HSBC will raise hire more junior bankers to share the workload and hike current employees’ pay in a bid to tackle burnout after a gruelling year.
The bank will also shorten a four year associate programme for certain groups in Hong Kong, London and the US, according to an internal memo seen by Bloomberg. Associates with three years experience will be considered for promotion too.
There has been a concerted push by the industry to offer junior staff perks amid concerns they are working even longer hours during the pandemic.
Last month junior bankers at Goldman Sachs claimed they had suffered “inhumane” treatment and workplace abuse after working up to 100 hours a week.
More than a dozen first-year analysts said they had been a victim of abuse in the workplace and have, or, considered, seeking help due to deteriorating mental health.
Since then boutique investment bank Moelis has come out and announced a $10,000 payment to “improve mental health”. It is also encouraging dealmakers to take one Saturday off a month except during active deals or client requests.
HSBC is also enforcing a “protected weekend” policy to ensure younger employees take enough leave. HSBC has also told staff at its investment bank to limit pitch books to 25 pages.
The pay rises come even as HSBC embarks on a cost cutting drive after a difficult year amid the pandemic.
Earlier this week the bank announced a surge in pre-tax profit to $5.78bn for the first quarter, up from $3.21bn a year earlier.
Revenue, however, fell five per cent to $13bn in the three months to the end of March as near-zero interest rates in its main markets constrained the bank’s ability to generate large revenues from lending.