Why do analysts exist at all? Why isn’t everyone just an associate at the start?

Seeing the new analysts and MBA associates, they are exactly equal in IB competency, yet the associates get more responsibilities. 
 

I’m curious why undergrads don’t just start at associate? The only thing I can think of is the 2+2 and maybe the fact that associates are generally older, more mature, and a tad more polished than those fresh out of undergrad. I could see some issues with a 26 year old VP running execution for an MD/D from the perspective of a client. Analysts are just cheaper too. 
 

Curious if anyone has deeper insights on this topic. 
 

edit: okay I straight up asked a simple question. If it’s so stupid and simple to answer, then just answer it? It’ll take you two seconds. And I never said analysts deserved to go straight to VP. I specially said they didn’t have the maturity or general polish to interact with clients and lead deals directly. But I guess I hit a nerve with some people  

So many people post about and get praised for hating MBA associates. Yet when I just ask about the reasoning behind it, and give examples of why those people are wrong, then suddenly I’m accused of thinking I deserve to be group head out of the womb. 

 

We need to start filtering out posts like these. Literally empty headed questions

 

To do the grunt work so that VP+ can focus on bringing in business and ensuring proper execution

 

If you think a VP brings in business you’re delusional 

 

I don’t, that’s why I said, “and ensure proper execution,” which is very much a VP task. Clearly, whichever LMM bucket shop you work at didn’t emphasize reading comprehension during onboarding.

 
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Because people that work in banking are prestige-whores, so the allusion of progress from Analyst --> Associate (2+2/3) gives an ego boost and gives the allure of career progress compared to having only an Associate role for 4/5 years and stay at the same salary. Ergo, the salary boost from Analyst & Associate is also justified by this promotion, so it makes people stick around thinking that I grind a bit and I'll get to the next step.

It's just mind games that work quite well because in the face of reality, not in theory, you'll have a hard time thinking that you won't see any career movement for 4/5 years until you get promoted to VP. 

Big 4 also somehow exploits at maximum this aspect by splitting each role in 3 parts: Junior Role Name/Role Name/Senior Role Name, because otherwise, with Big 4 salaries people will get depressed extremely fast waiting 3 years for the next corporate ladder bump.

I think it's somewhat obvious that many people in banking/accounting are goal-oriented and they feel the urge to achieve consistently, so how would you feel not accomplishing anything in 5 years? Bonus/progress/etc. is what makes people stick to this path as it satisfies the same "goal-oriented" mindset; if it wouldn't exist all those ppl will move to entrepreneurial roles because they would feel miserable (more than they're currently are).

 

The entire premise of your question is flawed.

They are not equal. Having a bunch of prior work experience and context will allow the MBA associates to learn at a much greater speed vs. the first year analysts. Also should be expected to have greater attention to detail, greater maturity, better ability to communicate, etc., out of the gate. 

It may not be immediately apparent now, but look 12 months from now and there will be a wide gap.

 

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