Does More Money Make You Happy?
SHARING IS CARING
At JPMorgan’s investment bank, the jump in fees was 42% for the first nine months. In the fourth quarter, investment-banking fees will probably surge 35% from a year earlier, JPMorgan’s Daniel Pinto said at a conference last week. (chart below via FT)
Remember back in the summer, there was a leaked document from 13 disgruntled analysts at Goldman Sachs who wrote about 'inhuman' 100 hour work weeks, rating there job satisfaction as two out of 10, with most saying they were victims of workplace bullying. The response from Wall Street - pay them more!
Most banks have raised their pay for first-year associates to $100,000 from $85,000 — an increase of 17.5%. Evercore remains at the top of the pack, after giving its first-years a $25,000 bump to $120,000, according to Bloomberg. (Chart via Will Chase/Axios)
DOES PAYING PEOPLE MORE MONEY WORK?
The result? The association between salary and job satisfaction is very weak.
In fact, a second study goes on to state that the more people focus on their salaries, the less they will focus on satisfying their intellectual curiosity, learning new skills, or having fun, and those are the very things that make people perform best.
Providing a Peloton bike to workers might sound cool but addresses the symptom not the cause. Begrudgingly, or not, the finance industry culture needs to adapt to the aspirations of young people. These are the inherent challenges of running an often multi-genarational organisation.
There is no doubt that this year has seen some substaintial, and welcome, changes in the industry when it comes to workers compension and benefits. However, for large financial institutions my guess is that change beyond a pay cheque is what is needed to attract, retain and see performance excel from employees over the long-term.