Goldman Sachs recently announced in an internal memo that partners and managing directors can "take time off when needed without a fixed vacation day entitlement." It is also offering junior staff two extra days off each year, according to a report by Yahoo Finance.
Although the bank was initially a strong proponent of having staff return to the office following COVID-19 restrictions, the memo might indicate a step back from that policy. The bank could be reversing direction to the ongoing struggle in the labor market to fill vacant positions.
In March 2021, David Solomon, Goldman Sachs CEO, said "part of [Goldman Sachs'] secret sauce is that [younger staff] come together and collaborate and work with people that are much more experienced than they are. For Goldman Sachs to retain that cultural foundation, we have to bring people together."
However, when Goldman Sachs reopened its New York headquarters on Feb. 1, 2022, only half of employees showed up to work. Junior banks have also complained about this policy and some have begun looking for work elsewhere. A Harris poll conducted for Fortune found about 50% of workers would take a lower salary for an unlimited leave policy.
Other banks have also adjusted its policies, such as JPMorgan, which said in April it would allow half of its workforce to serve in hybrid or fully remote settings.
However, this policy could back fire if an office discourages taking vacations since the unlimited leave policy doesn't give clear expectations of how much time off the workers can really take.
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Privacy PolicySeptember 9-11, 2024 | Charlotte, NC