The evolving role of the junior banker

June 20, 2023

The role of junior bankers and analysts has traditionally been associated with long hours, heavy workload, and repetitive tasks. It has been reported that this has contributed to 85% of analysts leaving investment banks within their first two years. With an evident generational preference towards a more balanced working culture, investment banks need to reevaluate their value proposition to retain the best junior bankers, especially after they have gone to such great lengths to train them.

Investment banks have tasked their operational leaders to implement various tools and strategies to optimize junior banker and analyst activities and allow them to focus on higher-value tasks such as client relationship management, deal structuring and business development. On the technical level, they are looking into using automation and digitization tools to move away from monotonous and time-consuming work. When it comes to building a more holistic work experience for incoming generations, many investment banks are offering a growing number of perks, such as hybrid working and choice of work location, to serve as retention incentives.

In partnership with the Financial Times, Williams Lea CEO Clare Hart joined a roundtable of COOs from top global investment banks to discuss how their firms are attracting and retaining young talent, and what programs they’re implementing to ensure the role of the junior banker is challenging and rewarding.

Here are the top takeaways from the event:

• To drive junior bankers’ productivity, retention and commitment to the firm, a balance must be found between the good intentions of the industry versus the reality of the job. While many senior bankers believe that long working hours are critical to on-the-job learning, there are process changes and technologies available to ensure that new starters focus less on administrative tasks and more on mentorship and higher-value projects.
• Hybrid working is here to stay. There are benefits to junior bankers coming to the office, for things such as mentorship, team building and collaboration. The key is establishing guidelines and then allowing managers at a local level to oversee them, to minimize disruption yet ensure the in-person experience is productive. Flexibility is now being used more effectively, allowing the workforce to be open about incorporating personal slots within their day, yet still log in when needed to meet deadlines. Communication is important. “Pencils down” and “protective time off” policies enable employees to work around schedules, with no guilt or unreasonable expectations.
• Apart from the need to manage client expectations on project deliverables, management has the responsibility to push high achievers to find their balance between extensive workloads and personal life goals, to reduce burnout, and support mental health. Implementing a feedback culture helps junior bankers with their development and finding purpose.
• The role of the junior banker should be carefully examined. One must not look at the hours worked but rather the value of the work being done. Clerical and administrative responsibilities, for instance, could be outsourced to a support team, thus freeing up the associates to do more valuable work, with higher learning potential.
• AI technologies, such as ChatGPT, have the scope to transform how work is conducted, beyond the mundane for higher-grade research, such as idea generation and getting up to speed on a new industry. This will require policies, guidelines and training, as well as human supervision, but there is also scope for the younger tech-savvy generation to bring ideas to the table.

Find out more on how Williams Lea is using AI and automation to drive productivity and improve quality. Learn more about our ENGAGE digital platform, our workflow and analytics tool, and our recently launched LogoCloud, a Software as a Service (SaaS) platform that automates critical elements of presentation and pitchbook creation.