HSBC Hikes Junior Pay and Kicks Off Hiring Spree Amid Deal Surge -- Financial News
April 30 2021 - 8:22AM
Dow Jones News
By Paul Clarke
Of Financial News
HSBC Holdings PLC is increasing salaries for junior bankers,
expanding recruitment and accelerating promotions in the latest
efforts from a large investment bank to combat burnout among
younger dealmakers.
The U.K. lender has outlined a series of measures aimed at
reducing workload for juniors amid a surge in deals, as well as
offering more perks to retain younger bankers as rivals step up
recruitment, according to a memo seen by Financial News.
"Our objective is clear: we want to attract, develop and retain
individuals who value our diverse, inclusive and high-performing
culture," the memo from HSBC's senior bankers. "We will do this
with an overall employee value proposition aligned to competitive
dynamics and to our strategy."
HSBC is ramping up recruitment of juniors, saying that it will
also streamline hiring processes to ensure that analysts and
associates are more supported. The bank is also increasing salaries
for analysts and associates in key locations including the U.K.,
U.S., Singapore and Hong Kong, although it hasn't yet specified the
size of the rise.
It will also start a new 'GB Junior Anonymous mailbox' for
bankers to share their feedback.
The U.K. lender is the latest big investment bank to tackle
junior employee burnout amid record deal flow that has pushed an
already demanding role into 100-hour plus weeks. UBS Group AG
unveiled a additional bonus for juniors last week, FN revealed,
while JPMorgan Chase & Co.'s new program includes plans to add
190 new analysts and associates globally.
Credit Suisse Group AG offered its junior bankers a one-time
'lifestyle' bonus of $20,000, while Bank of America Corp. has hiked
salaries by up to $25,000 for its analysts, associates and vice
presidents.
HSBC will also accelerate promotions of associates --those on
the second rung of the investment banking hierarchy-- from its
current program of four years for those in the U.S., U.K., France
UAE, Singapore and Hong Kong. "Associates with three years'
experience will now be considered for promotion to AD/VP, enabling
our best performers to progress more rapidly," the memo said.
The move towards increasing perks for juniors follows a leaked
presentation by a group of 13 Goldman Sachs Group Inc. analysts in
June, outlining 100-hour working weeks, rising mental health issues
and threats to quit the industry. The U.S. bank has responded by
increasing junior recruitment and enforcing existing working
restrictions, but has yet to hike pay or roll out new perks.
JPMorgan also resisted paying its junior staff more, saying
during a townhall meeting last week that it sent out the wrong
message.
Investment banking analysts and associates contacted by
Financial News over the past year have cited the Covid-19 lockdown
restrictions as exacerbating an already stressful role as senior
bankers dropped work on them at the last minute, and expected them
to be online at all times. Meanwhile, working in often cramped
apartments has added to mental health problems.
As well as recruitment and pay, HSBC will overhaul some of its
working practices for juniors. Pitchbooks--marketing documents for
deals--will be restricted to 25 pages, while it will enforce
existing policies of protecting weekends from work.
"We know that the past year has been extraordinarily challenging
for many of you; we appreciate tremendously your resilience and
perseverance, and how you have supported our clients and
colleagues," the memo added.
Website: www.fnlondon.com
(END) Dow Jones Newswires
April 30, 2021 09:07 ET (13:07 GMT)
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