Deutsche Bank AG cut bonuses drastically for 2016 as it struggled to turn a profit amid costly litigation, Reuters reported on Wednesday.
Recognizing these challenges, banks like Goldman Sachs Group Inc, Credit Suisse AG and Barclays PLC have taken steps to keep junior staff happy, such as promoting analysts more quickly, providing more training and encouraging job rotation programs.
Those efforts have failed to fend off defections so far though.
According to a LinkedIn study of 12 global investment banks, analysts and associates who left their positions in 2015 had stayed in their roles for an average of 17 months. That compares to a 26 month average in 2005.
If banks want to retain their top employees and avoid costs that come from voluntary resignations, Quinlan & Associates recommended a range of options including transparency around bonuses and promotions; encouraging internal communications and mentoring efforts; and using technology to take out manual processes.
"With employee disenfranchisement and voluntary staff turnover on the rise, we believe talent strategy deserves the full attention of a bank's board," the report said. "Until then, employers shouldn't bank on their best and brightest staying."
This article was provided by Reuters.