By establishing a new base in Malaga, the Wall Street titan Citigroup is attempting to recruit junior bankers with reduced hours and sun-kissed beaches.
In the two-year program that began yesterday in the southern Spanish city, the United States bank promises eight-hour workdays and no weekend employment.
The company selected 27 analysts out of more than 3,000 applications for the program, a tempting offer for grads who face the alternative of seven-day workweeks in London.
By establishing a new base in Malaga, Citigroup is attempting to attract younger bankers with shorter hours and sunny beaches.
The majority of junior investment bankers are in their early twenties, and among the 16 males and 11 women, there is one British national and one dual Spanish-British national.
They together speak fifteen languages.
Their beginning wage will be approximately half of the £86,000 paid for comparable positions in London and New York.
Post-pandemic, banks are trying to entice prospective employees to work in city centers amidst allegations of industry burnout.
Malaga, located on the Costa del Sol, provides workers with abundant free time to enjoy its beaches and unique cuisine.
However, some have criticized the idea, claiming that it will negatively impact employees who will end up working fewer hours for less money than their counterparts in Citi’s main offices.
Yesterday, a civic reception was arranged to introduce the project’s 27 new analysts (pictured)
Citigroup’s global co-head of investment banking Manolo Falco stressed that the project was “not a gimmick” as a civic gathering was held yesterday to launch it.
He told the Financial Times, “We lose talent to private equity and technology, therefore we are interested to see if we can prevent this by providing a better work-life balance.”
“Like the rest of the sector, we have a great deal of turnover; we lose talent to private equity and technology, therefore we are interested to determine if we can prevent this by providing a better work-life balance.”
Maria Diaz del Rio, the unit’s chief of staff in Malaga, stated, “Sometimes banks overwork our analysts, therefore we want to demonstrate that they can work less hours and still offer value.”
In the two-year experiment that began yesterday in the southern Spanish city, the U.S. bank is offering eight-hour workdays and no weekend labor.
When they are working on Mergers and Acquisitions deals, we may ask them to work longer hours in exchange for extra vacation time.
Those who wish to succeed in their careers must leave the Costa del Sol.
After two years, those who have performed successfully will be eligible to apply for jobs in New York or London.
The issue over burnout among young bankers was revived a year ago when Goldman Sachs analysts disclosed charges of abusive work hours and bullying.
In response, banks increased first-year wages to over $100,000 plus bonuses.
This year, Citi has hired 160 graduates across Europe, the Middle East, and Africa, with the Malaga branch representing only a small portion of the total.