S G Cowen : New Recruits

S G Cowen : New RecruitsPresented by - Group 1Ankur SharmaAnish GuptaPrakhar NagoriPratyush Lahiri Choudhary

Raghav BhatnagarVinay JainYashvardhan Kabra

Investment Banking IndustryCharacteristicsWidespread ConsolidationIncreased Public ScrutinyDearth of TalentDependence of ProfessionalsCompetition in Labor MarketCompetition in Financial MarketCompany BackgroundUS-based CowenFrance-basedSocit Gnrale GroupSG CowenAcquiresFormsBoutique- Size: Asset Base of $430 billionFocuses on Volatile, yet Highly Profitable Sectors: Healthcare and TechnologyMid-Sized: Lean, Flexible, Lack of BureaucracySG Cowen:Organizational TraitsIn 1998Hiring ProcessDecision Made in Winter/Spring 1Internally2.1Interns2.2New Hires2.3Presentation at Core Schools3Assignment of Team Captains4Informational Interviews5Campus Interview6Super Saturday7Final Discussion and Offers8Shift from top 10 to additional 15Addition of non-core applicationsInvolved Maybe decisions and buffer offersCompany PresentationHappened well before the interview roundsAddressed four questionsWho we areWhat do we doWhat distinguishes us from competitorsWhat are the next stepsEncouraged employees to make small presentationGive substantial amount of time to informal talkFine line between helping the students and giving them unfair advantagesCriteria for HiringDemonstrates a pattern of successPrimary Criteria: The Candidate who Is a fast learnerFeels excited while serving the client and competing at highest levelsCultural FitInformational InterviewFirst stage ahead of formal interviewsHelped firm to gauge the seriousness and enthusiasm of candidatesFor candidates, it helped to learn about the firm and industryTeam captainsBanking professionalsAlumniSome candidates might receive an advantage due to their initial informational interviews

On Campus InterviewsConducted by associates/ senior associatesEncouraged to take detailed notes during the interviewIdentification of talentAssessing skillsLiable for the quality of candidates brought Easier to handle by HRAssociates are associatesBreadth & long term view Future peers and rivalsSuper SaturdayInterviews are conducted by senior employees of S G Cowen.Multiple interviews/ interviewers: The candidate has to go through five interviews lasting half an hour eachYield: 66%Pseudo social setting with a formal interview processAttributes looked for in the candidates: Commitment to Firm, Maturity, Interpersonal and technical skills, leadership and work ethicsInterviews completed till noon10Recruitment FunnelInitial ScreeningSelected candidatesSuper SaturdayOn Campus RoundRejected applicationsSelections based on final req. adjusted for non-joiners3-4 selected out of 24Candidate 1: Natalia GodlewskaHighest GPA in the finance departmentSpeaks five languagesStrong finance backgroundImpressive work experienceCommitted & hard-workingStrong referencesRelatively weaker command over EnglishPotential lack of cultural fitRelatively stiff and uncomfortable during the small talkCandidate 2: Martin StreetPresentation and articulation skillsDynamic personalityConfident and focussedAbility to carry out ordersSubstantial leadership experienceNo business experienceInvolved in recruiting events at other firmsUncertainty about gradesInvolved in other selection processes, indicating possibility to switch to other firmCandidate 3: Ken GoldsteinExperience at PWC for 5 yearsExcellent recommendationAccepted by every interviewerGood culture fitToo matureDifficulty to take ordersMarried with 2 childrenLower willingness to work 24/7Candidate 4: Andy SanchezEnthusiastic and personableVery high score at GMAT and SATFit in the company cultureFriendly and good at making people relaxSuccessful entrepreneurLow GPAPossibility to leave the company and turn back to his own businessUnsatisfied compensation/ salaryEvaluation Sheet

Factors ConsideredCommitment to the firmJudgment/MaturityInterpersonal SkillsLeadershipTechnical SkillsWork EthicCandidate EvaluationRecommendations for Final SelectionsThe candidate 4 i.e., Andy Sanchez seems a clear selectionHowever, there is a close call between candidate 1 and 3Taking in mind the importance given by the company to commitment to the work and group fit, we think the company should proceed with candidate 1Final recruits:Andy SchenzNatalia GodlewskaAssessment of the Selection ProcessPotential for bias due to pre-evalauation during informal talks and informative interviewsEmployees forced to work with strict timelines e.g. late interview roundsSenior employees are less demanding w.r.t. candidates skills, junior associates are much stricterSenior managers want to get done with very quickly since its on a holidaySelectors might be biased based on their own team preferences and demandsDifficulty in building concensusOn-Campus RoundSuper SaturdayLack of attention to resumes from non-core schoolsEvaluation of candidates from non-core schools to be done during office hoursLack of interviewer training

Pre-recruitmentWay ForwardHuman capital is arguably the most valuable resource of any organizationIt is critical to select the best candidates to enhance company value and achieve strategic goalsSG Cowen needs to reconstruct its recruitment and selection process to more effectively identify optimal recruits while eliminating current tendencies of subjectivity, discrimination, and hurried decisionsWe believe that providing the bankers with HR interview and selection training, implementing more standardized, defined assessment measures, and encouraging greater time commitment would be beneficial changes to better select new hiresWay ForwardProcess ImprovementReconstruct its recruitment and selection process to more effectively identify optimal recruits while eliminating current tendencies of subjectivity, discrimination, and hurried decisionsInterviewer TrainingProviding the bankers with HR interview and selection training, implementing more standardized, defined assessment measures, and encouraging greater time commitment would be beneficial changes to better select new hires