The problem with requiring junior bankers to take time off
Banks want to make the lives of their junior investment bankers more pleasant. Goldman Sachs, for instance, has instituted a 36-hour weekend. JP Morgan liked the way those old National Guard commercials sounded and is giving its junior bankers one weekend a month off.
As Matt Levine points out, these rules are fairly silly. Junior bankers cater to the whims of senior bankers, and senior bankers cater to the whims of clients. Being a senior banker has very little to do with being a good manager; in fact, it’s often antithetical to being a good boss. What’s more, the most important working hours for junior investment bankers tend to be late at night, and very early in the morning. Levine’s proposal for banks to cut out the useless daylight facetime and let junior bankers just work nights and weekends is as good as rules on this subject get. Not only is Levine right that a lot of deals happen over the weekend, but weekends are important when things are quiet, too. Some of the best, most helpful (and least stressful!) work junior bankers do is done at 11:30 on a Saturday morning.
The problem is, even a good rule isn’t the best way to make junior investment bankers’ lives better. The best solution is for senior investment bankers to be better managers. But in a client service business, people tend to get promoted for servicing clients, and that can involve precisely the sort of tedious, repetitive work that makes junior bankers miserable. Management ability is a nice to have, not a must-have.
Banks are trying use rules to prod their senior bankers into becoming better planners and communicators. But rules, simply put, can’t create good managers. To put it in regulatory terms, management is a principles-based, not rules-based, regime.