How frequently changing jobs is job-hopping?
Hi guys,
I’m about to take on my 4th job in ~6 years and I’m a bit concerned that I’ll be seen as too much of a job hopper. My roles are below:
- 2 years IB
- 2 years PE (2 year Associate program so had to leave)
- 1.5 years, lateraled to another PE firm
I’ve just been offered a great opportunity with a promotion and a step-up in responsibilities, but just a bit concerned that I’ll seem like too much of a job hopper. Would appreciate any thoughts
Through almost a decade, I changed jobs approximately once a year - with the exception of the initial IB jobs. It is seen as job hopping, but every step was a promotion until it stopped.
The question comes up in almost every interview I have.
Your history seems OK, unless you are planning on changing jobs every 20-24 months going forward.
I wouldn't call you a Job hopper at all. Your experiences seem pretty reasonable (especially given the fact that Investment Banking and Private Equity are industries with a lot of rotation at junior level).
Just for context I worked in IB for 4 years (In 3 different firms) before going to PE, however no one ever questioned it because I went from a no name LMM boutique to a 2nd tier Balance Sheet bank and then to a top tier BB, so all my job switches were an upgrade.
I'm a VP in PE and help lead my firm's recruiting. I hate to be the bad guy, but I would definitely read your resume as a "job hopper" (based on soon-to-be three buy-side stints). Not saying any of this is true, but if reviewing a similar resume, I would either assume: (i) you're not good at your job and each firm has either encouraged you to leave or deprioritized you for promotions, OR (ii) you are difficult to please (constantly asking for raises/promotions, etc.) and are a flight risk as someone always looking for something better. In the case of (i), it's a 'damaged goods' profile and (ii) represents a profile that most firms won't want to waste time investing in (given flight risk and attitude).
While there are expedited paths for strong performers, excelling in PE generally requires putting in the time to acquire new skills, building pattern recognition through many at-bats, and learning from those above/around you. I personally don't believe there are many shortcuts beyond accelerating one's path through hard work and out-performance.
My guidance - if you have 99% confidence that this next firm is going to be a long-term/career-track role, then you're fine; however, if you think there's a chance you may not like it or look to upgrade again, working at three different buy-side firms (with no MBA) with only 4-5 years experience (at that point) is a red flag to me.
I understand what OP is saying and these are some valid points SaaSChimp
I was in your position OP but a little different though. I did 2 years in a ops role at a AM shop, pivoted to the investment side and basically hit the reset button and joined a debt shop as an analyst in a program and did that for 2 years (i was willing to take any role that gave me exposure to investment analysis and evaluating opportunities), leveraged the debt shop experience to go down the capital structure and joined a PE firm for 2 years as part of their associate program. At the PE shop, i was heading down the path of 2yr associate + 2 year sr associate with consideration for promotion to VP assuming there's room, but there was no certainty if there was going to be room for me for VP or not given how lean the team is already and the existing VP's aren't going anywhere. Given where I was in life (i already entered PE late in the game) i didn't want to put my career in their hands and i was presented with an attractive opportunity to join another firm as a sr associate where the path upward had greater visibility. Additionally this new firm is less than 5 years and very young team where i can be path of building something special and meaningful upside via fund economics. Deep down i would have stayed at my old firm if there was certainty because i really enjoyed the folks, strategy and learned a ton but i feel like i had to make a decision that was best for me. I certainly felt insecure about switching tbh but there were reasons. Out of undergrad going to an investment ops role because it was the first offer i got and did not know much about these others paths. Tried to go into IB but was presented with an opportunity to jump straight to buyside though via credit, not as attractive but beggars can't be choosers and i took that role. During my time in credit i did some mezz and minority deals and wanted to go down the cap structure and made the move to PE. After being in PE, it was important to find a permanent seat and this was the driver on the last move.
TLDR:
- 2 years in ops role at a large AM,
- 2 years in direct lending shop (basically restarted all over as if i were a recent grad)
- 2 years in PE shop (uncertain of permanent seat)
- now at another PE shop where the path upwards is much clearer and a career-track
Are you US based? how did you navigate the switch from direct lending to PE? Is it UMM or LMM?
Really appreciate the advice. My plan is that this next role will be a long-term move, so hopefully that will alleviate some of the issue around perception of job hopping.
Once you’re actually working at a firm (for at least a year or 2) Is it looked down upon to be someone who asks for raises / promotions to the extent that you’re good at your job?
No, this is definitely normal. I would just be self-aware enough to make sure you don't push too hard or ask too frequently (e.g., expect a promotion every year). If you're reasonable, very normal.
I would view you as a job hopper. This is fine and is not meant pejoratively.
It's through no fault of your own, but it sounds like with all of your job decisions you're solving for the best opportunity for the next 1-2 years as opposed to the best career track for the long term.
This strategy can work well, I have plenty of friends who have done the same thing and it's worked out great for them, but that's definitely a cost of 1) switching jobs o 2) taking jobs with a defined shelf life. At some point you gotta ask yourself, what are you trying to solve for when you select an employer?
Make your decision, just understand the consequences of this move.
If I were to look at your resume, I personally wouldn't count the IB to first PE transition since that's a pretty typical IB analyst stint. I also wouldn't look at the first PE associate position as abnormal either since there are plenty of 2-and-out firms out there. So from my perspective, you're only really "job hopping" for the first time with this new position you're about to take. I would say it's important to diligence this new fund that you're planning to join and really make sure that it is a role you want to take, as the bar going forward will be higher because if you switch again then it'll definitely be perceived by most people as job hopping.
Don’t have much to add from what people said expect to be mindful of the cycle. It may have been easy to move around in a bull market (which likely gave you more latitude to skirt the hopper question) but just be sure you’re going into a role where you can stay longer than 1-2 years because the music seems to be slowing down..
If you already have your 4th job lined up, why does it matter that your resume looks like you're a job hopper right now... unless you're planning on finding a fifth very shortly?
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