A Diamond in the Rough
By Andrew Davis JGSM '10
Issue date: 5/1/09 Section: Perspectives
Just as Britney Spears will inevitably return to rehab, so will the S&P return to glory. For MBA students, the promise of eventual recovery is hardly a panacea for the reality of the current job market: offers are dramatically down, and many students are "settling"-taking jobs perceived to have less prestige, compensation or career potential than those at the most desired firms. Ironically, students going to "last-choice jobs" may be better positioned to succeed than they imagine.
Many students arrive at business school with a ranked list of firms they wish to join. In a flourishing economy, a competitive student might expect to receive offers from most of the companies at the top of his list. Can't get a job at McKinsey? There are plenty of consultancies begging for Ivy-pedigreed grads. Even in previous recessions, a good student at a top institution could reasonably find his way to a preferred firm. This recession is different: many students have exhausted their lists and are willing to take any offer they receive.
Imagine how things look from the employer's vantage. If a top firm used to take four permanent hires in previous years, it might be giving just two offers this year. Hiring managers are faced with a difficult decision: who doesn't receive an offer? In an ideal year, most managers select a variety of talent. Significant thought is given to diversity. This encompasses not just traditional definitions of diversity but diversity of thought and experience. With just one or two offers, this year's candidates will be "guarantees"-essentially, there can be no doubt that they will succeed. This year, more diverse candidates such as the quirky genius, creative visionary and apolitical maverick won't be going to firms at the top of their lists. Ironically, these individuals are the ones who have helped the best firms continuously reinvent their products, services and relationships.
At the same time that MBA students are reassessing their lists, the winners in the hiring game are those firms that could never attract or afford top-tier talent. Because of the nature of the admissions process, MBA students can be ranked in a somewhat objective fashion. An employer would probably find a student with a 700 GMAT and leadership experience more attractive than one with a 500 GMAT and a less competitive background. This year, however, many of these more competitive students may be willing to work at Krispy Kreme for free donuts and healthcare benefits. Smaller, less prestigious firms will hire more experienced, diversified and competitive MBA students than ever before.
Many students arrive at business school with a ranked list of firms they wish to join. In a flourishing economy, a competitive student might expect to receive offers from most of the companies at the top of his list. Can't get a job at McKinsey? There are plenty of consultancies begging for Ivy-pedigreed grads. Even in previous recessions, a good student at a top institution could reasonably find his way to a preferred firm. This recession is different: many students have exhausted their lists and are willing to take any offer they receive.
Imagine how things look from the employer's vantage. If a top firm used to take four permanent hires in previous years, it might be giving just two offers this year. Hiring managers are faced with a difficult decision: who doesn't receive an offer? In an ideal year, most managers select a variety of talent. Significant thought is given to diversity. This encompasses not just traditional definitions of diversity but diversity of thought and experience. With just one or two offers, this year's candidates will be "guarantees"-essentially, there can be no doubt that they will succeed. This year, more diverse candidates such as the quirky genius, creative visionary and apolitical maverick won't be going to firms at the top of their lists. Ironically, these individuals are the ones who have helped the best firms continuously reinvent their products, services and relationships.
At the same time that MBA students are reassessing their lists, the winners in the hiring game are those firms that could never attract or afford top-tier talent. Because of the nature of the admissions process, MBA students can be ranked in a somewhat objective fashion. An employer would probably find a student with a 700 GMAT and leadership experience more attractive than one with a 500 GMAT and a less competitive background. This year, however, many of these more competitive students may be willing to work at Krispy Kreme for free donuts and healthcare benefits. Smaller, less prestigious firms will hire more experienced, diversified and competitive MBA students than ever before.
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