Rotational Development Programs out of Undergrad?
I've seen this topic posted before but without much attention and from years ago. As a graduating senior interested in this path, I thought it might be an interesting topic to bring up. Thought it might be useful for others in the future as well as a good place to hear your opinions on this path.
These rotational development programs usually last 2-3 years and rotate participants through 2-4 roles over that time and might rotate location too. After completion of the program, the participant exits to a role higher than would have been possible had they not been in the program. They are also offered in a variety of functions such as manufacturing excellence, operations, finance, etc. From what I've seen, entry pay can be in the range of 65k-85k including base+bonus depending on the company and function area. Companies that offer these include GE, J&J, Ford, Dow, Cigna,Thermo Fisher, Nestle, and many others in the F500.
I've developed this list of Pros and Cons that initially come to mind.
Pros
- Hours: I think this is first and foremost the greatest benefit of this route. Overall hours probably average a standard 40hr/wk with expected deviation during busy time. But pretty consistent and gives one the ability to have a "normal" life outside of work. All this as opposed to consulting/banking hours which are supposedly long and inconsistent.
- Accelerated Growth: Obviously this is not unique to this career path because many enter consulting because it is believed to accelerate growth as well. From my research, participants in these programs are fast-tracked to leadership roles faster than their non-program peers. As mentioned consulting can result in accelerated growth too. However, I wonder what edge consulting has compared to participants in these development programs. I have read companies like to exhaust all potential internal candidates because hiring externally can hurt morale. This is still a question mark in my book because I don't know
- Depth of learning: Additionally, if the program is in your desired industry/company, there is a greater depth of knowledge you might learn over the course of multiple years that is company/industry specific. As opposed to consulting which offers breadth of exposure to different industries.
Cons
- Pay: Pay is definitely less than consulting or banking. But if one is really a rockstar employee, I suppose they can progress quickly to sr manager, director, etc and start making more serious money. But still less than consulting or banking couterparts.
- Less desirable location: These programs often place participants at plants, hq, etc that may be in less desirable locations. On the other hand, consulting/banking are obviously in much larger metro areas like NYC, Chicago, LA, etc.
So, what Pros and Cons might I be missing and what do you think of rotational/leadership development programs for undergrads?
I'm sure that it depends slightly on the specific firm, but I'd disagree with some of your points. Generally speaking, I would think of the undergrad rotations as more of a sampler of the various finance functions with typically limited "upward" exits. Beyond that, to your pros and cons:
To your question I general, I think FLDPs are incredibly oversold to undergrads. Generally speaking, they're a great path to the standard internal finance roles (less strategic FP&A, Ops, etc.) These roles can be great, but moreso for quality of life than anything else. To really ramp up your career progression to the more prestigious finance roles, you'd likely need an MBA and FLDPs won't place quite as well as IB or top-tier consulting on average (though still doable). Additionally, keep in mind that you're generally not going to have a clear internal path to sexier roles like CorpDev/Strategy without an MBA (again doable but more rare). These roles are definitely worth considering if quality of life is your main priority, but not so much for the exit opps (as exit opps are typically discussed throughout WSO at least).
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