How a few good interviews can make you think you’re Wall Street royalty—and why that’s not necessarily a bad thing, as long as you keep your feet on the ground

After eight years of watching investment banking careers unfold from the recruiting side, I’ve seen the same story play out hundreds of times. A solid performer gets a call from Goldman or Morgan Stanley, makes it through two rounds, doesn’t get the offer, but suddenly their entire worldview shifts. They’re no longer just another VP at a good regional bank—they’re “bulge bracket material” who just needs to find the right opportunity.

Sound familiar? Welcome to interview inflation, a phenomenon that’s been around since the first investment banker looked up the food chain and thought, “Why not me?” It’s not some new market anomaly—it’s human nature meeting Wall Street ego, seasoned with a healthy dose of “grass is greener” syndrome.

Here’s the thing: interview inflation isn’t inherently evil. Getting validation from elite firms feels good, and confidence is crucial in this business. The problem comes when that confidence starts making decisions for you instead of with you. Because at the end of the day, it’s your career we’re talking about, and careers are built on substance, not just swagger.

What Interview Inflation Really Looks Like

Let me paint you a picture. You’re grinding away at a decent middle-market shop, probably complaining about the usual stuff—long hours, demanding clients, the partner who still thinks email is cutting-edge technology. Then your phone buzzes. It’s a headhunter with an opportunity at a name-brand firm.

You dust off the suit, practice your elevator pitch in the mirror (don’t deny it, we all do it), and walk into that gleaming office. Suddenly, you’re discussing market trends with managing directors who treat you like a peer. You’re in The Room Where It Happens, even if just for an hour.

The process doesn’t work out—it rarely does, with conversion rates hovering around 10%—but something has fundamentally shifted in your head. You’ve tasted the big leagues, and suddenly your current gig feels like the minor leagues, even if objectively nothing has changed about your day-to-day work, compensation, or career trajectory.

This is interview inflation in its purest form: that moment when your expectations permanently recalibrate based on temporary access to elite processes. It’s like test-driving a Ferrari and then getting back into your perfectly functional Honda Accord—suddenly the Accord feels inadequate, even though it was getting you where you needed to go just fine an hour ago.

The 2022 Gold Rush: When Everyone Struck Oil (Temporarily)

Now, while interview inflation has been around forever, 2022 was like interview inflation on steroids mixed with Red Bull and a shot of tequila. For about eighteen months, the normal rules seemed suspended. Regional bank analysts were landing at Goldman. Middle-market VPs were getting serious looks from elite boutiques. It was like someone had declared a temporary ceasefire in the war of financial hierarchy.

Everyone started thinking, “Finally! The barriers are coming down!” Candidates who had been grinding for years suddenly found themselves in processes they’d only dreamed about. Recruiting firms were placing people who, in normal times, wouldn’t get past the resume screen at these places.

The problem? Everyone assumed this was the new normal rather than what it actually was—a temporary market dislocation caused by desperate staffing needs and more money than sense floating around the system.

When reality came crashing back in 2023, it wasn’t pretty. The 2022 hiring spree proved to be a complete disaster—roughly 90% of those “dream” hires got laid off when the market turned. Turns out, when you hire based on desperation rather than merit, those decisions don’t age well when the music stops.

But here’s the kicker: even though most of those placements failed spectacularly, the psychological impact stuck around like a houseguest who doesn’t know when to leave. An entire cohort of banking professionals had gotten a taste of the good life and decided they deserved to live there permanently, regardless of whether their credentials had actually changed or whether those opportunities had proven sustainable. Meanwhile, the banks realized this experiment failed miserably and cost them dearly—hiring people who weren’t ready for the roles, paying severance packages when reality hit, and dealing with the reputational damage of mass layoffs. It was an expensive lesson in why traditional hiring standards exist in the first place.

The Psychology of “I Belong Here”

Here’s where it gets interesting from a human behavior perspective. When you make it through those first couple rounds at a prestigious firm, your brain doesn’t process it as “I performed adequately in two specific interactions under specific circumstances.” Instead, it files it under “I am elite material who temporarily didn’t get recognized.”

It’s like being selected for a pickup basketball game with NBA players. Even if you get crushed, you’re going to tell that story for years because hey, they picked you to play. Never mind that they needed an extra body and you were standing there—in your mind, you made the cut.

This psychological shift creates some genuinely entertaining decision-making. I’ve watched candidates turn down guaranteed $50K raises with better career tracks to hold out for opportunities with roughly the same probability as winning a decent scratch-off ticket. When I point out the math, they look at me like I suggested they join a boy band instead of working in finance.

