Is it the people? Nature of the work? It’ll be interesting to see if this mentality starts to die off as the boomers die off, or if it’s just a fact of survivorship bias where the most neurotic, psychopathic, and insecure people are the ones who always will stick it out in banking.
I spent time in a few different finance/accounting Big4 jobs prior to business school, and the level of fake work and fake deadlines paled in comparison to IB. It seemed at the big 4 there was more two-way respect and dialogue between teammates - sometimes I would ask about the work we needed or deadlines we needed to meet and their answer would be “we don’t really need that… the client asked for xyz so we don’t need abc” or “X task is urgent but Y task is not, focus on X and you can get me Y at the end of the week.” In IB, the message for these types of scenarios is always do the most work possible, as soon as possible, regardless of the ask from the client or timing/purpose of the deliverable. You would think senior bankers, as salespeople, should have a pulse on what the client is looking for and would focus the juniors on these core issues rather than having them blast at a wall to see what sticks.
In my opinion, this is the most frustrating part of the job and the part that needs to change if IB doesn’t want to continue losing out on talented candidates. People don’t mind grinding and working long hours if it actually has a purpose IMO.
TLDR I’ve found basic managerial skills and productive two way dialogue to be severely lacking in this job, and it leads to incredible inefficiencies at the junior level. Wondering if this will continue or if this is a symptom of boomerism that will die off. Anyone else have similar experiences?
Based on the most helpful WSO content, the culture of Investment Banking (IB) can indeed be intense and demanding. The drive for "fake work" and "fake deadlines" could be attributed to several factors:
Nature of the Work: The high-stakes nature of IB often necessitates a fast-paced, high-pressure environment. Deadlines are often tight, and the expectation is to deliver high-quality work quickly.
People: Some individuals in IB can be highly competitive and driven, which can contribute to a culture of relentless work. This can sometimes lead to a lack of two-way respect and dialogue between teammates, as you've experienced.
Survivorship Bias: There's a possibility that the most neurotic, psychopathic, and insecure people are the ones who stick it out in banking, as you've suggested. This could perpetuate a culture of overwork and inefficiency.
Lack of Managerial Skills: As you've pointed out, there can be a lack of basic managerial skills and productive two-way dialogue in IB, leading to inefficiencies at the junior level.
Whether this culture will change in the future is uncertain. It could depend on a variety of factors, including changes in leadership, shifts in societal attitudes towards work-life balance, and the influence of younger generations entering the workforce. However, it's important to remember that not all IB environments are the same, and experiences can vary widely between different firms and teams.
Remember, it's a jungle out there, but even us monkeys need to know when to swing from the trees and take a breather. Keep your bananas peeled for opportunities that align with your values and work style.
Sources: Finance Culture - Personalities, What are people actually like in IB?, Declining Analyst Quality - Fact or Myth, The Work Always Gets Done
In no particular order:
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