Last month, I keynoted a business conference to share some strategies on how corporate leaders can maintain their culture and top talent amid rapid change and business uncertainty. A bank executive in the audience approached me as I came off stage. He began to tell me about the myriad of challenges affecting his institution. In short, the banking and financial services sector is at a crossroads. Despite offering lucrative compensation and career advancement opportunities, many financial institutions are struggling to retain top talent. But there’s another crisis brewing that they can’t afford to ignore: the erosion of their workplace culture. Both of these challenges threaten the long-term stability of some companies in the industry. Over the last five years, I’ve worked with a half dozen banks and financial organizations. I know that when talent walks out the door, your business doesn’t just lose skills—it loses its edge.

In this post, I will outline the specific challenges facing the banking and financial services sector and provide three strategies for executives to break the turnover cycle, rebuild the banking culture, and address these issues effectively.

Why Financial Institutions Are Struggling to Retain Talent

1. High-Pressure Work Environment: Let’s be honest—banking is a high-stakes game. The intense focus on profitability and performance creates a work environment that’s demanding, stressful, and often unforgiving. There are recent news reports of financial services employees working 100 hours a week. At one institution, two banking employees died recently. Rumor has it that one of them died of exhaustion working 100 hours! That is ridiculous! Let’s face it, your employees are burning out, and when they do, they leave. The question is, can you afford to keep losing them?
2. Cultural Stagnation and Resistance to Change: Many financial institutions are steeped in tradition. They still operate in a 20th-century top-down leadership model, and that’s not a good thing. The world has changed, but the workplace hasn’t. In an era of digital transformation and shifting employee expectations, a rigid, old-school culture just doesn’t cut it. If your organization resists change, your people will find a place that doesn’t.
3. Diversity and Inclusion Gaps: Despite all the industry talk, the industry still struggles with diversity, especially in leadership. A lack of inclusion and representation sends a clear message to your employees about who gets to succeed and who doesn’t. Also, your customers want to do business with people who look like them. So, if you’re not committed to focusing on diversity and inclusion, your talent (and customers) will find somewhere that is focused on it.

Three Strategies to Retain Talent and Reinvent Culture in Financial Services

1. Redefine Performance Metrics to Prioritize Employee Well-Being

In banking, we know performance is everything—but at what cost? It’s time to redefine what success looks like. Yes, profitability and client satisfaction matter, but so do employee retention, turnover, and well-being. Integrate well-being and work-life harmony into your performance metrics. When your employees see that their health and happiness matter to you, they’re more likely to stay.

What You Can Do Now: Introduce an “Employee Wellness Scorecard” that includes well-being indicators alongside traditional financial metrics. Track how departments are doing with PTO and vacation time. Recognize and reward teams that achieve their goals without sacrificing their health or work-life balance.

2. Drive Cultural Change Through Leadership Transformation

If you want to change your culture, start at the top. Executive leaders need to model the transparency, inclusivity, and adaptability that your organization needs to thrive. This isn’t just about training—it’s about a mindset shift. Leaders who embrace these values create an inclusive culture that attracts and retains talent rather than pushing them away.

What You Can Do Now: Host an executive leadership retreat to discuss a new approach to training leaders and managers with the skills to lead inclusively and adaptively. Take time to talk about the pros and cons of your current culture. Reflect on your institutional values and assess whether your leaders are operationalizing them. If not, set a plan to change it. Also, consider implementing reverse mentoring programs to bridge generational gaps and foster a culture of continuous learning.

3. Accelerate Your Commitment to Diversity, Equity, and Inclusion (DEI)

I won’t sugarcoat it—if your DEI efforts are only skin deep, your employees set and know it. Your customers see it and know it. They are not fooled by the words you state in a video, on your website, or placards in your branches. They want to see your DEI actions. You must go all in on DEI to attract and retain diverse talent. That means auditing your practices, supporting underrepresented groups, and ensuring everyone has a fair shot at success. When you get this right, your culture and talent retention will follow.

What You Can Do Now: Implement a comprehensive DEI strategy that includes regular audits of hiring, promotion, compensation, and leadership development practices. Pair this with mentorship and sponsorship programs to help underrepresented talent advance into leadership roles.

Conclusion

The banking and financial services sector is facing a talent crisis that’s too big to ignore. But with the right strategies, you can turn this challenge into an opportunity. By redefining performance metrics, transforming leadership, and deepening your commitment to DEI, you can create a workplace culture that retains talent and drives your business forward. I’ve seen this work in other industries, and it can work here, too.

If you’re ready to make these changes, let’s connect. Together, we can build a culture that keeps your best people engaged and your business thriving.

Here are two helpful resources: the Diversity Safety Checklist and How to Start Turning Around Your Workplace Culture.

I would love to hear your thoughts. Share your experiences and tips for addressing these issues in your workplace. Let’s keep the conversation going and create a future where all voices can be heard. If you’re looking for a speaker to inspire and guide your organization toward a healthier company culture, consider booking me for your next event. Also, don’t forget to connect with me on LinkedIn.