How to Network

Do you know someone who knows the Queen? Maybe not, but then you find that your housecleaner has a sister whose husband has just been introduced, so you are not far away. When you start to build a network, do not make assumptions about where you will find key contacts.

Hector Sants, a managing director at the Financial Services Authority in the UK, went into fund management following an over-the-fence conversation in the village where he lived. Had he been off trying to get a ticket to Royal Ascot to meet 'important people', instead of chatting with a neighbour, his life might have taken a very different turn.

Remember the first principle: 'Don't ask people for jobs, ask people for information.' Anyone you know, from your laundromat attendant to your mother to your old school teachers, may know someone who knows someone in the banking world. Even if they don't, they may have read something in the news, or they may have a bright idea that sends you in the right direction. When you start to build a network, start with the people you know, and then build from there.

'The hardest thing is to bite the bullet and go up and talk to someone,' said an attendee at Earn4Women, an organisation that provides networking and leadership opportunities for women in investment banking.

When you approach someone, find out something about them. Do you know this person already? Did you hear about them from someone else? Express interest in their work. You may find that in the process of learning about them, you learn a great deal about what has helped them succeed as well.

Then, let them know what your goals are. Tell them of your own interests and skills. This may spark a conversation which will lead to valuable information. Even if they have no ideas immediately, they may remember you later and come back to you when they hear something.

Once you get a job, focus on doing your job well. Noel Marshall, managing director of recruitment firm PRO, thinks networking can actually be a distraction for new graduates. He says, 'Get rated as a new employee first, then worry about networking later. Remember that your internal network and your relationship with your boss, is just as important as your future jobs.'

Once you have established yourself in a job, ask yourself what you enjoy and what your goals are. The employer is like a client, an organisation which you are serving with your skills in exchange for a fee. Find out how your particular strengths can add value to your employer's work.

Marshall emphasises knowing yourself and knowing what your strengths are. 'You are branding yourself as an individual, developing a reputation within the organisation. Don't think you are too good for the work. Annual turnover in most banks is only 20% - which means that most people who gain a promotion, will do so internally.'

As your career progresses, think not only about what you want, but what the market can sustain.

Marshall said many job candidates who have been made redundant think they can walk back into a new organisation at the same level, with the same salary and bonus. Three anonymous employees at a recent networking seminar laughed and referred to the same attitude: 'We're UBS, we're the best, we don't need to network,' they said jokingly.

Being serious, however, they acknowledged the truth: even the best must sometimes work hard to find a new job.

If the market could not sustain your old job, it may not be able to offer you a new job at the same compensation level either. Be willing to adapt to the market as it currently stands. Remember that bonuses are based not on how hard you work, but what the outcome is - you may put in 18 hours a day at the office, but if the market is in a slump, the result may be negative anyway.

Marshall advises bankers to estimate their worth as 10% of what they produce in profit for their company. He says, 'If you think you're worth 100,000, ask yourself if your employer will earn 1m this year as a result of your work (or your share of a team's work). If so, you're worth 100,000. If not, you need to revise your expectations.'

In the final call, remember that for every negative response you get there is likely a positive one waiting out there somewhere.

While some banking specialities are controlled by a small circle of people who have known each other for years, other areas such as hedge funds are growing by leaps and bounds.

One recent graduate who recently entered the alternative investment world said: 'I've never had a problem with networking at all - everyone's very friendly because they're all just as new as I am.'

Don't get discouraged by rejection - know yourself, know your market, and ultimately you will find success.