Monday, February 19, 2018

Young and Cheap-Banking hiring on the cheap

Usually I devour all the news that interest me but I may have missed the news that my friend sent to me. Although I knew it for a long time but now it was confirmed that the banks want to hire fresh graduates and then train them instead of hiring senior and experienced talent which can be more expensive and may not supposedly bring new ideas or increasing their bottom line. I can understand the banks logic in that young people are eager to learn and follow since they want to grow in their jobs but it can only happen when you are from less than prestigious schools since the Ivy league or top ranking schools graduate won’t fall into this trap and anyway the banks would be foolish enough not to offer them more money. Banking nowadays are racing to increase their revenues due to increasing cost of doing business and compliance issues and this is one way of reducing their costs.
But hiring inexperienced folks would entail more on the job training. And how would the bank know that after learning the ins and outs of the business, the young person would leave for a chance to earn more. If you are going to pay less money to hire inexperience folks, the more experience they gain, the more they would want more money and the raises in the banks are not that great or even consistent yearly.  And due to hiring cheap and young, many banks have outsourced their businesses much as possible to cheap third world countries. There are definitely pros and cons of hiring young and cheap and the banks have to be careful not to overdo it to spark a backlash against them (which they don’t care anyway).

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