A lot of questions have arrived in the Ask Us Anything section of the blog and we noticed a common theme, people are having a hard time deciding between careers and job opportunities. Our knowledge is solely around high finance jobs so we are unable to provide color on technology jobs, chef jobs or other jobs outside of finance. With that said here’s exactly how you should structure your potential job prospects.
Five Steps to Take
1) Find the Paths: We have a post that outlines multiple paths on Wall Street and you should be able to track down people within your industry that can do the same. Do not take advice from a consultant on how to navigate big law. Do not waste time talking to a chef about careers in software engineering and do not waste your time taking advice from someone your own age. Find someone older than you who can explain the differing paths, upsides and downsides, then map out your options.
2) Options: If you are young the biggest rule you should follow is this: take more options. No matter what you do, you want a job that allows you to enter more fields. If you glanced at the Wall Street Map you can quickly see that right out of college Investment Banking, Sales and Trading or Buyside positions allow for quite a bit of mobility. If you can start in a position that builds a slew of transferrable skills you will be in great shape within a couple of years.
3) Variable Compensation: If you are outside of Wall Street a good general rule of thumb higher variable compensation. Why? If the industry has higher variable compensation it means performance is rigorously tracked. With that said don’t take a job simply because it offers a discretionary bonus equal to 100% of your salary. Instead, continue to ask yourself questions: Will I get more options? Will my performance be tracked and ranked against my peers? If you don’t have high visibility in terms of performance or proof of revenue generation you’re likely in trouble.
4) Path to Responsibility: If you have ticked off the first three items, you can start evaluating each firm (or each bank). If you have two offers from the same industry and the same job title you should stare right at the promotion ladder and less at the prestige ladder. “F*** Prestige, Get Money”. Notably, a lot of times this is the same firm but a good proxy will be apparent during your interview process. Find the next rung up (example Analyst to Associate in Investment Banking) and see how many people were promoted within the firm (“A to A”). If you cannot find examples of a promotion it should take a lot of convincing from them to prove otherwise.
5) Income Growth and Savings: Assuming that all four items are roughly equal you’re going to focus on income growth. No industry has entirely equal compensation metrics. Find companies that offer higher percentage increases in income and position yourself within that segment of the firm. Finally, one commenter asked about savings rates, when you’re building a career focus first on income and last on savings when it comes to your long-term potential. If you’re building a real career your hours will skyrocket so you may end up saving a bit more regardless. Generally, your savings rate is more of a function of lifestyle cost inflation and less of a function of your first job.
Five Pitfalls to Avoid
1) Choosing Philanthropy: No one is going to write this out on the internet, but simply put do not join Teach for America or the Peace Corps. You are ruining your career. If you are good at both programming and have a burning need to give back to Country X, you can do both by going to Google and donating. Philanthropy is a great thing and you can contribute much more at a later time (Bill Gates, Warren Buffet etc.). Early in your career, time is the most valuable asset you have, use it wisely to invest in yourself. To but a nail in the coffin on this idea, simply attend a charity event and you’ll both see the truth and find great people to network with.
2) Moving for Prestige: We have mentioned this many times but this is a large trap set for you. As an example, if you have a clear line of sight to a direct promotion and you are offered a lateral position at a larger firm for a slight raise… Hang up the phone. This isa common mistake made in many industries, always choose momentum (upward mobility) as it implies the firm highly values your work. If you move firms you’re back in neutral territory and have stopped all momentum.
3) Switching Industries Without Research: After a few years on the job, everyone has something to gripe about. Most people in investment banking complain about hours (which decrease dramatically after year 3) and others may complain about smaller bonuses compared to base salary (engineers). If you are going to make the switch be certain you are going to 1) excel at the job and 2) are not restarting from the very bottom. It is quite difficult to switch to a brand new industry so be sure to do your homework.
4) Avoiding Responsibility: Similar to step you should make, many young men and women want to be “told” how to do a task. After a few years on the job, usually between 4 and 6 within high finance, you need to make a jump to stand on your own two feet. No matter how many hours you put in, how matter how many projects you juggle, if you cannot lead or stand alone you’ll never break through the glass ceiling.
5) Office Friends at Your Level: We mentioned before on Twitter “When has a poor person given you a job?”. Similarly when has your direct co-worker given you a job? The answer to both is never. You will learn very quickly that people on your same level will throw you under the bus faster than lightning if given a chance. Instead of only learning about people in your class or age range, try to shoot two levels up. If you’re 20 try to befriend a successful person that is 28-32. Continue with this process for as long as possible.
If you’re making the correct steps and avoiding the major pitfalls, you will quickly find that you are creating momentum with your life and career. Keep growing, keep growing, keep growing.
If you’re the most successful person in your phone, your phone is now worth $0
