Running head: INDIVIDUAL PROJECT CAREER PATH 1

Career path individual project

Name of student

Institutional affiliations
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Introduction

In the financial service industry, financial investment analyst is one of the most coveted

careers. A financial analyst can work in both senior and junior positions within an organization

and is niche compared to other career opportunities in other industries. However, breaking into

the financial services industry field is tough and competitive. Financial analysts are responsible

for examining financial data, providing findings that enable the facilitation of business decisions

made by companies (Brigham & Gessaroli, 2016). As such, the analysis is based on investment

decisions. The microeconomic and macroeconomic conditions are analyzed by the financial

analysts in combination with the fundamentals of the company to make predictions about

industries, sectors and business. The financial analysts recommend courses of actions such as sell

or buy a stock of a company based on the outlook and overall performance of the company. This

means the financial analysts must be aware of the current developments in the areas they are

specialized into while preparing financial models for a number of variables for use in predicting

the future economic conditions. Therefore, the recruitment, selection, training and performance

management processes of financial analysts is crucial for human resource managers in the

financial services industry.

Recruitment Process.

In recruiting financial analysts in the industry an external hiring process is preferred. An

eAccording to Snell, Morris, & Bohlander, 2016Compared to other well-paying careers,

becoming a financial analyst requires qualifications that are well defined and less rigid. No

educational minimums in its career wide exists. Preferably, a major in statistics, finance or

economics has been a de facto qualification to financial analyst. Other majors that may be

considered as requirement include math, accounting, engineering and even biology. The financial
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analysis field is a broad field that features a variety of career paths and job titles (Baker &

Riddick, 2013). Within the investment and financial industry, the major categories include the

buy side firms (investment houses responsible for managing their own funds, investment banks

and sell-side firms. Apart from the Wall Street, financial analysts are employed for regional and

local banks, real estate investment brokerages, insurance companies and other data driven

companies. Any organization that is widely involved in making investment decisions on capital

budgeting and method of spending money should employ financial analyst since they are in

position to potentially add value to the business.

The buy side financial analysts assist their employers in making decisions on how they

are going to spend their money. The money can be spent on purchasing securities, stocks, buying

income properties, or allocating dollars in the market. Some financial analysts are employed by

third party companies to act as financial analyst for their client. Generally, the financial analyst

exists in all industries (Degeorge & Stolowy, 2013). The financial analysts make valuable part of

decision-making process for their clients or employers by uncovering forecasts and trend. The

demand for the skilled financial analysts is potentially increasing due to the daily changing of the

regulatory environments and global financial markets evolving faster than ever. The sell side

financial analysts compare by evaluating the quality of securities in the given industry or sector.

Based on the reported analysis, the research reports are written with certain recommendations for

example strong sell, strong buy, sell, buy or hold. The stocks are tracked from the portfolio of the

fund in order to evaluate if or when the position of the fund in the stock will be sold. The

research analyst recommendations carry a great deal of influence in the investment industry

incorporating the buy side financial analysts of the firms.

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The sell side financial analyst is the most prestigious and well paid in the big investment

bank. The big investment bank analysts sell their investment products in the market place after

helping banking the price of these products (Bradshaw & O'Brien, 2017). The data are compiled

on the banks bonds and stocks and are used quantitatively to project and analyze the performance

of these securities in the market. Depending on the research, they will make sell or buy decisions

recommendations to the clients of the bank, and influencing them to a particular security from

the menu of the banks products. Apart from the above-mentioned specialty of financial analysts,

we have subspecialties within these specialties. They include analysts that focus on the fixed

income securities and the stocks. Other financial specialist are specialized in other industry or

sector and they may concentrate in either technology or energy.

The jobs that would train/prepare you

Should have worked as intern in financial services industry. Other requirements include

prior experience in business with a proven record in financial analysis, excel and financial

planning. The candidate for the financial analysis position is also required to have an

intermediate advanced VBA/Excel, should have 2 years and above of experience in finance and

accounting roles. Other experience that will act as bonus include proficiency in BI tools such as

MS BI, SSRS, MS SSAS, TM1, Cognos and QlinkFinancial analyst are required to do a lot of

reading on their own. They are required to peruse publications such as The Economists,

Financial Times, the Wall Street journals and financial websites to stay on top of financial news.

They will gather information on the company’s specific information’s, information gathering

from the micro economy and the fundamental microeconomics of balance sheets. Financial

analysts work in various sectors across all industries and roles. They are majorly classifies as sell

side dealing with financial services and the corporate finance that deals with the buy side.
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The education needed

The education required include Bachelor’s Degree in Accounting, Commerce, Finance,

Engineering, Economics, Math’s major and or related field. While undergraduate degree is the

minimum qualifications, one is required to have a master’s degree to secure an advanced and

permanent positions in the field. Quantitative skills is very important in this field and hence

bachelor’s degree in engineering, mathematics, statistics and physics are common for financial

analysts. These degrees will require the applicant to have business coursework especially in

finance and accounting. Financial analyst position in an advanced position will require to have

an MBA degree with a recommended subject focus and degree in masters of finance.

