Successful job hunting usually requires networking beyond your immediate contacts. Why? Because, at a basic level, those in your outer circles have access to information you don't. But social networks are necessary for other reasons as well. A new study suggests they also help employers shape perceptions of their job candidates.
Daniel Halgin, a doctoral student at Boston College, investigated some of the professional networks people continue to identify themselves with as they progress in their careers. For instance, consultants who have worked for Bain & Co. Inc. often think of themselves as “Baines” for life. Or former high-level managers of General Electric Co. consider themselves “graduates of Welch U.” -- a reference to ex-CEO Jack Welch -- even after they've left GE to run other businesses. These types of affiliations provide opportunities to network, but do they also play other roles in the labor market?
To answer that, Halgin studied an unorthodox sample: the head coaches for the top U.S. college men's basketball teams -- those in the National Collegiate Athletic Association Division I. Halgin looked at how the coaches moved from job to job, and it turns out the coaches from the 341 colleges switch frequently. Between 2001 and 2007, more than 280 changes occurred, including more than 150 firings. The sample looked at employee performance as reflected by the coaches' win-loss records. Because the coaches changed jobs so frequently, and because college basketball is relatively insular, the study sample was a highly interconnected network. At the start of the 2007 season, 90% of the head coaches had worked with one of the other head coaches at some previous point in their careers.
One intriguing thing about the study sample was the number of coaches affiliated with one of eight distinct “families” -- each associated with a legendary coach. For example, there is the “John Calipari family,” named after the former head coach at the University of Memphis, now at the University of Kentucky. He has won more than 400 games throughout his career. Past relationships primarily established these groups -- if someone had been an assistant coach to Calipari, for instance. Or the groups could come about because of shared technique. The “Rick Pitino family,” named after the head coach at Kentucky's University of Louisville, is known for encouraging three-point shots.
Halgin found that well-connected coaches were more likely to find jobs after being fired, even after controlling the data for their win-loss performances. Halgin also discovered that those coaches who were part of one of the eight families had even greater career resilience and obtained more prestigious positions that other coaches who had comparable records and networks. In other words, being part of a family was more beneficial than being well-connected.
The obvious explanation is that being part of a coaching family creates a stronger sense of identity, encouraging members to help one another. But another subtle factor also might be at play: Prospective employers might see this group affiliation as signaling competence and ability -- even beyond a person's actual talents. Athletic departments might hire members of these families because they're known qualities.
It's easy to imagine how a Fortune 500 corporation might favor a “Welch U.” manager over a similarly qualified executive who lacks a GE pedigree. Companies should be aware of their biases when it comes to hiring decisions, of course, but they should also consider how to use this “family” effect to their advantages. Top companies with strong alumni networks and strong sense of family probably do have an edge in hiring top talent, since people realize that working for them will enhance their future opportunities. Social identity becomes, unto itself, a job perk, increasing the resilience of a person's overall career.
This article is adapted from “What Can Managers Learn from College Basketball?” by Alden M. Hayashi, which appeared in the Spring 2009 issue of MIT Sloan Management Review. The complete article is available at http://sloanreview.mit.edu/smr/.