JPMorgan Chase, $JPM, 'requires workers give 6 months notice' before quitting.
Goldman Sachs is reportedly tightening its stance on talent poaching by requiring junior bankers to certify every three months that they haven’t accepted job offers from private-equity firms. These so-called loyalty oaths are the latest industry-wide attempt to retain young analysts early in their careers. But according to experts speaking to Fortune, such efforts may backfire.
The bank’s new initiative, first reported by Bloomberg, aims to curb early departures by checking in quarterly with junior staff to confirm they haven’t lined up PE roles. It’s part of a broader push among big investment banks to resist the aggressive recruitment practices of private-equity firms—particularly the practice known as on-cycle recruiting, where PE firms approach analysts during or even before their training period.
This tactic has frustrated banks, which struggle to keep talent after initial contracts expire. But experts say strategies like loyalty oaths could have unintended consequences.
“I’ve seen the same dynamic with non-compete agreements,” said Paul Webster, managing partner at Page Executive North America. “The stricter the rules employers try to impose, the more backlash they create—making candidates question their loyalty and increasing the likelihood they’ll leave.”
Webster, a veteran of 25 years in financial recruitment, said that for the past decade, junior finance professionals have increasingly viewed private equity as a path to better work-life balance—often a higher priority than maximizing income through grueling 80-hour weeks.
Meanwhile, banks want to see a return on their investment in new hires. According to Webster, young bankers typically become most productive after their first two years, contributing meaningfully to major deals like M&A transactions.
“When I talk to senior bankers, they’ll say, ‘Those first two years are all about training—we’re not yet seeing a return,’” he noted. “So from the firm’s perspective, it’s a sunk cost in salary and training.”
Ultimately, Webster said, retention efforts that rely on pressure rather than incentives could be self-defeating.
“It’s counterproductive. You’re asking them to stick around during the training phase, but by the time they’re actually valuable, you’ve created a sense of disloyalty. They leave as soon as their two-year stint is over.”
