Overwhelmed by student debt and underwhelmed by your career choices? It’s normal to feel anxious. The economy is undergoing a radical transformation as technology changes the nature of work and some jobs disappear. To make matters more complicated, most industries are dominated by a handful of superstar, productive firms that shower their employees with most of the economy’s wage gains. If you work at these firms, you get more raises, learn useful skills, and get a stamp of approval that offers credibility throughout your career. If you don’t, your career and wages could stagnate.
How to Weigh the Risks When Choosing Your First Job
Go with the company where you’ll learn the most.
October 25, 2019
Summary.
Choosing your first job can be daunting, since this decision forms the foundation of your career path and directly impacts lifelong earnings. The author applies the basic tools of risk management to understanding, evaluating, and weighing the merits of various job opportunities. By understanding how idiosyncratic and systemic risks affect one’s wages, and by rating different types of companies as the equivalent of growth stocks or value stocks, one can create an individual career plan to take the right risks to earn the desired rewards. By setting clear goals, understanding risks, and evaluating one’s risk tolerance, one can be well prepared to pick the ideal first job.
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New!
HBR Learning
Career Management Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Career Management. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
What's your next career move? Learn how to set yourself up for success.