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?

19 Comments
 

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?

 

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?

 
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