Vanguard will be doing lots of hiring in 2016. Of all applicants, about 12% get interviews, and 40% of those get offers. You'll want to know about the company, the client-owned share structure, the founder John Bogle (you should read one of his books or at least a few speeches), and low-cost indexing.
Phone Interview:
How did I come to apply to Vanguard?
What do I know about Vanguard?
Various resume, education and work history questions
Customer service questions:
Give examples of dealing with a difficult customer, developing rapport with a customer, thinking outside the box, dealing with an unethical colleague.
What is a stock? Bond? Mutual fund? ETF?
What financial-related classes have I taken?
What salary do I expect? I asked her what the range was for this position, and told her that was fine.
I was invited to an on-campus interview. Total time 55 minutes.
On-campus Interview
1st hour: Presentation to all candidates (we had a dozen) about Vanguard and its structure, history, and philosophy. Water and snacks provided.
We were told that when asked about what position we want to start in, to answer "Whatever is available. Wherever you think is the best fit for me."--your first priority being to get hired. Lots of different career opportunities once you're aboard.
The prep materials stress that you should wear a professional dark suit. Once hired, dress is more casual, but don't confuse that with the interview. Three candidates wore clothing that was much more casual, and they looked out of place.
2nd hour (one-on-one): Case study and role playing. I was given a 4-page packet describing a client's account history. You are left alone for 15 minutes to review it.
Page 1: Description: you have received Customer's paperwork, which has some issues.
Page 2: Account history with notes from previous contact with customer.
Page 3: Procedural instructions on what to do under various circumstances.
Page 4: List of questions which will be asked of you after the 15 minutes are up. Q: What are the most important issues here? (Customer might be angry. EMPATHIZE. If customer needs to select alternate fund, have suggestions handy). Q: What steps should you take to resolve? Use the procedures. Q: What skills do you bring to the situation? List them in order.
Interviewer returned and asked me the questions in the order they were listed on the page. No surprises here. Pay attention to details and empathize with the customer over any mistakes made by the firm and inconveniences.
Role playing: I spoke to the interviewer as if she was the customer. Rather than give the details away, I'll just say that you should know the differences between stocks, bonds, REITs, and money market, and which of those to invest money in given the circumstances, and to show empathy for the customer when appropriate.
3rd Hour (one-on-one): Different interviewer. I was asked to give some background on my resume and work experience and why I wanted to work at Vanguard. They want employees who like Vanguard for what they do for customers, and not because it's a great place to work or because of the superb benefits package. Questions: What current events in the market interest me? When did I think outside the box? When did I receive negative feedback from a supervisor and how did I react? When did I go above and beyond the call for a customer? What work involved paying attention to details? How have I dealt with a difficult co-worker? When have I had to explain a policy change to a client who didn't like it? When have I innovated at work? When have I developed a relationship with a client? You need to be prepared to answer all these in the STAR format.
4th Hour: Description of benefits, which are awesome, and a short campus tour.
After you get hired, you are given a start date of 4 to 6 weeks in the future. Read the Series 7 book in its entirety before your start date. Be sure to take at least 1500 to 2000 questions in the SecuritiesPro 'Q-Bank' database on Kaplan's website before your start date. There is a fun week of orientation and getting to know your classmates, followed by 3 intense weeks of study for the Series 7. Be ready to put the rest of your life on hold during that time. The 3 weeks of in-class preparation are really just a review. Vanguard gives you two chances to pass it, but it's a 6-hour ordeal, so you'll want to pass it on the first try. Plus, you won't have the classroom support the second time around. The test is tough, and the job is contingent on your passing it. Vanguard and Kaplan do a great job of preparing you, but you have to do the work and put in the time. The Series 63 takes another week after that.
