Finance sector can’t catch the best graduates


Young people who graduated from the best universities in the world are moving away from the financial banking professions, which are famous for their brutal working hours and burnout syndromes. Contract banking, once a center of attraction for young people, is no longer attracting new graduates, Financial News reports.

According to the news, interviews with 12 experts consisting of university career services, recruiters and analysts and employees of giant investment banks revealed that new graduates do not want to be contract bankers as much as they used to.

An unnamed source working as an analyst at a boutique investment bank said, “The banking industry needs to change. Nobody wants to do this job outside of school. The most successful graduates are smart enough to understand that money is not the main factor. They prefer to work in a place where they can earn 20 percent less but enjoy their 20s.”

Finansgundem.comIn 2021, a group of Goldman Sachs analysts leaked a presentation to the press on working 100 hours a week and worsening health conditions, according to information compiled by . As a result of criticism from young bankers, banks had to increase their starting salaries by 40%. However, analysts continue to leave the industry quickly. Negative headlines also reduce students’ interest in the industry.

Investment banking jobs give the highest starting salaries of any industry. According to data from research firm High Fliers, starting salaries in this field average around 55,000 euros. Research shows that 26,400 applications were made for 2,102 vacancies last year, in other words, 90 people who meet the requirements applied for each vacant position.

Investment banks are expected to hire 2.5% more graduates this year, after vacancies increased by 7.5% in 2022, according to High Fliers.

However, young people in their third or fourth year of investment banking say that despite the barrage of applications, “top” students choose to stay away from deal banking, according to the news.

An unnamed analyst from major investment banks, “This year, the quality of the new entrants has noticeably changed. We don’t get the best graduates anymore. That’s why I think the industry is becoming less attractive, albeit slowly. The new generation is making less sacrifices in work-life balance. Especially if you can get paid at similar levels in other parts of finance.” made a statement.

Edmund Thomson, Partner of Investment Professionals at recruitment consultancy True Search, says the quality of investment banking analysts has been ‘diluted’.

“The banking analyst profession has become more commodified and teams are working more intensively,” the career expert said. That’s why the first entries into the sector are much weaker than they were five years ago. “The analyst skill set has therefore been somewhat diluted and it takes longer to acquire the skills to transition to the buy side.”

Graduate applications to HSBC’s investment bank in Europe last year fell 49% to 3,558, according to a Financial News report. For Credit Suisse, the figure fell 10% to 23,500. Morgan Stanley received 6,000 fewer applications for its European internship program, down 12%.

“Some write that Generation Z seeks meaning and purpose,” said Jonathan Black, Head of Career Services at Oxford. This target only applies to some and of course this ‘goal’ can also include getting a good salary. Considering what has happened recently or our current students, I observe that the interest in career fairs is still high.”

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