Tag: networking

Finance Recruiting Step 5: Networking

By Michael Jimney, Risk Solutions Analyst at BlackRock

 

Without a doubt, networking is the most important part of the recruiting process. You can have the most in-depth technical understanding of the markets or an M&A transaction, but without building connections your knowledge can all be for naught. Networking ensures you are more than just a name on a page. During internship recruiting, Human Resource recruiters receive hundreds of resumes for any open position. This book of resumes is typically passed on to employees in each division, and they are expected to give their opinions on which candidates to interview. To the over-caffeinated Analyst, with no time to read every single resume, this stack amounts to a long list of names. Thus, the best case is when an Analyst sees your name and thinks “I know this kid, they could be good here,” and quickly recommends you to be interviewed.

One opportunity for networking is at corporate events. For sophomores and juniors, these events are a way to cast a wide net or to get to know a variety of professionals. Companies targeting Baruch students will typically hold corporate presentations on campus. These events usually consist of a presentation that includes information about the firm, the positions for which they are recruiting, how to apply, and will also offer students a chance to network (introduce yourself and ask questions) with various professionals. One rule of thumb is ALWAYS to bring a pen and notebook. Take notes about each professional and any other relevant information DURING the presentation. It will allow you to plan who to network with and what to talk about (for more details about asking good questions, see post 2 HERE). During the presentation, it is a good idea to write down how to pronounce any names which are new to you. Making a good first impression can be a bit rocky when you mispronounce someone’s name; by contrast, it shows a great level of interest if you properly pronounce a difficult name on the first try.

Another opportunity to build connections is when someone offers to refer you to a contact in the business. For example, your friend says “I know an alum working in risk, you should reach out to him.” Typically, the next step would be to email this contact and ask about setting up a time to meet in person. The two benefits of this kind of networking are 1) a warm introduction, and 2) the person works directly in a role you are interested in. A “warm” introduction, such as this, is different from a cold one because the relationship has been brokered by a 3rd party who knows both you and the professional. NOTE: your mutual friend is putting their reputation on the line by making the referral, which adds to your credibility and first impression. The connection will likely think “If our mutual friend thinks they are good, I can at least give him or her a chance.” On the flip side, it is possible that people could hesitate to refer you to their contacts if they are concerned you will embarrass them. By sending an under-prepared student to an industry insider, it can make the mutual friend look bad. So if you have just started showing an interest in Credit Risk, do not be surprised if your friend is not quick to connect you to their contacts. Once you take the time to learn about the industry, they will likely be more willing to make referrals.

The second benefit is that you know the new connection works in your field of interest. At networking events, it can be difficult to anticipate who will be there or which groups will be represented. With a referral, you can ask your mutual friend or check LinkedIn for background information about your networking target. This will allow you to prepare industry specific knowledge and questions to ask during the conversation. One warning – not all potential contacts will be interested in meeting. At networking events, people are there for the specific purpose of meeting intern prospects. While a referral can connect you to a professional, that person may be too busy or not interested in a meeting. If they do not respond initially, balance being persistent with respecting their time. Perhaps reach out by phone and follow-up via email, no more than twice.

The final method of networking requires some bravery: the cold contact. With a cold email or cold call, you have no connection with this person. This can be necessary if you cannot find an alumni or friend with a connection to your target industry, or if you want to rapidly expand your network. The key to cold contacting is volume. Sending an email to five or ten people may not get a reply, but sending emails to 50 or 100 might. Remember, the person you are emailing or calling has no obligation to respond. In fact, you run the risk of creating a negative impression if your attempts to connect are unprofessional or annoying. To counter that, look for ways to build credibility. If you send a generic email saying you want a job in equity research, you may not get many responses. Instead, if you write an equity research report and attach it to your email, you demonstrate your seriousness about the career and peak their interest, and are likely to get a better response. It is also important to take time to craft a thoughtful email or call script which tells them who you are, why you are reaching out, and why they should consider you in the most succinct way possible. You will want to have it proofread by many people, each time asking “Would you read this if it was in your inbox?” and/or “is this annoying?”

When it comes to forming new connections, first impression is key. Preparation and doing your homework can help you maximize your first impression so take the time to do your industry research (See Post 1 HERE), develop your soft skills (See Post 2 HERE and Post 3 HERE), and learn about relevant technical skills (See Post 4 HERE). It is not uncommon to meet professionals who have worked in the industry longer than you have been in school, so do not try to BS them. Before meeting with someone, I usually take a mental inventory. The point is to understand which topics I am prepared to talk about and which ones I should avoid. For example, before going into an event I may feel that I am up-to-date with the news and ready to talk about the equity market, but I do not have a good understanding of the foreign exchange markets. This does not mean I will avoid the currency traders during the event. Instead, I try to make sure that when the topic of cross country currency hedging come up, I will not get pulled into a deep discussion of the idea. I will be transparent about the fact I do not know about the subject because I have not learned about it, not because I do not understand it. The worst thing you can do is keep nodding your head and saying yes I agree. The trader will assume you are absorbing what he is saying and will expect you to add to the conversation, or will see you are just yessing him. In either case, you are wasting their time and yours.

