"The Track", Loyalty, and a serious Question
Hello All,
Over the past few days, I've been thinking about posting this question on the board, and have ultimately decided it can't hurt to ask:
I've noticed that in general, most people in finance seem to be constantly moving around from one firm to another, or follow "the track" that leads to PE/HF.
Now when a firm is recruiting, I understand that they are looking for the best and brightest, etc, but also candidates who "are not risky". "Risky" meaning they have an nontraditional background/non-target/low GPA etc. In my mind, it would make sense that when a firm hires you, they expect you to stick around for a while, they want someone who will be "loyal".
Yet it seems to me, as an outside observer, that most people are planning their next move the moment they start their job, or even before. Each position they take is some kind of springboard. Similarly, something that has fascinated me since I've been reading this site is the fact that potential candidates will "leverage their offers" to get another, more desirable offer. I understand that as a candidate, you want to be viewed as some kind of "hot commodity", but this is just something I would never have thought to do, something I would (have) assumed would be.... rude.
So in my mind, it seems a little odd that the top candidates are hired even though in all likely hood they are going to leave the firm they are hired to work at in about a year or two. To me, this seems pretty "risky" on the grounds that the person may be stellar while they are "with you", but ultimately they will be leaving. They were likely planning their next move their first day. (Broad strokes.. folks)
So, in summary, I would just like to hear some WSO opinions on the matter. Is this just part of the culture i.e. everyone knows and tolerates it? Is it some unspoken truth? Wouldn't it make sense to hire a hard worker who is thankful to have "made it" and wants to stick around, rather than "an Ivy" who is on some kind of manifest destiny to Private Equity Greatness?
Am I a naive little monkey for thinking that I should be loyal to whoever hires me?
P.S. There is no argument about fairness of recruiting or anything like that cloaked in here, this was not written by the chip on my shoulder.... I guess I am just trying to figure out the mentality and culture.
Thanks to anyone who replies, and as ever with my few posts, all comments, questions, snarky remarks, and blatant insults are wholly accepted and appreciated.
I would like to think that your reasoning holds some water. So far, I've been loyal and it's paid off but realize one thing at all times: you are disposable. I'm chugging the company koolaid for sure, but I'm constantly networking because I know that these people would eat their own young and would sell me out in a heartbeat.
Some companies are much better about rewarding loyalty, but I haven't really learned much about this. Maybe someone can add to this body of knowledge?
At least in IB, the system is kind of set up so that people don't stay in the same place too long. Most analysts leave for further education or a new role after their 2 or 3 years at a bank. Very few stay on as associates. The financial industry is also very volatile- capital (including human capital) is constantly being shifted from one area to another.
Companies as a whole don't give a shit about you. It is important to find someone above you and then someone way above that person and become friends with them.
I have done a pretty good job of that at my job. I am able to do a lot of stuff in my current role because of the connections I have made.
On the big picture, I am not worth anything to my company. It is a multi billion dollar multi national, they can find someone to do my job if need be. This would never happen though due to the personal relationships I have.
Keep in mind that the bank is basically training their future customeres. When you come in as an analyst, you get two years of training in IB, or work for a few years on the trading floor/research. You work with MD's and VP's, and build relationships with these people.
Then you move to the buy-side. PE firms and hedge funds. Interestingly enough, PE and HF need BB's to execute transactions! A PE firm needs an IB to execute a merger, a hedge fund needs it to execute a trade. Where are you going to go for this service? More likely than not, your former employer, the BB that trained you.
Also, keep in mind, the only reason a company wants to hire someone who is "thankful he made it" is because they can use this person as a personal pawn. If you are a fan of The Office, read this excellent series to learn more about management.
http://www.ribbonfarm.com/the-gervais-principle/
[quote=LIBOR]http://www.ribbonfarm.com/the-gervais-principle/[/quote] Very helpful, thank you.
Ironically, this is blocked at work.
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