Goldman sachs internships salary: Goldman Sachs keeps intern pay at $85,000 as Wall Street rivals raise salaries

Опубликовано: December 24, 2022 в 8:42 pm

Автор: alexxlab

Категории: Miscellaneous

Goldman Sachs keeps intern pay at $85,000 as Wall Street rivals raise salaries

Financial News

Published: April 22, 2022 at 4:57 a.m. ET

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Goldman Sachs has decided not to up pay for its interns, despite hiking salaries for other lower-level roles as an intense battle for talent continues.

Incoming summer interns at the bank can expect a pro-rata salary of $85,000, according to a letter seen by Financial News.

This is effectively the same entry-level pay level the bank offered before it hiked salaries for first-year analysts to $110,000 in August.

Interns will also receive a $2,500 bonus for the eight to 10 weeks they stay at the bank this summer.

While Goldman
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has become one of the highest payers for junior and mid-ranking dealmakers as rival banks bid to secure top talent, the decision to hold intern pay contrasts with some Wall Street and European peers, including JPMorgan
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which are offering their summer interns salaries commensurate with full-time roles, for which pay has increased to $110,000 for those in their first year on the job.

Investment banks have been clambering to keep hold of junior bankers over the past 12 months as a boom in deals has led to 100-hour weeks and a spike in burnout. The issue was thrust into the spotlight in March last year when a group of 13 Goldman Sachs analysts in San Francisco highlighted a surge in workload and declining mental and physical health.

All major players have responded with at least one salary hike for analysts. Citigroup, JPMorgan, Goldman Sachs, Morgan Stanley and UBS are among those to increase entry-level pay to $110,000. In London, Goldman Sachs, JPMorgan and Morgan Stanley now offer starting salaries of £70,000.

Internships are the primary route into a full-time banking job and remain fiercely contested, despite the hit to the sector’s image over the past year.

Goldman Sachs received a record 236,000 applications for its 2022 intake, with a 1.5% success rate, CNBC reported. Meanwhile, JPMorgan had over 270,000 vying for its internships, the bank told The Times, an increase of 20% on last year.

Pay might be seen as a secondary consideration for internships, as candidates look to open the door to a career in banking. But Goldman has handed out bumper bonuses to other staff this year, putting it ahead of its rivals, according to a report from recruiters Dartmouth Partners.

The bank paid out £180,000 in bonuses to associates on average, the data shows, while vice-presidents were paid variable compensation of £350,000. These were the highest numbers in the City.

This story originally appeared at FNLondon. com

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Interns see 37% pay bump at a number of top banks: data

An article from

Dive Brief

Published April 18, 2022

Robin Bradley

Reporter

choness via Getty Images

Dive Brief:

Top global investment banks raised pay for interns 37. 2% between 2021 and 2022, and other large banks boosted intern salaries 36.9% Bloomberg news reported Friday, citing user-submitted data from Wall Street Oasis.
Proprietary trading firms and hedge funds topped the list of average monthly pay for finance interns, but investment banks followed closely behind. The eight most remunerative financial firms all paid their interns more than $10,000 per month.
According to the Wall Street Oasis data, Citi paid its interns $8,695 a month; Bank of America, $8,468; Goldman Sachs, $8,333; and Morgan Stanley, $8,005. Data from Glassdoor indicates Capital One paid its interns $8,333 per month.

Dive Insight:

As the war for talent rages on, top financial firms are hiking wages to attract entry-level talent.

Wall Street banks are competing with technology and consulting firms for new blood, and trying hard to entice young workers away from businesses that may emphasize work-life balance and offer more pronounced hybrid or remote-work arrangements.

In an industry where, just last year, junior analysts bemoaned 100-hour workweeks, and asked management to cap workweeks at 80 hours, many banks have no choice but to raise pay to retain workers.

According to user-submitted data from Glassdoor, in 2021, the number of internships paying more than $8,000 per month in the finance sector increased 33%, while that number increased 22% in tech, Bloomberg reported.

And banks’ strategy of throwing money at their entry-level pipelines seems to be paying off.

This year, an all-time-high of 236,000 people applied to Goldman Sachs’ in-person internship program, up 17% from 2021, according to Business Insider. Morgan Stanley also saw an increase in internship applications between 2021 and 2022, Bloomberg reported.

Patrick Curtis, the founder of Wall Street Oasis, said he thinks the bump in internship applications may have to do with pay increases for junior bankers.

The jump in junior banker pay from 2021 to 2022 was the highest he had seen since launching Wall Street Oasis in 2006, Curtis told Bloomberg.

According to data gleaned from the site, proprietary trading firm Jane Street paid its finance interns $16,356 per month — tops among the firms included.

The top eight investment banks each paid their interns an average of $8,000 or more per month. Internship programs at Wall Street banks typically last 10 to 12 weeks.

