Careers for Business Students (and what they pay)

what's up everyone it's kenji here and in this  video i'm gonna be sharing five career paths for   business students it obviously also applies  to other majors that are somewhat related or   overlapped with business right so things like  management finance or economics are probably   also going to be applicable to this video so the  five that i've picked are management consulting   investment banking big tech obviously not  the software engineering side but more the   business side of tech as well as accounting  and then lastly we'll look at entrepreneurship   and basically i'm going to be rating these based  on five stars and the three main metrics that   i'm going to be rating them by or number  one the difficulty to get the job number   two the work life balance as in how many  hours they have to work for this job and   then lastly the pay right and i'll be getting  into actual numbers of how much each one pays   as well as bonuses and other things like that and  obviously these are just five career paths they're   by no means the only ones it's just five that i  thought would be handy to you as they're fairly   popular these days and if this video does well  um i will try to make a part two so make sure   you hit that like and subscribe button so the  first career path is management consulting and   if you don't know what management consulting  is it's basically just helping big companies   improve their performance in exchange for a fee  right so at its core it's just problem solving   and consultants are problem solvers in  that sense and some of the examples of say   things that you might be assigned to do or your  firm might be assigned to do are for instance   say bmw is considering entering a new market say  i don't know the bicycle market then you might be   in charge of researching if the market's viable if  it's something that's worth bmw moving into right   that's just an example obviously another one  could be something like hey we see our employees   on facebook aren't very motivated is there a way  to change the compensation scheme so that they're   going to be more motivated so you do research  on hey is a bonus a good idea to put in here   are stock options a good idea are things like that  right and some examples of the biggest management   consulting firms are mbb which stands for one's  mckinsey the other one is bain and the other one's   bcg boston consulting group those are by far the  three biggest ones there's obviously some some   other ones like oliver wyman or accenture and so  on but i'll be focusing on these big three for now   all right so the first metric is work life balance  and management consultants are known to work a lot   not as much as investment bankers which we'll get  into in another section but they still put in a   good say 70 hours a week which is definitely a lot  more than say your average 40 hour work week right   that said they also have to travel quite a bit  in that maybe they spend a couple weeks in a in   a month outside their offices in a hotel somewhere  basically because they're at their clients office   right so basically your client expects you to be  there throughout the week which is why they have   to travel around so much now obviously this is  changing with remote work and other things like   that but it's still fairly common for management  consultants to travel so for those reasons we'll   give work-life balance a two-star for now as  for the pay it obviously varies by location but   if you're looking at the big three mckinsey  bcg and bain they will pay around a hundred   and ten thousand dollars a year if you're in  one of the big us cities right so basically   90 000 would be the base salary you would have  a sign-in bonus of around 5 000 and another 15   000 depending on how good your bonus is right in  terms of performance but something along the lines   of 110 000 is not unrealistic to think of so it's  definitely a lot of money and here's a chart kind   of comparing the different ones out there and here  it's also worth noting that the usp is a lot more   than most other countries right like look at this  chart here where it says that the uk consultant   made an average of 46 000 pounds which if you  convert it to us dollars that's around 65 thousand   that said there's obviously cost of living tax  other things like that that probably are the   reason for the differences but in order to  compare well to other career options let's   break it down on a per hour basis instead of on  an absolute basis right so let's say that they   work for 50 weeks a year so they get two weeks  of holiday 50 weeks a year and as we said earlier   they work 70 hours a week 70 hours a week right so  basically gives you around 31 dollars per hour as   a salary which i think is fairly reasonable so  let's put a four star out of five for that now   in terms of difficulty management consulting is  definitely very very hard to get into especially   the big three as i mentioned earlier mckenzie  bcg and bain they're very very competitive to   get into they don't disclose acceptance rates but  i'd say it's well below the five percent mark out   of the applicants that actually get the job right  as for locations typically those locations that   don't just speak english so they have a local  language like say tokyo or shanghai are probably   going to be a lot less competitive because not  that many people speak both in japanese and   english or mandarin and english right as opposed  to new york or london where you only really need   to speak one language right and the reason it's so  competitive is because a lot of people want this   basically the job pays well the job leaves a lot  of options open in that consulting is quite a   vague industry so you can obviously moving to  other areas if you want to later on those are   the main reasons why it's so competitive and i'll  leave this free resource in the description which   is basically going to give you a breakdown of  all the necessary steps to get into management   consulting if that's the road you want to take so  in terms of difficulty we'll give that a 5 star   alright so moving on to the second career path  which is investment banking and if you don't   know what investment banking is at its core it's  two main things number one is financing meaning   you help companies and governments raise money  in the financial markets and then number two it   has to do with advisories so basically you help  them out and you consult them on things related   to money so for instance hey how much money  should you have in your balance sheet where   should you allocate your money other things like  that