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A banker’s death
The death of a 35-year-old Bank of America junior banker due to exhaustion has exposed the harrowing work culture of Wall Street investment banks. In response, these institutions have enforced seemingly comical policies that miss the nuance of a deeply rooted problem.
In particular, JPMorgan has capped the workweek for junior bankers at 80 hours, which suggests a working week of 8:30 a.m. to 10 p.m., six days a week. This is double the standard 40-hour, five-day workweek accepted worldwide.
The bank also created a new position—global investment banking associate and analyst leader—to oversee junior bankers and analysts and prevent overwork, which many experts see as more of a PR move than anything.
Tailor-made services
Insiders say the real issue lies in investment banking’s bespoke nature. Its client-centric orientation means junior bankers have to please their customers’ demands by hook or by crook.
Clients want their money’s worth and demand precise and quick action. This involves tailor-made requests and revisions at the 11th hour, trivial or significant. Whether M&A or IPO, a deal’s progress can change at a moment’s notice. Some go on for months, while others could start moving in the blink of an eye. Junior bankers have to be flexible. They must be available to work on the weekends and amenable to cancel their holiday plans.
A position in investment banking is one of the most coveted jobs in the world. But the banker’s recent death, systematic problems within the industry, and the banks’ seeming unwillingness to tackle the root of the problem have turned it into a lethal Faustian bargain.
Defining boundaries
The change will come from management. Deals work both ways, and being a service-oriented business doesn’t mean that the firm has to bend backward for its clients.
Expectations should be communicated early and clearly. Initial meetings should cover the project’s work boundaries with realistic expectations and reasonable deadlines. This includes settling availability times and clearing up working hours.
The main priority in these discussions should be striking a perfect balance between employee welfare and the project’s success. Once the agreement has been put into writing and signed, it’s time to enforce it strictly. Some may be tweaked along the way, but the basic tenets have to be administered with rigor.
Iron it out
Former investment bankers have also complained about the inefficiencies of working with their clients. Some refuse AI because they believe it can’t handle the bespoke nature of such deals.
But automation is improving daily. More and more Wall Street banks are using technology to modernize risk management and conduct investment research. Banks cannot be stuck in their old ways and should leverage the latest technology to streamline their operations.
The same goes with offshore teams. Initially, banks tapped them for various administrative tasks so they could concentrate on core functions. However, their skill sets have radically improved over the years, and they can be trusted to handle intricate jobs like helping craft the pitchbook, financial modeling, data gathering, and many more.
The tools to streamline operations and make employees’ lives easier are available for investment banks and other firms in different industries. Not only do these instruments help achieve efficiencies, but they help foster humane working conditions.
The question for your business
How do you deal with tough client needs and tight deadlines?