The really fascinating part? This isn’t stupidity—it’s perfectly rational behavior once you understand the psychological framework. If you genuinely believe you’re elite material who just needs the right opportunity, then of course you should hold out for elite opportunities. The issue is that beliefs and reality don’t always sync up, especially when those beliefs are based on limited data points that felt really, really good.

The Modern Wish List: Having Your Cake and Eating It Too

Interview inflation doesn’t just affect which banks people target—it completely reshapes what they expect from their careers. Today’s candidates don’t just want upward mobility; they want comprehensive life optimization with a side of work-life balance and a sprinkle of guaranteed success.

The modern candidate wishlist reads like a dating profile written by someone who’s clearly been single too long:

• Top-tier brand recognition (because prestige matters)
• Improved work-life balance (because I’ve discovered I have a life outside work)
• Elite-level compensation (because I’m worth it)
• Exceptional culture (because I deserve to work with nice people)
• Guaranteed bonuses (because uncertainty is for other people)
• Reduced travel (because airports are terrible)
• Flexible work arrangements (because commuting is so 2019)

Look, there’s nothing wrong with wanting nice things. The issue comes when you expect all of these simultaneously without making any trade-offs. It’s like walking into a Ferrari dealership with a Honda budget and genuine confusion about why they won’t negotiate.

The truth is, every career decision involves trade-offs. That prestigious bulge bracket job might come with better brand recognition but worse work-life balance. That elite boutique might have incredible culture but require you to start over at a junior level. That middle-market firm might offer faster advancement but less name recognition.

The key is being honest about which trade-offs you’re willing to make instead of expecting the universe to provide a solution that optimizes everything simultaneously.

The Mutual Validation Dance: Everyone Wants to Feel Wanted

One of the most amusing aspects of today’s recruiting environment is watching everyone try to play hard to get while secretly desperate for validation. It’s like a middle school dance where everyone’s leaning against the wall trying to look cool while hoping someone asks them to dance.

Candidates want to be courted. They expect competitive processes, enhanced offers, and validation that they’re hot commodities. After all, if you’re interviewing at three prestigious firms, surely there should be some bidding war, right?

Middle-market firms want to know you actually want to work there, not that you’re just slumming it while waiting for Goldman to call back. They’ve been burned by too many people who joined, performed adequately, and left the moment a “better” opportunity emerged.

Elite firms want you to demonstrate that working there is your life’s dream, preferably including some sort of blood oath and willingness to sacrifice your firstborn to the deal gods.

Everyone’s simultaneously trying to be selective while seeking confirmation that they’re the preferred choice. It’s exhausting and hilarious in equal measure.

The result is often a validation spiral where everyone’s playing increasingly hard to get until someone blinks or gets tired of the game and goes home. Spoiler alert: the candidate usually blinks first, because at some point, the bills need to get paid.

You Can’t Skip Steps: The Reality of Career Progression

Here’s something that might blow your mind: interview inflation doesn’t actually extend search processes. It just makes people think they can skip steps in their career progression, which naturally leads to longer timelines because, surprise surprise, you can’t actually skip steps.

Career development in investment banking is more like climbing a mountain than taking an elevator. You can’t just teleport from base camp to the summit because you got a glimpse of the view from halfway up. You still need to put in the work, develop the skills, build the relationships, and prove you can handle the altitude at each level.

When I see candidates turning down solid opportunities at respectable firms because they’re holding out for elite options, it’s often because they think they can skip the intermediate steps. They want to go directly from middle-market VP to bulge bracket MD without acknowledging that maybe—just maybe—there are some skills and experiences they could use along the way.

The firms that reject these candidates aren’t necessarily being snobbish (okay, sometimes they are, but that’s a different issue). They’re often making rational decisions based on their assessment of whether someone is ready for that particular step in their career progression.

Finding Your Goldilocks Zone: Not Too Big, Not Too Small, Just Right

Here’s where we get to the heart of the matter: sometimes the best bank isn’t the most prestigious bank. Sometimes it’s the bank where you can actually succeed, develop your skills, get promoted, and build a career that makes you happy and prosperous.

I’ve seen plenty of people land their “dream” jobs at prestigious firms only to discover they’re small fish in a very large, very competitive pond where getting noticed is nearly impossible. Meanwhile, their former colleague who took the “lesser” opportunity at a strong middle-market firm is getting promoted, developing client relationships, and building skills that will serve them well regardless of where they go next.

Think of it like choosing a college. Harvard might have the best brand recognition, but if you’re going to struggle academically, feel lost in huge classes, and graduate without any real relationships with professors or peers, would you be better off at a smaller school where you can excel and develop?

The same logic applies to banks. That elite boutique might look amazing on your resume, but if you’re going to be the weakest person on every deal team, never get promoted, and burn out after two years, was it really the right choice?

