Goldman Sachs has a retention problem and it’s now working to quickly fix its employee churn issues.
The company this week promoted 425 employees to managing director roles, the highest ranking they can receive before making partner at the firm.
Business Insider reports that “30% of the new managing directors are millennials, and a huge chunk of them have been with Goldman their entire careers.”
40% of the class were hired at the entry level as analysts, and 20% started out as summer interns, according to the firm.
The investing giant is hoping to retain more workers for their entire professional careers instead of spending just a few years at the company before they leave for hedge funds, private equity firms, and other career paths.
The company says it will now promote employees to the associate level after just two years.
“Everything that we’re doing is to try to give us the best opportunity to develop the best of those people and have a subset of them want to build their careers here,” said David Solomon, Goldman’s cohead of investment banking. “Not all of them, but a subset of them.”
Before this big announcement the company would hire junior bankers, put them through a two-year program straight out of college, and then watch as they moved on to other jobs outside of banking when the program was completed.
Those who stayed on usually completed a third year as analysts before being promoted to associates. They did away with that program two years ago in an attempt to more rapidly reward their newly trained junior bankers.
The new third-year promotion means that junior bankers will get a pay raise sooner than they normally would. Associates earn about $63,000 more than analysts, on average.
The move shows employees that they may move up the corporate ladder at a faster pace, eventually becoming vice presidents and ultimately managing partners.