The final step to networking is the thank you note. Often overlooked, this simple follow-up is not to be underestimated. After meeting with someone, send a thank you email within 24 hours (make sure you put thought into the timing of your email, sending it on a Friday afternoon is a bad idea). This email should consist of you thanking them for their time, showing excitement or interest in the material, and reference a unique topic you discussed. This is especially important for meeting someone after a networking event. Speaking about a unique topic will help the professional, who probably met dozens of eager students in a very short time, remember who you were. With even the simplest of notes, you are telling the professional that you are interested in the topics discussed and would be receptive to future communication. Students who do not send thank you notes risk being quickly forgotten.

Now that we have discussed the major tools necessary to land an interview, next I will talk about actually preparing for an interview.

 

Finance Recruiting Step 2: Developing Soft Skills – Asking A+ Questions

By Michael Jimney, Financial Leadership Program (FLP) Correspondent

Generally speaking, soft skills refer to your ability to interact with others.  Think about that.  How you address someone, what subjects you raise, and how you smile or nod during a conversation are considered skills.  These nuances feed into someone’s impression of you. In Finance, it is critical to be aware of the impression you are making on others.  Because you will only have one chance to make a first impression, try to develop your soft skills before that first handshake.  Knowing how to create a good impression is important.  Luckily, there is one weapon that can be the key to your networking arsenal, and it will be the topic of this post – specifically: How to Ask a Question.

Networking is an essential component of your finance internship/job search.  To effectively build your network, you need to create a connection with your contact.  This means doing more than listening to them speak at a company presentation and collecting their business cards.  One way you can build a rapport that will establish a real connection is to ask questions.  In addition to creating a connection, it also allows you to gain insights and information into a particular career.  Before I explain how to craft a question effectively, it is important to know there really are such things as good and bad questions.  In order to better understand how your thought process works, professionals look at the kinds of questions you ask as a reflection of your judgment.  Asking a bad question may not do you any irreversible harm, but a good question can make a big impact in making an impression.

Consider the four kinds of questions students generally ask when meeting with professionals (listed below in order of importance):

  1. The insightful question
  2. The attentive question
  3. The typical question
  4. The wrong question

Starting from the bottom, there are some questions which are just wrong.    How much leeway you have with asking a wrong question is directly dependent upon the person with whom you are speaking.  If you are talking to a Managing Director, you do not want to ask him what an investment banker does.  That will make you seem lazy and gives off a bad impression, because you could easily have read about it on your own time,.  However, asking that question to a current student who interned at an investment bank or a recent graduate is reasonable (albeit typical).  Another wrong question would be “How much do you earn?” This is a question that makes most people feel uncomfortable.  Asking about something they just explained is another no-no, as it shows you were not paying attention.

Typical questions are those you will frequently hear being asked.  Those old standards include:

  • “What does a typical day look like?”
  • “How do you like working at company XYZ?”
  • “What do you do for fun?”
  • “Do you recommend any books or reading materials?”

Truthfully, these questions are an effective way to get information about the company and/or a position.  Questions about what their typical responsibilities are or what skills they view as the most important are a good way to understand if the role fits your interests.  When you first start networking, these will likely be the types of questions you will frequently ask.  Just keep in mind that these questions will not get you noticed or remembered.  Over time, try to shift from these typical questions to the insightful and attentive questions, otherwise known as the “good” questions.

The attentive question is where you take something the speaker has said and dig deeper.  For example, “Earlier, you mentioned your involvement in the ABC transaction; could you tell me a little more about it?”  The benefits of such a question are: 1) the speaker will know you are actively listening, and 2) you will get additional information about a subject where you might be lacking knowledge.  A good rule of thumb: people like to talk about themselves.  If you show a bit of interest in something they have done or mentioned, they will be more than happy to talk about it.

The final and most important of the aforementioned categories are the insightful questions.  These questions connect outside learning to the subject at hand.  For example, asking a banker “Considering the recent growth of the ABC sector, do you see the focus of your group shifting over the next few years?” shows that you are paying attention (like an attentive question) and you are also looping in outside information.  Here, you get all the benefits of the attentive question with one key difference: you demonstrate that you are learning about the finance industry on your own time.  The more detailed or complex the outside info, the higher the return will be when it comes to making a positive impression.  Make sure you understand what you are bringing up because it is easy for a professional, who probably knows more about the topic than you do, to tell if you are just trying to sound smart.

In Step 1, I discussed the significance of researching the finance industry.  Asking questions while networking is one way you could use that knowledge.  It is also very important to stay up on current events.  The Wall Street Journal is the standard (students get a discount price: http://student.wsj.com), but there are plenty of other periodicals or news sites like the Financial Times, Bloomberg, Reuters, Barron’s, and The Economist that are worth reading.  The more time you spend reading, the better your questions will be.

When it comes to speaking to professionals, you want to spend most of your time asking insightful and attentive questions.  That way, you get meaningful information from your networking contacts while leaving a positive impact.  Questions are a great way to make a great first impression, but it is not the only skill you need to cultivate.  In the next post, I will be going over how to develop your own personal pitch.