The finance industry is arguably the most competitive in the world. This is true at all levels, from entry to the industry right up to the top levels where executives need to have good political acumen as well as the skills needed to be a successful finance professional.
In recent years, against the backdrop of the global recession, many, including respected publications such as The Economist, have questioned whether the high level of competitiveness throughout the industry is beneficial.
Opinions around such questions have been strengthened by things such as the Libor rate rigging scandal and controversy related to bankers’ bonuses.
What is it that makes finance so competitive?
Money, Money, Money
Unsurprisingly given the nature of the industry, money is by far the biggest factor. From a business perspective, there are deals and discussions happening all the time as companies try to make the best investments and increase their profits by the highest amount possible. This is true both in terms of businesses who work in the finance industry, such as banks and private equity professionals, and in terms of companies who work with such institutions for their own benefit.
Of course, the most controversial aspect of money is at the individual level. Many point to the competition to earn higher salaries as the reason why finance professionals take what might be considered reckless risks.
However, even if we take any negative practices out of the equation, there is no doubt that the potentially lucrative rewards on offer for finance professionals contributes to the competitive nature of the industry. This is why you read so many stories about recent graduates having no work/life balance; they’re trying to work the hardest so they earn the best rewards!
One Job, One Hundred Candidates
Before you start earning potentially lucrative salaries, you need to get the job first. Such is the approach of financial institutions when it comes to recruiting in the modern day that the ratio of applicants to job opportunities is skewed massively.
So many people want these jobs that the companies can afford to pick from the very best graduates. In some ways, competition for the best jobs starts in colleges and Universities, as many companies are strict about the level of academic achievement they’re looking for.
The competition is so intense because you’ll often only get one shot at getting the job you want. Say you’re a graduate and you aren’t accepted into a company or onto a graduate scheme this year, your choices are to wait until next year, or move into another job. Both are viable options, but from the perspective of a financial recruiter, you’d have had a year out and won’t be as employable as someone fresh out of University.
Publicity
The finance industry gets a lot of publicity. The fight for column inches, and the impact it has on brand perspective and the potential for increasing profits further, is why you often see individuals at all business levels giving interviews for television, newspapers, and magazines. Granted, most of the publicity the finance industry has had in recent years has been negative, but this only serves to show why positive press is so sought after.
About the Author:
William Slassor is a new business owner currently looking efficient accounting services for his company. Although William's new business is in the IT sector, he has previous financial experience and would like to set up a finance company in the near future.
0 comments :
Post a Comment