So as a college student you were so gung-ho about the prestigious, sexy, super profitable industry known as I-banking. You probably threw away your 4 yrs of fun and worked your ass off in order to be at the top of your class so you would get an interview at one of the BB firms. You do the whole interview thing, and one day as you sit in your room you get a call from the bank saying that you got an offer as a Ibanker. Your heart starts pouncing and your whole body feels as though your in a trance. It's the best feeling in the world. Your dream came true!
But as you actually start your job, you realize that things aren't the way you thought they will be. You thought that you could handle 100 hr weeks, but when actually done you feel like your soul is getting sucked out of you. You thought that you would be dating supermodels but the only thing your getting is excel models. You wanted to spend all that money on a mansion in the Hamptons but you didn't factor in NY City taxes when you were reading the "compensation" section of Vault Guide to IBanking. And the list goes on.
So anyways, for those in the industry, what are some expectations that you had about IBD when you were a college student and how does that compare to what actually happened in reality?
If you had done proper research before entering the industry, you wouldn't have these idiotic expectations. This is why there's a low burnout rate in banking - people who are actually able to get in are people who know what they are getting into. Many people just do it to exit anyway.
"low burnout rate in banking"....ummm, seriously?
ummm... yes.
how many analysts quit before their contracts are up? less than 1%.
MANY analysts, much more thsn 1% quit by the first year. I would say 15-20%
Secondly, however much you KNOW what you are getting into, you don't know jacksh*t. its one thing thinking you could do 100 hours back to back to back, but quite another thing actually doing it. No amount of mental prep quite prepares you.
This is totally false. Around 20% would be correct.
LOL. you obviously don't work on the Street. There's always some attrition from underperformance, but voluntary turnover is extremely low. 20% quitting... LOL.
I actually agree with b2 on this one. Every single analyst in my class and the class below mine knew exactly what this job entailed before they started -- which is part of the reason we were chosen! To be honest, almost all of my expectations have been met in my first 15 or so months. The only thing that I have been slightly disappointed about is the misrepresentation of the hours. Going to a middle market bank in an off city, I was told the hours would be less painful than New York hours. In reality, we've have it just as bad and now that the market has turned sour for the BBs, we probably have it worse as our deal flow hasn't taken a hit.
compb, i think your experience has been a little different than those of us in NY. clearly in a good way, since things are still busy. and i agree to the extent that expectations are (sometimes) met in terms of the work you will be doing, but in terms of hours, and actually pulling those hours, its a different story, no expectation can quite get you ready for that.
ghosht,
It is true that it is impossibly difficult to mentally know what it feels like to work 100 hours. However, many people go into this job just accepting the fact that they will not have a life and be required to work -always-. This sort of mental acceptance eases the ability to work brutally long hours even if you've never done it before and misjudge the pain that it causes.
Personally, long hours and late nights don't get to me as much as some other things (and I can generally dodge them as a 2nd year now that I know what I'm doing). As my day is probably split 80/20 between real work and administrative junk, I get really frustrated when asked to do admin crap (especially if it comes at the expense of my work product). My responsibilities have ranged from "print and distribute this to the team" to "cover international plant tours with our prospective buyers." As such, I get extremely frustrated when I have to do things that people should be sending to their admins.
And finally, for analysts quitting: I do think that less than 1% is a little low. We have less than 20 analysts in a typical class at my bank and typically lose one or two each year. I can't imagine that for every 100 bankers on Wall Street, only 1 would walk away. Then again, I'm not on the street so I can't really speak to attrition rate over yonder.
What analyst seriously expects to have a house in the Hamptons? And dating a supermodel just because you're in IBD?
I do
1.) we're talking about burnout - not being able to handle the workload - therefore, leaving one bank for another bank or another job that is just as hour and labor intensive doesn't qualify as a "false expectation" 2.) I work for, what I feel is, one of the most relaxed and down-to-earth banks (i.e. no hassle if you come in at 11 or noon following a long night). We've had historically high employee retention because of the accomodating culture. Not a single class of 2007 analyst had quit following their first year (and I've worked at, in my estimation, the most intense bank, and, despite working like a dog, even that bank had high employee retention.) 3.) Attrition from underperformance and contract buy-outs are not uncommon, but, as I've stated before, burnout rate is extremely low.
what bank let you come in at noon?
SunTrust Robinson Humphrey. How's that corn field buyout going?
Haha, awaiting your angry reply that proves my point. Please be careful when chopping down the giant chip on your shoulder. There are high school kids on this forum, b2.
Umm... actually, I've only ever worked for top-BB firms. 3 of the top 5, to be more precise.
Alphadouchebag, I know that you're upset b/c I call out your prospective perspective bullshit, but please stop envying my skeelz and intellect. go back to studying for your "finance for retards" and "how to talk big game without ever delivering" classes at SCCC - kthx.
I'm the Jane Goodall to your chimp, b2: she did a good job of predicting what primates would do, too.
I wonder how it feels to be in the 65th percentile... it must be a weird feeling. I don't think I've ever even dipped to the 98th percentile in my life, so 65th would come as quite some culture shock to me... Alphadouche, how do you handle it?
98th percentile is so upper middle class... please come back when the register reads all 9s.
Well, I doubt that you're in the 99th, since you can't even properly read my post...
"I don't think I've ever even dipped to the 98th percentile in my life"
Maybe they use decimals at your second-tier shop, but my associate would be mighty upset if I had left a decimal at the end of a wide-ranged percentage.
Ahhh yes, the magic of the sell-side...
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