Pay can vary depending on an interns’ location, as well as their role within the firm, with highly-technical jobs like quantitative trading and engineering typically paying the most, Curtis told Bloomberg.

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Commercial

How Goldman Sachs changed the hiring process

Varvara Grankova

Every day, Goldman Sachs employees help clients find solutions to complex problems. Therefore, the selection of the best specialists is a key factor in our success, and this process cannot be left to chance. The financial crisis of 2008 confronted us with a challenge that the company had not faced in its 150 years of operation: for decades banking investment remained one of the most sought-after, promising and rapidly growing industries. The crisis has deprived us of former attractiveness: growth has slowed down, and incomes have decreased. At the same time, the competition for talent within and outside the industry has intensified. Many potential candidates have gone to Silicon Valley, gone into private equity or startups. What’s more, while previously we were looking mainly for specialists in audit, finance and economics, now there is a huge demand for new skills at Goldman Sachs, especially in the field of programming.

We have decided to replace traditional recruiting principles with fresh developments in the field of recruiting and candidate assessment. Each year, Goldman Sachs takes on up to 3,000 students for summer internships and almost the same number for entry-level positions in analytics. We consider them as the future leaders of the company, so we decided to test our innovations on them. So video interviews and directed interviews were added to the recruiting process on campuses.

Asynchronous video interviews. Previously, our specialists and recruiters conducted the first round of interviews directly at universities. The university independently set the date and time of the meeting with students, and we were limited in the number of campuses and students: in the allotted time, it was far from possible to talk with everyone. We had to work only with a narrow circle of the best educational institutions: we focused on those where the average level of candidates is higher, and because of this we missed talents from other universities. We knew that among the successful employees and leaders of Goldman Sachs there are many graduates of different universities and it is wrong to limit ourselves to Harvard, Princeton and Oxford. In addition, we were constantly opening offices in new cities and regions, and it was necessary to actively look for candidates in local universities. Video interviews solved this problem.

When digital interviews were still in vogue, we decided to use asynchronous interviews for the first round of selection: students simply recorded the answers to our questions on video. Recruiters sent them standard questions and waited for three days for videos with answers (they could even be shot on a smartphone). Then our specialists and recruiters watched videos and selected the best candidates, who were invited to the Goldman Sachs office for a personal interview.

This approach proved to be more effective for two reasons. First, we were able to save energy and devote more time to getting to know those who wanted to work for us. In 2015, a year before the rollout of the digital platform, we spoke to less than 20% of all students who applied, and in 2018 almost 40% of applicants entered the first round. The second reason is that now we are attracting talent from universities that we were not able to work with before. In 2015, we interviewed students from 798 universities in the world, and during the last intake – out of 1268. Previously, in the US, most students came to us from “target” institutions, now it’s the other way around. We expanded the recruiting funnel and increased the diversity of employees.

Since our main asset is people, we have worked hard to ensure that video interviews do not look detached and impersonal. These interviews are just one step in the recruiting process at Goldman Sachs. We still continue to visit campuses and interact with students at orientation sessions, coffee breaks, and other events. However, now this communication is no longer aimed at assessing potential candidates, but at informing: we want people to understand the essence of our work and our offers, and not just submit resumes for vacancies or internships.

We also want candidates to be as prepared for the interview as possible. Everyone should have equal opportunities. To do this, we have written tips and instructions for preparing for a video interview. Since the platform does not allow you to edit recorded videos, we make the first question a test question, and before the actual interview starts, we start a countdown. Students can report technical failures through a special channel – although this rarely happens.

We are confident that the new approach will appeal to younger candidates. We use their usual medium (video), and most importantly, they can answer questions when they have time and energy. Our data shows that it is most often Thursday or Sunday evening; we used to do interviews during office hours.

Directed interviews and evaluation. How to build an evaluation procedure that not only helps to select the best, but also takes into account the qualities of the candidate that promise success? Create it, structure it and strictly follow it. Research shows that guided interviews help to effectively assess candidates and predict their future performance. We ask candidates about specific experience they may have at Goldman Sachs (“Did your project partner ever fail to meet their obligations? What did you do then?”) and offer hypothetical scenarios (“Did you happen to hear in an elevator, when someone speaks negatively about your colleague with whom you are friends. A little later, this colleague asks you if there are any defamatory rumors about him. What will you answer him?”).

$135,165

is the median salary of 36,600 Goldman Sachs Group employees worldwide, according to data provided by the company to the U.S. Securities and Exchange Commission (SEC) in 2018.

We now look less at past human achievements and more we are trying to understand whether he has qualities that are useful for our company and corporate culture. Directed interview questions assess a candidate’s 10 core competencies (including analytical thinking and integrity) that are important to long-term success at Goldman Sachs. During the video interview stage, the first six competencies are assessed, while the other four competencies are tested with the best candidates during a personal interview.

