Goldman Sachs attracted more than a quarter of a million applications from students and graduates for jobs this summer, suggesting fears of a 'brain drain' in the sector may be exaggerated as banks introduce more employee-friendly policies. The number of applications from students and graduates globally have risen more than 40 per cent since 2012, according to figures provided to the Financial Times. The data can include more than one application per individual. The numbers show Goldman Sachs is attracting far more would-be bankers than they could ever employ. The trend is mirrored at several other large banks such as JPMorgan, which said it was hiring only 2 per cent of graduate applicants to its investment banking division, and Citigroup, where the proportion of would-be analysts and associates hired in its global investment banking division was 2.7 per cent. Several — though not all — other banks also say they are seeing higher application levels and improved retention rates despite the battering the industry's reputation has taken for everything from long hours to causing a crisis that inflicted poverty on a generation.



A separate analysis by the Financial Times showed banking has fallen sharply in popularity among MBA graduates from the world's top 10 business schools. "The idea that suddenly people don't want to go into banking — or if they do go into banking that they stay for a bit and leave immediately — a lot of that has been exaggerated," said Sam Dean, Barclays' co-head of Emea banking who has special responsibility for talent. The higher number of applications partly reflects the fact that there are fewer investment banks now, after the collapse of Bear Stearns and Lehman Brothers during the financial crisis. More from the Financial Times :



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Swift threat to suspend weak members Recruitment companies also said investment banking was rebounding as a desirable profession partly because of banks' concerted effort to end their workaholic culture, such as introducing more balanced work-life structures. Last week UBS, Credit Suisse and Morgan Stanley said they had introduced more employee-friendly measures, including hours off for personal matters, free Friday nights and sabbaticals. "They are trying to replicate the Google model," said Bernie Toole, who heads the investment banking unit at recruitment group Selby Jennings. "Before they used to churn analysts, now they are trying to attract and retain them by introducing a more positive culture, with perks and more flexible working practises."

