#FinanceIndustry #LongWorkWeeks #WorkLifeBalance #FinanceCareers π
Are you a student or professional in the Finance industry, like me, questioning why long work weeks are the norm? Let’s dive into this topic together and explore the reasons behind this phenomenon.
### The Reality of Long Work Weeks in Finance
In the Finance industry, it’s not uncommon to find professionals working well beyond the standard 40-hour work week. Whether you’re in Private Equity, Investment Banking, or Consulting, long hours are often expected. But why is this the case? Let’s break it down:
1. **High-pressure environment:** Finance jobs are often fast-paced and high-pressure, requiring employees to work long hours to meet deadlines and client demands.
2. **Global markets:** With the rise of global markets, Finance professionals may need to work across different time zones, leading to extended work hours.
3. **Client expectations:** Clients in the Finance industry may expect 24/7 availability, leading professionals to work longer hours to meet these demands.
4. **Competitive nature:** The Finance industry is highly competitive, leading professionals to put in extra hours to stay ahead of their peers.
5. **Culture of overwork:** In some Finance firms, there may be a culture of overwork, where employees feel pressured to work long hours to prove their dedication.
### Why Are Finance Professionals Okay with Long Work Weeks?
Now, let’s address the question at hand – why are people in the Finance industry okay with long work weeks? Here are some reasons why Finance professionals may be more accepting of extended work hours:
1. **Financial rewards:** Finance professionals are often well-compensated for their work, making the long hours more bearable.
2. **Career advancement:** In Finance, working long hours is sometimes seen as a necessary sacrifice for career advancement and success.
3. **Passion for the industry:** Many Finance professionals have a genuine passion for their work, making long hours more tolerable.
4. **Work ethic:** Finance professionals may have a strong work ethic, leading them to prioritize their careers over work-life balance.
5. **Peer pressure:** In a culture where long hours are the norm, Finance professionals may feel pressure to keep up with their colleagues.
### Is Work-Life Balance Possible in Finance?
Despite the prevalence of long work hours in the Finance industry, achieving work-life balance is still possible with the right approach:
– **Setting boundaries:** Establish clear boundaries between work and personal life to prevent burnout and maintain well-being.
– **Time management:** Prioritize tasks and manage your time effectively to maximize productivity during work hours.
– **Communication:** Communicate your needs and limitations to your employer to find a balance that works for both parties.
– **Self-care:** Prioritize self-care activities outside of work to recharge and maintain a healthy work-life balance.
In conclusion, while long work weeks may be the norm in the Finance industry, it’s essential to prioritize work-life balance and well-being to sustain a successful and fulfilling career. Remember, it’s okay to set boundaries and prioritize your health and happiness above all else.
What are your thoughts on long work weeks in the Finance industry? Share your experiences and insights in the comments below! #FinanceCareers #WorkLifeBalance #FinanceIndustryPerspective
Simple answer: The American dream
More money more problems
Iβm not okay with it, which is why Iβm in corporate FP&A instead of banking or PE.
The financial upside can be huge in 5-10 years if you can get through it when youβre young. Thatβs the reason people use to justify it. But many of those people donβt have the talent to reach those heights, or burn out before they can cash in. Self awareness is key on figuring out if this is for you.
Itβs because itβs a game of chicken. First person to take king vacation, maternal leave, sabbatical loses promotion, raises etc. itβs possible because the work is simple enough so the hardship is the sacrifice of personal time.
Look at engineering the work required is results which require itβs professional to have a rested brain
Depends on your definition of success. Yea 40 is fine also itβs beyond what you stated there thatβs a βfinance careerβ. Sure the highly competitive jobs you are expected to work more because
– firms themselves are highly unstable, and the nature of the business relies on health stream of new revenue source (like IB). High pressure to outperform to grab the finite money available
– cyclical or season work where itβs not evenly distributed through the year, so you end up crunched with deadlines.
– competitive advantage erodes too quickly to be comfortable. At any time competition can leap frog you and youβre done. You could be doing everything right but it may just not work in your favor.
– or just most of us realize that we live to work so whatever 50 hours is 50 hours.
