Analysts & MDs in banks are most worried about jobs in 2023
Analysts and MDs in banks are the employees most likely to be worrying about their job security, our survey has found.
We broke down the 1,500 replies to our annual compensation survey – assessing both bonus expectations by bank and job security fears by sector.
What we found was that, aside from the clucking analysts, you feel most confident in your job security when you're more junior – Associates reported the lowest job security related fears, a number that increases with seniority.
This appears to be born out by recent experience - at Morgan Stanley, for example, analysts and managing directors are among those being let go. Banks always hire more analysts than they need and many leave at around the two-year mark anyway, after realising that banking isn’t for them.
One analyst responding to our survey, who works at a UAE-based asset manager, noted that a recession was coming, and senior management was “fully aware” of it. “Young guys and new-joiners are first out,” he said.
Associates, however, have more job security. They are technically competent (unless they join after an MBA), and harder to replace. VPs and directors are often seen as vulnerable because they're comparatively expensive and don't own clients. Managing directors - who earn hefty salaries of up to $500k are ok if they're generating revenues and bringing in clients, but not ok if they don't.
One director at JPMorgan in London blamed his job insecurity on the bank’s “bloated cost structure” and the need to adapt to a new world of revenue. “Fat needs to be trimmed,” he said.
What does this all mean? Well, we’ve established that MDs are most confident in their bonuses increasing. This makes sense to the extent that they've generated revenues. If they’ve had a bad year, it suggests delusion is setting-in.
Someone please tell the analysts to lighten up, though.
Have a confidential story, tip, or comment you’d like to share? Contact: Zeno.Toulon@efinancialcareers.com in the first instance.
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