Morning Coffee: Leave banking to become a 'consultant' and you may never work again

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It's a well trodden route: after a decade or so collecting a very healthy salary in an investment banking job, people leave - often involuntarily - and become 'consultants', touting their wares on a freelance basis. So far, so good. Consultancy has things going for it, like the chance to continue earning money outside full time employment. Be warned, however: once you've become a consultant, it may become a lot harder to return to a proper job in an investment bank.

Research by Erasmus University in Rotterdam, the University of Vienna and the Munich School of Management reported in the Wall Street Journal, found that individuals who are working as consultants are far less likely to receive a positive to response to their job applications than individuals in a corporate role. The researchers sent pairs of fictitious CVs to nearly 100 real job postings in the UK. Both CVs belonged to HR professionals with almost identical job histories, but one was currently working in a corporate role and the other was consulting. The consultant's CV received 63% fewer positive responses than the corporate CV.

It's not clear whether the same rule applies in banking but with banking jobs massively over-subscribed at every level, it's reasonable to assume that banks might prefer hiring corporate men and women to consulting mavericks. Does this matter? Yes, if you want to go back into banking. No, if you're very glad to be out. There may be no going back from consulting, but we suspect that most consultants wouldn't want to go back anyway.


UBS offers the most generous client lunches in the City, paying £150 per head. (Financial News)

Citi is building in prime brokerage and has hired a very experienced Goldman banker to help it along. (Finalternatives) 

Deutsche has hired one high yield trader from Goldman Sachs, one distressed trader from Citi. (Wall Street Journal) 

Hedge fund EQI has hired Christopher Lynch from RBS. (Financial News) 

After a decade as rock stars, hedge fund managers seem to be fading just as quickly as musicians do. (Businessweek)

It’s not looking at all good for M&A bankers. (Twitter) 

The new device used by George Osborne to monitor his fitness and sleeping patterns. (Edmund Conway) 

How Google saved its employees from Wall Street. (Reformed Broker) 

Warning: American power postures are a bad idea in Asia. (Science Direct) 

Man meditating outside Goldman Sachs says bankers are people too. (NYMag) 

The best antidotes to envy. (Psychyourmind)

The Shard has become a recognized climbing route. (BMC)

(Morning Coffee has replaced Lunchtime Links...)

Related articles:

The outrageous Merrill Lynch entrance exam question.

How pay in private equity seems to have halved.

 M&A house clears out mid-ranking bankers and rewards its rainmakers





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