The Wall St Journal reports that although Wall Street is throwing thousands of workers out onto Main Street, the finance industry is still seen as the land of opportunity for young world-beaters. This year’s graduates in the U.K. sent more applications to investment banks than to any other business sector, according to a survey of 18,000 final-year students released this week. Apparently, those hopefuls didn’t know (or didn’t care) that U.K. banks have handed out about 50,000 pink slips this year.
Given shaky returns and plummeting market values, banks and brokerages are becoming value investors when it comes to talent. As they launch ambitious campaigns to cut expenses, the big U.S. investment banks haven’t even curtailed the number of offer letters sent to new graduates this year, according to a colleague writing a story about B-school recruiting. Why? Because the kids are cheap. Any B-school worth a lick teaches its students the acronym BATNA – “Best Alternative to a Negotiated Agreement.” Recent grads willing to work for a free sandwich once in awhile know there are few alternatives for an inexperienced person hell-bent on a finance job. More importantly, Wall Street hiring managers know that as well.
I heard from a source this week who has been clawing to get into the industry for months. At 30, he has three kids, an economics degree and years of experience programming military satellites. What did Wall Street offer? About $30,000 a year to assist a private banking team in Wyoming. He’ll probably take it and he’ll probably do great which should strike a note of fear into any mid-career worker at a bank or brokerage….
Don't stop now. Find out more at http://blogs.wsj.com/deals/2011/09/02/jobs-report-will-cheap-grads-change-wall-street-pay-for-good
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