If you want money, you don't sleep
The global financial industry needs to abandon outdated performance principles. Operating under the motto „money never sleeps“, many investment firms have subjected their young employees to excessive workloads for decades, with technological advancements offering little relief. This lack of work-life balance has resulted in severe talent attrition, and difficulties in attracting motivated young professionals, affecting Wall Street banks as well as their European counterparts.
The tragic death of a 35-year-old Bank of America employee in May is currently causing a stir on Wall Street. He died from a blood clot after working over 100 hours a week – on an important 2 billion dollar deal. Research by the „Wall Street Journal“ reveals that this excessive workload appears to be a structural issue within the bank – despite the institution having implemented new rules a decade ago to reduce pressure on young employees. This earlier rule change was itself prompted by the death of a German intern in Bank of America's London office, who died from an epileptic seizure after working multiple nights in a single week.
Overwork as a rite of passage
The fact that little has changed since then is largely due to the indirect and direct pressure from senior employees who experienced similar conditions early in their careers. The prevailing narrative is that anyone who wants to earn starting salaries of up to 200,000 dollars must be willing to give their all. Sleepless nights and 120-hour workweeks are commonly viewed as rites of passage in a successful investment banking career, and a sacrifice to be made for the opportunity to become very wealthy. This attitude is so ingrained in the industry that many young employees have long been reluctant to challenge the status quo.
However, an increasing number of overworked young professionals are now choosing to leave the industry. In Frankfurt, representatives from investment banks, asset managers, and private equity firms report difficulties in finding young employees willing to sacrifice their personal lives for years on end. Industry leaders need to be more concerned about avoiding image problems caused by excessive demands – and preventing their talent from leaving for competitors who offer a better work-life balance.
