WSO Comments of the week 10/21-10/27

Rufiolove in Three Things You Didn't Know about Becoming A Rock-Star Analyst argues that, generally speaking, it pays to be good:

This is a good post overall but I can say that so much of this is group dependent. For example, one major thing to note is that the disparity between top bucket and bottom bucket is jokingly small, especially on an after-tax basis in the current economy. You're better off working your ass off trying to get an offer, the bonus doesn't really matter all that much you have an offer.

You may also be surprised to know how little is said about you by people that you think have your back and that you did great work for.

One thing I absolutely advocate is building a solid relationship with an Associate (ideally one who is vocal) so that they can stand up for you in the roundtable. It is completely true that most Associates won't majorly contradict senior guys, but if they are the most valuable and highly regarded Associate in the group, a lot of times their opinion matters more than a VP's (this is especially true in small groups and if you have VPs who are known to travel a lot and have a reputation for grinding analysts). Make sure that you can get them to give you a fly-on-the-wall recap of what went down in the roundtable.

The whole process is by its very nature cowardly and bullshit, so it's best to know exactly what is said about you because that can play a big factor in how hard you are willing to work your second year. You may have a VP who completely trashes you even though he was the biggest clown ever and constantly blew your shit up. If he does say that you "lack motivation" or don't produce good work, when it clearly isn't the case as evidenced by Associates and other officers you have worked with, you definitely want to file that away and the next time you get a staffing from them you can handle accordingly.

The biggest thing analysts forget is that they have pushback power (within reason) at a certain point you have to draw a line and acknowledge the type of person you are. I personally am not a little bitch and refuse to let spineless people control my experience. Make sure that you are able to know who actually spoke up for you and who threw you under the bus. It's very tough to fire analysts unless you are absolutely unreasonable or incapable, but they use bonuses as a means to try and manipulate you. Once you have an offer locked down, it is a very simple economic argument to look at your situation and determine how much shit you are willing to put up with for an incremental bonus bump. Knowing where the bonus situation is likely going to shake out, I can tell you that a ton of people who kill themselves are unhappy even when they get top bucket because the value proposition isn't what it used to be.

With all that being said, make sure that you do good work for the guys you like and try your best not to piss people off because you will need them for references when you go through recruiting... but don't be a sheep. Know enough to know when people are throwing you under the bus and adjust your effort accordingly.

In the same post, Vancouver Canouck adds:

It does pay off significantly to be a top-bucket analyst. By the time analysts enter their second (and perhaps third) years, a top bucket analyst will earn $30,000 - 50,000 more in bonus than a bottom-bucket analyst. Also, being a top-bucket analyst is crucial for buyside recruiting. One of the first questions most head hunters will ask during the intial exploratory interviews (before they refer you to PE shops and hedge funds) is whether or not you are a top-bucket analyst. If you are not an A tier kind of guy/gal, kiss the A tier firms such as BX / KKR goodbye... Lastly, references matter a lot during buyside recruiting. A PE shop will call up some random VP or MD in some group and inquire about a specific analyst - if you are a top-bucket analyst and the senior banker can corroborate the your A tier status, it will help a lot.

Along the lines of wallstreetasks mentioned, the most important things to impress senior bankers (is ironically not the modelling skills) but rather to:


1.) Smile constantly 


2.) Dress well


3.) Communicate effectively

Pktkid10 shares some advice about what to do when out of a job in Just Laid Off

I was fired in August from a well respected role at a BB. Was absolutely stressed out of my mind b.c the department was falling apart. I'll never forget that day, it was as if a burden was lifted. Landed back on my feet in two months (it's an awful job, but it's at a great company).

At this point you can really do anything. Craft your story however you want. I spent the first few weeks hanging out at my pool and getting back into the gym (so easy to slack).

Anyways, there were a few things that helped me lift my spirits- 1). speak to the people still in the group (they're probably just as miserable, if not worse), 2). speak to some random people and get comfortable with your story aka networking, 3). talk to some recruiters, again get comfortable with your story, 4). network more, 5). interview for jobs that have potential at a good firm, 6). volunteer, 7). read books at the library, 8). volunteer.

Also, maybe get in touch with some professors from undergrad to get involved in some research. You can't ride out 10 months until grad school with a gap on your resume. Better off trying at a start-up, or doing some consulting (temp jobs). Hope this helps, stay up.

In the same thread, Hungaroe confirms that everyone understands being fired or laid off and stresses the importance of networking and volunteering:

Tough moment, but can happen to anyone. Keep your spirit up and use this as an opportunity.

I've interviewed a good number of candidates that were made redundant in downsizing. It is ok, just explain clearly that this was the case and that it was actually a good situation since atmosphere was no longer positive and was a matter of time; so now you have time and opportunity to focus in your next step and future. Probably no further questions to this topic will follow. Everywhere in the industry companies are undergoing these kind of exercises, so everyone understands.

I can only agree with previous posts. Take your time, to relax, get your act together and come out ready to take on the world!

Networking helps, sometimes it is wiser to ask for advice or just show interest in a company/role without asking for an opening. Volunteer and doing free-lance research, consultancy helps also to close the gap. But most importantly, replace fear for curiosity. Make a step for the good out of this situation.

If you have the chance, I'd suggest reading "working identity" from Ibarra. Although written for professionals in latter stages, it might give you some insights and ideas.

Good luck, please keep us posted on your progress , do let us know if we can be of help, and remember, with some fortune you can make a change for the best out of this... Sometimes life is giving us a (not so gentle) push.

 

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