Best in Class: The Returns on Application Endorsements in Higher Education

Abstract

While scholars have shown that well-connected applicants are advantaged in selection processes, less understood is whether such applicants produce important returns to the organization when key decision makers favor them. We begin to address this gap by investigating whether and why application endorsements-an informal practice whereby certain individuals (i.e., endorsers) advocate for particular applicants-affect organizational selection during the screening of applicants. Through the analysis of the population of 21,324 applicants to a fulltime MBA program over a seven-year period, we find that even after controlling for individual qualifications and competencies, endorsed applicants are advantaged over non-endorsed applicants in admissions interview and offer decisions. In seeking to explain this advantage, we develop and test four key theoretical explanations pertaining to the potential returns on application endorsements for the organization. We find inconsistent evidence that endorsed applicants are ''better qualified'' compared with non-endorsed applicants during screening: while endorsed applicants are sometimes assessed to be stronger ''on paper,'' they generally receive lower competency assessments than non-endorsed applicants later, during the admissions interviews. Further, our analysis of data on matriculating MBA students reveals that those endorsed as applicants are not ''better performers'' academically (measured by grade point average) or in the job market after graduation (measured by full-time salaries or signing bonuses) compared with non-endorsed individuals. In contrast, individuals endorsed as applicants appear to be ''better citizens'' upon joining the organization-in our research setting, they are more likely to participate in student club leadership roles than nonendorsed individuals. We also find that they are ''better alumni''-that is, they make larger monetary donations to the school after graduating than their nonendorsed counterparts. We conclude with implications for understanding the impact of application endorsements on labor and educational markets.

From Precollege to Career: Barriers Facing Historically Marginalized Students and Evidence‐Based Solutions

“…Even when students successfully navigate these barriers and graduate from college, they may encounter new barriers as they transition into careers. These new challenges limit access to high‐quality jobs after college graduation that come with higher salaries and open doors to upward social mobility (Castilla et al., 2013a, 2013b; Castilla & Rissing, 2019).…”

“…Although one way to challenge these negative stereotypes in the minds of employers is by cultivating an extensive professional network and accompanying job applications with strong referrals from high‐value professionals (Castilla et al., 2013a; Castilla & Rissing, 2019; Reuben et al., 2014), students from historically marginalized groups have relatively smaller professional networks than their nonmarginalized peers, as discussed above. Without near‐peers or faculty members in their professional networks who can endorse them for a position, either through word‐of‐mouth or through formal letters of recommendation, students have limited means through which to challenge negative stereotypes in the minds of employers.…”

The promise of potential: A study on the effectiveness of jury selection to a prestigious visual arts program

“…Studies focusing exclusively on objective selection criteria on future employment performance have provided some evidence that general mental ability scores are predictors of applicants' potential (Ones et al, 2010; Schmitt, 2014), although the variance explained is not high (Cascio, 1999). Other studies focusing largely on reference letters from renowned and productive researchers find strong empirical support on the admissions decision (Castilla & Rissing, 2019). However, aside from the research conducted by Grove and Wu (2007) there is very little evidence that an endorsement significantly predicts academic excellence after admissions or future job market performance.…”

The influence of age factors on the reform of the public service of Ukraine

“…They make up the most dynamic group of public servants, but if they are not satisfied with the motivational programs, they will seek new opportunities even during the crisis, increasing their material welfare (Caponio, 2019;Jakobsen et al, 2019). Employees in this age group know what such difficulties are, and they are ready to overcome them, in spite of the circumstances (Emilio et al, 2019).…”