Goldman Sachs Drops Dress Code, Favors ‘Casual Environment’

Investment bank Goldman Sachs will go casual in the workplace as far as dress code is concerned.

In a major decision, the bank announced its plan to do away with the conventional, stuffy, dress code and allow casuals in the workplace to motivate the millennial workforce.

In an email to staff on Tuesday authored by bank’s top brass, it said the bank is loosening fashion standards as the time has come to move to a “firmwide flexible dress code.”

The memo broke the good news that the bank’s traditional preference for collared shirts and suits will not stay anymore.

However, it requested staff to exercise good judgment in this regard and do not alienate clients with bad dressing.

“Of course, casual dress is not appropriate every day and for every interaction and we trust you will consistently exercise good judgment in this regard,” the memo added.

Goldman’s change to casuals has a precedent in its competitor JPMorgan Chase that started the trend in 2016.

However, many would credit the new dress code to Goldman CEO David Solomon, who also moonlights as a music DJ.

The trend towards casual workplace

The memo authored by CEO David Solomon, President John Waldron and Chief Financial Officer Stephen Scherr explained the changing nature of workplaces and the trend toward a casual environment.

Goldman has opted for a phased induction of casual dress. First, it allowed the 8,000 technology staff to go casual in 2017 rousing expectations that similar dress code will catch up in the banking area as well.

The relaxed dress code will grace the 36,000-strong banking workforce of Goldman.

But casuals will not mean Goldman employees will wear jeans during client presentations.

The CEO has left it to the wisdom of employees to decide what to wear at business events that match the expectations of the client and the brand.

Live up to client expectations

“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,” they said.

Goldman competes with hedge funds and technology companies for talent. The bank’s core workforce comprises millennials who were born after 1981.

Already many top companies are ushering in lenient dress codes.

Recently, Virgin Atlantic announced that its female cabin crew will not be required to wear makeup anymore.

New style trends in the banking industry

Goldman’s shift towards casuals for the workforce in a way mirrors the new style trends in the banking industry.

Bank dress codes are becoming increasingly informal. Top banking honchos such as JPMorgan’s CEO Jamie Dimon and president Daniel Pinto often appear in media photos without a tie. In fact, Citigroup president Jamie Forese is extra casual and can be spotted with a sporty gilet at the office.