Why Do People in the finance Industry Accept Long Work Weeks?
Today, I want to dive into a simple yet significant question. As a MSc finance student in the Netherlands, I am exploring the professional landscape post-graduation. After attending numerous events held by different companies, I have noticed a common theme – extended work hours in the finance industry. While many roles come with a 40-hour theoretical contract, it is typical to find employees working 50 or more hours due to unpaid overtime. In Private Equity (PE) and Investment Banking (IB), work weeks often exceed 60 hours, with some even pushing 80. Similarly, numerous Consultancy firms demand more than 40 hours from their employees.
In my area, the standard work week is 40 hours across various sectors like construction, healthcare, and transportation. However, this norm does not hold true in the Finance industry. When discussing this with Finance professionals, they express contentment with long hours. On the contrary, non-Finance individuals argue that 60 hours are excessive and prefer shorter work weeks, like 36 hours, if feasible financially.
Do you notice this distinction as well? Why are Finance professionals different from the average worker in their acceptance of long work weeks? Can one still excel in Finance without committing to 60+ hours per week? Personally, I adopt a work-to-live approach rather than the live-to-work mentality prevalent in Finance.
One response
Why are people in the finance industry okay with long work weeks?
In the finance industry, long work weeks are often seen as a standard practice for several reasons:
High-pressure environment: The finance industry is known for its high-pressure environment where deadlines are tight, deals move quickly, and market conditions are constantly changing. To meet these demands, employees are often required to work long hours to stay on top of the market and ensure the success of the business.
Competitive nature: The Finance industry is highly competitive, and employees are often driven by the desire to succeed and climb the career ladder quickly. This competitive nature can lead to a culture of long working hours as individuals strive to outperform their peers and achieve their goals.
Compensation: In the Finance industry, employees are often well-compensated for their hard work. The potential for high salaries, bonuses, and other financial incentives can make the long hours seem more worthwhile for many professionals in the industry.
Work ethic: People in the Finance industry often have a strong work ethic and are dedicated to their careers. This dedication can manifest in a willingness to work long hours to accomplish their goals and succeed in their field.
Client demands: Many roles in Finance involve working with clients who may have unique needs or require around-the-clock support. This can lead to long work weeks as employees strive to meet client expectations and provide exceptional service.
While long work weeks are common in the Finance industry, it is important to note that not everyone in the industry works excessive hours. Employers are increasingly recognizing the importance of work-life balance and offering flexible working arrangements to their employees. It is possible to succeed in Finance without working 60+ hours per week, but it may require finding the right balance between work and personal life and setting boundaries to prioritize well-being. Ultimately, each individual’s tolerance for long work weeks may vary, and it is important to consider personal values and priorities when deciding on a career path.