When we asked people for their 2020resolutions earlier this week, no one said directly they planned to get more sleep. This is surprising: sleep is a big issue, and in banking it's bigger than elsewhere.
Last year, we asked over 2,000 of our readers about their sleeping patterns. 60% of you said you weretired or exhausted, and there were pockets were the exhaustion was acute.
Sleep when you work in IBD
Investment banking divisions (IBD) have a reputation for long hours. This is where people work 80-100 hour weeks, and are regularly at their desks until 1am.
One 20-something London analyst told us she sleeps four hours on weeknights and catches up at weekends.An NYC investment banker said it's not so much the hours but the intensity and unpredictability that's the killer: "Week in, week out, year in, year out....the next surprise all-nighter is always one email or press release away from coming to get you."
A fifth of people ininvestment banking divisions said they had less than five hours' sleep each night. The ongoing exhaustion in IBD comes despite banks' efforts to curtail working hours for junior staff.Banks' initiatives mostly involve mandatory time off at weekends, but IBD juniors said they haven't done much good. There are complaints that "protected weekends" aren't enforced, that the "Saturdays off" rule simply means longer hours on Thursdays and Fridays, and that while Saturday is a rest day, Sunday is back to work.
A better place to work is technology in banking. 95% of people in technology told us they get more than five hours sleep a night. Even so, there were still complaints aboutlate night calls from managers in other time zones.
Compliance and risk professionals are tired too
It's not just investment banking division people who are tired in banks. People in control functions also have sleep deprivation, with a surprisingly similar proportion getting less than five hours' sleep a night. The real issue here is pay:because control professionals are paid less than front officebankers and traders, they live further out where housing is cheaper. This means longer commute times andless time in bed.
Sales and trading jobs are good for sleep, although there are exceptions
On the whole,sales and trading jobs look like a good option for people who want to earn good money and be well-rested.
However, markets jobs alsohave their downsides. Sales and trading professionals go to bed early (50% are in bed before 10pm). But they also get up early (50% are up before 6am). Traders said their hours are more "humane", although there were complaints that, "Working 7am to 8-9 pm in sales and trading, and keeping track of the night's news keeps you under, "work and sleepless mode," for at least 14-15 hours a day, with no lunch and breakfast breaks during the day."
One London trader in his late 20s said juniors on structured product and exotics desks have it worse than anyone: they have to be in early and stay late to check risk. "You're also expected to readall the research you are interested in, all the while being sharp. It's a very tough position," he said.
Exhaustion isn't just about hours in bed. It's also about stamina. A third of hedge fund professionals told us they slept less than five hours a night, but compatively few said they were exhausted as a result.
You'll get more tired, not less
Contrary to popular perception - finance careers don't necessarily become less tiring as you get older.
Finance professionals aged over 40 arealmost as likely to have less than six and five hours' sleep as those aged between 20-25. Exhaustion peaks between 30 and 35 and again at 40+. The former seems to have something to do with starting a family ("I have recently found parenting is even more exhausting [than banking]," said one respondent). The latter seems simply to do with getting older.
Basically, VPs and managing directors are tired. One (ex-) MD complained of the relentless workload, ridiculous expectations and a dysfunctional business model that "does not get better as you climb the ladder." "I quit the coveted Managing Director role to gain some sanity back in my life," he said.
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FAQs
Average number of hours slept by financial services professionals by age, 2024. Table with 2 columns and 7 rows. Bankers, generally speaking, are not sleeping well. Across all respondents to our survey, people working in finance got an average of 6.72 hours of sleep a night.
Does banking sleep work? ›
Some studies say that when people get a few extra hours of sleep leading up to a period of reduced sleep, they perform better than those who did not bank those extra hours. However, many people use sleep banking to make up for an existing sleep debt, and the practice is less effective in these cases.
How do investment bankers stay awake? ›
Many aspiring investment bankers in that thread said caffeine is the order of the day (or night). Others recommended drinking lots of water, exercising during work hours, listening to hard rock music. Some recommended drugs, like Provigil, Adderall and Dexedrine.
