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