Navigating the transition from student life to a career is a challenging journey, particularly for management students and recent graduates in the UK. This post introduces the concept of the “Hierarchy of Hiring,” which may implicitly impact hiring managers’ decision-making and, as a result, your application outcome.
While technology and automated systems have streamlined certain aspects of recruitment, the human factor remains key. Decision-makers prioritise internal candidates and referrals because these options minimise risks and foster a sense of familiarity. For those embarking on their career path, understanding these layers can empower you to strategically plan your entrance to the UK’s job market. By leveraging internships, networking opportunities, and personal connections, you can progressively move up this hierarchy, transforming from an unknown applicant to a trusted professional ready to contribute effectively in your chosen field. Embrace this insight as you begin your strategic journey toward success.
Disclaimer: This report is provided for informational purposes only and is not intended to serve as professional recruitment advice. We are not a recruitment agency; we simply facilitate connections between management students and UK-based SMEs for short academic and practical projects. The views expressed herein are solely our own, based on our observations and investigations of students and graduates over the past two years. This report should not be construed as a substitute for professional career guidance. If you require tailored career advice, please consult your university career centre.
The Hierarchy of Hiring
At its core, the hiring process, despite the increasing influence of technology, remains a human endeavour. While aspects of job seeking may appear “De-Humanised” by using Artificial Intelligence (AI), Applicant Tracking Systems (ATS), and standardised rejection emails, the ultimate decisions are made by individuals. These decision-makers operate with their own objectives, limitations, and a sense of responsibility for the outcomes of their choices. Understanding that decisions are made by fellow humans can give you a significant advantage. Firstly, the advice to tailor a CV to a specific role takes on a deeper meaning. It is not merely about matching keywords but about articulating your past experiences and education to address the needs and expectations of the organisation directly. Also, the central point of this discussion is to understand how this inherent “human” element shapes the overall approach to hiring.
Given the objectives and constraints faced by hiring managers and their accountability for their decisions, it is understandable that they may lean towards candidates they have some prior connection with, however remote, over those they do not know. This tendency has contributed to the emergence of an apparent hierarchy in how organisations typically approach new hires.
Inter-organisation Hiring
The first level is Inter-organisation Hiring, with 24% to 40% of all hires. Most organisations start by looking inward. They assess internal candidates first because these candidates are already familiar with the company’s culture, processes, and performance history. This approach not only minimises cost and onboarding time but also lowers perceived risks, making internal candidates a natural first choice.
Network and Referral
If no suitable internal candidate is available, the focus shifts to the second layer: Network and Referral. In this stage, candidates who come recommended by current employees or trusted contacts enjoy a noticeable edge. A referral signals that someone within the organisation vouches for the candidate’s skills, experience, and cultural fit. This layer leverages established relationships and mutual trust, often simplifying the decision-making process for hiring managers who prefer a degree of pre-vetted familiarity over starting from scratch.
External Candidates
Finally, if both internal and network-referred candidates fall short, the process extends to Isolated Applicants. External candidates who enter through job listings face the highest level of scrutiny. These applicants are considered the riskiest option because there’s typically less known about them. Factors such as unfamiliarity with the company’s environment, potential visa requirements, or simply a lack of targeted experience increase the perceived risk.
The Importance of the Hierarchy of Hiring for Management Students and Graduates
Understanding the hiring hierarchy is crucial for management students and graduates because it illuminates how hiring works. Recognising that internal candidates and referred applicants enjoy a built-in advantage allows you to craft a strategic approach. Instead of competing as an isolated applicant, you must proactively work to position yourself within the inner circles of a company.
Moving Up the Hierarchy
The idea of “moving up the hierarchy” means deliberately taking steps to transform your candidacy from that of an isolated applicant to one that is known. This might involve leveraging internships, participating in industry networking events, and seeking mentorship from alumni or professionals in your desired field. By building genuine connections and proving your capabilities through real-world engagements, your chances increase over time. Your efforts translate into a familiar name rather than an unknown quantity, reducing the risk perception for employers. Ultimately, this strategic positioning can open doors to opportunities that are often reserved for those with established relationships and proven track records, setting you apart in a competitive job market.
The Implications for Management Students
For management students with diverse backgrounds, for instance, postgraduate international candidates, the scarcity of placements can present a significant barrier. Many institutions and companies have limited placement opportunities, which typically are not available for a 1-year PG course in the UK. This scarcity means that many students are left out of a guaranteed opportunity.
The Value of Internships and Business Projects
In this environment, internships and business projects play an essential role in fast-tracking your career prospects. Engaging in these opportunities allows you to demonstrate your skills, integrate into professional networks, and build a track record of relevant experience. Such roles help establish a sense of familiarity with potential employers, making it easier for you to transition into an internal candidate or receive a referral, both of which significantly reduce perceived hiring risks.
At Experiential Academy, we address these limitations by sourcing business projects for management students. As of today, 100% of our partner companies have confirmed their willingness to refer students to their professional networks when a suitable role becomes available. As a result, our students, regardless of their background and UK-based experience, move themselves up in the hierarchy.
Final Words
In closing, grasping the hierarchy of hiring is essential for management students and recent graduates aiming to transition from being an isolated applicant to a known and trusted candidate. The three-tiered approach, starting with internal candidates, then leveraging referrals, and finally considering external applicants, underscores that relying solely on job applications may be less effective than cultivating relationships and practical experience.
By strategically engaging in business projects, networking events, and mentorship opportunities, you can gradually build your network, opening doors to roles that might otherwise remain inaccessible. This understanding empowers you to tailor your approach, emphasising experiential learning and relationship-building over solely chasing advertised vacancies. As you work towards “moving up” the hiring hierarchy, keep in mind that each step provides the chance to enhance your profile, mitigate perceived risks, and ultimately secure a position that aligns with both your skills and career aspirations.