Hiring experienced people for junior roles

My firm is going through the hiring process for an analyst and a large percentage of applicants are rather senior for the role (previous senior associates, senior analysts, associates, etc.).   The acquisitions team is fairly lean and as the senior associate, I am not against these applicants I am just curious about people's thoughts on if this is a function of the current job market.  I know that someone close to my age and experience can be an analyst but will they be expecting more responsibility in a shorter time, leave the firm/team once the world normalizes, any potential bitterness?  I have been able to rationalize the people making a career jump either outside RE and trying to break in or pivot to another function within the RE world.  The comp is going to be lower than they have previously earned and I guess it's up to us to take their stories/rationale and see if there is a fit. 

Curious to get some opinions.

 

i think it's a function of the current job market. I've seen a big uptick in lots of asset management roles, not many acquisitions compared to a year ago. Deals are running slow on pretty much all property types except for industrial, so really it's not a surprise there are acquisition guys looking for work.

I could see some bitterness in having to do more junior responsibilities but what other options are there? The market is just not favorable. A short-stint may happen, but I think most are going to be careful of moving to their next job if the current didn't fit well as it was.

The next 6 to 12 months seem a bit unpredictable of what deal flow will look like and that will obviously translate better to how the job market will be. I'm betting it'll be positive, but is it going to be fast and steady, or slow and gradual. The faster the deal flow the hotter the job market.

 
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Associates applying for analyst roles is most definitely a function of the current job market. Hell, I've casually looked at some associate roles that I never would have a year ago. 

You essentially summed up all of the risks involved though. That associate is most likely going to excel as an analyst far faster than someone right out of school and expect more responsibility, more compensation, and faster advancement as a result. It's only natural. At some places that care more about each person being a high achiever, this can be a great thing. At others that care more about hierarchy, this is going to lead to the bitterness you mentioned. 

It all comes down to how your team/company operates and how the the individual you hire approaches the move. 

Commercial Real Estate Developer
 

It's been super annoying tbh. As someone who is transitioning post-MBA with only one year of REPE experience, I have been to 3 final interviews and have been passed up by people with more experience than their preferred requirements on the JD. Not only that, but the only jobs that are considering me are entry level that have pay around $75K max. I was making $75k pre-MBA and over $100k during my MBA. Not even sure what I'm supposed to do, because me and my wife are waiting for me to get a job to complete our green card as she's in the EU, so I may have to take a role with lower comp I guess.

 

It's a product of the market. Are you able to negotiate comp at all? Not sure what situation you're in time-wise, but more desirable REPE roles should come online early to mid 2021

 

I've actually been applying to jobs that require anywhere from 0-4 YOE and have gotten interviews for the whole range though they are considered entry-level. The comps have all been pretty similar, but I've been seeing if there is any flexibility. One of my top firms was a local one to me that was raising their next fund, but had to delay their starting date from Q4 to Q1 next year. Now I'm looking at another real estate investment and dev firm that said $85k which I'd bite because I'm in the Midwest and I can't be too picky.

 

So, I am sure the current market is part of it, and making it more common, but this can happen even in "hot" job markets. If your firm is larger or more "prestigious" it can be common to get applicants of higher ranks to lower roles from smaller, less known firms (ahem... WSOers..). Or, some people just want out of their current situation for whatever reason. There is also a known strategy of applying for junior roles to then see if you can "convert" them to more senior roles during interview/negotiation process (believe it or not, this actually works sometimes). 

It's also worth noting that not all ranks are equal. Associate at some firms is more like manager or even VP at others. Some places inflate the hell out of ranks (ahem... brokerages..), so that can be a factor. 

Personally, when interviewing or considering anyone who is "experienced", I like to really understand why they are searching/applying. If their reason makes sense, then maybe worth considering, if not, I'd generally say look for the candidate who's skills and story/timeline are aligned with the position. 

 

I work at one of the more well known firms, and it happens al the time when we have an analyst opening.

 

From the outset, it appears my entire company has done it, a director of property management who should be a SVP of AM or PM. And the firm's idiot brother in law is director of asset management.

Don't go to a private firm thinking that you will shine, they just wont give you the responsibilities, especially at a lower level 

Younger guys, go to the bigger companies first they will promote you based on merit.  Don't go to family offices or smaller firms, usually the principal has gotten lucky in bull markets and think they know it all.  Don't go a family office unless the principal is still there running things, his son is is likely not as smart or capable.  Also, don't work for religious jews unless you yourself are a religious jew.

 

Sequoia

Why not work for jews?

Edit: Not asking as a snowflake, just honestly curious 

He's probably referring to the Orthodox and Hasidic communities in NYC, which are communities notorious in general for their social and cultural insularity.  When those firms have job openings, the positions almost always go to people from their temple or extended social network, to a much greater extent than you would see in a comparable firm.  Especially when it comes to younger folks.

 

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