Reforming Policies: US Banks Prioritize Employee Well-being Following Tragic Death
In response to the untimely 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 passing. His tragic case has brought to light 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 in the US has long faced the issue of overwork among junior employees. Eager to prove themselves and advance in their careers, many young bankers find themselves caught in a cycle of excessive working hours and poor work-life balance. Working 100-hour weeks has become all too common as they strive to meet the demands of senior bankers and clients.
An investigation by The Wall Street Journal revealed that Bank of America had been disregarding its own corporate policies on employee hours. As a result, junior bankers at the institution will now be required to track their hours and workloads on a daily basis, starting next Monday. This change aims to provide senior managers with greater transparency and ensure that employees do not surpass the 80-hour weekly limit that had previously been set but frequently ignored.
JPMorgan Chase has been monitoring junior banker hours for some time and has also implemented stricter measures. In August, the company began enforcing an 80-hour weekly limit for its junior bankers. These reforms signify a significant shift in an industry that has historically prioritized productivity and profit over employee welfare.
Wall Street Insiders Remain Skeptical 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 expressed concerns to Business Insider, stating that the newly introduced guardrails may not be consistently upheld. “You can track hours and promise days off, but 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 face disadvantages. “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 commitment from senior management, the professor believes that the time-keeping reforms will not lead to 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. Although weekly hours often fall below 50, junior bankers frequently work well beyond these averages.
Some reports suggest that junior employees may exaggerate their work hours, failing to account for 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 cases, the consequences of overwork have been severe, as evidenced by the recent death of a 60-year-old Wells Fargo employee who passed away shortly after working 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 aimed at reducing employee burnout and enhancing 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 initiated by JPMorgan Chase and Bank of America could signify a pivotal moment in the industry’s approach to work hours, potentially paving the way for a healthier, more sustainable work environment. Nonetheless, the success of these changes will largely depend on senior leadership’s commitment to prioritizing employee welfare over short-term profits.