Wall Street firm Goldman Sachs Inc. is loosening its dress code for all employees, a move that would have been unthinkable years ago.
The company delivered its new “firm-wide flexible dress code” to employees in an internal memo. The reason for the revision is “the changing nature of workplaces generally in favour of a more casual environment,” reports Reuters.
Approximately 36,000 employees received the memo from Chief Executive Officer David Solomon, a former investment banker who has only held the position since October.
“Goldman Sachs has a broad and diverse client base around the world, and we want all of our clients to feel comfortable with and confident in our team, so please dress in a manner that is consistent with your clients’ expectations,” Solomon said in the memo.
President John Waldron and Chief Financial Officer Stephen Scherr noted “the changing nature of workplaces generally in favour of a more casual environment,” and pointed out the need to create a cohesive culture across the company.
Historically, Goldman Sachs required its employees to don formal business attire. In 2017, the company started to allow those in its technology sector and other digital divisions to loosen their dress code. This move caused some consternation among others in the company.
In order to remain competitive, Goldman Sachs must secure the top talent. Changing policy is one way to do it. Big tech firms and hedge funds are transforming their offices with less formal atmospheres and additional perks, and Goldman Sachs is changing with the times as well.
The move is partially in response to the young demographic at Goldman Sachs—more than 75 percent of its employees are Millennials or Generation Z.