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JP Morgan CEO Jamie Dimon released an annual letter to shareholders on Monday, reflecting on the company’s performance, the broader economic and political landscape, and pervasive business issues from AI to DE&I.
The letter is always a popular read given Dimon’s status as one of the world’s prominent financial leaders. But amidst the discussion around financial performance, the acquisition of First Republic Bank, and the war in Ukraine, JP Morgan’s chief exec gives several hugely promising commitments to employees and HR practices.
Here are three of those commitments, and why they represent a promising signal – as well as valuable advice - to HR leaders at JP Morgan and across corporate America.
1. 'The critical impact of artificial intelligence' (AI)
Each year, Dimon includes a section titled ‘Update on Specific Issues Facing Our Company.’ In 2024, unsurprisingly, he begins with the topic of AI, which he likens to humanity’s most influential innovations including the printing press, electricity, and the Internet.
Like many other companies, JP Morgan has increased its AI footprint, and now has a huge team of over 2,000 AI/machine learning (ML) experts and data scientists. Dimon does what many executives are afraid to do: Transparently communicate on how the company is using and plans to use AI, and what this may mean to the workforce. “Our use of AI has the potential to augment virtually every job, as well as impact our workforce composition,” he admits. “It may reduce certain job categories or roles, but it may create others as well.”
Most reassuringly, he commits to “aggressively retrain and redeploy our talent” if they are affected by AI automation. JP Morgan has also hired a Chief Data & Analytics Officer, to focus on how AI will be embedded into the business, as well as running a risk control framework to keep AI usage in line highest ethical standards.
HR leaders should draw confidence from this common sense approach that does not attempt to sweep the uncomfortable questions under the carpet and instead presents a clear plan for protecting employee interests throughout inevitable workplace transformation.
2. ‘Extensive’ diversity, equity, and inclusion efforts
“We’re thoughtfully continuing our diversity, equity and inclusion efforts,” writes Dimon. “Of course, JPMorgan Chase will conform as the laws evolve,” he notes, referencing the recent high-profile cases of anti-DE&I legislation – but he adds that he doesn’t expect much to change with its commitment to inclusion, explaining that it leads to “more innovation, smarter decisions and better financial results for us.”
JP Morgan’s approach to dealing with complicated cultural topics like DE&I is refreshing – the company will study the issue, including any laws, before deciding whether or not it needs to weigh in on any debate.
In the case of DE&I, Dimon simply explains that the company is proud of its DE&I efforts – which it lists in detail including work to build career paths for women, Black Americans, military veterans, and people with disabilities among other groups, alongside the near completion of $30 billion Racial Equity Commitment – and that it will always support free speech provided it doesn’t violate its Code of Conduct.
This ongoing commitment to DE&I ignores much of the noise surrounding the discipline and presents clear rationale for equity and why it is so valuable for the company: “We would like to provide a fair chance for everyone to succeed — regardless of their background. And we want to make sure everyone who works at our company feels welcome,” Dimon says.
3. 'Five-point action plan to move forward on the climate challenge'
It can be tricky for HR leaders to know their role in helping the business navigate the climate conversation and move forward on an ESG agenda. However, the fifth point in JP Morgan’s action plan should give people leaders at JP Morgan and beyond the reassurance that they have a crucial role to play.
In this step titled ‘Work skills training,’ Dimon asserts that any step to tackle climate change, including transitioning to a low-carbon business model, requires workers to pick up new skills.
“As one example, the U.S. Bureau of Labor Statistics estimates we will need more than 70,000 additional electricians per year through 2031; it is currently unclear how the market will meet that demand,” he explains. “A concerted focus to train electricians can help the United States meet some of its climate goals while providing well-paying jobs that do not require a four-year college degree.”
Beyond the bank’s commitment to training and creating jobs, JP Morgan has also created an employee-led group focused on tackling the climate challenge, informing its work across the green economy.
Once again, Dimon is assertive in the company’s policy on ESG, including its move to exit Climate Action 100+ and the Equator Principles. Regardless of personal opinion on the move, there is no denying that his highly communicative and detailed approach will trickle down to HR teams, giving them the confidence to enact the relevant ESG programs and support employees passionate about addressing climate challenges.
And much, much more…
These are just three of the biggest topics affecting the short and long-term work of HR leaders for which Dimon has offered straightforward advice and assertions. But there are many more in the letter, from ‘The secret sauce of leadership (have a heart)’ to his decision to reverse a policy after finding out that cost savings from outsourcing security guards arose from cutting their healthcare benefits in half.
It’s clear from reading the letter that the work of JP Morgan’s HR, talent, and development teams is pivotal to the company’s success. HR and business leaders alike should study the letter and consider the lessons they can draw for their organizations on employees, AI, DE&I, and beyond.
Indeed, as Dimon concludes: “Through these annual letters, I hope shareholders and all readers have gained a deeper understanding of what it takes to be an “endgame winner” in a rapidly changing world.”
