What really happens behind the scenes in a big US investment bank? We spoke to a director of HR who recently left one leading US bank in the City. He's still in HR, but not in banking any more. He didn't reveal any tales of depravity, but he did answer our questions as follows:
You don't work in banking any more. How does that feel?
Pretty good. I'm pleased to be working in a sector where the value we provide to our customers is tangible and visible. It was becoming increasingly dissatisfying working in an industry which had lost so much trust of its customers and the community at large.
On a scale of 1-10, how much respect does the HR department get in an investment bank?
I would say on average a 4 or a 5. The other industries I have worked in have tended to see HR have a much closer partnership with the business in helping to design optimal human capital management approaches. HR does tend to have a higher and more impactful profile in other sectors.
How hard do HR people in banks actually work?
HR people in investment banking get “seduced” into the long hours culture, because the bankers they work for expect it. Considering the huge gap between the bonuses paid to bankers versus HR staff I always thought this was unfair. I tended to work from around 7.30am to 7pm.
What's the most challenging thing about being an HR director in a bank?
Managing conflict. I had to manage conflicts arising from all the different banking regulations. And then there were the continuous rounds of workforce reductions. We had to let a lot of good people go, which was depressing.
Do bankers listen to what HR people tell them to do?
Managers will invariable try be creative in avoiding the need to following agreed protocols especially if it prevents them from taking shortcuts. However, that's not specific to banking.
Why are discrimination cases so frequently in investment banks?
In London, employees started getting more protection against discrimination in the courts from the mid-2000s. That brought often highly publicized discrimination awards which were uncapped. Suddenly, it was more lucrative for people who felt aggrieved to challenge decisions made by the bank - especially if there was a gender or ethnicity aspect backing their claim. Discrimination is no more common in banking than other sectors. It's just that the stakes are higher.
Is motivation a big issue in banking now?
Everything I hear from former colleagues tells me employee engagement is at pretty low ebb in banking right now. Lower bonuses are playing a part, but I think the real reason is the impact of the continuous restructuring in the finance sector over the past few years. People have seen good colleagues let go. I also know that budgets previously earmarked for employee well-being, talent development and engagement have been cut or significantly reduced. And then it doesn't help that bankers are despised by the public at large...