How important is networking really?
Wanted to get some thoughts on just how important networking really is. On this forum especially, people always say network network network, and how that is the key to everything. I go to a semi-target school, and have never purposely networked a day in my life.
All I do is send out online internship applications, and I had many many interviews this year for IB and other Industries including 3 super days for MM banks. I ended up accepting an internship role in Corp dev at a tech company where the team is all former bankers with top MBA’s. I also turned down many phone screens for other Ib opportunities across the spectrum of banks after accepting my Corp dev offer.
This post isn’t to try to come off as bragging or anything, but there is nothing that exceptional about me, yet I was able to secure many interview spots while not networking whatsoever. Is networking really extremely important after all? What am I missing?
.
How would you network during the internship? Could you provide some example? I have my first internship this summer, in a credit fund, and the class is really small (
I second this. As a recent grad and banking analyst, I was taught by my mentors to focus on technical skill development and network expansion. Similar to the above, networking isn't always transaction-oriented - the most effective networking in my experience emphasizes relationship building. The deeper your bench, the better off you are as you grow professionally. For context, networking took me from a community college to a top 10 global investment bank covering a sector I'm passionate about. Without targeted, purposeful networking, I'd like be working in FP&A hating my job (not to knock FP&A, just not for me). The sooner you realize the importance of networking, and really spend time getting the reps in developing that skill, the better positioned you'll be professionally.
This is why I feel like non-target students tend to be better prepared from a skills perspective coming out of college. Breaking into an uber-selective field in finance / business is a lot harder without an established alumni network - you're essentially forced to learn how to network and build relationships in order to land these sorts of roles.
Let me know if you have any questions - happy to provide more color on the above.
likely be*
Non-target kids definitely have a better mindset than a lot of kids that might feel entitled to things because they went to a target. I came into IB thinking that everything was going to be spoonfed to me from the beginning but I quickly realized I couldn't think like that. The non-target kids in my class never thought this for a second and were much more inclined to figure things out on their own and leverage resources like Google, previous company files, etc. to succeed. They had it ingrained in them to do things like that while others in the class had to be taught to do that.
Good luck trying to move up in your career without networking.
Your success in business is based on who you know.
So let me get this this straight.
You applied for IB, including presumably the top banks.
You landed interviews in MM.
You landed a job in Corp Dev.
But you don’t see that it could’ve gone any better, so you don’t see value in networking.
Yes that’s accurate. For a student at a complete non-target, with a very unexceptional background with limited experience, the fact that I was able to secure the number of interviews I did just shows to me that networking is not as instrumental as some may think.
I did not apply to many of the top banks because I was so unprepared for the process that I was not up to date on IB recruiting, until the start of my junior year. So I missed the boat on most BB IB applications. This should speak to the quality of my candidacy if that wasn’t already clear enough.
I pretty much landed interviews at many of the top shops I applied to, including some of the following (Stifel, KeyBanc CM, Cowen, RJ, PWP, Citi) by only applying online. I am just noting that networking is not as clearly important as some on this forum deem it to be for a student/early career individual. However, as some posters have noted it becomes increasingly important as ones career advances, which is a point I am willing to concede as it does make sense.
People with more years work experience than you have years on this planet are telling you networking is king, but because you secured four intern interviews it shows the whole world and everyone in it that networking is not as important as they think?
Fuck outta here
Your point about landing those interviews at Stifel/Cowen/etc with only a job application has some merit. I would think for a non-target student, its hard to get those interviews without networking. I wonder if they were somehow less than interviews . . like maybe just informational or something. But if you're telling me those were full-fledged interviews, then I'd say its one data point cutting against networking.
But its one data point up against a pretty strong track record of the importance of networking. Most people familiar with the process would say that networking improves your chance of landing the interview, and then (my opinion here) has a huge impact on your interview performance. Much easier to answer questions well in OCR when for months prior, you've been chatting with people in the industry.
Above you say you go to a semi-target. Now you say you go to a complete non-target. Either you are lying, trolling, or trying to make yourself feel good about yourself. None of which are good and will show up later in your career man. But congrats I guess
Let’s use a capital markets example to understand why suggesting and/or recommending networking isn’t wrong, will never hurt you, and could potentially screw you if you decide not to.
Issuer A is a relatively unknown company with limited past offerings and potential operational question marks. Issuer A is coming to market with a new debt offering. Market is flowing, funds are fat with cash, and “every” deal seems to fill the books and price without a hitch. Issuer A decides to skip and/or becomes lax on certain pre-marketing (networking) steps (i.e. in-person roadshows, early release disclosures, 1x1 investor calls etc.). What does it matter? It will all be good, my friends Issuer B, C, & D, say don’t waste your time and money on that time consuming marketing stuff!
Now... You are all set to price, spent months prepping, need the cash, and are expecting an easy road to the finish line. Fingers crossed my week goes well and doesn’t cost me bp or two! All of a sudden a global pandemic (no way, that could never happen) comes along and puts the market on its head. Spreads blow out. Investors spooked. On the day of pricing you only need a few more investors to show up and push it across the finish line, but you can’t get anyone to come in. The flakey ones dropped out, the last min. types don’t know who you are, and the over worked guys didn’t have access to you half assed disclosures.
