Goldman Sachs rolls out new strategies to keep junior bankers

Goldman Sachs Group Inc announced Thursday new strategies to retain its junior bankers, who have been increasingly leaving the bank after two years.

The International Business Times reported that Goldman Sachs new initiatives to retain its junior bankers include faster promotions, mobility, and more attractive compensation. The move comes as more and more junior employees desert their companies. The bank promised to offer promotions after the young bankers' second year in the firm. They will also be offered better compensation by then. The bank will also remove the grunt work that seniors usually pass on to the younger bankers. The junior bankers will also be given a rotation to other business division after the second year.

According to The New York Times, Goldman Sachs has been trying to appease young bankers for the past few years by giving them increased salaries, and even Saturday offs. More and more analysts from across all investment banking are being tempted to leave their firm after two years and move to hedge funds, private equity, and even the corporate world.

"The goal of all of it is to make sure we hire the best people available to the firm and that we retain those people," Goldman Sachs investment banking co-head David Solomon said. "It all speaks to what I say at the highest level for a continued need for us to be very thoughtful about how we manage human capital, train them, provide learning experience and how we're transparent about their career trajectories and opportunities they have."

The Business Insider reported that investment banks usually hire these young analysts or junior bankers straight out of college into their two-year program. Those bankers who didn't leave after the two-year program will get promoted to associate. A few more years after that, they can land as vice president. Goldman removed their two-year program a few years ago.

Now, top junior bankers can be promoted to associate after being in the firm for two years. This means getting pay raise sooner than the usual waiting time. Associates earn up to $63,000 more than junior bankers.