The stereotype of Gen Z as the “job-hopping generation” is off-putting to 63% hiring managers – probably why 4 in 10 admit to having an age bias against them. I myself have placed many Gen Z professionals in the insurance space. Every time, the hiring manager would say they don’t want someone “jumpy” – and I’d have to advise them that it’s just more common now.

Indeed, the trend is snowballing, with 83% of Gen Z professionals identifying as job hoppers. This can be particularly concerning for financial services organizations, where talent pipelines often struggle to keep pace with shifting priorities, and there’s little room for turnover.

But is this perceived lack of loyalty a threat – or is it an opportunity? For hiring managers focused on executive talent, especially within financial services, I argue that understanding the nuances of this behavior could turn a challenge into a competitive advantage.

Why do Gen Z job-hop in the first place?

It’s important to know that Gen Z aren’t job-hopping just because they can. Usually, it’s a result of their values-driven approach to work.

According to Deloitte, 44% of Gen Z have declined job offers over misaligned values. Evidently, this demographic prioritizes employers that reflect their principles and expectations. For financial services, an industry often perceived as traditional, there’s a clear message: evolve or risk missing out on top talent.

The hidden advantages of Gen Z’s job-hopping

Yes, a proclivity for job-hopping may mean higher turnover, and turnover comes with costs – recruiting, onboarding and potential productivity dips. However, focusing solely on these challenges risks overshadowing the benefits of hiring job hoppers.

Frequent job changes offer fresh perspectives

Gen Z’s experience in varied work environments equips them with diverse skills and innovative ideas. This aligns perfectly with financial services’ need for dynamic, forward-thinking leaders. After all, Cake’s research shows 21% of managers believe Gen Zs foster more collaborative environments, while 20% note their increased focus on technology and innovation.

These traits are particularly valuable in financial services roles that require agility, such as actuarial consulting or leading digital transformation initiatives. Hiring managers should see Gen Z’s movement between roles as a source of fresh ideas and broader expertise, offering strategic benefits rather than red flags.

Gen Z’s tech fluency makes every hire a worthwhile investment

With Gen Z driving innovation and adaptability, leveraging young executive talent can turn every hire into an opportunity to advance digital transformation and business growth.

The financial services sector, where technology adoption is pivotal, can particularly benefit from this agility. Whether it’s leveraging artificial intelligence (AI) in underwriting, modernizing claims processes or boosting operational efficiency, the technological proficiency Gen Zs bring from their varied experience – and status as digital natives – can be a game changer.

Even if these employees eventually move on, the innovations they spearhead and the efficiencies they introduce can have lasting benefits. While hiring Gen Z professionals may seem like a risky bet, their contributions often outweigh the costs of their shorter tenures, leaving organizations better positioned for the future.

Job-hopping can accelerate leadership potential

A growing number of Gen Zs are moving into leadership roles as they approach their late 20s. Interestingly, leaders under 30 outperform older peers, with 44% ranking in the top quartile for leadership effectiveness, compared to 20% for older leaders.

A big reason for this is their diverse job experience. Each role they’ve taken on has added a new dimension to their problem-solving toolkit. Having been exposed to varied teams, challenges and systems, Gen Z professionals have honed their ability to adapt, communicate and lead effectively across different contexts – much more than tenured colleagues, who have stayed in the same place for decades.

Gen Z’s breadth of experience thus means they can spot patterns and innovate in ways that traditional, linear career paths don’t cultivate. Leaders shaped by this kind of career agility can guide teams through complexity with confidence, making them exactly the type of forward-thinking executives financial services firms need to thrive in a rapidly evolving market.

So, how do you keep Gen Z once you’ve hired them?

We’ve established that Gen Z job-hopping has equipped this demographic with highly useful skills. But let’s face it – most organizations would still prefer not to deal with constant turnover. But the question isn’t whether to hire Gen Z, it’s how can hiring managers retain them better?

Simply put, organizations must improve how they address Gen Z’s top priorities: career growth, alignment with personal values and compensation. When you do this, loyalty significantly improves. Here are three proven strategies for this ambitious generation:

1. Provide clear development pathways. Gen Zs are laser-focused on growth, with 70% expecting a promotion within the first 18 months, according to Cake. To meet these expectations, organizations must offer structured leadership development plans. Transparency is key; letting them know exactly what it takes to progress within your company can reduce the likelihood of early exits.
2. Align roles with values. With 75% of Gen Z willing to take roles that better align with their personal values, it’s important to understand what your ideal talent wants most – and then deliver. This might mean highlighting sustainability initiatives, or diversity and inclusion, or work-life balance, or something entirely different. Conducting thorough research, or partnering with an executive search firm, will help you get this right.
3. Be competitive with compensation. While values matter, salary still plays a pivotal role in retention. Per Cake’s research, 74% of Gen Zs would leave a job due to low pay, and 35% of job-hoppers in 2023 cited better compensation as their reason for moving. Regularly benchmarking salaries against the market and offering competitive packages sends a clear signal that your organization values its employees.

Turning a challenge into an advantage

Job-hopping isn’t necessarily a liability – it’s a characteristic of a generation that prioritizes alignment, growth and impact. Understanding and adapting to these motivations will allow firms to end the stigma and start leveraging the full force of this forward-thinking talent pool.

From where I sit, Gen Z’s mobility offers financial services a strategic advantage, injecting innovation and adaptability into an industry that’s often resistant to change.

If you’re looking for your next executive who will make a tangible impact, contact me directly.