What if I had just done XYZ more... That $$ would have got us through to the other side of this thing.
Glad you got what you got the gig you wanted OP, but don’t spread your false sense of security to those who want to hustle and may not have the ability and/or security to fail. I would wager a lot of money that those college students who have created solid networks, followed the suggestions of countless peers about networking, and hustled (with minimal required actual effort) will fair better than those who chose not to.
The going was good for a while, but it is about to become a bumpy ride for the next few cycles of recruiting. I wouldn’t have minded having a few networking contacts in my back pocket for when it counts.
International student here, went to an ivy which is also a target, got 3.8 GPA. Worked at sales and trading as a summer intern in my home country at a BB.
Applied for ibd sa, the only interview invitation i received was Nomura.
This tells u networking is ridiculously essential in US. I secured a BB IBD position in my home country and lateraled to a pretty big fund after 2 years without networking. I bet it would be impossible in US.
Where is your home country?
Hong Kong
for IB, it's pretty much essential and there is a very slim chance you can throw applications around, hope for the best, and actually end up with an offer and not an automated "thank you for your interest, but..." a couple months later.
outside of IB, I don't know. I got interviews at some top consulting firms and few other notable firms just from applying online and not being from a top university. even then, there was always the question so how did you hear about us and then anecdotes from the interviewers about the info sessions they attended, alumni they reached out to, or professors who introduced them to the firm. so, in short, networking is still always going to be a primary part of getting a job, but its degree of importance may vary by industry.
I'll tell you this:
I go to a complete non-target (we are known more for partying and football then finance) I am an international student. I am recruiting for 2021. My ethnicity is overrepresented in IB.
The firms that I have interviewed at or have interviews lined up at: - A very reputed MM - Regional office of BB - two EBs in NY - Two Lower-BBs in NY
And I also expect another EB. another MM to be added to this list soon.
^None of this would have been possible without networking.
On the other hands some of my peers from my school (american citizens, not overrepresented, better GPAs) haven't gotten even 1 interview because they haven't networked and they think that using the school career center is all that is needed.
This is living proof of how helpful networking is and why one should always network.
Sounds like you are asian?
I mean thats not very difficult to guess. Asians are the only people who are over-represented.
Simple answer is that yeah, there will always be people who will get positions through just applying online but networking can only help you, right (unless you're not socially capable enough in which case you wouldn't do well in the job anyways)? I'm sure everyone would agree that if there were two people with the same credentials and one applied only online and the other did the same but also talked to a few people at the firm, then the second person would be more likely to get the interview and then the offer. Like you said, you aren't special so I'm sure that there were many people like you who did what you did but also networked at those places and that is why they got interviews at those places that you did not get.
Networking for these firms is another way of showing interest. Don't you think it looks good to these firms and the peope hiring you that you are so interested in the firm and group that you have talked to them and through these conversations, also know what you are getting into and how the gruop's culture may be like?
Lot of other things to cover about this topic and its importance but hope you understand that networking is important. If you're just trying to say that you got these jobs from applying online and through purely your own merit, then yes, that is always the case for people as well but for most others, they have to get in through other methods if their application wasn't selected online or if they weren't sure their app would even get looked at.
They say there’s no such thing as a stupid question, but this might be the first
Nihil esse voluptates quia voluptatem qui aut modi. Laboriosam saepe pariatur ea enim. Voluptas maxime id ab ut. Natus esse cumque omnis. Quia voluptatem ut beatae veritatis id. Et debitis occaecati cupiditate cupiditate eum ad.
Maxime accusantium nostrum ut odit. Unde rerum omnis laboriosam omnis maxime rerum molestias eaque. Aliquam labore excepturi dignissimos voluptatum ut at reprehenderit. Commodi doloremque a consequatur aut hic molestias at. Sapiente a odio voluptatum itaque fuga. Alias perferendis non similique sapiente.
Aut necessitatibus sed et vero architecto non. Eos molestiae a fugit ut. Enim non est voluptatem voluptatem accusantium eos. Exercitationem officia aliquid sed quisquam natus.
Eius iure est et dolor similique. Officiis sunt tenetur qui explicabo eaque animi vel. Tenetur non aut velit in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Praesentium ut architecto laudantium qui ut qui nulla. Beatae ut fugit qui ipsam alias omnis nesciunt illo. Et sint numquam voluptatem laboriosam sit. Voluptas consequatur nulla vel commodi at.
Ut totam sit dolores nulla. Aperiam rerum dolorem cum sed et. Quas tempore quisquam omnis id dolorem eos libero consequatur. In sit consequatur delectus. Et quas commodi quaerat sequi molestias. Officiis quibusdam cupiditate facilis optio natus atque sit. Sit laborum ut aliquam et recusandae aut et.
Illum voluptatem illum sint eius et omnis. Id facilis odio soluta voluptate culpa. Repellendus iste vitae provident ducimus amet harum. Neque tempora possimus expedita architecto error eveniet alias. Minima dolores omnis nobis quibusdam.