Press Releases
Advice to Recruiters: Alumni Connections Trump Compensation in the War for Talent
—
Our research shows that MBAs are significantly more likely to accept an offer from a company after interacting with an alumnus from their school who works at that company.
New Research from NYU Stern & MIT professors urges companies to use employees’ alumni networks to recruit top MBA talent
In a new study, Professor Jason Greenberg of the NYU Stern School of Business and Professor Roberto Fernandez of MIT Sloan School of Management find that using the alumni connections of current employees to woo and win talent will yield better results than job offers extended through on-campus recruiting efforts, summer internships or other search channels.
“While money does matter when attracting talent, growth potential and other factors also play a big role in securing highly sought-after MBA candidates from top business schools,” explains Greenberg. “Our research shows that MBAs are significantly more likely to accept an offer from a company after interacting with an alumnus from their school who works at that company.”
After examining individual job search data from nearly 600 MBA students graduating from a top business school in 2009 and 2010, the authors share several key findings:
The article, “The Strength of Weak Ties in MBA Job Search: A Within-Person Test,” was recently accepted for publication in Sociological Science.
To speak with Professor Greenberg, please contact him directly at jgreenbe@stern.nyu.edu or 212-998-0229; or contact Carolyn Ritter, critter@stern.nyu.edu, 212-998-0624, in NYU Stern’s Office of Public Affairs.
“While money does matter when attracting talent, growth potential and other factors also play a big role in securing highly sought-after MBA candidates from top business schools,” explains Greenberg. “Our research shows that MBAs are significantly more likely to accept an offer from a company after interacting with an alumnus from their school who works at that company.”
After examining individual job search data from nearly 600 MBA students graduating from a top business school in 2009 and 2010, the authors share several key findings:
- MBAs are more than 4 times as likely to accept a job offer found through faculty or alumni networks rather than on-campus recruiting.
- Job offers received by students through strong social ties (e.g., faculty/alumni networks) are generally smaller in terms of total compensation than those derived from prior employers, summer internships or on-campus recruiting.
- “Growth potential” is the #1 reason cited by MBAs for accepting a job offer.
The article, “The Strength of Weak Ties in MBA Job Search: A Within-Person Test,” was recently accepted for publication in Sociological Science.
To speak with Professor Greenberg, please contact him directly at jgreenbe@stern.nyu.edu or 212-998-0229; or contact Carolyn Ritter, critter@stern.nyu.edu, 212-998-0624, in NYU Stern’s Office of Public Affairs.