Choose the right graduate training programme

The training you receive will form

the foundation of your career.

The first question to ask is a simple

one: 'Does an employer offer a structured

graduate training course at all?'

The answer will depend largely upon size.

Smaller banks often admit graduates for

investment banking positions on a

rolling basis throughout the year - training

is offered but in the absence of a large

annual intake it is likely to vary on an

individual basis.

Larger banks such as Goldman Sachs,

Morgan Stanley, Merrill Lynch, JP

Morgan Chase, Citigroup, UBS and

Deutsche Bank each take 100 graduate

trainees, or sometimes many more, in Europe every

autumn.

Graduates entering these organisations

can expect highly-structured

and well-rehearsed training courses.

Libby Fisher, a headhunter who specialises

in junior positions at the Rose

Partnership, says would-be bankers

should weigh-up whether to train at a US

or European bank.

She says: 'Trainee

corporate financiers at American houses

will get a really good grounding in terms

of execution training, or actually doing

the deal. However, if you train at a

European house you may well get better

experience across the board, particularly

in terms of pitching for business, marketing

and visiting clients.'

US banks and some European ones

have traditionally offered graduate

trainees a two-year contract, beyond

which there is no guarantee of continuing

employment.

John Axeworthy, a headhunter at the Charterhouse Partnership,

says: 'You will usually get a two-year

contract which the bank has an an

option to renew for a third year, at which

point you may either have to leave, or go

on to become an associate.'

Although

most graduate trainees were offered new

contracts in the past, Axeworthy says

only a 'tiny percentage' are being

retained these days because of the economic

downturn.

Joining a US firm should at least offer

travel opportunities. Most banks conduct

initial classroom training in their country

of origin. Hence trainees at Merrill

Lynch and Goldman Sachs are dispatched

to New York.

Wherever you are trained, the graduate

training course is likely to follow a

similar format. Structured schemes are

in two parts - courses begin with a classroom-

based element lasting about two

months, followed by a system of job rotations

lasting a year or two.

There is great uniformity in the subjects

included in banks' basic training: an

introduction to investment banking;

financial modelling; accounting skills; IT;

'soft' skills such as team-working and

negotiating; and preparation for the

numerous regulatory exams. Few initial

concessions are made to candidates with

an MSc or economics degree.

At most banks, the second part of

training is division-specific. Trainees

rotate between jobs in one division only,

be it equities, corporate finance, or fixed

income. This makes deciding where to

work doubly important.

A graduate recruiter in one European

bank says: 'Candidates need to know

exactly which division they want to work

in. They need to research the divisions

thoroughly before applying.'

Some large organisations offer greater

flexibility than others. Royal Bank of

Scotland offers generic training to all

graduates entering its financial markets

programme, which covers everything

from foreign exchange to interest rate

derivatives.

Karen Mckinley, head of

graduate recruitment, says the programme

equips the trainees to work anywhere

in the financial markets division:

'The breadth of training is a positive

factor for our recruits. Graduates achieve

a broad understanding of the division

and the programme equips them with the

skills required to join any area."

Graduate training is even more flexible

at HSBC. Around 90% of recruits to

HSBC's investment banking division are

trained on its 'broad' programme.

This enables trainees to undertake three sixmonth

rotations between different business

functions, including corporate banking,

corporate finance, asset management,

private banking, and treasury capital

markets.

Guy Millar, head of group resourcing at

HSBC, says the breadth of the rotations

enables graduates to make an informed

decision about their careers: 'Students

coming out of university do not necessarily

know in which business area they

want to specialise.

Broad rotations also provide trainees with a network of people

and an understanding of our products

and services across the bank.'