are what people typically pay them for and   if that's not very clear still you can check out  this other video that i made which is basically   walking through the differences between  a commercial bank and an investment monk   and to give you some examples of investment  banks the most renowned out there are known as   the bulge bracket which are basically the largest  investment banks in the world so think like hsbc   morgan stanley goldman sachs jp morgan bank  of america and so on and so forth there's also   some other more specialized one which specialized  ones which are known as boutique investment banks   and these are centreview lazard and others which  just basically specialize in one specific thing   now looking into the three main metrics when it  comes to work-life balance to be honest there   isn't much of a work-life balance typically  investment bankers work around 80 hours a week   which is even worse than management consultants  and if you want to see the details of that i'll   put a video up here this is basically out of about  my time at goldman sachs where i put in a good   80 hours a week more or less that also includes  weekends and as for travel there's typically not   that much travel that's something fairly unusual  in investment banking so for those reasons we'll   put the work-life balance at a one star in terms  of pay it's definitely very high and hence why you   have to worry so much so typically it's around 85  000 as your base salary on top of that you get a   signing bonus of around 10 000 and you also  get a performance bonus obviously dependent   on performance but it's usually around the 50  000 range so it gives you a total of around 145   000. as for whether that's a lot or not let's  break it down on a per hour basis to see   so if you work for 80 hours a week for 50  weeks that gives you around 36 dollars per hour   obviously it doesn't sound quite as nice as 145  000 but nonetheless it's a lot of money so we'll   give it a 5 stars for now in terms of difficulty  investment banking is definitely very very hard   to get into much like management consulting if you  look at this fun article by business insider which   is called the 11 things that are harder to get  into than harvard it does include goldman sachs   which is probably the most sought after investment  bank and it has an acceptance rate of three   percent now i'd say most other investment banks  aren't quite as low but they're still between   the three and five percent mark right so for those  reasons for difficulty we'll give that five stars   and i'll leave another free resource in the  description for investment banking i found this   one on the internet and it basically goes through  all of the different things that you need to know   to recruit for an investment all the way from what  is an investment to the types of interviews there   are out there so i think it might be useful to  you guys all right so next up we have big tech   and obviously as business students you're probably  not going to be working as software engineers but   rather more on the business side of tech right  so things like account management business   development finance accounting marketing other  things along those lines right and as for examples   i mean i don't think i need to give too many but  the big five or google amazon apple microsoft and   facebook right those are regarded as the big five  but obviously there's other big tech companies   that you probably use on your day-to-day like  snapchat or spotify others along those lines right   so looking into the metrics when it comes to  work-life balance it's actually pretty good   typically it sits around 40 to 60 hours that's at  least based on my experience at amazon as well as   some some of my other colleagues working on google  and places like that so it's pretty good i'd say   in that sense usually on weekends you don't have  to work unless you you've messed up or something   so for those reasons also the dress code usually  there's no dress code the offices are fairly   fancy because they're tech offices um sometimes  the food's even free so for those reasons we'll   give it a five star for work-life balance so  the pay package is a bit confusing in tech and   here's why it basically has three main areas  to it the first one is the base salary which   in the big cities say in new york san francisco  seattle it's around 80 000 then secondly you get   what's called the signing bonus which is actually  split into two two years which is i don't know   why it's a bit confusing uh basically it's around  25 000 for a two years so 12.5 for one year right   and then in addition to that you have shares but  obviously the shares are not fixed in value right   they go up and down but it's typically around the  50 000 mark that said you don't actually get the   shares on your day one instead they have what's  called a vesting period which essentially means   that you can only get them after you've worked  for a set period of time at the company right   so yeah even more confusing but anyways let's just  put a hundred thousand as your year one salary for   now and basically if you're working 50 hours  a week say that's the average of the 40 hours   and 60 that we've said before and then you work  for 50 hours that probably gives you around the   40 mark per hour right which on a relative basis  is definitely a lot better than investment banking   and management consulting so we'll put that  a five star for now in terms of difficulty   obviously software engineering is very difficult  to get into at a big tech firm but on the other   hand for more business oriented roles the truth is  that there's just not that much information on it   i even worked at amazon myself and i wasn't able  to gather much information about it so um yeah i'm   just gonna not be able to give you much data on  this so we'll just put a three star in terms of   difficulty for now all right so the fourth career  option is accounting and if you don't know what   accounting is it's basically the way for a company  to maintain accurate records of their financial   position so if they want to look at things like  hey how much profit did we make last year or hey   um how much do we have in sales how much do we  owe the bank again other questions like that can   easily be solved with accounting right so role of  an accountant is basically two ways the first one   is to find these figures so calculate them that's  accounting and then the other one is auditing   which is basically verifying that these accounts  are actually true and that they make sense right   so i personally worked at pwc as an intern as  an auditor and basically they would