The fact that some people thrive on stress could be a plus if you want to work in the financial services industry. According to "The most (and least) stressful jobs in banking and finance" (efinancialcareers.com, December 31, 2015), careers that were ranked as most stressful to least stressful are as follows:
- Investment banker;
- Risk management and compliance;
- Wealth management/private banker;
- Institutional sales;
- Management consulting;
- Private equity;
- Equity research;
- Fund manager; and
Interviews with recruiters and employees mentioned long hours and a lack of control over issues that create problems and demand solutions. Respondents who work in the risk management and compliance areas talked about their frustration when they call out areas in need of improvement but then "nothing is done."
Other professionals, such as those who work in wealth management, talked about competition as being a source of stress. Making money only occurs after an advisor expends considerable effort to build a big client base but then more time is needed to prevent an aggressive peer from taking assets away.
Besides job-specific concerns, industry changes can be a source of worry if they are expected to radically transform the way business is conducted. Consider the rise of financial technology ("FinTech") or what Inc. Magazine referred to as "One of the Most Promising Industries of 2015." According to a recent Wall Street Journal article entitled "Can Robo Advisers Replace Human Financial Advisors?", assets managed without human intervention grew from $3.7 billion to $8 billion between July 2014 and July 2015. Although critics counter that robots cannot offer individualized advice about specialties such as estate planning, a reliance on automation, if substantial, will result in winners and losers.
Regulatory changes can raise stress levels too, especially if one has little latitude to adapt to a new rule at the individual level. The U.S. Department of Labor's proposed fiduciary rule is already showing up in the form of strategic corporate decisions that are moving people from one place to another. This week's announcement about a sale of MetLife's U.S. advisor unit to the Massachusetts Mutual Life Insurance Co. comes on the heels of the American International Group's decision to sell its broker-dealer unit rather than potentially incur added compliance costs. See "MetLife exits brokerage business as DOL rule looms" (Investment News, February 29, 2016).
Although not specifically mentioned in articles about stressful jobs, ERISA retirement plan fiduciaries are surely aware of their personal and professional liability exposure. Add the complexities of new legislation and economic challenges such as negative interest rates and it's not a stretch to understand why some fiduciaries might need to take a few deep breaths to relax. No doubt their public pension colleagues may need a zen moment as well.