Jun 28, 2021 12:46 PM EDT
Last winter, Goldman Sachs reported it was working to make things better after a group of junior analysts revolted against 100-hour work weeks.
That's a smart thing to do, suggests a new study from the University of Toronto's Rotman School of Management. Drawing from more than 6,000 employee reviews of their workplaces and data on their firms' forecasting accuracy, the research shows that making improvements to hardworking analysts' work-life balance produces dividends for the company and for the analysts' careers.
"There is a lot of anecdotal evidence, but here we provide large-scale evidence that supports the recent push to grant these employees at least some reprieve from the extremes of their jobs," said Ole-Kristian Hope, who is the Deloitte Professor of Accounting at the Rotman School, and worked on the research with three colleagues.
Too much of a good thing is possible, however. The study found there was a limit to the positive performance impact of improving work-life balance.
An analyst's forecast accuracy -- that is, how correct their forecasts are about a company's future earnings and whether it's a recommended stock pick -- maxed out once analysts' work-life balance hit about 3.5, or "okay," on a 5-point review scale.
Investment returns based on those stock recommendations showed a similar effect, with returns maxing out when work-life balance reached about 3 out of 5 points. It's thought that this is because people need a certain amount of mental stimulation and demand to process information efficiently.
"If you have too much work-life balance, that means you're not focusing enough on work," said Prof. Hope. "A little bit of stress is probably a good thing but if it's too much then the pressure becomes daunting and you can't do anything."
Optimized work-life balance was also found to support analysts' career advancement, based on job mobility and promotion data and information from a recognized industry awards recognition program. Such awards influence analysts' compensation and career opportunities.
This is the first study to examine the role of work-life balance in financial analysts' performance and career advancement. It was made possible by the availability of employee reviews about the companies they work for via a social media platform called Glassdoor.
The researchers chose these employees to measure the impacts of work-life balance because of their reputation for being more professionally aggressive, career-oriented and having a higher tolerance for stress. Financial analysts can put in as much as 70 to 110 hours a week during quarterly earnings seasons, when companies are issuing their reports. "They're not your typical animals," said Prof. Hope, making it less obvious that work-life balance would affect them the same as it does other workers.
Financial analysts are also important to study because the information they provide contributes significantly to the operation of capital markets. "Learning about the source of variations in their work performance is important by itself," said Prof. Hope.
By examining key aspects such as security measures, customer service, user experience, transaction convenience, and potential for innovation, we strive to offer an in-depth perspective on this reputable trading platform.
And the world of NFTs expands far beyond art and collectibles. A new era of tokenized digital assets is being created using the blockchain. Here are seven unique NFT use cases that the interested investor should know.
However, there are some simple steps that anyone can take which will help to improve their performance when it comes to trading foreign exchange markets. Here are ten small things that can make a big difference in your FX trading success.
o prevent significant losses, risk management expertise is essential. His adage, "Rule No. 1: Never lose money," has become a stock market classic. Never forget Rule No. 1; this is Rule No. 2. This practice is followed by even the most successful investor, Warren Buffett, who advises others to follow suit.
One of the significant advancements is shifting the payment operations for remote workers. If the compliances are not met, it may lead to severe legal complications. The owner and organization may be held labially separately. The remote working lifestyle continuously grows and is a testament to becoming an endless working mode. Today we discuss components for payroll for remote workers
BRG International Founder Matias Alem had recognized this fact for a few years. So he remodeled his real estate brokerage into something completely new to solve the problem for his jet-setting international client base.
Ryan Early, hailed as 'Farmer Ryan' among sustainable agriculture experts, is a busy man. He has a laundry list of companies to his name, including Blue-Green Ventures, the company behind the revolutionary product, Blue MagicTM, a non-toxic and eco-sustainable pest preventative product using his patented BiomeMax TM Pheromonal Replication Technology.
Investor, financier, and expert in both cryptocurrencies and blockchain technology, Joy Mbanugo is the go-to in the sector. She has vast experience and knowledge across tax services, auditing, business operations, financial analysis, capital markets, and other specializations.
When Nick Collins was just 14 years old, he started his first business, which included around-the-clock phone calls and numerous questions from his parents. In fact, he began building his stout portfolio in the seventh grade by doing web design, incorporating creative content with brand strategies and plugging in a then-fledgling tech Flash.
Barry Gabster is the founder of InitiateU and is a leading proponent of the marketing mailer revolution, having already taken his company to 10x growth in 2021, alone. In fact, the exponential growth has seen the company rise from $800K-$8.5M just on word-of-mouth referrals.