If you work in banking or other sectors in financial services, you likely spend a healthy part of your day dealing with career-related stress. The hours, the responsibilities, the external pressures to deliver consistent compelling results – they all add up. But who has it worse?
We decided to conduct an informal survey to find out, creating a list of a dozen sectors and roles. We then asked a host of recruiters and other experts in the field to rank them based on the stress levels employees tend to face, leaving it up to each voter to qualify “work stress” as they see it.
Below are the composite results, along with some notes from those who chose to go on the record and explain their thought process. Do you agree?
1. Investment banker: The runaway choice for the most stressful job on Wall Street and in all of financial services, finishing in the top three of every ballot. The main reason is that investment bankers are confronted with the two main triggers for career stress: the difficulty of the work coupled with the sheer amount of it, particularly for associates and analysts.
“The life of a junior banker is one of the last forms of legalised slavery,” said Roy Cohen, a career coach and author of ‘The Wall Street Professional’s Survival Guide’. “It is a gruelling survival of the fittest existence defined by all-nighters, no time to eat well or to exercise, and compensation that has remained flat for a number of years.”
Within investment banking, the highest levels of stress exist in M&A, said Richard Lipstein, managing director at Wall Street search firm Gilbert Tweed International. “The most stressful job is one where revenue takes longest to be generated,” he said. “In M&A, you need to know the people, get the meeting, bring in the business, convince them to sell and then go out and get it done.”
2. Trader: Most traders don’t hold the hours of investment bankers, but they may have a sharper, more acute level of stress. “Trader stress is in real time and can happen instantaneously,” said Sal Khan, managing director at Dynamics Associates.
Obviously the lives of some traders are easier than others. Sell-side traders live and die daily, noted Cohen. Eyeing the current moment, fixed income traders are likely more stressed than ever, simply due to the conditions, Lipstein said. “Their business is shrinking – there will be triage, and they know it.”
3. Risk management & compliance: Likely positions that wouldn’t finish this high years ago, risk and compliance personnel don’t get paid as highly as traders and investment bankers, but they’re in a pressure cooker just the same. One reason risk and compliance didn’t finish higher is the dearth of qualified professionals able to fill all the openings (i.e. job security).
“New regulatory requirements are constantly rolling in and regulators and those on the business side are always on you, breathing down your neck,” said Lisa Mogilner, executive recruiter at Dynamics Associates.
Sitting in non-revenue generating seats, risk and compliance staffers are often viewed as the enemy by colleagues who are desperate to get a transaction approved, said Cohen. But they also have skeletons like the London Whale, Libor and the credit crisis feeding their stress levels on the other side. Market risk and credit risk management roles are particularly stressful, said Khan.
4. Wealth manager/financial advisor: Finishing near the top on some surveys and further down on others, wealth managers and financial advisors deal with one particular vehicle for stress: they eat only what they kill. Wealth managers get fired nearly as often as they get hired. One WM who started five years ago said he is the only remaining member of his 30-person recruiting class still in the business.
It’s a sales job, and your target is often friends and family. You start with a barely liveable wage and you need to sell to remain employed. But, at its core, wealth management is a relationship business. Unlike institutional sales, your heart – not just your wallet – is on the line with each investment, said Lipstein.
5. Institutional sales: Any role that focuses on sales causes stress. Couple this with the fact that the job security and the ceiling on salary aren’t what they used to be, and institutional sales can be a grind.
“As technology automates much of the function, there is simply no need for a human interface,” said Cohen. “Since the products are now not much more than commodities, sales people are seeing shrinking spreads and fewer opportunities to generate rich commissions.”
6. Management consulting: It’s all about hours, engagement and travel. Simply put, consultants always have to be ‘on’. And in-between they are in airports and juggling complex business problems.
“And the more senior you are, there are pressures to generate new business while continuing to execute,” said Anne Crowley, managing director at Jay Gaines and Company. “Some people are wired for this, and are motivated by the fast pace and variety of challenge.”
7. Private equity: You must be smart, hard-working and well-rounded, but the lifestyle doesn’t compare to an investment banker’s, and the pay is often much better, particularly at the senior level.
8. Industrial coverage/research analyst: Very rich, very passionate and very explosive fund managers and traders rely on research analysts, who will often get more blame than praise, particularly on the buy side. “You agonize over every decision, then you agonize once the decision is made,” Lipstein said.
9. Fund manager: Finishing just behind research analyst, fund managers push the final button – a highly stressful role – but they have seniority, don’t have to do as much grunt work and likely have the bank account to relax, just a bit.