The Case for Taking the “Lesser” Opportunity

Let me tell you about a candidate who perfectly illustrates this point. Two years ago, he had offers from both a prestigious boutique and a well-regarded middle-market firm. The boutique offer came with more brand prestige and slightly higher base compensation. The middle-market firm offered better work-life balance, a clearer promotion track, and the opportunity to work directly with senior partners from day one.

He almost took the boutique role because, well, prestige. But something made him pause and really think about what he wanted from the next phase of his career. He realized he wanted to develop skills, build relationships, and position himself for long-term success rather than just collect a brand name on his resume.

He took the middle-market role. Fast-forward two years: he’s been promoted twice, is working on deals he wouldn’t have seen at the boutique for years, has developed strong relationships with clients, and just got recruited by one of the same elite firms that would have chewed him up and spit him out two years ago.

The kicker? He turned down the elite firm again because he’s happy where he is and can see a clear path to partnership.

This isn’t to say you should never aim high or that prestige doesn’t matter. But it is to say that sometimes the best career move is the one that sets you up for long-term success rather than short-term ego gratification.

The Long Game: Building a Career That Actually Works

Here’s what I’ve learned after nearly a decade of watching careers unfold: the people who are happiest and most successful in the long run are usually the ones who made thoughtful decisions about where they could grow and succeed, not just where they could get the best bragging rights.

Banking is a long-game industry. Sure, you might get a temporary ego boost from landing at Goldman, but if you’re miserable, not learning, not getting promoted, and burning out, that ego boost fades pretty quickly. Meanwhile, the person who took the “lesser” role where they could excel is building skills, relationships, and a track record that will serve them well for decades.

The really successful people I know—the ones running major groups, starting their own funds, or building significant wealth—didn’t necessarily start at the most prestigious firms. They started at places where they could learn, grow, and prove themselves. Many of them moved to more prestigious platforms later, but they did it from a position of strength rather than desperation.

Practical Advice for Managing Interview Inflation

If you recognize yourself in any of this, don’t panic. Interview inflation is normal, human, and manageable if you approach it thoughtfully. Here are some strategies for keeping your feet on the ground while your head’s in the clouds:

Do a Reality Check: When you find yourself turning down good opportunities because you’re convinced something better is coming, pause and ask yourself: What evidence do I have that I’m as marketable as I think I am? Am I making decisions based on data or feelings?

Consider the Expected Value: That 5% chance of landing at an elite boutique might feel exciting, but if it means turning down a guaranteed 40% improvement in your current situation, the math probably doesn’t work in your favor.

Think About Development: Where will you learn the most? Where will you get the best experience? Where will you be set up for success? These questions are often more important than “Which firm has the best brand recognition?”

Remember It’s a Marathon: Your career is going to last 30+ years. Making one move that’s slightly less prestigious but sets you up better for the long term is usually smarter than making a move that looks good on LinkedIn but doesn’t actually advance your skills or prospects.

Stay Humble: Just because you made it through a couple rounds at Goldman doesn’t mean you’re ready to run their industrials group. Confidence is good; delusion is career suicide.

The Bottom Line: It’s Your Career, Be Careful With It

Look, I get it. Getting validation from elite firms feels amazing. It’s natural to want to work at the most prestigious places with the smartest people doing the biggest deals. There’s nothing wrong with having ambition or wanting to reach the top of the industry.

But here’s the thing: it’s your career we’re talking about. Not your ego, not your bragging rights, not what looks good on your LinkedIn profile—your actual career that needs to support you and make you happy for the next three decades.

Be thoughtful about it. Be strategic. Be honest with yourself about where you are versus where you want to be, and what steps you need to take to get there. Sometimes that path goes through Goldman Sachs. Sometimes it goes through a strong regional firm where you can develop skills and build relationships that will serve you well regardless of where you end up.

The people who are most successful in this business aren’t necessarily the ones who started at the most prestigious places. They’re the ones who made smart decisions about where they could grow, learn, and succeed at each stage of their careers.

Interview inflation is real, it’s human, and it’s been around since the first investment banker looked up the hierarchy and thought they belonged at the top. The key is recognizing it, managing it, and making sure it doesn’t make your career decisions for you.

Because at the end of the day, the best bank for you is the one where you can develop your skills, advance your career, and build a foundation for long-term success. That might be Goldman Sachs, or it might be that solid middle-market firm that’s offering you a clear path to promotion and the chance to work on deals you’d never see at a bulge bracket.

Be careful—it’s your career. Make sure you’re making decisions that serve your long-term interests, not just your short-term ego. The prestige will come eventually if you focus on being excellent at what you do, wherever you happen to be doing it.

And remember, there’s no shame in being the biggest fish in a smaller pond if that pond is where you can thrive and grow. Sometimes that’s exactly where you need to be to prepare for the bigger waters ahead.