Some business lines are under particular pressure. Virtually every major global bank has singled out wealth management as a priority for investment and growth. And at JPMorgan, that competitive pressure has fueled an increase in adviser defections, with firms such as UBS Group AG recruiting more aggressively. Some advisers are even striking out on their own.
JPMorgan is hiring in that area too. The bank has said it aims to double adviser headcount in the private bank over the next five years, and it’s on track to do so, according to a person with knowledge of the plan.
The job hunters’ market may not hold up for long, at least in New York’s hub. Almost a quarter of financial-services firms are planning to reduce their workforces in the city within the next half-decade, according to a survey published this week by Partnership for New York City. At least some of those jobs are being moved to cheaper locales, such as Florida and Texas.
For now, industry veterans examining their options have found they have more alternatives than before. A growing number of financial-technology companies, crypto-currency ventures and so-called blank-check companies are interested in enlisting their experience.
So how much can a banker get by jumping ship? It depends.
The standard bump of at least 10% that executives could expect by defecting to a competitor has probably doubled, said Robert Voth, managing director at executive search firm Russell Reynolds Associates. Competition is particularly fierce for people who can help banks diversify their ranks. “The more progressive companies have lifted traditional ceilings on compensation to ensure they can lead the pack,” he said.
One thing banks have less room to do is rely on their prestige to keep talent.
“There’s no longer a firm that stands out so far above the others that people are willing to work there just because of the name,” said Jeanne Branthover, global head of financial services and fintech at headhunting firm DHR International. “It’s about lifestyle, it’s about work-life balance, it’s about no longer wanting to get in a car or on a bus or on a train to get to work.”
—With assistance from Sridhar Natarajan and Michelle F. Davis.
This article was provided by Bloomberg News.