10. Technology: Like risk and compliance, tech pros get yelled at – a lot. “They take plenty of blame, even when things are out of their hands, and they constantly have to re-educate themselves and take courses,” said Mogilner. And, with operational budget constraints, there is a “continuing pressure to do more with less”, said Crowley.
11. Accounting: Finishing last on every ballot, accounting is “virtually stress-free as long as you like routine and are willing to work long hours on a seasonal basis,” said Cohen. There’s also minimal client-facing and you’re never on an island. “There is always someone in the assembly line with you,” according to Mogilner. Not much else to say.
¬ Haymarket Media Limited. All rights reserved.
FAQs
It's official: fund managers have among the least stressful jobs in finance, while investment bankers top the list for anxiety (though likely also for pay), according to an eFinancialCareers informal survey.
Which finance job is least stressful? ›
The least stressful job in the finance sector is "Accounting." It requires you to build a routine that you can follow daily. It does not require much effort if you have the skill. An accountant is never on the counter and does not have to deal with clients face to face.
What is the most difficult job in finance? ›
Most stressful job in finance : Investment Banker (M&A or capital markets professional) Jobs in the investment banking division (IBD) were the runaway choice for the most stressful job on Wall Street and in all of financial services, finishing in the top three of every ballot.
What is the easiest job to get in finance? ›
There are several entry-level jobs you can get with a finance degree, depending on your area of study, type of degree, and experience. Junior tax accountant, stockbroker, personal finance advisor, banking assistant, and financial analyst are a few entry-level choices.
Is working in the finance industry stressful? ›
Pros and Cons of Finance Jobs
Like every field, there are also drawbacks to a career in finance. They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.
What are the 2 least stressful jobs? ›
37 Best Low-Stress Jobs To Keep You Calm At Work (2023)
- Massage Therapist. Average Annual Salary: $43,000. ...
- Orthotist or Prosthetist. Average Annual Salary: $73,000. ...
- Technical Writer. Average Annual Salary: $78,500. ...
- Librarian. Average Annual Salary: $60,800. ...
- Astronomer. ...
- Genetic Counselor. ...
- Geoscientist. ...
- Cartographer.
- 14 Low-Stress Jobs.
- Data Scientist.
- Dietitian.
- Medical Records Technician.
- Massage Therapist.
- Appliance Repairer.
- Librarian.
- Diagnostic Medical Stenographer.
Top 10 In-Demand Finance and Accounting Careers
- Accountant. Accountants will always be in demand. ...
- Financial Analyst. Financial analysts review financial data to guide businesses. ...
- Financial Advisor. ...
- Management Analyst. ...
- Financial Manager. ...
- Budget Analyst. ...
- Auditor. ...
- Tax Accountant.
Chartered Financial Analyst (CFA)
The CFA designation is reputed to be the most difficult certification to obtain, which works to the benefit of those who succeed.
What position in finance makes the most money? ›
Chief financial officer
Chief financial officers (CFO) oversee business budgeting, cost-related decision-making, and financial teams. The CFO role is one of the highest paying finance jobs because it requires financial leadership, experience, and an extensive network.
The answer is a resounding yes. Introverts typically prefer quiet solitude to noisy crowds. Financial advisors study financial trends, so they can make great investment recommendations to their clients. They spend as much time on research as they do on prospecting, and meeting with, clients.
How to break into the finance industry with no experience? ›
Seek Internships, Early and Often
It helps to fill in for the lack of full-time experience and is not as difficult to get as a real job. Many finance internships are paid—so, no excuses if you need to earn some green—or offer academic credit.
What minor works well with finance? ›
Business. A minor in business administration is also a strong complement for a degree in finance. Many financial analysts work in some capacity for businesses. A business minor provides the skills that may qualify you for higher-level positions within the company.
Is finance a happy career? ›
If you are looking for a career with high-income potential and plenty of job opportunities, finance can be a rewarding field. Many people who excel in this sector find that it fits perfectly with their interests and skills. “I always loved numbers,” Allec says.
Do finance jobs have bad work life balance? ›
The finance industry has a reputation for having a notoriously poor work-life balance, with stories of young professionals working 100-hour weeks being synonymous with the industry. This intense work culture has been depicted countless times in movies and tv shows.
Why do people in finance work so hard? ›
At first, people in finance work a lot because they have to show value to their employer. Finance doesn't require an incredibly specialized skill set; pretty much anyone with normal social skills, basic quantitative reasoning, and good attention to detail can do the job at the entry-level.
What are the top 10 most stressful jobs? ›
Most stressful jobs in the U.S.: Here are the top 25
- Special Education Teachers, Middle School.
