Goldman Sachs Group Inc. has unveiled a series of changes within the company, including promoting junior bankers quicker, according to a report from Reuters.
The company is looking to retain more talent with its series of changes.
Reuters adds that Richard Gnodde, David Solomon, and John Waldron, the co-heads of the investment banking division of Goldman Sachs, sad in an internal memo that the promotion to associate will occur after the second year of the analyst.
The decision to be promoted will be communicated to the analyst in their first year. In the current system, analysts are promoted to associates after the third year.
Reuters adds that the memo also said analysts, over the next 12 months, are guaranteed a rotation to a different area or geography within the business.
The analyst will just have to complete two years at his position before he can be rotated.
Reuters adds that Solomon said during a press briefing that despite "ebbs and flows, ups and downs," a lot of people are still interested in working at Goldman Sachs.
"But in the competitive world that we live in, it's important that we don't take that for granted for one minute and that we're constantly in a position to make sure we're doing all the things we need to do to be as competitive as we can be," he said.
Bloomberg adds that banks have been trying a variety of ways to keep more of their promising talent who are often courted as early as six months into the job by private equity and hedge-fund firms.
Morgan Stanley had retracted, two years ago, its rule that banned analysts from hunting for work in their first year as a junior employee.
Bloomberg adds that Goldman Sachs had started offering analysts full-time employee contracts in 2012 instead of just offering two-year contracts from the start.
This move is to encourage analysts to stay longer at the bank.
Bloomberg adds that Goldman Sachs have also boosted the salaries of U.S. analysts last year by 20 percent.
This bought the base salary of many first-year employees to about $85,000.
Reuters adds that Solomon said they have already seen "tangible results" with retentions of junior bankers due to the changes they have made in recent years.
