Finding New Job with 1 Year Non-Compete
Hi, if I quit or was fired from my HF job but had a 1-year non-compete (assuming recent grad), what would the recruiting process look like for sell-side or other buy-side roles? Would I just have to wait till the non-compete is about to end before looking for a new role? Does this 1-year gap hurt my early career if they knew it was due to non-compete?
Based on the most helpful WSO content, here's what you need to know:
Recruiting During a Non-Compete: If you have a 1-year non-compete, it doesn't necessarily mean you can't start looking for a new role. Many professionals use this time to network, build relationships, and prepare for their next move. However, you may need to be transparent about your non-compete terms with potential employers, especially if you're targeting roles in the same industry or strategy.
Sell-Side Opportunities: Transitioning to the sell-side might be a viable option during your non-compete, as these roles often don't directly compete with your previous buy-side position. However, this depends on the specific terms of your non-compete agreement. Some agreements are broad and could restrict you from working in any related financial services role.
Impact on Early Career: A 1-year gap due to a non-compete is generally not viewed negatively, especially if you can frame it as a period of professional development. Use this time to enhance your skills, pursue certifications, or even take on consulting or freelance work (if allowed). Employers understand the constraints of non-competes and are often sympathetic, provided you can demonstrate productivity during the gap.
Navigating the Gap: If you're concerned about the gap, focus on activities that add value to your resume. For example, you could:
Timing Your Job Search: While you may not be able to start a new role immediately, you can begin the recruiting process a few months before your non-compete ends. This ensures you're ready to transition as soon as the restriction lifts.
Remember, the specifics of your non-compete agreement are critical. If you're unsure about the terms, consider consulting a legal professional to understand your options fully.
Sources: How do non-competes work when you want to quit?, Q&A: Buyside women, Getting into Trading after 1st Year Recruiting, Feel Trapped, Exit Opps From Sell-Side ER?, Leaving for another fund - How to deal with current employer?
You can look for your next job whenever. But you can’t start it until your NC ends if it is enforced. I don’t understand why people thing you can’t talk to prospective employers until your NC is over.
If you get fired or quit without another job lined up it’s very unlikely they enforce the full non-compete. If you quit and leave to a competitor that they don’t think highly of/don’t consider a real competitor, they still won’t enforce all of it. If you leave to a real competitor, different story.
Completely false. Extremely dangerous and irresponsible to make these kind of comments without knowing the firm. I was at a top platform and was enforced 1yr despite very junior and had basically nothing lined up
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