Despite offering some of the highest-paying jobs for recent college graduates, consulting firms and investment banks are struggling to hire new employees, and more importantly, retain those who already work for them. Although baseline salaries often surpass $90,000, nearly two-thirds of consulting firms report that they’re short-staffed. Given the 80-hour work week and challenges to a healthy work-life balance that these positions are known for, college graduates must decide whether the paycheck is worth the long hours and stress. Financial achievement has historically been deemed the epitome of success, but this shift in hiring trends hints at broader cultural changes and suggests that, for once, recent college graduates entering the workforce might be prioritizing well-being and personal satisfaction over income.
Such a transition would be significant anywhere in the world but is especially notable in the United States, a country universally recognized as a beacon of capitalism. The American Dream — a source of excitement for both Americans and immigrants worldwide — is built on prospects of social mobility and the hope that hard work can lead to large financial rewards. For the last century, the U.S. has enshrined economic opportunity and built its image on wealth, embracing the largest number of immigrants in the world and defending the free market during the Cold War. Consequently, affluence is now synonymous with prosperity; to be rich is to have triumphed at being American. According to a 2018 poll, the average U.S. citizen views a salary of $147,104 as “successful,” and 67% of those surveyed said they needed a higher income in order to “make it.”
Given this focus on wealth, recent college graduates are often forced to choose between pursuing passions and interests or securing an impressive salary. Schools with the lowest acceptance rates have the highest turnover into high-paying jobs like consulting and investment banking, with one in ten Harvard graduates going into consulting immediately after graduation. Students selected for their academic curiosity, civic engagement, and creativity end up choosing a job based largely on salary, showcasing a fixation on money and a societal pressure to fare well financially.
For some first-generation, low-income college students, a high-paying job may be necessary to support their families and pay off student loans. However, this pressure extends beyond those whose financial situation necessitates a large paycheck; findings from Gallup and Populace suggest that, while under 10% of Americans define success in terms of economic or social status, nearly half of Americans believe that society at large considers status to be the key indicator of success. Thus, recent college graduates may choose high-paying jobs not because they themselves want to, but because they feel they’ll be more valued members of society if they do.
This conundrum is not only faced by Ivy League students — it is deeply ingrained in American culture. Most Americans have consistently chosen the higher-paying route at the cost of their personal wellbeing, with only 30% of those surveyed in a January 2020 Joblist poll willing to give up a portion of their salary for better work-life balance.
With eyes trained on dollar bills and dollar bills alone, many have been left feeling lethargic and drained of purpose. In a study conducted at the University of British Columbia, graduating students were asked whether they valued money or time; one year later, those who had chosen money ended up unhappier than their classmates who had chosen time. As noted by former U.S. President Barack Obama in a 2006 Keynote Address, Americans are realizing “that something is missing. They are deciding that their work, their possessions, their diversions, their sheer busyness, is not enough. They want a sense of purpose, a narrative arc to their lives.”
Such hyperfocus on work and wealth is ever-present in jobs like consulting and investment banking. In a survey conducted by the Harvard Business Review, a consultant regretfully recalled how she “was unable to visit her father on his deathbed because a client demanded her presence in another city.” Examples like this display the often shocking, unreasonable priorities embedded in American work culture.
However, this focus on wealth may be shifting. Financial stability will naturally always remain important. Yet, as people understand that money is not the only factor involved in personal fulfillment, they’ll continue to shift away from the high-pay, high-stress jobs and prioritize themselves. Marginal hours spent working can be spent at home cultivating hobbies, spending time with family, or simply resting. The concept of wellbeing is being expanded past simply financial terms and a new American Dream is being forged; what was once an aspiration consisting entirely of wealth is now accompanied by friends, family, and tranquility.
For example, when interviewed by the Harvard Business Review, former McKinsey manager Sohini Pramanick emphasized wellbeing when discussing her transition into independent consulting, a job in which she offers consulting services on her own and not as a company employee. “With independent consulting, I get the best of both worlds — solving real problems and having impact alongside the flexibility I need to pursue other ventures and interests,” despite her current job being less lucrative and carrying more uncertainty.
Forcing millions of employees to work from home, the COVID-19 pandemic has served as a driving force behind this cultural shift by pushing many to reckon with their lives outside of work. With a record 4.5 million people quitting their jobs in November 2021, these past two years have seen people take strides towards their own fulfillment and, in a world of so much uncertainty, embrace the risk and focus on bigger goals than a job.
Although significantly aided by the pandemic, the change in people’s aspirations and priorities started long before 2020 and can also be traced back to generational differences. Whereas Baby Boomers and Gen X were characterized by a strong work ethic and an allegiance to traditional work experiences, newer generations entering the workforce want more out of a job. An entrepreneurial mindset commonly runs among young college graduates who still dream of earning big but are not motivated to work in large, corporate offices, preferring instead tech companies or startups. Additionally, many are driven by a social cause and want to work with companies whose mission extends beyond profit, thus avoiding jobs whose focus is on influencing stocks.
As people continue to realize that true wellbeing stems from places other than income, the market and the labor force will shift accordingly and reflect these newfound preferences. This new American Dream would lock in place that missing piece President Obama discussed, and transition the United States into a more harmonious, innovative, exciting place. Then, perhaps, simple questions like “How are you?” could truthfully be answered with words such as “motivated” and “content” rather than the too often heard “tired” or “burnt out.”
