Two of Wall Street’s biggest investment banks, JPMorgan Chase and Bank of America, are introducing measures to help reduce the workload of their junior bankers. This comes after widespread complaints across the industry that work hours are stretching beyond 100 hours a week, putting a lot of pressure on these employees.
JPMorgan’s New 80-Hour Limit
JPMorgan Chase is setting a new limit for junior bankers, capping their work hours at 80 hours per week in most cases. This is a big step aimed at preventing burnout among young professionals. However, there may still be exceptions to this rule, especially when extra work is needed to close live deals.
Bank of America’s New Monitoring System
Bank of America is also taking steps to address the issue. The bank is launching a new internal platform that will keep a closer watch on the workloads of its junior bankers. This system, called the “banker diary,” has been in testing earlier this year and will officially roll out this month. The platform aims to track individual work hours more accurately on a daily basis rather than weekly, allowing the bank to distribute tasks more evenly among employees.
Why Are These Changes Happening?
The pressure on junior bankers has been building as Wall Street races to take advantage of a surge in corporate deals. The demand has been so high that it’s pushing many young bankers to work extremely long hours. This has raised concerns about their health and well-being, especially after the death of Leo Lukenas, a junior banker at Bank of America, who passed away from a heart attack in May. His death sparked discussions across the industry about whether the work environment for junior bankers is becoming too unhealthy.
Bank of America has stated that it takes the health of its junior bankers seriously and frequently reviews policies to ensure they are protected. However, some junior bankers have reported that they often understate their actual work hours to stay within the 100-hour weekly limit, fearing scrutiny from human resources and potential backlash from their managers.
Daily Tracking to Help Balance Workloads
The new system at Bank of America will track work hours daily, rather than weekly. This will help the bank identify who is working the most and who has the capacity to take on more tasks, aiming to create a better balance of work among team members. This initiative is designed to ensure that work is distributed more fairly, reducing the strain on individual employees.
A spokesperson for Bank of America mentioned that the new technology platform was successfully tested earlier this year and will help the team serve clients more efficiently.
JPMorgan’s Weekly Cap Inspired by Medical Standards
JPMorgan’s decision to cap hours at 80 per week is the first of its kind for the bank. This limit is similar to the rules in New York State, which restrict the hours worked by medical residents to protect their health and well-being.
These new measures from two of Wall Street’s biggest players are part of a broader effort to make the high-pressure world of investment banking a bit more manageable for those at the bottom of the ladder. As banks continue to tackle these challenges, the hope is that these changes will lead to a healthier, more sustainable work environment for junior bankers.
