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New research suggests that an alumni link can sweeten a low offer

MBA students that are recruited by an alumnus of their business school are often prepared to settle for lower offers than students who don’t have any connection with an employer. 


Picture: ake1150 / fotolia

According to the Financial Times, professors from NYU Stern and MIT Sloan found that students securing a job through a member of their institution’s alumni network received a starting package worth 16 per cent less than those recruited through more traditional – and more impersonal – campus hiring events. 

The professors that conducted the research suspected that students were lulled into lower offers due to the comforting presence of a former student of their institution.  

“The jobs coming through the alumni channel are perceived as having significantly better growth potential,” NYU Stern’s Jason Greenberg and co-author of the research told the FT. “They are willing to take less today for a job that has better prospects in the long run.” 

Find full report here: A cheap way of hiring MBA graduates 

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