We have several questions to test each competency. We evaluate the answers to questions on a five-point scale according to the instructions: for this, we train our specialists to conduct directed interviews and give them preliminary materials immediately before communicating with the candidate. In addition, we hold follow-up meetings, where we carefully analyze all the data we have collected about the candidate and check whether the manager who conducted the interview overestimated (or underestimated) his scores. We are now trying to combine interviews with assessment tests and are already conducting a math and programming exam for applicants for developer positions.

$270 million

How much has Goldman Sachs Group’s payroll costs decreased over 4 years, according to a message from the bank’s CEO Lloyd Blankfein, which he presented at the 2017 shareholder meeting.

We decided not to test these changes for too long and immediately implemented for everyone, because we are sure that people will accept this approach, because they will understand that this is a chance for them to quickly show themselves. We also know that no process is perfect. What I like most about the new approach is that we have turned the HR department into a laboratory for continuous learning and improvement. We have already accumulated over 50,000 videos of candidates – it’s just a mine of data! Their analysis will help us answer the most important questions: Are we assessing the competencies? Shouldn’t they be given different weights? Should I pay attention to the education and experience of the candidate? Which employees are more effective at interviewing? Who is more useful to the firm – the best average student or the average Ivy League student? We have reason to believe that graduates of those universities that we did not cover earlier work no worse than graduates of “selected” universities and often stay with us for a long time.

What will we strive for next? We receive up to half a million applications per year. Of these candidates, we hire approximately 3%. But we are confident that very many of the remaining 97% could have succeeded at Goldman Sachs. Therefore, the correct choice of these 3% is not so much a search for a specific person, but a search for a person who ideally matches a specific position. Sometimes it is yesterday’s graduate, sometimes it is an experienced professional. We are experimenting with algorithms that analyze resumes: they should help each candidate choose the department that is most suitable for him (taking into account his skills and interests). We are also interested in the opportunity to use virtual reality technology to introduce students to work in our offices and our industry. In addition, we are increasingly trying to use data when making hiring decisions: we check different programs and tests. However, at Goldman Sachs, it is simply impossible to exclude the human factor: it is too important for our culture, work and success.

Curious where this path will take us. The new intake of students promises to be the most diverse – and we carefully selected each of them on the basis of objective assessments.

About the Author: Dane Holmes is Global Director of Human Capital Management at Goldman Sachs.

Original article here.

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Goldman Sachs: Introduction to Investment Bank

To see the goal and achieve it, plan your future and determine the vector of development – all this can be learned. And on December 15, 2021, participants in the corporate mentoring program, teenagers from the Fidget and Inspiration Centers, went to Goldman Sachs Investment Bank to get to know the team and learn how to set goals.

The road to the bank, the meeting, the cloakroom, and now the guys are warming themselves with a cup of tea and getting to know the bank’s employees. We talked with teenagers about such important things as goal-setting and planning, personal finance and investments, loans and microloans, and also talked about who works in the bank and about the tasks of employees.

“The Goldman Sachs team consists of young and ambitious professionals who are ready to share their experience, be helpful and individually advise the guys,” said Ruslan, an employee of the bank.

Alena is studying the technology of production of products from polymers, but has not yet decided on her future plans. Alina is still at school and wants to become a videographer. And Yegor plans to connect his life after graduation with military affairs by enrolling in a military school. And right now the guys need help in building a development trajectory. Therefore, bank employees and teenagers discussed the need to study their universal qualities using real examples. Qualities that do not depend on the profession, but affect the success of a person in the future.

Ruslan told the guys how pleasant it is to do what you like, to be happy to go to work. When choosing a profession, it is important to plan how it can help you move towards your goal, develop and improve your universal qualities. “We need to weigh the options and choose what will be useful and help move towards the goal,” Ruslan advised the teenagers.

Along with the standard professions that teenagers choose for a part-time job, salesman, waiter, animator, barista, courier, other options were offered that teenagers can consider: secretary, administrator, assistant stylist, florist and others. At the same time, it is very important to carefully study the description of vacancies and beware of employers who promise “mountains of gold for doing nothing. ”

The guys also touched upon an important question: what to choose after graduation – receiving benefits at the labor exchange or real employment. We discussed that there is always an alternative, you can receive benefits for 6 months, or you can invest in yourself during the same time, working and gaining experience, in order to be even closer to your professional goal as a result.

“The topic of cost management was also interesting. It turned out that the largest part of the budget is food expenses, they take 30-40% of the salary, and by managing these expenses, you can optimize a significant part of your personal budget,” Evgenia, a participant in the meeting, was surprised.

Credits and loans did not leave everyone indifferent either. An interesting discovery for the guys was that now you can take an educational loan with the support of the state with conditions that can allow almost any teenager who is aimed at learning and further development in the received profession to take it.