In an effort to cut costs, some Wall Street companies have engaged in a new practice called “juniorization.” According to Business Insider, this is “the practice of firing senior traders and salespeople and replacing them with younger talent.”
Unfortunately, this means that many experienced traders have been kicked to the curb on Wall Street.
This process leaves many questioning the benefits that corporate experience might hold. In spite of the fact that experienced employees cost more to employ, many suggest that these extra costs are worth it. For instance, experienced employees might bring in more company revenue due to a loyal client base and market expertise. This extra revenue might even cover the costs of their higher salaries.
While laying off experienced traders or salespeople on Wall Street might have its immediate fiscal benefits, the long-term drawbacks are yet to be seen. Could this be a vital mistake on the part of this nation’s corporate leaders?
Only time will tell how these cost cutting measures may affect corporations nationwide.