JPMorgan will now fire junior workers over common practice
JPMorgan has warned junior employees that they will be fired if they accept future-dated job offers in the first year and a half of working for the bank.
America's largest bank has begun cracking down on a common practice which sees graduate analysts accepting job offers up to two years in advance of their start date.
Young bankers often begin on an analyst training program while setting up a high-paying private equity role as their next job hop.
Private equity firms are happy for young talent to complete an analyst training program before bringing their skills and contacts with them.
The practice has irked bankers and JPMorgan's threats have hardened the battle lines between the bank and the firms circling its talent pool.
'If you accept a position with another company before joining us or within your first 18 months, you will be provided notice and your employment with the firm will end,' global banking co-heads Filippo Gori and John Simmons wrote in a leaked email sent to new recruits.
JPMorgan CEO Jamie Dimon has previously criticized the process, arguing it raises conflicts of interest as employees may be called to work on projects involving their future employers.
'I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us,' Dimon told business students at a talk in September.
I think that's unethical. I don't like it,' Dimon told the students.
'It puts us in a bad position, and it puts us in a conflicted position,' he added.
'You are already working for somewhere else, and you're dealing with highly confidential information from JPMorgan, and I just don't like it.'
The bank has a strict policy requiring its employees to disclose future-dated job offers and acceptances to their manager.
Bosses have warned that this policy could become even stricter with disclosure leading to the bank 'reconsidering the status' of their employment.
The letter sent on June 4 also told new recruits that their future job searches must be done on their own time.
'To succeed in the investment banking analyst programme, your full attention and participation are essential,' it warned.
But there was a sweetener thrown into the otherwise ominous note, which Fortune understands was only sent to new employees in the US. Trainees will now be given the chance to be promoted to analyst after two and a half years rather than the customary three.
Dimon has also previously insisted on an ironclad stance on remote work.
While speaking at Stanford University's Graduate School of Business in March, Dimon said he's 'had enough' of the now-common workplace practice and that it simply 'doesn't work' in his business.
He got onto the controversial topic after a graduate student asked a question regarding leaked, expletive-loaded remarks from a company town hall about the finance firm's end of hybrid work.
Under Dimon's leadership JPMorgan has grown to be the world's biggest and most powerful bank with $4 trillion.
Its prominent retail and investment arms makes it one of the most closely watched institutions on Wall Street.
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