send me out   to a client say to the volkswagen group with  my team obviously and we would get into their   finance team and start to look at their accounting  rates so if everything makes sense or not and then   we would create what's called an audi report and  based on that we would certify that their accounts   are correct or their incorrect rate so when you  see big accounting scandals like those of wirecard   that we saw recently in germany that's basically  got to do with accounting and auditing now some   examples of the big accounting firms are known  as the big four which stand for pwc ey kpmg and   deloitte those are a big four um they basically  have offices really all around the world if you   uh live in a decent size city odds are they're  going to be there and they have around 200   000 to 300 000 employees so they're really  really massive and they also have some other   departments not just accounting right they also  do things like consulting they do things like   legal services transactions and other things like  that now when it comes to work-life balance i'd   say it's fairly similar to big tech in that  they probably work around 40 to 60-hour weeks   it does get somewhat busy during say january to  to march during that spring season and the reasons   that most companies are closing their accounts  and they're getting ready to file taxes and things   like that right but overall uh the pricks are not  quite as good as big tech in that you still have   to go in a suit because you're meeting clients  um the office is typically you know as cool or as   fancy if you will as that of a tech firm but i'll  still give it out of work-life balance let's say   a four-star is fairly reasonable so for the pay in  the big u.s cities like new york and san francisco   there's usually two main parts to it the first  one is the base salary which is usually around   the sixty thousand dollar mark and then you have  the bonus which obviously depends on performance   right but it's usually on the around the five  thousand dollar mark so it's 65 000 in total   if we put that on a relative basis to compare  to the other ones let's say they work for 50   hours a week and they work for 50 weeks that  probably leaves you around 26 dollars per hour   which is not bad as in you're probably not a star  from that but at the same time it's nowhere near   some of the other industries right so for  those reasons we'll give it a three star rating   now in terms of difficulty it's nowhere near as  competitive as investment banking or management   consulting and basically the reasons that a lot  of people think that accounting is boring i'm not   saying that's my case i'm not getting into that  but yeah a lot of people think that it's boring   and hence why it's not as competitive right so  basically if you have a good degree and you have   good grades odds are you'll at least get to the  interview stage so for those reasons when it comes   to difficulty to getting the job we'll give it  a two star all right so the last option in this   video is entrepreneurship and that's basically  just starting your own business right i don't   think i need to give many examples but some of  the more recent startups that went mainstream   include doordash that was founded in 2013 what  is there there's robin hood also founded in 2013   as well as wework which is founded in 2010. so  looking at the three main metrics when it comes   to work-life balance the reality is that as an  entrepreneur you're probably gonna have to work   a lot a lot more than you would in your regular  job at least if you want your business to do well   right um when looking at the successful companies  out there most of the founders said they did work   over 80 hours a week weekends inclusive and at  the end of the day you're only giving yourself   an advantage if you work longer right so for those  reasons um assuming that you want your business   to do well we'll put the work hours of five stars  as for pay it's hard to say most businesses to be   honest end up failing and so they obviously don't  generate any money right which is why they fail   but on the other hand if you look at the forbes  list most of the billionaires up there are company   founders i'm not saying that your company is  going to get to that level but there is the   upside potential that say your regular job doesn't  have right so for pay for now i'm just gonna put   two stars as it's probably more likely that it  goes uh bankrupt or that your business fails as   opposed to it say becoming getting on the first  list right and lastly when it comes to difficulty   entrepreneurship is one star mainly because you  don't need the permission from anyone to do it um   it's not like you need to get into an interview  or anything like that you just go ahead and get   started now i'm not saying that the business is  gonna do well obviously that depends on other   factors but to start it you don't really need  anything so yeah those are five career options   for business graduates um i do realize that for  salaries it's a bit of a rough guide in that if   you live in other cities that are not say the big  ones in the us they're probably going to pay you a   bit less especially because the cost of living is  going to be less right and the same applies if you   live abroad probably the us pays the most compared  to other european cities or cities in asia right   and also i do want to mention that if there's  any inaccuracies feel free to point them out   in the comments right i'll try to pin them  if i think it's correct obviously i want the   best information to be out there for you guys and  lastly i realized that most of the things that i   analyzed are more numbers oriented if you will so  if you like me to do more letters oriented type of   career options for business students so  those like that relate to say marketing hr   advertising other things like that do hit  that like and subscribe if the video does   well i'll consider doing it so hope you found it  useful and i'll hopefully catch on the next one

Channel: Kenji Explains

Views: 58,061

Rating: 4.973856 out of 5

Keywords: business careers, business student job, business student career options, business student salary, business major pay, business major salary, business student pay, investment banking pay, investment banking salary, management consulting pay, management consulting salary, accounting salary, big tech salary, big tech pay, jobs with business degree, top jobs for business majors, high paying jobs for business majors, best jobs for business majors, careers in business, careers

Id: LZ2aHY4divg

Length: 16min 30sec (990 seconds)

Published: Sun Jun 20 2021