Investment banks are requiring junior analysts to disclose accepted or future-dated private equity roles to guard against PE firms poaching talent. Policies vary across banks; consequences for disclosure can include termination, redeployment to other teams or divisions, or removal from certain deals. Those consequences may prompt juniors to withhold information, increasing secrecy and undermining retention efforts. Redeployment can be perceived as a demotion if it changes geography or vertical, which may push bankers to play it safe. Disclosure can also reduce chances of being assigned high-profile M&A deals, further discouraging transparency and harming career progression.
To guard against private equity firms poaching junior talent, investment banks are requiring analysts to disclose in writing if they've accepted future-dated jobs. While each bank's policy is different, juniors who confess to having a PE job may be terminated, moved to another team or division, or taken off certain deals - consequences that could encourage ambitious young bankers to clam up and undermine banks' efforts to retain them.
Redeployment could also backfire if the moves are viewed as demotions. "As long as they're still doing the job they were hired for and they're not relocating them to a different geography or a different vertical, that's okay," said Kate Morgan, founder and CEO of Boston Human Capital Partners, a talent acquisition and HR consulting firm. Anything short of that could result in bankers playing it safe, she said.
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