Why is sleep like a bank account? ›
Allison Brager, neurobiologist and author of "Meathead: Unraveling the Athletic Brain," says to think of sleep like a bank account. "The more you can put in, the more you can take out, and the more you've taken out, the more you have to put back in in order to get your balance back to normal," she says.
What is the Goldman Sachs 15 minute rule? ›
It means you have to respond to an email in 15 minutes or less no matter what.
How stressful is being a banker? ›
Investment banking is a demanding and competitive field that can take a toll on your physical and mental health. Long hours, high pressure, and tight deadlines can cause stress, burnout, and anxiety. However, there are ways to cope with these challenges and maintain a healthy work-life balance.
What is the 15 minute sleep trick? ›
To promote your bed-sleep connection, follow the quarter-of-an-hour rule: if you notice that you aren't asleep within around 15 minutes of going to bed, try getting out of bed, go to another room go through your wind down routine until you are feeling sleepy-tired and ready to return to bed for sleep.
What is the 90 minute sleep hack? ›
Utilising the 90 Minute Sleep Cycle for Recovery
- Plan Your Nightly Sleep in 90 minute Cycles and Aim for 5 Cycles Per Night. Follow this formula and you'll be hitting a tidy 7.5 hours each night. ...
- Always get up at the same time every day regardless of how many cycles you have. ...
- Aim for 28-35 sleep cycles each week.
“There's an idea that everyone sleeps in 90-minute cycles but that's an average, not a rule,” says Winter. “That means your REM cycle might be longer or shorter than 90 minutes. So you shouldn't feel like you'll wake up feeling more restored if you wake up five minutes later or earlier.” Phew.
Why do investment bankers work so hard? ›
Investment banking hours are much longer than those in other jobs because of four main reasons: Huge Clients Pay Your Bank Huge Fees: When a company is paying your bank $50 million, $10 million, or even $1 million to advise on a deal, you have to do whatever it wants at any time of the day.
While working in Investment Banking, the average bedtime on weekdays for me was 1:29 AM, with an average sleep duration of 5 hours and 56 minutes. On weekends, the average bedtime was 12:02 AM, with an average sleep duration of 8 hours and 29 minutes. However, behind these figures are large fluctuations day by day.
Do investment bankers have a good life? ›
In the high-stakes and fast-paced world of finance, the work-life balance of Investment Bankers often teeters on a fine line. Known for their grueling hours and the high-pressure environment of financial markets, Investment Bankers are frequently at the mercy of market fluctuations and client demands.
Is sleep debt legit? ›
“No amount of caffeine or stimulation can mirror or mask the consequences of sleep deprivation.” Dr. Brager warns that, over time, chronic sleep debt may contribute to more serious health problems, such as obesity, diabetes, heart and other organ diseases, and even cancer.
What is the sleep debt theory? ›
Sleep debt, also known as sleep deficit, is the difference between how much sleep you need and how much you actually get. When you sleep fewer hours than your body needs, you have a sleep debt. Sleep debt adds up over time and can negatively impact your health.
How does the sleep debt work? ›
If you regularly lose sleep or choose to sleep less than needed, the sleep loss adds up. The total sleep lost is called your sleep debt. For example, if you lose 2 hours of sleep each night, you'll have a sleep debt of 14 hours after a week. Some people nap to deal with sleepiness.
How many hours do bankers actually work? ›
How Many Hours do Investment Bankers Work? Investment bankers work notoriously long hours, with the typical work week filling in 60-80 hours per week, and the occasional high-intensity work week that can push a banker to 100+ hours.
Do investment bankers get any sleep? ›
But people in IB (at least people I kind of know) work until about 2am every day and come into office between 9/9:30. So realistically they get about 5-6 hours of sleep (or even less in busier periods) and are expected to be functioning 100% every day.
Do bankers have good work-life balance? ›
When a deal is in its critical phases, the workload intensifies significantly, requiring bankers to put in extra hours to meet tight deadlines. These peak periods can last for weeks or even months, during which work-life balance is often the first casualty.
Do bankers make 6 figures? ›
How can you earn a six-figure salary at top investment banking firms without any experience in 2023. On average, a first-year investment banker makes a 5-digit salary, in the range of $70,000 – $90,000, while a 7-digit salary is considered above average and is difficult to achieve for most people in their careers.
