Dealing with career-related stress is an exhausting part of the day for anyone working in the investment banking division (IBD) or doing other quantitative finance jobs. Working long hours and taking on multiple duties can be overwhelming, especially when there are external demands to produce appealing results consistently. But whose situation is worse? What positions are the most and least demanding in the banking and financial industry? Let’s find out!
Investment Banker
Investment banking is the most stressful occupation in finance. A career as an investment banker is fraught with stress. Working in the investment banking division (IBD) has consistently ranked among the most stressful in entry-level finance jobs and the financial services industry. There are two major stress causes for investment bankers: first, the difficulty of the work itself, and second, the increased burden of it, especially for entry-level financial analyst jobs and associates, even though banks do their best to alleviate this problem.
One of the final forms of legalized slavery for investment bankers is the life of a junior banker. Night shifts, little time for healthy eating and exercise, and salary stagnation for years characterize this survival of the fittest lifestyle. Learn investment banking basics from Investment Banking 101, available on Amazon!
Traders
The second most stressful job in the finance sector is trading. Even if traders don’t work as many hours as investment bankers, their stress is far more intense and noticeable than that of other entry-level finance jobs. Trader stress is real-time, potentially instantaneous. It might be challenging to deal with things beyond your control while trading. Traders do this daily; sometimes, the markets work for them, but others don’t. Even though some workdays conclude early, their job remains active.
Hedge Fund Manager
Hedge fund managers are responsible for caring for and managing substantial investor funds and other finance director jobs. The key is for them to weigh the potential benefits of investments against the risks involved. In addition to being able to keep their cool under fire, hedge fund managers need excellent communication abilities. According to the expert’s analysis, executives made a median yearly salary of $107,680 in May 2020. The top 10 percent earned almost $208,000 annually. Read this detailed guide on hedge fund management, “The Ultimate Hedge Fund Guide.“
Financial Analyst
Financial analysts do one of the most quantitative finance jobs. Their job is to analyze financial data and make investment suggestions. They must be competent in analysis and problem-solving and resilient in adversity. Analysts in this field also need excellent communication skills to help clients make sense of complicated financial data. According to the experts’ analysis, the median annual salary of financial analysts is around $83,660. However, the top 10 percent earned over $167,420.
Head of Finance
The Chief Financial Officer (CFO) oversees the company’s financial operations and other finance director jobs. The CFO needs to lead and manage people successfully and be very good with numbers and analysis. The CFO also requires excellent communication skills to ensure that stakeholders can grasp complex financial data. According to the expert’s analysis, executives made a median yearly salary of $107,680 in May 2020. Almost $208,000 was earned by the top 10% annually.
Auditor
Another stressful job in the finance sector is an auditor. Auditors are responsible for tracking the financial records and checking for conformity with regulations and laws. In addition to paying close attention to detail, they should be very good at solving problems and analyzing data like other entry-level finance jobs. Auditors also need strong communication skills to ensure clients easily understand their findings. According to the expert’s analysis, the median yearly salary for auditors and accountants was $73,560 as of May 2020. However, the top 10 percent earned over $124,450. Master the art of auditing right now with the help of the book “Internal Auditing in Plain English.“
Financial Advisors and Wealth Managers
One source of stress for wealth managers/financial advisors and finance directors’ jobs is that they earn only what they master. This causes them to rank lower on some polls but higher on others. The turnover rate for wealth managers is about equal to that of new hires. According to one wealth manager, out of his 30-person recruitment class, he was the only one left after just five years. To his knowledge, the others had abandoned the enterprise entirely. There’s already a lot of pressure because it’s a sales profession, and you’re going after people you know, like friends and family. You have to sell to keep your entry-level finance jobs, as your starting income is usually a draw, which is barely enough to get by.
Institutional Sales
Stress is an inevitable part of any sales-focused job. When you add that job stability and pay caps aren’t what they once were, working in institutional sales is a chore. Experts stated that there is less need for a human interface due to the increasing automation of functions.
Management Consulting
Does working as a management consultant cause a lot of stress? Indeed, if big and well-known firms employ you. It is common for management consultants to travel extensively, more than quantitative finance jobs. And it’s not only day trips. Staff members may spend many weeks—if not months—at a client’s location. A consultant said they had to fly home every weekend to be with their family after spending nearly three months traveling from their homes.
In 2013, researchers investigated the working conditions of entry-level financial analyst jobs and management consultants at top strategic consulting firms. They discovered that employees reported working fifteen-hour days with fewer than six hours of sleep each night. If you want to succeed, you need to be willing to put in a lot of time and effort and ignore distractions. I have found a book for you, “Management Consulting 5th edn“, read it to be the best management consultant in the town.
Modern Technology Professionals
Tech professionals, similar to finance director jobs, those in risk and compliance, suffer from an extreme case of verbal abuse. A lot of the blame falls on them, even when things aren’t their fault, and they must keep learning new things and taking classes.
Accounting
Accounting, which always comes in last on the list of stressful quantitative finance jobs, is a relatively stress-free profession if you enjoy regularity and are ready to put in long hours during peak seasons. According to experts, one of the main sources of stress for accounting professionals in product control is the constant need to communicate with merchants. The pressure to meet impending deadlines is very real in management and regulatory reporting. Experts say banks’ most stress-free accounting roles entail budgeting and forecasting. These remain crucial to the company’s operations but must be more quantitative and audited by outside parties. Get your hands on this book, “The Joy of Accounting,” to learn accounting.
The Right Job for You
When deciding on entry-level finance jobs in the financial industry, I always suggest to my readers that it’s wise to consider your hobbies and strengths. Investment banking and hedge fund management are two fields that could suit someone with excellent analytical abilities and a passion for working under pressure. Financial analysis could be a good match for you if you enjoy dealing with data and making investment suggestions.
On the other hand, you might be a good fit for entry-level financial analyst jobs if you enjoy supervising financial operations and have excellent management and leadership abilities. Just like that, auditing could be a good fit for someone with an eagle eye who enjoys checking for correctness and conformity.
This was my take on the hardest jobs in finance, but as I mentioned, different people have different skill sets. So, what do you think is the hardest job of all time in finance? Let me know by commenting below!
