I started at a boutique just a few months ago. When I got to my desk on the first day, there was a pretty formidable valuation primer and a stack of database manuals waiting for me. On my second day I was putting together a book and spreading comps. Granted the firm has its own M.O. when it comes to a number of subtleties, but 1. they vary with the guy you're working under; 2. I'm working off of templates and 3. there isn't too much I haven't seen before. If I hit a bump, I ask questions. My associate and the 2nd years are fine with that and they're more than willing to help others that didn't have as much finance work in undergrad as I did.
The learn-as-you-go model, IMO, is integrating the first year analysts (myself included) pretty seamlessly here, so will somebody explain the purpose of a preliminary month+ long training session? It seems to me like a waste of resources when the incoming class could actually be adding value/providing leverage to the professionals they were hired to support.
With a boutique, there's a much smaller group, so an informal learning-on-the-go process would be seamless. Class sizes are small, everyone gets to know everyone and can help each other, and it's easy for associates to teach accordingly given the size.
In a large bank, where there's a lot more hierarchy and formal way of doing things across the firm, associates may not have time to teach an army of incoming analysts how to spread comps. Analysts hired in may not all come from finance backgrounds, so they might be light on technical topics like accounting and valuations. Class-wide training is a way to ensure everyone in the large hiring class is up to speed.
Also, in some cases, the designated group the analysts join are not yet picked prior to training. Training also allows for ranking of analysts and top groups to pick accordingly. In the BB I was with, most people were already placed in groups (but I was in S&T). While there were only certain concepts I needed to learn for my job, I found it helpful to also understand other concepts in the markets for a bigger picture experience. Training in it of itself is a marketing tool for banks to sell themselves as a 'gold standard' to top schools and candidates to gain experience right after school.
When you come in on your first day and have no idea what a Balance sheet is,since you only took 70's black handicap lesbian women's rights movement classes at Yale, then it's going to be a bit difficult to move things along.
Do you actually think they hire kids who don't know what a balance sheet is?
You said it yourself, you started at a Boutique, where there is no formal training program. Boutiques and smaller shops do not necessarily have the class size to warrant a month long training session. Training is also not just about modelling, it's also partially firm culture, proceedure and organizational nature.
The BBs have a few things that make training for a month effective. The first is the class size. IT is much harder to teach 10 new analysts at the same time on job than it is 1 or 2 new analysts. From an education standpoint, not everyone learns at the same rate and grasps the material as fast. From a work standpoint, if the 2nd years and associates need to stop to entertain questions from 10 people instead of 1-2 people, then their productivity is reduced.
The second is sociallization. There is alot of overlap until you are broken down into your specific group. At that point, the focus shits a from fully being focused on the basics to both socializing with the peole you will be working with for the next 1-2 years and learning the essentials for your group's particulars. If you are going to see people every day for the next year, you might as well get a bit of time to establish a repore with them, as they will be your friends, allies and rivals.
The third is culture. It's easier to mass indoctrinate culture if you are forced to sit through lessons on it. Guest speakers within the firm. Firm sponsored events. Hell, look at the swag they get. BBs have the ability to better brand their employees through the use of these classes.
Yes. I met kids who might of known what Assets, Liabilities, and Equity were, but they had no idea what short term debt, long term debt, or accounts receiveables was.
lol have you ever asked someone why they choose banking?
70's black handicap lesbian women's rights movement classes at yale.... fucking hysterical
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