Is it too soon for Bar Cap and Nomura juniors to be speaking to headhunters?
The darlings of Australian investment banking hiring in 2010, Barclays Capital and Nomura, are already starting to face mild discontent from some of their junior staff, according to headhunters.
However, for many analysts and associates, sticking with Bar Cap and Nomura could be the best long-term career option. Job hoppers be warned.
Both banks are comparative newcomers to the local market and over the last 18 months have been recruiting more aggressively than the established IBs, taking on analysts and associates with the promise of greater things to come.
"But now some of these junior guys have been in teams which have been pitching but haven't won a major deal. So they're asking: 'how long will it take?' and 'what will happen when my guarantee runs out?'," says a recruiter who asked not to be named.
Analysts and associates often become disenchanted more quickly than experienced employees because they are not as ensconced in the bank.
"So far this year I've seen five to six of these people in each company who are looking around because they doubt the firm's ability to win business," he adds.
Another anonymous headhunter says he has met Nomura and Bar Cap candidates who are worried about a lack of successful deals devaluing their CVs. "Talented young people want to work in teams which are winning."
Look before you leap: Bar Cap and Nomura could kick start you career
Not all Nomura bankers are complaining about a lack of deals. The firm was adviser to Dai Ichi on its bid for Tower after a contest between several investment banks, says a spokesperson for the firm. Nomura also won a role as advisor to Sinopec on its investment in the Origin Energy / ConocoPhillips LNG project. Other roles include KKR's takeover bids for Perpetual and Healthscope, and NAB's bid for AXA Asia Pacific.
The second headhunter adds that many candidates benefit from starting or building their careers at firms which are trying to expand their market share. "There's the risk of slow deal flow to start with but the flip side is that, if the firm does well, you'll be credited with helping to establish the firm's presence in Australia. That's a great thing to have on your CV."
Juniors at these firms should also think twice if they are moving purely for more money because there is currently little variation between compensation levels across the Australian investment banking sector.
"Time will tell whether the people I've seen will actually move or not. I suspect a lot won't when they see what's on offer elsewhere," he adds.
And both recruiters stress that, other than juniors, they have not seen an increase in candidate calls from employees of either firm. "Senior staff often got two-year guarantees, so they have another year to get it right. They are still singing from the corporate hymn sheet."
