Graduate investment banking career expectations set for rude awakening
The latest survey by eFinancialCareers, the UK-based global financial careers website, suggests that university students who want to work in investment banking still see the industry as a key to future riches.
[UKPRwire, Wed Jan 14 2009] The latest survey by eFinancialCareers, the UK-based global financial careers website, suggests that university students who want to work in investment banking still see the industry as a key to future riches.
As this year’s applications to graduate training programmes at major investment banks come to a close, eFinancialCareers polled students across Europe. Of the 2,065 students who were surveyed 34% of UK students thought they would be earning in excess of £90k five years after graduation and only 20% expected to earn £50k or less.
Although 58% of UK students said the financial crisis had made them think twice about pursuing a career in investment banking, 68% said the money was one of the main attractions of the City and only 35% expected to be made redundant during the course of a banking career.
Would be-bankers also displayed excessive optimism about the ease with which they could walk into a banking job. In fact, 60% of UK respondents put their chances at getting a graduate position at 50% or more.
By comparison, continental European students appeared more realistic about pay, but less realistic about their chances of finding a banking job.
In neighbouring France, only 14% of students predicted their salaries would top €110,000 (£91,600) per year within five years of graduating and in Italy, a miniscule 3.5% believed they would be earning that much.
However, 84% of German student respondents, 75% of French and 66% of Italian students believed their chances of landing a banking job were 50% or higher.
John Benson, founder and CEO of eFinancialCareers, said:
“Despite their optimism, applications to the industry regularly exceed 30:1 for graduate positions. For students planning to pursue careers in the financial sector, there is a real need for them to understand the importance of flexibility both in terms of geographic location and range of disciplines to consider in order to land that coveted spot. ”
When challenged about what they would do if they didn’t get a job in banking, 26% of UK students said they would continue with “further study”, with just 13% being prepared “to work for no pay” to gain relevant experience. 46%, however, would look to another industry for work – consulting and accountancy being the two most popular alternatives. Only 1% said they would consider charity work.
Perhaps one reason for the lack of willingness to work unpaid or do charity work was the level of debt being experienced by students, 53% believing they would have more than £10,000 of debt on leaving university and of those, 5% estimating it to be more than £40,000.
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eFinancialCareers, a Dice Holdings, Inc. company, is the leading global career site network for professionals working in the investment banking, asset management and securities industries. The website provides financial services professionals with job opportunities, job market news and analysis, salary surveys and career advice. Recruiters and employers can post jobs targeting specific sectors within the financial services industry, both buy-side and sell-side, and can search the resume database for highly qualified and specialized professionals. eFinancialCareers has a network of co-branded career sites with industry-leading trade publications and offers local websites in 18 markets and five languages primarily across North America, Europe, the Middle East and Asia-Pacific. www.eFinancialCareers.co.uk
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