Reneging on an MBA Job Offer May Cost You $20,000

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Wendy's picture

Reneging on an MBA Job Offer? It May Cost You $20,000
By Louis Lavelle

As two MBA students from Georgia Tech learned recently, reneging on an internship offer can have consequences. Big ones. The two students are no longer welcome at career services, can’t participate in on-campus recruiting, and won’t be allowed to sit in on company information sessions. As Jim Kranzusch, executive director of MBA Career Services explains, “Basically they’re on their own.”…

http://www.businessweek.com/articles/2013-06-28/reneging-on-an-mba-job-offer-it-may-cost-you-20-000

ohai's picture

MIT sanctions you if you show up late to company presentation? What a bunch of anal…

Edit: Just remembered that my dad went to MIT business school. Maybe should ask him about that.

“Be aware of this 40 year old men in our country.They suffer from mid life crisis and are always trying to be in the good books of young girls.” -Rahul Roy

mygos's picture

The talk is about “reneging” a job /internship (which means the aspirant had accepted the offer in his/her full senses) not “rejecting” it at the first instance. So, what is wrong in it. His/her acceptance actually deprived someone else equally deserving (and may be in even worse need of it!) even if you ignore the time, effort and cost involved in such cases both by the company and the Institute (which is the main reason such provisions are there).

As discussed in the later part of the quoted article there are penalties for recruiters too “including prohibiting the company from recruiting on campus for a period of time”.  

Someone who can not take a balanced and evaluated decision on such crucial matter affecting his future as well as affecting other peers,  deserve to get penalised, specially when MBA is more about long term planning , decision making  and project planning.   Someone who can not manage ones own affairs, how can he/she be expected to manage other’s resources and organisation, he/she is  unfit for another chance (unless of course it was due to some grave situation like a car accident or something like that)  whether some one likes it not.

wangta01's picture

I’m pretty sure all thetop schools do this.  As mygos mentioned, we hear more about this type of thing going the other way - employers renegging after the applicant has been offered the job.  Same thing applies - typically the employer will not be allowed to use career services (at that school), which includes receiving the annual resume book or posting on the job bank.  I think last time I heard of such thing happening, the employer wasn’t allowed to recruit at the school for 3 years.  

Wendy's picture

Students reneging is the sign that the economy is good.

Companies reneging is very rare now, because all the companies that reneged on students during the 2001 recession learned that it was very bad PR.

As a result, I don’t think there were many instances of hiring firms reneging even during the 2008 financial crisis.

wangta01's picture

Wendy wrote:

Students reneging is the sign that the economy is good.

Companies reneging is very rare now, because all the companies that reneged on students during the 2001 recession learned that it was very bad PR.

As a result, I don’t think there were many instances of hiring firms reneging even during the 2008 financial crisis.

I agree.  The only firm I saw that reneged in 2009 was Bear Stearns…and I don’t think the students took it personally…

JonathanC's picture

Career placement centers and career fairs at universities are nice and convenient, but they really don’t do much in terms of helping foster that independent job hunting skill most people need. While I agree that they caused some other kids an opportunity, each side has enough resources to recover.

The students who reneged are young and have lots of time to find jobs on their own - which they will and succeed greatly at it. In fact they will be able to explore and discover many other fields of work they never thought possible for them because they are not limiting themselves to a “fair” or a counselor to guide them hand in hand to a new job. Even if it’s McDonald’s these guys will be hunters and they will have the drive to succeed up the corporate ladder.

Blacklisting is a foolish way to treat these kids but it helps them more than it hurts them for sure. The people who blacklisted their own students should be fired IMO. Disgusting way to treat vulnerable members of your own community.

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