Is there a prestige trap: does a brand-name employer hurt your long-term career?

For many Financial Services professionals, joining a globally recognised brand at one of the top five banks means that you’ve made it. The prestige that you’re now a part of must be almost overwhelming, and whilst there are so many great things about it, there are some downsides as well.

Let’s have a look.

The upside of prestige

First, consider the upside of being at a prestigious firm. It’s prestigious for a reason: the quality of the people within it and the triumphs that it’s achieved over the years.

We’ve all heard the expression that proximity is power. What a great peer group to have! You’re going to be surrounded by very bright, highly ambitious, and skilled people. This is no doubt a great learning opportunity. Furthermore, you’ll have that brand name on your CV for the rest of your career, which then lends both credibility and prestige to your name.

Having known quite a number of people at these organisations, I’d add that you have to be on your A-game every single day, and that probably includes long hours and weekends too. That "stretch" will demand professional growth at a remarkable velocity.

Firms in this category will win and execute the most interesting deals in the market. That has to be a great opportunity to learn and to gain exposure to the senior management of client firms.

I think the final point to make on the upside could be viewed as both good and bad. Office politics at some of these organisations can sometimes be quite intense. After all, the stakes are high and career advancement is key. With such talented and driven colleagues, an individual may learn how to play this game at a level that would make even Machiavelli blanch.

The hidden costs of a big brand name

There are, of course, downsides to being in a prestigious organisation.Working at the pace and intensity required is not for everyone, and the firm will not tolerate those who can't or don't want to operate in this way.

Second, it may be true that some organisations recognise the value to employees of having that brand name on their business card and will knowingly pay slightly below the market rate. I was once told that, should you make it to Managing Director, you had basically made it financially. Equally, I was told that once you made it to Partner, you may have thought that you were working hard before, but in fact, it was nothing compared to the demands that you’d now face.

In light of that, career advancement becomes increasingly difficult. There are many highly talented professionals chasing the same title. The higher up you go, the tougher it may well get.

Often, if you don't get promoted on the third opportunity, you’re out.

A final thought is that if you stay at one particular firm for some time, your personal professional brand may become completely overshadowed by that of the firm.

Think about your professional relationships: are people in the market working with you because of you—your ability and reputation—or because of the firm you work for? Now, if you stay at that firm, it may not matter much. However, if you leave and have to start winning business from another platform, you might have to ask yourself whether the relationships that you have developed will migrate with you.

Closing thoughts

Recognising both that working for one of the most prestigious firms is a significant achievement in itself and that there are, of course, downsides to everything is the first takeaway.

Second, learning and growing in such an environment, with an amazing peer group and leaders to learn from, must be a joy.

I’d add, finally, that whether you stay for a full career or leave at some point, you’re going to take you with you. What do I mean by that? You’ll leave with your mindset, work ethic, skills, and professional reputation. That means you’re likely to represent significant value for future employers.