Why has the quality of IB analysts declined?
Reading a lot of posts lately of VPs and Associates complaining about the quality of new hires. The frustration seems to be across both analysts and summer analysts, with common points being that they are less motivated than their previous cohorts.
Here are some reasons why I think this is the case now, but would love to hear more of a discussion:
80-hour work weeks are not appealing to people, especially when watching peers in tech or tiktok/instagram work way fewer hours to make more money
IB produces fewer sexy exit opportunities now than it used to. VC/product/entrepreneurship seems to be go-to type of jobs that people look for nowadays, and IB doesn't position you as well for those. Private equity is no longer as sexy or alluring as it used to be
People's attitude towards corporate America as a whole has changed. I see this especially in gen z as many view corporate work as soul-crushing or demeaning. Not saying this is right or wrong, but definitely a trend I have noticed.
People's attitude towards money and financial freedom has changed. The days of starting out young and gaining skills and working up the corporate ladder is no longer a thing. Seems like a lot more of the younger cohorts are focused on financial freedom - they want to make as much as possible early, invest it, and retire/travel/do their own thing.
This one is kind of obvious to me: but brain-drain from IB to tech, quant, product, crypto etc.