Investment banking relentless work culture is back in the spotlight, with JPMorgan and Bank of America introducing measures to limit junior bankers’ hours. JPMorgan now caps hours at 80 per week, while Bank of America’s new time-tracking system aims to better manage workloads. However, despite these efforts, junior bankers still face long hours, and frustrations persist, especially as client demands and the bespoke nature of deals keep pressure high.
Key Details:
- Previous attempts: Similar reforms were introduced after high-profile incidents, like the death of a London intern in 2013 and a viral complaint about Goldman Sachs’ gruelling schedules in 2021.
- The problem with client-driven work: The industry’s client-centric approach means bankers must tailor every presentation and analysis to specific clients, leading to long hours and unpredictable schedules.
- Custom work: Investment banking isn’t standardized. Every deal demands in-depth research, detailed financial modelling, and custom presentations, making it challenging to reduce hours.
- Competition: In a cutthroat industry, rival banks are willing to outwork one another to win deals, compounding pressure on junior bankers.
- Trade-offs: Junior bankers are aware that high pay comes with long hours, and many might still prefer full compensation over reduced work weeks. However, even with high salaries, burnout is real.
- Challenges with expanding the workforce: Simply hiring more bankers doesn’t ease workloads effectively, as it may dilute accountability and complicate coordination.
Investment banking’s structural challenges and client-driven expectations remain barriers to reducing workloads. Despite new policies, the industry’s 24/7 client-first approach makes meaningful change unlikely in the short term.
