Why Financial Firms Are Losing Talent – And How a Better Commute Can Help

The financial services industry is facing an unprecedented battle in retaining talent. Longer hours, lack of meaningful work and an often overlooked challenge: commuting, are driving professionals out of the sector. While firms are investing in new ways to increase engagement, one critical factor is going unaddressed: how employees get to work.

A better, more reliable and stress free commute could be the missing piece in solving your talent retention puzzle. Here’s why financial services firms need to take commuting challenges seriously, and how shared transportation solutions like Zeelo can help.

Why are financial firms losing talent?

Job dissatisfaction & burnout The high pressure and faced paced nature of the financial industry is notorious for leading to burnout. A deeper challenge is emerging though, with many professionals feeling unfulfilled in their roles; with only 40% of finance professionals believing their work adds value to their organizations and 26% spending less than half of their time on meaningful tasks. This leads to disengagement, with employees more likely to seek engaging and meaningful opportunities elsewhere.

Younger employees, particularly millennials and Gen Z prioritize work/life balance and purpose driven careers. A mismatch between expectations and job experience is leading to higher turnover rates.

Commuting challenges Beyond job satisfaction, one of the most impactful yet overlooked reasons the financial services industry struggles with retention is commute related stress, with 23% of US workers quitting due to a difficult commute. Younger employees are more disproportionately affected, often relying on public transit or living further from the office due to increased living expenses. On average, employees with a shorter and more reliable commute stay with their employers 20% longer than those who have to travel further and longer. 

Frustrating, unpredictable and expensive commutes add stress before an employee even arrives to work. Over time, this can lead to decreased engagement, increased absenteeism and ultimately, resignation.

High cost of turnover Replacing key talent can be a costly process. Between recruitment, onboarding, training and lost productivity, turnover costs can quickly add up; with the cost of replacing an employee ranging anywhere from 50%-200% of their annual salary. When commuting dissatisfaction drives turnover, firms end up paying over and above for recruitment instead of addressing the root cause. A stressful commute does more than just drive talent away, it creates an unnecessary financial drain for businesses. 

How can better commutes help retain top talent?

Enhanced retention - Businesses actively engaged in better commuting solutions see significant improvements in their ability to retain key talent:

• Tech-powered shuttle programs, like those provided by Zeelo, offer reliable and stress free transportation for employees.

• Reduced commuting stress can lead to lower absenteeism and career longevity.

• 98% of Zeelo riders consider the service critical to their ability to get to work; proving the essential nature of employer sponsored transportation in driving staff retention.

Providing employees with a reliable way to get to work can help financial services firms remove one of the leading stressors impacting job satisfaction.

Expanded recruitment pool - A well thought out commuting strategy doesn't just help retain employees, it broadens access to a wider talent pool:

• Many financial firms limit their hiring reach when they assume all candidates have easy access to the office.

• Potential applicants can often be deterred by long and expensive commutes; particularly where public transit is unreliable or unavailable.

• Leveraging transport as a benefit, through employer sponsored shuttles, public transit passes or ride sharing incentives makes it easier to attract top talent from a broader geographic area. 

By addressing and solving the commuting barrier, firms will be well positioned to attract skilled professionals who might otherwise overlook job opportunities due to location constraints. 

Boost in employee wellbeing - Long and frustrating commutes can negatively impact more than just the retention of your workforce, they can impact employee wellness, mental health and job performance:

• Employees are more engaged, energized and productive at work when they can eliminate a stressful commuting experience from their day.

• Subsidized commuting benefits like Zeelo staff shuttles, transit passes or carpooling perks can help employees save time and money, while improving their mental health.

• Businesses that prioritize the wellbeing of their employees see increased job satisfaction, and decreased turnover.

There is no reason why a good commute should be just a perk, when it can become an essential part of fostering a positive workplace experience.

Corporate responsibility - Younger working professionals in particular are becoming increasingly conscious of their impact on the world around them; with a growing focus on sustainability and corporate social responsibility:

• More and more millennials/genZ workers report a preference for working with companies that align with their values; environmental impact and community engagement at the forefront.

• Zeelo shuttles support reduced carbon emissions by consolidating rides, reducing the number of cars on the road and utilizing energy efficient or net zero vehicles.

• Investing in sustainable commuting initiatives can demonstrate an organization's commitment to responsible business practices, further resonating with today's modern worker.

An investment in greener, more efficient transportation can enable financial services firms to enhance their reputation while improving employee retention.

The bottom line: a smarter commute = a stronger workforce

Retaining employees is a pressing challenge across the financial service sector, though the solution may be simpler than you might think. By improving employee commutes, firms can:

• Reduce burnout and absenteeism by removing one of the primary causes of daily stress.

• Expand their recruitment reach, attracting top talent from further afield.

• Lower the cost of employee turnover by investing in retention over continuous recruitment.

• Enhance their employees wellbeing, driving increased job satisfaction, morale and productivity.

• Make their workplace more attractive to younger talent by strengthening their sustainability efforts.

Employer supported commutes are no longer just a perk, but a competitive advantage. With Zeelo’s tailored staff transportation solutions, financial firms can offer affordable, reliable, timely and sustainable commuting solutions to ensure that they can attract and retain top talent.

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Ready to rethink your commuting strategy? Get in touch today for a free consultation

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