Banks battle burnout of staff

● HSBC Holdings’ global banking unit will raise pay for junior investment bankers in key hubs and hire more of them to share the workload, becoming the latest global firm to take steps to address burnout among staff.

It will also shorten a four-year associate programme for certain groups, according to an internal memo. Associates with three years’ experience will be considered for promotions, the memo said.

The work-till-you-drop culture of global finance has come to the fore as Covid-19 emptied offices in New York, London and beyond.

A presentation by junior analysts at the Goldman Sachs Group on their workload set Wall Street abuzz when the document found its way onto the web, while a LinkedIn post from an HSBC contractor about his experience in having a heart attack went viral.

Several major banks, including JPMorgan Chase & Co and Goldman Sachs have already promised to lighten the load.

HSBC also plans to increase the hiring of analysts and associates, and enforce its “protected weekend” policy.

A spokesperson for the lender confirmed the contents of the memo.

HSBC CFO Ewen Stevenson said the lender might increase the size of its bonus pool while a surge in trading triggered pay increases at some rivals.

The mooted pay rises come even as the lender, which cut variable pay by about 20% last year, is trying to keep a lid on costs and plans to cut staff by about 35,000.