For most prospective investment bankers, paid time off (PTO) isn’t likely a key factor in deciding between firms. But once the job starts and the long hours begin adding up, a bank’s vacation policy can take on a new level of importance. So which investment bank is most generous with its employees over PTO? That would be Chicago-based William Blair, according to a new study from Vault.
A mid-market investment bank with around 1,500 employees globally, William Blair is rather unique because it is independent and employee-owned, providing plenty of motivation for a good vacation policy. The firm has a rating of 9.5 out of 10 for its policy, a full point better than second-ranked Bank of America.
“Vacation policy is the best on the street,” said one junior M&A banker. The rationale isn’t because William Blair gives employees months off at a time or anything like that. Rather, the bank has a mandatory three-week vacation policy for new hires. And the firm apparently takes the word mandatory literally. One reviewer said that senior managers can see their compensation reduced if their direct reports don’t take the full three weeks.
Founded in the Midwest, most employees say they enjoy the “family” culture, though many working in the investment banking division acknowledge that the hours are still plenty long. William Blair also scored well in several other quality of life categories, including culture and work-life balance. Plus, they offer free snacks, apparently.
Some of the common critical comments posted on Vault and Glassdoor include a lack of upward mobility, likely due to the employee-owned partnership structure that entices management to stick around. Several reviewers on Glassdoor referred to the firm as an “old boys club,” and knocked the bank for its lack of diversity. However, William Blair has seen its diversity rankings on Vault improve each year over the last three. It currently ranks as the fourth-best investment bank for overall diversity.
The rest of the banks that fill out the top 10 are all boutiques, with the exception of Bank of America. BAML offers 16 paid weeks of maternity and paternity leave – plus an additional 10 unpaid weeks if needed. Employees can also purchase additional time off beyond their normal days of allotted vacation. William Blair didn’t immediately get back to us with more specifics of their vacation policy. We will update if they do. The full top-10 is below.
Have a confidential story, tip, or comment you’d like to share? Contact: btuttle@efinancialcareers.com
Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by actual human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t).
The discussion on investment banks and their paid time off (PTO) policies is intriguing. As someone deeply entrenched in the financial sector, I've closely followed the trends and dynamics within investment banking, including factors that affect employee satisfaction and retention.
William Blair's stance on PTO is indeed noteworthy. Their policy is distinctive, emphasizing a mandatory three-week vacation for new hires—a significant departure from the norm in the industry. This practice not only promotes a healthier work-life balance but also signals the value they place on employee well-being. Moreover, the aspect of reducing compensation for senior managers if their reports don't take the mandated vacation time showcases the seriousness with which they approach this policy.
Beyond PTO, the unique culture at William Blair contributes significantly to its appeal. The emphasis on a "family" atmosphere, despite the demanding hours in investment banking, speaks volumes about their efforts to foster a supportive environment. Their commitment to diversity, reflected in improved rankings over recent years, is another crucial aspect, although criticisms regarding upward mobility and diversity persist.
Bank of America Merrill Lynch (BAML), while not topping the PTO charts like William Blair, stands out for its extensive maternity and paternity leave, which could be an essential consideration for individuals planning families while pursuing a career in investment banking.
The top 10 list's dominance by boutique banks, aside from Bank of America, underscores an evolving trend where smaller, specialized firms offer competitive benefits and workplace cultures, challenging larger institutions in attracting and retaining talent.
The nuances in PTO policies, coupled with broader considerations such as workplace culture, diversity initiatives, and family-centric benefits like parental leave, collectively shape the overall attractiveness and employee satisfaction within these investment banks. This evolving landscape continually influences candidates' decisions and drives banks to reassess and enhance their offerings to remain competitive in attracting top-tier talent.
