Here’s Why Goldman Wants to Promote Junior Bankers Faster
Life at Goldman Sachs (GS) for recent college graduates is going in the fast-track.
As a part of systemic changes to enhance quality of life for younger employees, Goldman has announced that it will promote all analysts to the next level after two years and create a third year associate rotation program. The best employees will now be able to ascend to vice president roles a year faster than than the older timetable allowed, according to Bloomberg.
The change comes as many prestigious workplaces struggle to hold down their high-skilled young employees for longer than a year or two. Greener pastures in Silicon Valley and smaller financial boutiques beckon. Goldman’s best young analysts are often approached by private equity firms and hedge funds as early as months into their jobs, and churn is high. “We’re really trying to develop people for a longer period of time than two years,” Goldman investment bank co-head David Solomon told Bloomberg.
Last year, Goldman increased its analysts’ salaries by 20 percent, and in 2012, it started hiring college grads full-time instead of for two-year programs. “We don’t need 100% of them to decide they want to spend their whole careers at Goldman Sachs…we need a percentage of them to,” Solomon told The Wall Street Journal.