Is finance Becoming Over-Incentivized?
The other day, during an interview for a quant research role, I met a student with a strong background in natural language processing and building LLM webapps. Despite lacking experience in applying these technologies to finance, he expressed interest in changing directions. This 19-year-old believed he wasn’t a strong enough engineer to make a meaningful contribution to his field and the world. It broke my heart to hear his self-doubt, considering his evident talent.
While I understood his perspective and continued the conversation, it made me reflect on the broader direction of our society. He felt that working in quant roles could pave the way for investing in community startups with missions to improve the world, ultimately making a greater impact. This altruistic goal is commendable, but it made me question the increasing emphasis on financial incentives in our field.
The prevalence of young engineers, often graduates from prestigious schools, aiming for careers in finance due to the perceived financial rewards is concerning. While I appreciate the field of finance and enjoy sharing knowledge with others, I worry that our industry has become overly incentivized.
Considering the potential loss of innovative contributions to engineering and society if the trend continues, I’m reevaluating the motivations of my team members. From a teenager training neural networks since age 14 to a valedictorian who developed an invasive insect species monitoring system used by the California Department of Agriculture, their talents are diverse. Yet, some are drawn to roles in finance instead of utilizing their skills for societal and technological advancement.
This one anecdote has prompted me to delve deeper into the aspirations of my team. I encourage young engineers contemplating a career in finance to stay focused on their ideas, as their time will come. Let’s continue to nurture creativity and innovation, rather than solely pursuing financial gain.
I’d love to hear others’ experiences when encountering talented individuals like these youngsters. And to all young engineers considering a path in finance, remember to stay true to your passions – your breakthrough will come.
One response
Is finance becoming over incentivized?
The anecdotes shared highlight a concerning trend in our society – the growing allure of finance for talented young individuals who may otherwise have made significant contributions in other fields such as engineering, technology, or environmental science.
The individual mentioned in the interview expressed a lack of confidence in his engineering abilities, leading him to believe that his talents would be better utilized in the finance sector. This belief may stem from the perception that financial incentives in the industry are more lucrative and certain compared to other fields. While there is nothing wrong with aspiring to succeed financially, it is essential to question whether this trend is leading to a loss of potential innovation and progress in other areas that are equally vital for the betterment of society.
The speaker raises a valid concern about the impact of this shift towards finance on fields such as engineering. Many talented young individuals with innovative ideas and the potential to make meaningful contributions in their respective fields may end up choosing finance for its perceived financial rewards. This could result in essential areas such as technology, environmental conservation, and engineering missing out on the creativity and ingenuity of these individuals.
As mentors or leaders in our respective fields, it is crucial to encourage young engineers and innovators to pursue their passions and ideas, even if they may not seem as financially rewarding as a career in finance. It is essential to remind them that their contributions to society and their fields can have a far-reaching impact, even if they do not follow the conventional path of working in finance.
In conclusion, the increasing allure of finance among talented young individuals raises concerns about the potential loss of innovation and progress in other essential fields. As a society, we must reevaluate the incentives and values we promote to ensure that all fields have access to the best and brightest minds, leading to a well-balanced and prosperous future for all.