Where do all the interns and analyst go???
So I've been applying for internships for different major wall street banks and the question of how these banks have so much room every year to continually add positions came to mind. It's not like college sports where the seniors graduate which leaves room for the new freshman. Can someone please inform me where do all the analyst go in order to have room for new analyst. Do they get promoted or do they leave the job?? or is there something I'm missing?
They die
Confirmed. Wall Street is a dangerous place - there are many bulls and bears.
Well you can't just put all the analysts in the same bucket. Every year the analyst 1s become analyst 2s so the bank's gotta hire new analyst 1s you know?
So where do the analyst 2s go?
analyst 3
Buyside or other exit opps. Guessing you’re new around here?
So in this process of steady moving up every year, where does the space come to have new analyst? Like what is the stage where the number of employees drops enough to hire a lot more?
Most (80-90%) of the analysts leave after two years to buy side, Corp dev, or MBA programs
About 85-90% of analysts leave around or prior to 2 years. The post analyst path requires a different type of person and while some stay, many don’t.
That a super high percentage. Do these banks view this constant turnover as a problem?? It's seeming like they're just hiring ivy league educated people as The Help? Am i right in this assumption or is there something I'm missing?
Banks do consider it a problem, hence why we've been seeing a bigger effort in recent years to retain talent and encourage A2A. There are certain firms that are very successful at this (Centerview has a 40-50% analyst retention rate, which is impressive given they have a 3-year analyst program) and others that pretty much boot you out after 2 years (PJT, Moelis).
This isn't to say IB will ever see significant number of analysts staying on for A2A. Analysts will always burn out and go to corp fin / LMM PE / corp dev or move to greener pastures (buyside). Banks will always prefer to have a solid % of their associate class made up for MBA hires for the potential future network and relationships.
Oh wow. So how do these banks keep attracting the smartest finance kids into these analyst roles? It seems like its almost a dead-end job. How do they make it seem so prestigious?
The smartest kids now go directly to buyside, while the rest of the high performers have to go the IB route to get there. IB is typically a 2-year stint that opens doors to more desirable jobs - very few people who go into IB at the analyst level intend to have a full-time career in the field.
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