How to deal with a recession career-wise? A few lessons learned during the previous GFC

Lehman Brothers collapsed the day after I started applying to internships in investment banking and it was a pretty traumatising experience to say the least. WSO was already an invaluable source of information back then and a few people who unfortunately no longer post on this website helped me a lot, so it’s my turn to help the WSO community. Although this crisis is truly unique and can’t really be compared to previous ones, there are still things that can and should be done to deal with this situation as well as possible. Hopefully what I am about to write will help some of you whether you are a wannabe banker looking for your first internship or an Associate trying to transition to the buyside.

Opportunities will be scarce and competition fierce

There is never a right time for a crisis even more so when you are about to enter the job market, just got fired or are looking for a new role. The sad reality is that as soon as a crisis hits, the tap is turned off and opportunities disappear at the speed of light. Most financial institutions stop hiring, employees get fired and a huge number of people are suddenly looking at the same opportunities. It is hard to believe, but back in 2009-10 you would have seen Associates accepting Analyst 2 roles or recently fired Directors willing to be demoted to VP to maintain a certain level of income. Hiring freezes will have a direct impact on the size of intern and analyst pools. FYI, we were 18 interns in a very well-known bank and only 3 of us got an offer while the brunt of the financial crisis was already behind us. When I joined as a full-time employee, we were only 11 to join an M&A team… in 2019, 45+ grads got hired.

During a crisis, most roads lead to Rome… just be patient!

One takeaway from the past crisis is that as long as you know where you want to go (and obviously don’t make silly moves), you can fall back on your feet pretty easily. Lots of friends were in a similar situation and only a handful managed to secure roles in investment banking in 2008-09… mainly in back office because these were the only departments hiring back then! After sending close to 200 CV, I ended up in the financial department of a company I had zero interest in. That being said, I worked hard, never let anyone know I was bored to death or did not like the job. What did I get from that experience? An internship in the financial space, a job offer and a few extremely strong recommendations that helped me secure better internships afterwards. A few positive words from CEOs and top managers can go a long way and that’s exactly what happened to me.

It is very tempting to take some time off or do something very different, but the reality is that when you are in a recession, you should be laser focused on your career rather than trekking in Patagonia or teaching English in a remote part of the world. To be clear, work life balance is extremely important and so is giving back to society, but in the context of a job search try to demonstrate that you have tried to tick every single box.

Keep in mind that a job is better than a hole in the CV. A tier 3 bank is better than another internship with no offer in sight. A graduate programme in a team you don’t like is better than delaying your entry to the job market for another year. Without disclosing much, I initially joined an extremely hardcode team with an awful culture. Deal flow was fantastic but people were toxic. When the dust settled, I asked to rotate and joined the team I wanted. It took some time but I got there and did not regret a single sacrifice I made.

Don’t take anything for granted, but hard work and the right attitude will pay off

I will keep this one short, but in a nutshell wherever you are and whatever you might be doing, be grateful for being healthy and having a job. Lots of people around you including friends and relatives will be struggling at the same time. Yes, you will be working even harder than usual and have less down time, but this is temporary. It is extremely difficult to take a step back when you are in the middle of the storm, but these war stories become anecdotes later on.

As another side note, forget about big bonuses and actually bonuses at all. Bad times rarely last very long, but keep in mind that having a job and furthering your knowledge and technical skills is way more important than making a ton of money. You are at the beginning of your career and have plenty of time to be successful. If you are wondering what a first-year analyst bonus looked like back then, it was $0k if you were about to get fired, otherwise it was GBP4.8k (c.US$7.7k) after tax. Happy days!

Never stop learning and keep improving your profile

As previously mentioned and even more so during a crisis, you should be focused on doing your job extremely well without complaining even when it is hard, supporting your team as much as possible and learning as much as possible. More than ever, try to be on as many pitches and live mandates as possible. There will most likely be lots of debt and restructuring deals. Jump on the opportunity and add skills to your CV that will make your profile significantly more attractive when the market gets better.

If you are unemployed or still have time, add new skills (e.g. A new language, coding…) that will make your profile stand out more. Maybe now is the right time to launch a side business or join a charity where you will be able to help your community and do some basis accounting for instance. Do whatever you want, but be proactive!!

I have run over 1,600 (that’s right) interviews over the years and can guarantee you that nothing is more impressive than someone who is well prepared and has been on the battleground for a while. On this, I highly recommend all the guides prepared by Patrick and the WSO team. I personally used them a lot when I was interviewing for private equity roles and they were simply the best – note that I am not paid by anyone to write this. Again, keep in mind that the competition will be fierce and if you are too lazy to train like an athlete there will be 500 more candidates willing to take your job. It’s a side note and a pretty obvious one, don’t lie on your CV or during interviews. Criteria are strict in normal times, right now banks can afford to get the very best candidates and will get rid of you if they have the slightest doubt.

Don’t jump off the ship until you have secured another role

Last point I wanted to share with you today, be patient and don’t make rushed moves, except if you can afford it financially speaking. This comment is extremely relevant for everybody including more senior profiles. In normal times you may take between 2 and 6 months to find a job, but when the job market is dead it can take up to 18 months. If you have the chance to have a stable job, even if you don’t love it, it is (career-wise) best to stick to it and avoid a big hole on your CV.

Some of you may be A2 / A3 / Ass1 and are desperately trying to move to the buyside. If it does not happen during the next 12-18 months, this is not the end of the world. Yes, it will be more difficult to transition later on, but this won’t be impossible. When the future is uncertain, certain rules become looser. A number of people around me secured buyside roles at the Ass3 / VP1 level when things went back to normal. Others decided to go to smaller cities, take big pay cuts, joined smaller funds or asset managers instead. Do whatever is best for you, don’t lose faith and be patient!

As always, I am open to PMs and happy to answer questions if needed.

Hope this is helpful!
Camondo