Burnout at the Big 4
This one’s for the work hard, play hards; the aspiring Jordan Belfort’s among us (with perhaps some minor lifestyle adjustments). Working in the finance industry is an aspiration for many. Rewarded with mentoring schemes, career development opportunities and a generous salary, working at the likes of EY, PwC, Deloitte or KPMG is something that aspiring financiers dream of. However, the industry’s extreme competitiveness makes achieving this reality tiresome. The acceptance rate for an entry-level position at one of these firms often sits below 4%, with some hovering around the 1% mark (Toulon, 2023). But the grind doesn’t stop once you get in the door. Long hours, a demanding workload, and extensive commitment are the basics of what will be expected of you; the perfect fit if you don’t mind being married to the money. Yet, whilst working in finance might seem quite flashy, the reality is far less glamorous than you might think.
Burnout culture within the financial services industry has become a pervasive issue, ingrained in the sector's high-pressure work environment. Areas including banking, investment management, and accounting are infamous for their tight deadlines and intense performance expectations. The relentless pursuit of profitability means employees are often required to work long hours to meet client demands, working well past their bedtimes to get the job done. The pressure to consistently deliver results contributes to chronic stress, poor mental health and exhaustion, leaving little room for a proper work-life balance (Yu Min Lee and Hyoung-Ryoul Kim, 2023). Weekends that should be set aside for friends and family might be better spent catching up on sleep to avoid becoming overworked, over-stressed or ill. News articles and employee chat forums share shocking experiences, with workers developing severe health issues as a result of stress and fatigue (Vinn, 2024). This is an environment where exhaustion is normalised, and being the last to leave the office is viewed as a badge of honour, not an HR concern. Whilst extreme burnout may not be an experience shared by all employees in this sector, there are certainly enough cases to make you extremely uncomfortable.
The competitive nature of the industry means employees are constantly trying to outperform their colleagues and secure big bonuses, fostering a toxic workplace culture. This can lead to a cutthroat atmosphere, where collaboration is side-lined in favour of individual success. Not only is this mentally draining, but emotionally too, contributing to feelings of tiredness and isolation (RightWorks, 2023; Wade, 2024; Olusegun, 2024). Technological advancements have also played a role in intensifying burnout. Whilst the rise of digital finance has streamlined several processes, it has also increased the pace of work and the expectation of constant availability, blurring the boundaries between personal and professional life.
As it stands, working 80-100 hours per week is perhaps the furthest thing from ‘sustainable’ I could think of. Yet somehow, it’s become the norm. On one hand, a job at one of these firms offers stability and a sense of security that may be lacking in other sectors. It comes with a multitude of benefits, made even better if you’re truly passionate about the work you do. But for those who work in finance who are less passionate, is it worth it? I guess it depends on what you value, and how much you value it; the opportunity to go out with friends, pursue new hobbies, or do something more enjoyable with your time might be worth the equivalent of that finance paycheck. What would you sacrifice for happiness, and how much of your happiness would you sacrifice for work?
The finance industry certainly has a way to go if we are going to see the necessary changes to evade workplace burnout. Unfortunately, this one isn’t an easy fix. The workload is harder to reduce, especially during busy seasons, unless companies hire more people to cope with it. However, reducing salaries and workload would reduce the financial incentive that attracts so many to the sector in the first place. Instead, perhaps, firms need to provide increased mental health support, fostering a collaborative rather than competitive culture. Encouragingly, J.P. Morgan has just created a new role dedicated to overseeing the wellbeing and success of junior bankers, after ‘renewed concerns over the health and safety of overworked staff across the industry’ (Kalyeena Makortoff). And now, it’s time for other firms to follow suit. I can’t promise it will be anything like the Wolf of Wall Street, but trust me, it’s probably for the best.
helena_richardson03@outlook.com
References
Kalyeena Makortoff (2024). JP Morgan creates new role to prevent overwork among junior bankers. [online] the Guardian. Available at: https://www.theguardian.com/business/2024/sep/19/jp-morgan-overwork-junior-bankers [Accessed 20 Sep. 2024].
Olusegun, J. (2024). Mitigation of Burnout A Centralized Strategy for the Financial Services Industry. [online] ResearchGate. Available at: https://www.researchgate.net/publication/383422725_Mitigation_of_Burnout_A_Centralized_Strategy_for_the_Financial_Services_Industry.
RightWorks (2023). Unmasking the Exodus: Exploring the Reasons Why Accountants Are Quitting in Droves. [online] RightWorks Staffing. Available at: https://rightworksinc.com/exploring-the-reasons-why-accountants-are-quitting/.
Toulon, Z. (2023). How hard is it to get a Big Four job when you graduate? [online] eFinancialCareers. Available at: https://www.efinancialcareers-canada.com/news/2023/02/big-four-acceptance-rate.
Vinn, M. (2024). Exclusive: Bank of America banker who died had sought to leave, citing long hours, recruiter says. [online] Reuters. Available at: https://www.reuters.com/business/finance/bank-america-banker-who-died-had-sought-leave-citing-long-hours-recruiter-says-2024-05-15/.
Wade, R. (2024). Out Of Balance: Countering The Crisis Of Accountant Burnout. [online] Plooto.com. Available at: https://www.plooto.com/blog/out-of-balance-countering-the-crisis-of-accountant-burnout?srsltid=AfmBOoppD1LvIgSKlMWvUyXfje4SaWtx2odh-aBqOYK6uLMr-pTvvvzu [Accessed 20 Sep. 2024].
Yu Min Lee and Hyoung-Ryoul Kim (2023). Performance pressure and mental health among finance workers in Korea: a cross-sectional study. Epidemiology and health, 45, pp.e2023099–e2023099. doi:https://doi.org/10.4178/epih.e2023099.