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How Facebook Lost It's Hiring Edge And Banks Could Benefit

09/21/2018

Summary

Since the financial crisis in 2008, investment banks have been steadily losing junior recruits to large companies like Google, Apple and Facebook. But recent political scandals within social medias top contender have caused Facebook to drop to #23 on the latest Employee Branding Study from Universum, being passed by large investment banks like Goldman Sachs and consulting firm McKinsey & Co., with JP Morgan following closely behind. As junior recruits are now looking away from Facebook for employment, they are starting to look back to investment banks. As Facebook continues to drop lower and lower on the "Worlds Most Attractive Employer Rankings", investment banks are given the opportunity to rise above Social Media Networks and their former reputations as the cause of 2008's Financial Crisis.

Main Points

  • The 2008 Financial Crisis was blamed largely on investment banks and as a result they began losing junior recruits to companies like Facebook and Google
  • Recent political scandals inside corporate Facebook have caused them to lose their competitive advantage over hiring junior recruits
  • Investment banks can benefit from Facebooks scandals as recruits are now looking back to banking for future employment

Discussion Questions

1. What affect did the 2008 Financial Crisis have on the recruitment of junior talent for companies like Google and Apple? Investmentment Banks? Why?
2. What could a company do to maintain their competitive hiring advantage even against bad reputations?

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