Are banks hurting for Associates?
Our bank (MM) lost some associates last year and we went through a recruiting process to replace them as we had only one Analyst that was up for an A2A promote. There were a lot of candidates that were coming from non-banking backgrounds. It seems like these candidates do fine work, but are slower on turning product, mostly because they are more likely to kick the project to tomorrow, instead of grinding it out. I am curious if other banks are seeing it hard to find people that want to grind. This also could be that we are MM and are less likely to find great candidates as they go up hill.
Based on the most helpful WSO content, the situation for recruiting Associates in investment banking appears to be challenging, particularly for middle-market (MM) banks. Several factors contribute to this:
Shrinking Headcount and Limited Openings: Many banks have been reducing headcount due to a weaker fee pool and overall market conditions. This has led to fewer job openings, making it harder to find experienced candidates who are ready to "grind."
Competition for Talent: The competition for Associate roles is intense. Candidates include:
Non-Banking Backgrounds: While candidates from non-banking backgrounds can perform well, they often lack the immediate technical skills and work ethic ingrained in those with prior banking experience. This can result in slower turnaround times and a less "grind-heavy" approach.
MM Banks Face Additional Challenges: Middle-market banks may struggle more to attract top-tier candidates, as many prefer to aim for bulge brackets (BBs) or elite boutiques. This uphill battle can lead to a reliance on less experienced or non-traditional candidates.
Natural Attrition and A2A Limitations: Analysts often leave for buy-side roles or other opportunities, and not all are suitable for A2A promotion. This creates a gap that banks need to fill, often turning to MBA hires or lateral candidates.
In summary, the difficulty in finding Associates who are willing to grind is a widespread issue, exacerbated by market conditions, competition, and the challenges specific to MM banks.
Sources: How screwed are IB associates if they're laid off?, Questions about VP/D/MD levels at investment banks, How screwed are IB associates if they're laid off?, Why do banks hire MBA Associates?
Bump
Does not hurt to normalize our industry a bit. You don't grind it out that night? Well the world keeps on turning.
Sure theres tight deadline sometimes but if you take out all the artificial stress from bad seniors everything would be a bit better.
Handwritten comments, mails which have been seen a week later or internal politics are not tight deadlines.
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