Appropriate license can be obtained from the financial analysts such as Financial Industry

Regulatory Authority (FINRA) that is responsible for enforcing and writing rules guiding the

brokers and security firms operating Canada. The process of licensing a financial analyst is

sponsored by the firm one is employed and therefore, the process of licensure and licensing can

start after one has a started a job. Successful licensure is contingent to long term employment.

Financial analysts are expected by their employers to pursue certifications such as CFA if they

consider advancing to amore senior financial analyst position. To qualify for CFA designation,

one is required to have an undergraduate degree and passing three exams that the CFA has

administered.

The financial analyst will participate in forecasting, budgeting and reporting functions

and provide corporate leaders with organizational results that reflect better visibility ad assist in

driving informed decision making process. The financial analyst will thus be required to have a

keen interest financial methodologies and technical knowledge in business intelligence and
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reporting tools and these skill sets should be leveraged to deliver accurate forecasts, effective

reporting and insightful analysis.

Recommended professional certifications and process

The recommended professional certification for finance analyst include advanced excel,

macros, VBA that will ease your dirty and boring work of finance. The certifications will assist

you in making diligent review and insights into the financial concern of a company since most of

the work will involve digging information, files, and dealing with different financial data from

thousands of reports from various companies.

After being employed at entry level, the junior analyst should learn to be proficient in

relational databases, spreadsheets, graphical packages and statistics for one to develop and

produce senior management recommendations (Joseph & Slaughter, 2012). The proficiency in

these software is important in producing detailed financial reports and presentations that include

cost benefit analysis, forecasting, result analysis and trending. The financial transactions must be

interpreted by the analysts and verify their documents to ensure government regulations are

complied with.

Career advice and tips for those starting

Developing proficiency in the use of PowerPoint presentations, databases and

spreadsheets is the most successful tips for financial analysts. Junior financial analysts are

required to also learn about software applications (Bradshaw & O'Brien, 2017). To become the

most successful analyst, you need to put a lot of long hours in your work and develop

interpersonal relationships with your supervisors and mentor the junior analyst. To be promoted

as an analyst, you are required to develop people and communication skills by crafting oral and

written presentation skills that will impress the superiors. While taking a career as a financial
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analyst, it requires hard work and preparation. You need to have a potential in delivering both

genuine satisfaction and financial rewards that come from being a vital person in business

landscape.

To advance career wise as a financial analyst, you will interact with other colleagues as

you report to your superiors, portfolio manager or other senior managers (Cotter & Wee, 2012).

In a period of between three to five years, junior analyst may work his way up and get promoted

to the senior analyst. If you are looking to advance in your career, from senior analyst position,

one is promoted to, senior manager, portfolio manager or a partner or managerial position in an

investment bank in an insurance company or retail bank. Other analyst may diversify and go to

become financial consultants or investment advisors. A significant amount of travel will be

involved if you choose to be an analyst. You will be required to visit a company on ground level

to get a firsthand look at operations. You may be required to attend conferences with colleagues

from other companies sharing the same specialty.

Other professions on the Wall Street make significantly more than financial analyst.

However, at entry level, the overall household income in the Canada is significantly higher than

the medium annual income for the financial analyst (Cotter & Wee, 2012). The financial analyst

at entry level has a medium annul income of $55265 in the first year for those not working for

the Wall Street bank. Compared to a typical worker, the financial analyst is better paid on

average. To be more precise, and based on data collected from the Bureau of Labor Statistics

(BLS) from the Canada, the financial analysts has a medium income of $84300 across all the

experience levels as at December 2018. The average/mean annual wage was $99430 (Bradshaw

& O'Brien, 2017). However, financial analyst working on the Wall Street firms are high earners
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during the first years of employment totaling to up $140000 total compensation or higher at

investment banks.

The financial analyst field has a better outlook employment-wise. It’s a competitive

profession with about 296100 jobs based on the BLS statistics and a projected growth of 11% is

expected for the profession in a decade between the years 2017-2027 representing an increase of

32200 positions that is highly promising compared to average occupations in the wall’s street.

BLS noted that the demand for financial analyst grows with increasing economic activity. The

growth of technological improvement and big data is projected to increase the demand for

financial analyst (Hoskin & Cherry, 2014). The technological improvements will allow high

quality analysis and access to a wide range of data by the financial analyst. The increased quality

of financial analysis will assist in proper management of finances for a business, deliver new

services or products to clients and identify investment trends.

