- Goldman Sachs is contemplating reducing the number of interviews junior candidates will go through.
- The bank is also speeding up the interview process to fast-track candidates onto the desk.
- Wall Street is battling a shortage of junior talent to see to banks’ sky-high deal volumes.
- See more stories on Insider’s business page.
Investment banking is grappling with a shortage of available junior talent to fill open roles, and it’s affecting firms in the bulge bracket and middle market.
As a result, some banks are reconsidering how they recruit talent.
A senior Goldman Sachs executive told Insider that the firm has recently contemplated reducing the number of interviews it requires candidates to go through.
The firm has also increased its efforts to do lateral poaching from competitors, a separate person familiar with the company’s hiring efforts said. Throughout the springtime, Goldman used
interview days to identify candidates.
That’s not all. Once candidates are in the hiring pipeline, the firm is trying to reduce the length of the hiring process as it fast-tracks candidates to get onto the desk. The person familiar said that the firm has cut down on the amount of time that elapses between candidates’ interviews to expedite the process.
Goldman Sachs isn’t isolated in taking a look at its junior recruiting efforts at a time when banks are hard-pressed to identify available talent.
JPMorgan Chase, America’s largest bank by assets and a Goldman rival, has also been canvassing the landscape of available junior talent, looking for opportunities to snap up new recruits.
In April, the firm sent an email outlining open positions for recent and soon-to-be college graduates, which was reviewed by Insider.
The email encouraged the imminent or recent grads to apply for 23 open analyst and associate roles within its investment bank. The roles spanned coverage sectors from tech to healthcare, and geographically stretched from New York to San Francisco, among other locations.
Later that month, Jim Casey, JPMorgan’s co-head of investment-banking, told the New York Times his firm had filled 87 junior banker positions, and was in the process of scouting out talent to fill 100 more.
The increased focus on attracting talent comes at a time when the US is dealing with a labor shortage across industries.
Driving into the moves that big banks are making in search for backup are the sky-high deal volumes firms are confronting.
They haven’t slowed down since late summer 2020, when a streaking M&A and IPO market took Wall Street by surprise.
Caught off-guard by the suddenly-rebounding deals market, banks have struggled to recruit juniors at necessary levels ever since.
Are you a young person working on Wall Street? Contact this reporter via email at firstname.lastname@example.org, encrypted messaging app Signal (561-247-5758), or direct message on Twitter @reedalexander.