Goldman Sachs will allow its leading bankers to take as many vacations as they want, amid a war for talent and complaints about an exhausting culture of long hours.
The bank’s partners and CEOs have been informed that, according to An Telegraph’s internal communication, there will be no limit to the number of days of paid leave they can take under the new holiday policy.
The new “flexible leave” scheme, which came into force on May 1, will allow Goldman executives to “take time off when needed, without the right to a fixed day off,” the memorandum said.
From next January, all employees are also expected to take a minimum of 15 days of leave per year with at least one consecutive week off.
The memorandum stated: “As a company, we are committed to providing our employees with various benefits and offers to support prosperity and resilience.
“As we continue to care for our people at every stage of their careers and focus on the experience of our partners and CEOs, we are pleased to announce the improvements and changes to our global holiday program to further promote leisure and recreation. . recharge. ”
The move makes Goldman the first major financial institution to implement such a policy, and represents a significant shift for a bank that has historically been associated with a harsh culture that forces its employees to work extremely long hours.
Last year, Goldman’s junior bankers begged to work just 80 hours a week, after a leaked survey highlighted how “inhuman” expectations had led to employees’ mental health problems.
Unrestricted holiday policies are becoming more common among technology companies, but many financial services companies have adhered to more traditional structures.
LinkedIn and Netflix are among other companies that offer “unlimited vacation” versions, but these policies have been criticized for employees taking fewer vacation days.
The Chartered Institute of Personnel and Development has criticized these policies, saying they are a theoretically good idea, but for them to work, companies must have a culture where it is acceptable to take the vacation offered.
The new scheme at Goldman comes as companies increasingly raise salaries and offer rich benefits in an effort to attract and retain talent.
The Wall Street monster is widely regarded as one of the highest paying investment banks in the world, with its New York-based staff earning an average of $ 190,000 a year in exchange for brutal 16-hour days.
In the United Kingdom, Goldman paid the highest rewards of any bank last year, distributing an average of £ 180,000 to co-workers and £ 350,000 to its vice presidents, according to a Dartmouth report.
The lender was one of the few large financial institutions to get employees back to the office five days a week, with CEO David Solomon calling working from home a “temporary departure.”
Large banks are trying to make a career in an investment bank more attractive due to fears that a generally poor work-life balance leads to a high level of wear and tear at all levels.
In March, Citigroup revealed that it was setting up a new office in Malaga as part of its staff retention efforts.
As part of their new policy, younger Goldman employees are given an additional two days off each year.
Goldman Sachs declined to comment.