Gen Z workers are increasingly walking away from banking jobs in pursuit of entrepreneurial opportunities or more flexible working, a new survey of senior bosses has found.

Most financial firms are taking action in a bid to hold onto their younger members of staff.

Nearly half of financial services leaders report an increase in Gen Z employees leaving their organisation over the past year, according to polling by KPMG.

This rises to 54% of those within the banking sector who noticed an upsurge.

Gen Z – typically referring to people born between 1997 and 2012 – are often seeking out more entrepreneurial-style work in their decision to leave finance jobs, the survey found.

The biggest reason cited by the finance bosses was a preference for working in start-ups, at 42%.

While 35% said they were leaving because of a desire for self-employment or freelance careers.

Some 34% said Gen Z workers were choosing to leave because they want more flexibility or remote working, while the same proportion cited cost-of-living concerns as the driver.

The poll, which was to around 150 people at director level or above in financial services companies, found that around a quarter of younger employees are estimated to have left finance businesses in the past year.

Almost all of the business leaders surveyed, at 96%, said they were taking active steps to try and improve Gen Z retention at their firm.

More than half said they were working on introducing flexible working policies such as term-time contracts or flexible hours in a bid to appeal to younger workers.

Others said they were revising their office attendance policies as a result.

Karim Haji, global and UK head of financial services at KPMG, said: “Gen Z employees are clearly signalling a desire for more autonomy, variety and entrepreneurial experiences.

“The challenge for financial services firms now is how to create an entrepreneurial experience for a social media generation in a heavily regulated environment.

“Office presenteeism gets a lot of airtime, but the reality is that most financial services firms have made strides in offering flexibility that goes far beyond remote working, whether that’s staggered hours, flexible contracts or better wellbeing support.

“That’s to be applauded, but alongside that, firms must keep pace with the changing values and expectations of young talent.”

Holidays will become more expensive if Rachel Reeves hikes taxes in next month’s Budget, the UK’s two biggest tour operators have said.

Tui’s UK managing director Neil Swanson said holidays will become too costly for some people if the Chancellor does this, while Jet2 chief executive Steve Heapy expressed fears about the Budget raising taxes by £50 billion a year and “screwing Middle England”.

Ms Reeves has acknowledged she is looking at potential tax rises and spending cuts in her Budget on November 26 to fill a black hole estimated at around £50 billion by some economists.

She used her first Budget in October last year to announce £40 billion a year in extra taxes.

Mr Swanson warned that travel companies would be forced to raise holiday prices if taxes on businesses were increased further.

He said: “We won’t be able to absorb the extra costs that come along there, and we’ll need to pass some or all of that on, depending on what actually happens.

“That’s going to price some people out of the market.

“You want travel to be for everyone, not for just the people who’ve got the deeper pockets.

“We need the Government to help us drive some of that growth that the economy needs.”

He said: “If you put too much in our way, then that’s going to be really difficult to achieve.”

Mr Heapy said that taxes were “even higher than when the Conservatives were in power”, with his company suffering a £25 million hit from increased employer national insurance contributions and a higher national minimum wage announced at the last Budget.

“The mood music seems to be that tax will go up again,” he said.

“I don’t think it’s sustainable.”

Asked if tax rises would lead to an increase in holiday prices, Mr Heapy replied: “Probably, yes, because if the Budget is perceived as not being great, the (value of the UK’s) currency could reduce, and if the currency reduces, import costs will rise.”

Mr Heapy said his message to Ms Reeves would be “don’t continue to use Middle England as a cash cow” as he did not believe it was possible to “tax your way out of an economically tight spot”.

He added: “They keep talking about a growth agenda. Well, let’s see it.

“I haven’t seen much so far that I think will result in significant growth in the economy, but I remain hopeful.

“I hope the Budget is a true growth agenda Budget.”

The Treasury was approached for a comment.

NEW DELHI: The ongoing trade negotiations between the EU and India, and New Delhi’s openness to deepening economic partnerships, reinforce confidence that there is significant scope for long-term cooperation, a top European Investment Bank (EIB) official has said but called for accelerating approvals and providing a level-playing field for global investors.“Despite the current geopolitical uncertainties in South Asia, India stands out as a country of remarkable resilience and opportunity,” Nicola Beer, vice president of the European Investment Bank (EIB) told TOI during her visit to India, during which she unveiled a string of investments from upgrading water infrastructure in Uttarakhand to metro projects in Nagpur and Pune to strengthening participation in the India Transition Fund. “For EIB, which has committed over 5.6 billion euro to India in last 20 years with more than 90% dedicated to climate action, this means India remains a highly attractive destination for investment, particularly in sectors that align with both India’s and Europe’s priorities,” said Beer. EIB is one of the world’s largest multilateral banks.She said sustainable transport is leading EIB investment in India and EIB has signed 3.6 billion euro in loans for metro projects in the country, making India the largest recipient of EIB urban mobility financing outside the EU, with metro projects in cities like Agra, Bengaluru, Pune, Nagpur, Lucknow, Bhopal and Kanpur.“Energy transition is another key area, especially renewables, energy efficiency, and grid infrastructure,” Beer said when asked about the priority sector for EIB. “These sectors not only address India’s development needs but also create opportunities for technology and investment flows between India and the EU,” said Beer.She cited the $60 million commitment to the India Energy Transition Fund, managed by EAAA Alternatives, as an example of engaging with the private sector.Beer said this fund is designed to channel equity and “last mile” financing into greenfield infrastructure and growth-stage companies, accelerating projects in renewables, energy efficiency and clean mobility.“The fund is expected to mobilise significant additional private capital, including from leading European institutional investors, and to foster innovation in areas like battery storage and circular economy.” She said while the opportunities are significant, there are still some barriers to greater European investment in India.