As winter recruiting is coming to a close and we are starting to focus on the next class of analysts coming aboard this summer, I'm back to thinking what is the right balance of the carrot and the stick to manage the work product produced but also making sure everyone is relatively mentally healthy. The main question is how accessible should managers be; I'd like to foster an environment where communication is free-flowing, but the analysts would show they have thought through any issues intelligently in the time provided prior to reaching out to associates/VPs. And of course, making sure there is still a healthy incentive to getting the basic data and formatting correct.
The easy answer is "it depends on the analyst," but I'm trying to get a good benchmark based on the feedback of junior, mid-level, and senior members of a team. Any suggestions, anecdotes, etc. is appreciated. And I've put this in the Investment Banking Forum, but it's not limited to just IB.
Ah, the age-old question of how to balance the carrot and stick approach when managing junior members. Here's some food for thought based on the most helpful WSO content:
Accessibility and Communication: Encourage open communication but also instill a culture where junior members are expected to come to the table with solutions, not just problems. This means they should do their due diligence before reaching out to associates or VPs. It's about striking the right balance between being approachable and promoting independent problem-solving.
Incentives for Accuracy: To ensure attention to detail, consider implementing a system where accuracy in basic data and formatting is recognized. This could be through positive feedback, public acknowledgment in team meetings, or even small rewards. Recognition can be a powerful motivator.
Mental Health: Based on the WSO threads, it's clear that mental health should be a priority. Managers should be proactive in checking in with their team members and offering support. Encourage them to take breaks and disconnect when needed, and make sure they know that their well-being is important to the firm.
Professional Development: Invest in the growth of your junior members. This can be a 'carrot' that has long-term benefits for both the individual and the firm. Provide opportunities for them to learn new skills and take on new challenges.
Feedback Loop: Create a structured feedback loop where junior members can expect regular, constructive feedback. This helps them understand where they stand and what they need to improve upon.
Remember, every individual is different, so while it's good to have a benchmark, be prepared to tailor your approach to each member of your team. And don't forget, a little humor and empathy can go a long way in building a positive team environment. Keep swinging through those branches, and you'll find the balance that works best for your team!
Sources: The Work Always Gets Done, How the hell do you stay healthy in sweat shop groups?, Return to Office Sucks, Who is happy & satisfied with their current role?, The Work Always Gets Done
If you're on a small team, spend the first few weeks/months developing a legitimate rapport with them - find out what their interests outside of work are, ask about their significant others if they have them, check in to see how their weekend was and how that trip they told you about went, and allow them to do the same with you. Humanize yourself with them, the worst thing a manager can be is the boogie man under the bed. Once you have that type of relationship in place, those are the juniors who will eat glass for you when you let them know it's time to grind on something.
Thanks for the advice, and it's very helpful. I agree with your approach; it has worked well with some of the analysts I have managed. In fact, it makes the job more enjoyable for everyone.
However, some junior team members don't improve when they feel like they have a personal relationship with their direct reports. I think anyone can do finance jobs competently after a certain amount of time, but when analysts fall below a certain standard (e.g., wrong inputs/numbers, not taking notes during meetings, falling asleep in most meetings), I find that I have to fall back on clear delineation on making clear what is expected and, subsequently, the junior-senior team member relationship. Obviously, we try to figure out how people can improve (for example, what are best practices, perhaps leveraging prior work products could help), but, ultimately, I have had to fall back on creating some relationship distance so the directives make an impression.
I'm not pushing back because I think you're wrong. I think anyone can do this job based on the responsibilities we have laid out (we're not building 60-tab models), but I'm trying to find that balance where analysts understand they are expected to improve but not to leave them in a pressure cooker for too long a period.
I had a really good manager when I was an analyst and I mostly agree with what greyarea said. If you have good rapport with a subordinate you can be straightforward in your feedback and expectations and they'll likely be more receptive because they feel like you're "on their side". Don't phrase it as "you're not meeting expectations and this is damaging our relationship", phrase feedback as "I know you're a good analyst and are someone that I want to invest in, in that vein, these are the areas you can improve on and lets make a plan to get you there". If you're working with the right person this will be enough, if not then don't waste your time and find someone who does give a shit.
Thanks for the insights here. I have not said explicitly to my analysts that we are investing in them because we see them as part of the team, and I should start doing that. It will also help me figure out who has the right attitude since everyone's personality is different (and attitudes/energy manifest differently).
Error illo inventore rerum temporibus et ea harum est. Aut soluta dolorem commodi illum eum quasi. Excepturi sit nihil quae dolorum. Maiores adipisci et deleniti suscipit qui officia. Nemo voluptas corporis non mollitia. Quo quae atque ad enim praesentium ut.
Ea et veritatis maiores cupiditate. Omnis dolorum est ea eveniet ab deserunt perspiciatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...