Plenty of people makes good living in more stable industry doing finance functions. Then there are the vast amount of support functions within finance industry or even vendors specializing support. They donβt do more than 40 of that.
Edit: the most important reason:
– by just talking nonstop about IB, PE, BBC the perception turns to reality and those firms are not in short of supplies of people who are willing to do anything to get in. So if you donβt work 60 hours then you can get replaced by someone who will in a heartbeat
I have been working for 6 months, IB in Madrid. I failed to understand why would you work over 40h when the return is not as big as a city such as NYCβ¦
Moneyyyyy
Money – all of your high profile careers or the ones that makes banks, you are working more than the basics 35-40hr a week
Compensation
Money. Prestige. Next question.
At the higher levels, the work becomes a lot more fun and you stop counting the hours. You are in it to win the deal / outsmart the other side / make stuff happen (change the face of an industry) / find the next cool opportunity while meeting smart and ambitious people.
Of course the compensation follows the value you deliver and in a more free market society like the US, the upside can be quite large.
Also, it is silly and short-sighted to think about your pay per hour when you are starting out. You are getting compensated in experience, pedigree and relationships as well. Those are high-value currencies and yield large dividends down the road. And if you work hard and show interest and dedication with your efforts, you will get the respect of your colleagues and have doors open that you didn’t even know existed.
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Why?
Because we love what we do, there is generally a direct correlation between how much we work and how much we get done, and there is generally a direct correlation between how much we get done and how much we make. Also, because we love what we do.
Itβs not rocket science.
Passion ?
I enjoy the work I do and have no problem averaging 60 hours with the occasional ~80.
If I wasn’t working and had time leftover after chores, I would be valuing businesses for investment purposes… Or so I like to think and tell myself…
I also find purpose and self-realization in the work. I derive happiness from incremental improvements and new situations/experience that the work provides. Not only that, but I have a somewhat strong impulse to procrastinate, which leads to me enjoying deadlines and a somewhat face pace in the sense that they force me not to procrastinate. Or so I like to think and tell myself…
However, I know for a fact that said passion and happiness would exponentially diminish if my work required me to constantly put in 80+ hours per week. Finding that balance I think is something you have to experiment with and comes through learning of self.
…Or so I like to think and tell msyelf.
Why do people work at all?
Home office, the great equalizer
I’m not ok with it at all.Β Β “The Finance industry” isn’t all investment banking.
Money
Europe and America are different. People in finance arenβt the only ones working long hours here.
Money
Even outside of finance in North America people put tend to put more of an importance on their job than in the Netherlands (I am Dutch as well but live in Canada). Probably a culmination of vary degrees of social supports/welfare/assistance or lack thereof. The “protestant work ethic” is still kicking around subconsciously (because of the Dutch and German cultures at the time some years ago funny enough).
The “American dream” is also something a lot of people aspire to and with that comes a want to consume more, work more bigger house, bigger car, work more, buy more shit, send kids to a “good” school work more (and more recently, pay for their first down payment and school tuition lmao). Mix that in with a cultural tendency of being told you have to be the best and stand out and you get the fucked up American work culture (that also bleeds over to Canada as well).
Investment banking is literal slavery
Money and tenacity are motivators.
Donβt believe everything you read and hear. My boss will tell you he works 60 hours a week. He doesnβt. I tell everyone i work 50. I donβt
Im currently working in London in IB, the salaries donβt look earth shattering as in NYC. However, the biggest benefit of Europe is compared to the states is when it comes to salary, after few years in IB you have incredibly flexibility in terms of wealth retention. If you really want to grind it out and stack money you stay in London in PE/IB etc. Or you go back to your own country, which I most likely will do and keep the insane salary with such much better COL. Know plenty of colleagues in continental Europe they earn at BBs as a first years 85-90k euro as base salary, in places like Milan, Madrid, Amsterdam etc. If you grind it out all the way to the senior levels, your COL becomes extremely cushy, with early retirement most definitely on the plate.
Most people dont do it just for the short term, most often people have a long career game plan set up. The opportunities that it opens up is incredible if you just want to leverage the experience for 1-2 years.