commitment to sustainability, diversity, and social responsibility in recruitment efforts can resonate with Gen Z's values, increasing the likelihood of attracting top talent from this generation.

Training and Development

Younger workers, including Gen Z, are the most likely to value opportunities for learning and skill-building. HR professionals and recruiters can attract and retain Gen Z banking employees by developing and communicating about a robust bank training program that offers both compliance and personal development training. Keep in mind that Gen Z’s learning experiences in school often included online learning, self-paced formats, and content presented in microlearning bites. To effectively engage Gen Z, bank training programs need to offer courses that appeal to Gen Z preferences for modern, online learning models.

Creating a Gen Z-Friendly Work Environment

Crafting a work environment tailored to the employment preferences of Gen Z involves a comprehensive approach that reflects their focus on diversity, modernization, learning experiences, technology, social impact and workplace culture. Though it may sound like a lot, in reality Gen Z employment preferences align with broader trends in talent management and workforce evolution. Here are some actionable strategies for banks to use in attracting and retaining future bank talent:

  • Recognizing the tech-centric nature of Gen Z, banks can foster a culture of innovation by integrating the latest technologies and digital tools into their operations. This not only caters to Gen Z technological fluency but also enhances productivity and creativity.
  • Leadership and management styles should adapt to Gen Z's preferences for transparency and collaboration. Open communication channels, mentorship programs, and a flattened hierarchy can create a more inclusive and supportive atmosphere, addressing their desire for meaningful connections in the workplace.
  • Inclusivity and diversity stand out as essential characteristics of a Gen Z-friendly environment. Banks should actively promote an inclusive culture that embraces individuals from diverse backgrounds, ensuring that everyone feels valued and represented. This commitment not only aligns with Gen Z's values but also contributes to a more dynamic and innovative work culture.
  • Integrating social impact initiatives into the institution's mission resonates strongly with Gen Zers, who seek purpose and value ethical business practices. This can include engaging in sustainable practices, supporting charitable causes, and actively participating in community initiatives.
  • Learning experiences are paramount for Gen Z's professional development. Banks can offer opportunities for personal development and mentorship. Providing clear career paths, skill-building workshops, and access to online courses aligns with their desire for ongoing learning experiences. This not only enhances their job satisfaction but also ensures that they feel invested in and equipped for future challenges.

Retaining Gen Z Talent

Many of the strategies for creating a work environment that caters to their unique values, preferences, and expectations also support banks’ ability to hold onto their Gen Z employees. To increase Gen Z retention, HR professionals in banking can also implement:

Flexible work arrangements. Gen Z values work-life balance and flexibility in their jobs. Offering remote work options, flexible schedules, and the use of advanced collaboration tools can contribute to their job satisfaction. Providing the autonomy to balance personal and professional commitments fosters a positive work environment and demonstrates that the bank understands and accommodates their lifestyle preferences. This flexibility can enhance their loyalty to the institution.

Support for social causes. Banks can incorporate paid time off for volunteering into their HR policies, and consider offering a matching donation for employee gifts to the particular nonprofits that employees find meaningful.

Preparing for the Future of Banking

As both banking customers and future talent in banking, Gen Z will have a notable positive impact on the future of banking. Their preferences for and comfort with digital tools are already helping to drive digital transformation in banking. Institutions can tap Gen Zers entrepreneurial spirit to increase innovation and bring their diverse perspectives into decision-making processes. With growing interest on the part of these young employees in banking career opportunities, institutions can draw from a larger, diverse and educated talent pool.

Creating a Gen Z-friendly work environment goes beyond surface-level adjustments. It requires a holistic approach that incorporates technological advancements, inclusive practices, social impact initiatives, and continuous learning opportunities through comprehensive bank training programs. By aligning with these Gen Z employment preferences, banks can not only attract but also retain top Gen Z talent, fostering an appealing workplace that supports their long-term professional success.