Why doesn't poaching exist in consulting and other high finance positions.
I've observed that banks frequently poach Managing Directors (MDs) from rival institutions. Initially, I assumed this was primarily due to the clientele these MDs bring along. In investment banking, an MD might primarily bring in the client without having a significant influence on the transaction itself. On the other hand, in consulting, a partner not only brings in business but also introduces unique and out-of-the-box problem-solving approaches and methodologies.
Consider this: wouldn't a company be more inclined to retain a top consultant who saved the firm millions and significantly boosted revenues, compared to an IB MD who is primarily valued for client relationships? It seems there's more at stake in letting go of a high-performing consultant, especially if they were to switch to a competitor. Given this perspective, why isn't there a pronounced poaching trend in consulting?
Additionally, in areas like PE, S&T, and ER, poaching seems less common. For instance, if a PE Partner or Principal has consistently delivered strong results for their fund, wouldn't competing PE firms be interested in recruiting them? I'm curious to understand the dynamics behind these recruitment patterns.
PS: I'm just a college student so feel free to correct me if i made any incorrect assumptions.
It seems more like IBs have a harsher culture of firing and they always need people when hire back hence the poaching.
Tier 3/4 IBs often talk about hiring some laid off MD from GS MS etc. to boost their franchise but it almost never work.
So I also wonder why
It absolutely does happen, in fact consulting firms generally encourage it. Frequently what happens is an engagement goes well and they hire one of the consultants. It’s a virtuous circle because presumably you now have someone who prefers the firm they are an “alumnus” of when it comes time to hire consultants.
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