I applied to a job at a small boutique and meet all qualifications except that they are looking for 3+ years work experience and I have 2. HR offered me an interview for the entry level position...

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Look elsewhere, you should apply to places that value your experience. Years of experience requirements are not always practical to judge an applicant imho.

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Did you tell them that. You have to show that you'd be willing to walk away.

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Then turn it down. You’re two years in, it’s barely above entry level to begin with.

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Why make the move when you’re only going to be there for a short time pre-MBA?

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A big concern I have is that I could get stuck in an entry level role for 2 more years, which wouldn’t show any career progression when I go to apply to business school

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OP.. make sure you ask for a compensation that is already at the next lvl / mid of next lvl band... that way they can’t bring you at entry lvl.

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How do I handle this? I’m not interested in being entry level again when I’ve just been promoted at Deloitte.

Have an honest conversation with them. Don’t close the opportunity outright, they may be flexible. I (and many others) were dropped down a level when I came to Deloitte, but I was ok-ish because it’s where I wanted to be and I had an opportunity to be promoted quickly. Going down a level for a year won’t hurt you if you’re going to your dream job

Makes sense. I was planning to do the interview and explain during it that I’m only interested in the role I applied for

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