Goldman Sachs is planning to confirm with young bankers every three months that they have not lined up private property rights in an attempt to eliminate overfishing. But this comes with its own dangers.
the initiativeThe Bloomberg for the first time is the latest step by the large investment banks to retreat against PE companies that avoid novice analysts while training during work, or even before they start putting their foot on their work sites.
This practice, which is called the recruitment of the course, thwarted banks unable to maintain talented workers after their initial contracts end. But experts say luck This right loyalty and other measures to prevent overfish can be an opposite effect.
“I have seen the same thing with incomprehensible agreements,” said Paul Webster, the administrative partner at Page Executive North America, a search and employment company. luck. “It is almost similar to the most striking rules that the employer wants to place on the company, and the more it creates a violent reaction among the candidates of their loyalty and their willingness to leave.”
Wester, who has worked in financial employment for 25 years, said that over the past decade, young workers have seen financing work in PE companies as an option to improve the balance between work and life, which is now tending to appreciate more than 80 hours every week to earn the largest possible money.
But investment banks want to return to investment from their new workers, who reach primary productivity levels after the first two years in a bank. Once they are trained, the worker can do more, such as contributing to large integration and purchase deals.
“When I speak to senior investment bankers, they will say,” Look, when we rent a new graduate, the first two years are really training, and we do not really get value from them, “I explained.” This is the effective money from our company in terms of salaries and training that was presented. ”
He returns to the carrot against the stick.
Webster said that the efforts made to keep employees who do not come with financial incentives could cause their departure after their contract for two years.
He added: “It is the opposite thing when the bank tries to achieve, because everything it does after that is that it creates loyalty to them to stay there while they are training, but it creates a lack of them when they are in the most productive reality.”
In fact, Morgan Stanley Left Bloomberg stated that in 2013, policy prevented bankers in the first year from speaking with employment companies for foreign companies after employees complained.
But the tradition of PE companies in employing young bankers near the beginning of their training during work is targeting them early and in advance, as armament racing companies raise young talent companies before other companies hit them.
For example, a person who goes out in the spring is set to start a job in one of the main banks in the fall. But even before that first day – early in June – companies may provide an interview with new graduates, said Michael Iwenz, a financial professor at Colombia Business College. luck. The result is that these recruits can secure a job change two years ago, as soon as their contracts in banks are over.
He said: “This, for my understanding, has reached its climax about a year ago.”
Changes in the process of employing talents
Jimmy Damon, CEO of JPMorgan, criticized the recruitment last year during A. He speaks At Georgetown University, saying it is “immoral”, and she puts young bankers in a “terrible position”.
Damon added: “He puts us in a bad situation, and puts us in a conflicting position.” “You are already working elsewhere and you are dealing with very secret information.”
Last month, Jpmorgan told the next graduates that they would be expelled if they accepted future jobs elsewhere before they completed the first 18 months.
Private stock companies obtained the message. In June, Apollo International Administration He said The potential investment banking candidates in a letter that was not met or extended this year to the 2027 category. CEO Mark Rawan said he agreed to recent criticism that the employment process for young recruits began very early.
Bloomberg said: “When the great candidates make fleeing decisions, they create a circulation that can be avoided – and no one serves,” said Bloomberg.
Robin Godson, President of the Financial Employment Company, Robin Godson Partners, luck She expects to make a larger campaign to employ in the course to create “actual recruitment”, or PE companies communicate to potential workers near the end of their initial contracts. You also expect change to change the views of young people who go to funding.
“These beginners people automatically thought that they should go to private stocks, and therefore they are preparing for the course,” said Godson. “It was a little to follow the crowd and not really think about what made them happy, or more of what they were interested in.”
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