Goldman Sachs Introduces Regular Loyalty Checks to Curb Junior Banker Poaching

Goldman Sachs Group Inc. is set to implement regular loyalty confirmations for junior bankers as part of its strategy to address aggressive recruitment by private equity firms, according to sources familiar with the initiative, Bloomberg reports.

New analysts at Goldman Sachs will reportedly be required every three months to certify that they have not accepted employment offers from other firms. The decision is aimed at countering aggressive recruitment practices known as “on-cycle recruitment,” where private equity firms approach junior bankers at early stages of their training or even before they begin their analyst programs.

The practice of early recruitment by buyout firms has sparked concerns across the banking industry, prompting several firms to take steps to protect their junior talent pools. JPMorgan Chase & Co. recently informed its incoming analysts that accepting another job offer within their first 18 months at the bank would lead to termination.

Similarly, Apollo Global Management announced that it would delay interviewing and making offers to candidates in the investment banking analyst class of 2027. Apollo CEO Marc Rowan noted that pressuring students into career decisions prematurely “doesn’t serve them or our industry.”

Banks face a delicate balancing act in addressing this issue. Firms such as Goldman Sachs rely heavily on strong alumni networks and often rehire former employees who leave for other opportunities—a practice known as “boomerang” hiring. However, early recruitment arrangements could create potential conflicts of interest, as junior bankers frequently have access to sensitive and confidential information related to deals.

JPMorgan CEO Jamie Dimon has publicly criticized on-cycle recruiting as unethical, stating that it places young analysts and their current employers in difficult positions.

“It puts the kid in a terrible position,” Dimon remarked at a recent event at Georgetown University. “It puts us in a bad position, and it puts us in a conflicted position.”