- Oral and Maxillofacial Surgeons.
- Midwives.
- Healthcare Social Workers.
- First-Line Supervisors of Police and Detectives.
- Correctional Officers and Jailers.
- Clinical and Counseling Psychologists.
- Chief Executives.
Six-figure jobs without a degree
- Real estate agent. Real estate can be a lucrative line of work for the right person. ...
- Construction management. Construction can be a lucrative industry, particularly for skilled laborers and managers. ...
- Elevator/escalator installer. ...
- Commercial pilot. ...
- Web developer. ...
- Honorable mentions.
Actuary, audiologist, and dental hygienist are some of the best low stress jobs that pay well.
What is the happiest job in the United States? ›
Agriculture, logging and forestry have the highest levels of self-reported happiness — and lowest levels of self-reported stress — of any major industry category, according to our analysis of thousands of time journals from the Bureau of Labor Statistics' American Time Use Survey.
100 Least Stressful Jobs (Find a Peaceful Work Experience That Fits You)
- Travel Agents. ...
- Travel Blogger. ...
- Toll Booth Collector. ...
- Tool Crib Attendant. ...
- Video Game Player. ...
- Virtual Customer Service Representative. ...
- Voice-Over Artist. ...
- Web Developer.
Finance can be divided broadly into three distinct categories: public finance, corporate finance, and personal finance.
Is finance harder than accounting? ›
No, finance is not harder than accounting.
Accounting is more complex because it relies on precise sets of arithmetic principles. Finance, on the other hand, requires just a grasp of economics and accounting without going into as much mathematical detail as accounting.
What are the four major career areas of finance? ›
There are four main areas of finance: banks, institutions, public accounting, and corporate.
Is finance hard if you're bad at math? ›
Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.
What is the hardest finance exam in the world? ›
CFA (Chartered Financial Analyst)
The Chartered Financial Analyst (CFA) test is often regarded as the most rigorous and harsh exam in the area of finance. Every year, over 100,000 applicants from over 100 countries seek to pass CFA.
What is the biggest degree in finance? ›
A PhD is the highest finance degree you can get. To work in the financial industry, you don't need a PhD (which is the highest degree). A bachelor's degree can get you different financial sector jobs in: Corporate finance.
What type of banker makes the most money? ›
1. Financial Manager
- Average Annual Salary: $131,710.
- Required Education: Bachelor's degree plus five or more years working in another position in the finance or business industry.
- Number of Jobs: 730,800 in 2021.
- Growth Outlook: 17% from 2021 through 2031.
When you say finance, I'm guessing you mean Hedge funds, PE, VC and Investment Banking. The reason is High margins, total value, low overhead and high expertise required. You can make billions of dollars with just a few people and a laptop. No other industry works that way.
Which major is better finance or accounting? ›
The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases.
It depends, There are many divisions in banking. If you are not comfortable with “being social”, you can go for back-office roles ex: operations, research, compliance, etc. But, if you are interested in those front office roles: investment banking, trading, wealth management etc.
How many hours does a finance major work? ›
Most financial analysts work full time and some work more than 40 hours per week.
What business major is best for introverts? ›
Accounting
Accounting is one of those math-heavy majors that are perfect for those who enjoy doing detailed, analytical work on their own. Most accounting majors spend most of their time alone, learning how to prepare tax documents, financial reports, and the like. This makes it perfect for social introverts.
How do I get into finance later in life? ›
Are You Too Old?
- Start a side business.
- Become a coach or consultant.
- Invest in stocks, real estate, or other assets.
- Aim for finance-related roles with less stringent age requirements, such as corporate strategy/finance jobs or prop trading.
Here are some crucial tips you need to consider to advance your financial career.
- Find a Mentor. Find someone you respect and admire within your organization and ask him to mentor you. ...
- Build Up Your Resume. A resume is a marketing document and not a record. ...
- Network. ...
- Go for More Certifications. ...
- Always Ask for Feedback.
Top 11 soft skills you need to work in finance
- Communication skills needed in finance. ...
- Negotiation skills needed in finance. ...
- Influencing skills for finance jobs. ...
- Critical thinking. ...
- Flexibility. ...
- Resilience. ...
- Collaboration. ...
- Problem solving skills for finance jobs.
A finance major is right for students interested in business, personal finance and investing. People who work in finance are able to look at the bigger picture of the markets and the economy while making individual financial plans.
Is finance an in demand major? ›
The U.S. Bureau of Labor Statistics (BLS) projects that business and finance employment will grow by 7% from 2021 to 2031, slightly above the average projected growth for all U.S. occupations. Certain roles within finance, like financial examiner, are projected to grow by more than double the national average.
