In response to the tragic death of 35-year-old associate Leo Lukenas III, JPMorgan Chase and Bank of America have announced significant changes to work hours for their junior employees. Lukenas, a former Green Beret and banker, was reportedly working up to 100 hours per week before his untimely death. His case has shed light on the harsh realities of overwork within the banking sector, prompting a reevaluation of employee well-being in an industry known for its relentless demands.
Changes in Time-Keeping Measures Following Investigation
The banking sector, particularly in the US, has been grappling with the issue of overwork for years. Junior bankers, eager to make their mark and climb the corporate ladder, often find themselves trapped in a cycle of excessive working hours and poor work-life balance. For many, putting in 100-hour weeks is not uncommon, as they strive to meet the demands of senior bankers and clients.
According to an investigation by The Wall Street Journal, the Bank of America had been ignoring its own corporate policies on employee hours. The report goes on to say that junior bankers at the institution will now be required to track their hours and workloads on a daily basis starting next Monday. This adjustment aims to provide senior managers with greater transparency and ensure that employees do not exceed the 80-hour weekly cap that had been previously set but frequently overlooked.
JPMorgan Chase has been monitoring junior banker hours for some time and is also introducing stricter measures. In August, the company began enforcing an 80-hour weekly limit for its junior bankers. These reforms mark a significant shift in an industry that prioritises productivity and profit over employee welfare.
Wall Street Insiders Sceptical About Lasting Change
Despite the recent reforms, many within the industry remain doubtful that these changes will be effectively enforced in the long term. A former junior banker at Bank of America, speaking to Business Insider, expressed concerns that the newly introduced guardrails may not be consistently upheld. "You can track hours and promise days off, but at the end of the day, if there's work to be done and a senior banker expects it, that work will get done. That's how they make money," the former banker explained.
Similarly, a finance professor at a prestigious business school warned that junior bankers who strictly adhere to the 80-hour cap may be disadvantaged. "If a banker becomes known as the person who caps their hours at 80, they risk being sidelined and given less desirable work," the professor noted. Without the commitment from senior management, the professor believes that the time-keeping reforms will not bring about meaningful change.
How Common Are Long Hours in US Banks?
According to a report by eFinancialCareers, employees in mergers and acquisitions (M&A) work an average of 67 hours per week, while those in commodities sales and trading log about 41 hours per week. Weekly hours often tend to fall below 50, though junior bankers often work significantly more than these averages.
Some reports suggest junior employees may exaggerate their work hours, failing to account for daily breaks or downtime. However, the COVID-19 pandemic has exacerbated the situation for many, with the lack of variety in day-to-day work and limited social interaction leading to increased feelings of isolation and burnout. In some instances, the consequences of overwork have been severe, as highlighted by the recent death of a 60-year-old Wells Fargo employee who passed away just days after clocking in for an extended shift.
The Future of Time-Keeping in Banking
The introduction of daily time tracking and the enforcement of an 80-hour weekly cap are intended to reduce employee burnout and improve work-life balance. However, the long-term impact of these changes remains uncertain. With the financial sector placing immense pressure on employees to meet performance targets, it is unclear whether banks will be able to balance operational demands with the well-being of their workforce.
The reforms introduced by JPMorgan Chase and Bank of America could represent a pivotal moment in the industry's approach to work hours, potentially paving the way for a healthier, more sustainable work environment. However, the success of these changes will depend largely on senior leadership's commitment to prioritising employee welfare over short-term profits.
