Banks Raise Stakes in Cutthroat Competition for Talent

Banks are facing cutthroat competition to hire and are being forced to pay more to recruit and keep talent, with both Citigroup Inc. and JPMorgan Chase & Co. saying they are having to pay competitively for top people.

Global banks have had to come up with perks like higher pay and bonuses to attract and retain talent as the economy recovers and people look to shift around.

“Hiring has been very competitive across the business,” Citigroup Inc. Chief Financial Officer Mark Mason said on a call with reporters. That’s being seen at the entry levels as well, he said.

“We have seen some pressure in what one has to pay to attract talent,” said Mason. “So yes, you’ve even seen it at some of the lower levels, I should say entry levels in the organization.”

That included analysts or associate bankers, Mason said, adding there was a “lot of competitive pressure on wages.”

JPMorgan CFO Jeremy Barnum told reporters on a call that they are facing pressures.

“It is true that labor markets are tight, that there’s a little bit of labor inflation and it’s important for us to attract and retain the best talent and pay competitively for performance,” Barnum said.

The comments came as the banks reported their earnings.

© 2022 Thomson/Reuters. All rights reserved.

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