Why the Best Companies are Willing to Hire Low-Experience Candidates

Despite what conventional wisdom suggests, large, prestigious companies are more likely to take the risk of hiring candidates without industry experience than smaller start-up companies.

A paper published by the National Bureau of Economic Research documenting the MBA hiring market found that for full-time employment, candidates with experience had a 3.75 times higher chance of being hired by smaller or non-prestigious companies compared to candidates without experience. In prestigious companies, they only stood a 1.74 times better chance of being hired.

The researchers based their study on the labour market analysis for students pursuing a two-year full-time MBA programme based in the US. It identified names of prestigious companies using Fortune MBA 100 annual rankings during 2007-2009.

SOURCE: humanresourcesonline.net

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