How useful is a finance minor? ›
With a finance minor to complement your accounting, business analytics, marketing, or management degree, you will differentiate yourself from other job applicants without a finance background. It can also make you a more attractive candidate in the eyes of many hiring managers.
Do finance jobs have good work life balance? ›
The finance industry is infamous for struggling to create a positive work/life balance because of its long hours and intensely competitive nature. Achieving work/life balance includes being proactive in requesting flexibility with work hours, remote work, and time.
Salaries in the finance industry
According to the U.S. Bureau of Labor Statics, careers in finance pay a median salary of $76,570 — 67% higher than the median salary for all occupations in the nation ($45,760).
What traits make finance a good career? ›
Here are five personality traits commonly found in finance majors.
- Natural problem solver. According to Forbes Magazine, there are multiple career options for finance majors, but each of them requires great problem solving skills. ...
- Analytical. ...
- Born leader. ...
- Confident. ...
- Self-motivated.
The positions that some financial recruiters have identified as the hardest and most competitive jobs to fill include controllers (including hedge fund controllers), tax managers, fund and senior-level accountants, and valuation analysts.
What is the least stressful job with a finance degree? ›
Low-Stress Jobs in Finance
- Financial Consultant.
- Financial Analyst.
- Accounting.
- Portfolio Manager.
- Personal Financial Advisor.
- Internal Auditor.
- Financial Planning & Analysis Manager.
- Insurance Advisor (Risk Manager)
If history is any guide, there's good news. Financial advisors were among the most recession-proof occupations during the Great Recession, according to an InvestmentNews Research analysis of Bureau of Labor Statistics data.
What is the hardest financial skill? ›
The hardest financial skill is getting the goalpost to stop moving. And to do that, you have to stop comparing yourself to others, and start determining what is "enough" for yourself. One of the single most important things you can do as an investor is wait, or extend your time horizon.
How stressful is working in finance? ›
Drawbacks of a career in finance can include high stress, long working hours, continuing education requirements, and, in some cases, limited job stability.
Is finance a saturated field? ›
The job market is loaded with many financial careers and opportunities and continues to grow yearly. However, it is a stable career and is not over-saturated like most other occupations. One good thing about a finance career is that it is a broad field and employs a lot of finance graduates.
What is a high paying job with no stress? ›
Here are common high-paying jobs you can pursue that might create little to no stress in your professional life:
- Art director. National average salary: $70,039 per year. ...
- Purchasing manager. ...
- Research scientist. ...
- Nuclear engineer. ...
- Audiologist. ...
- Statistician. ...
- Information systems manager. ...
- Operations engineer.
What finance jobs are best suited towards introverts?
- Investment Banking. Investment banking is a career path that requires a lot of interpersonal skills. ...
- Private Equity. ...
- Venture Capital. ...
- Hedge Fund Manager. ...
- Credit Analyst. ...
- Corporate Finance. ...
- Portfolio Management.
30 of the least stressful jobs that pay over $100,000 (ranked)
- Environmental Economist. Stress tolerance: 52. ...
- Mathematician. Stress tolerance: 56. ...
- Political Scientist. Stress tolerance: 61. ...
- Chemical Engineer. Stress tolerance: 61. ...
- Physicist. ...
- Economist. ...
- Computer and Information Research Scientist. ...
- Computer Hardware Engineer.
Here are 10 jobs that pay well but typically don't require you to work 40 hours or more per week:
- Personal trainer.
- Photographer.
- Nutritionist.
- Librarian.
- Artist.
- Writer.
- Chiropractor.
- Real estate agent.
In this environment financial institutions have offered a number of highly priced services that companies and investors find worth the cost. This is a very competitive market and clients pay for what they perceive to be higher returns, less risk and reduced capital costs.
Is it better to major in finance or business? ›
Finance graduates are much more likely than business degree graduates to enter the financial industry, typically in banking, personal finance, investment banking, and related fields. Common jobs that finance professionals may pursue include personal financial advisors, financial analysts, and accountants.
What is a financially stable job? ›
A stable job refers to a position that employees can keep for long periods of time. For example, an individual can work for the same company for decades or maintain a career in a stable field for many years. These jobs may also offer stability to employees in other ways, such as consistent working hours and salaries.
How many hours do finance work? ›
Most financial analysts work full time and some work more than 40 hours per week.
What is a financially healthy position? ›
The state and stability of an individual's personal finances and financial affairs are called their financial health. Typical signs of strong financial health include a steady flow of income, rare changes in expenses, strong returns on investments, and a cash balance that is growing.