Typical promotion path

The financial analyst position is often considered as an entry level position in an

organization which has the potential of providing more opportunities to the candidate. The

financial analysts have the most coveted jobs in financial sector industry since they are widely

involved in numerous decision making process in regard to the financial standing of a company

(Cotter & Wee, 2012). The financial aspect of the company are analyzed by the financial analyst

in providing presentations, drawing plans that will help in making decisions for the company

relating to investment opportunities. There are various positions that the financial analyst are

capable of working including the corporate finance, investment banks, high profile companies,

private individuals and independently. There are various responsibilities and terms for each job

profile.
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The first step is having an educational background in related field such as commerce,

economics or accounting are vital. However, other undergraduate degree is still allowed provided

the candidate has basic knowledge in math and accounting if they want to explore career option

as financial analyst (Bradshaw & O'Brien, 2017). Other people from other fields such as

engineering and computer background are accepted too. Graduates from these other backgrounds

are hired as junior analysts while those possessing the MBA are hired in senior level positions.

The finance graduate major will begin as a junior analysts under the direction of a senior

analysts. They will work for considerable range of years, attain the experience level and report

back to school (Shiller, 2013). Advanced degrees are mandatory for anyone wishing to get

advancements and promotions in their career. Therefore, the junior analyst will be prompted to

get back to school. A master’s degree graduate in any of the relevant field will either progress

quickly to the senior level analyst or appointed directly to the position. Thereafter, the senior

experienced analyst will be appointed to be in supervisory position.

The professional if employed in the securities industry will become a fund manager or

portfolio manager that will supervise a team of junior analysts. Thereafter, the post of senior

management level will be taken over by this professional and if they are well qualified and

possess the right caliber, they can be appointed as the firm’s Chief Financial Officer (CFO) and

will remain to be in charge of major financial decisions being done by the company (Bradshaw

& O'Brien, 2017). Even though, having a basic undergraduate degree is required for one to

become a financial analyst, taking a specialization course is most preferred for one to advance in

this career. The field of financial analysts requires a lot of skills in quantitative techniques and

therefore degrees in economics, mathematics, finance and accounting are the most preferred.

You can enroll these advanced courses in a number of high-ranking esteemed business schools
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such as offering math’s, statistics, economics and business administration. Various certifications

can be required for one to be a financial analysts apart from the educational qualifications for

career progression. They include Chartered Financial Analyst (CFA), a prestigious credentials

and internationally recognized for the financial analyst. The candidate, after deciding to be

analyst, should take the CFA course training for three levels and thereafter begin internship

The senior strategy manager in the roles of financial planning should have at least 7-10

years of progressive work experience in positions related to increased scope in responsibly in a

complex, large and dynamic organization. He/she should have completed professional

accountant designation such as the MBA and CPA. He/she should have a better understanding of

the Canadian Telecommunication Industry and TELUS. The senior positions require individuals

with exceptional negotiator, influencer and communicator who is able to maintain and build

effective partnerships externally and internally with all stakeholders including the senior leaders.

One should also have prior experience in providing leadership roles to management professionals

(Cotter & Wee, 2012). Other certifications required include innovation, project management,

organizational development and process improvement.

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Reference

Baker, H. K., & Riddick, L. A. (Eds.). (2013). International finance: a survey. Oxford University

Press.

Bradshaw, M., Ertimur, Y., & O'Brien, P. (2017). Financial analysts and their contribution to

well-functioning capital markets. Foundations and Trends® in Accounting, 11(3), 119-

191.

Brigham, E. F., Ehrhardt, M. C., Nason, R. R., & Gessaroli, J. (2016). Financial Managment:

Theory And Practice, Canadian Edition. Nelson Education.

Cotter, J., Tarca, A., & Wee, M. (2012). IFRS adoption and analysts’ earnings forecasts:

Australian evidence. Accounting & Finance, 52(2), 395-419.

Degeorge, F., Ding, Y., Jeanjean, T., & Stolowy, H. (2013). Analyst coverage, earnings

management and financial development: An international study. Journal of Accounting

and Public Policy, 32(1), 1-25.

Hoskin, R. E., Fizzell, M. R., & Cherry, D. C. (2014). Financial Accounting: a user perspective.

Wiley Global Education.

Joseph, D., Boh, W. F., Ang, S., & Slaughter, S. A. (2012). The career paths less (or more)

traveled: A sequence analysis of IT career histories, mobility patterns, and career success.

Shiller, R. J. (2013). Capitalism and financial innovation. Financial Analysts Journal, 69(1), 21-

25.