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The leading global investment banks are struggling to retain qualified talent in a tight job market, with some interns receiving a $16,000-a-month paycheck. A nationwide labor shortage means industry continues to struggle for skilled workers, with the financial sector being particularly hard hit as it also faces exceptionally high turnover.
The grueling hours and demanding schedules create widespread dissatisfaction among young bankers begging for work just 80 hours a week.
As top companies strive to maintain a steady pipeline of talented talent, compensation is skyrocketing. In the past year alone, intern salaries at top global investment banks have increased by 37.2%, with some earning the equivalent of $200,000 per year.
But it’s not just neighboring banks that have to compete for talent on Wall Street. The traditional suit-and-tie banks must now compete with more modern, flexible technology companies that offer an alternative to Wall Street’s infamous 100-hour workweek.
See Also: Apple Takes Important Steps to Address Labor Shortages
For decades, Wall Street has been the epicenter for bright and eager graduates looking to start and advance their careers in finance. Now, with stiff competition and flexible workspace alternatives, the hustle and bustle of FiDi doesn’t seem so glamorous for new talent, who might prefer work-from-home or — dare I say it — West Coast options.
In the past two years, Silicon Valley has become a growing and viable competitor for new talent, with more than half of Glassdoor’s highest-paying internships at tech companies in the heart of California.
And yet, despite competition and changing workplace norms, Wall Street still attracts graduates hungry to jump-start their careers. Goldman Sachs received a record number of applications for its summer internship program this year, a whopping 27% increase over the previous year. Part of the increase could be due to the salary increase in entry-level positions, but applications were still inundated in droves.
However, the question is not so much whether the talent will stay over the summer or not, but whether the candidates will be there for the long term. Despite a record influx of job applications, Goldman’s employees continue to report a toxic and unsustainable work culture — with some citing “bullying” and abuse as reasons for leaving.
Only time will tell, but if Wall Street really wants to compete for top talent, it’ll take more than a generous paycheck in the long run.
See also: Labor shortage? Depends who you ask.
https://www.entrepreneur.com/article/424904 Top investment banks raise intern salaries to $16,000 a month amid Wall Street talent war