Many investment banks practice an “up or out” policy, with new hires being either fired or promoted within a few years. Many large law firms and accounting firms use a similar policy, as do colleges, with respect to their tenure-track faculty. Most firms, however, do not use this policy. In a typical firm, after a short probationary period, most employees continue to work for the firm indefinitely, with no set time before they are considered for promotion. What are the advantages and disadvantages to investment banks and other firms of using an “up or out” employment policy? Are there advantages to employees? If there are no advantages to employees, how are investment banks able to find people willing to work for them?