According to a recent New York Times article, some companies have turned to a new approach to attracting M.B.A.'s in an increasingly competitive recruiting environment: offering bonuses that decline in value or disappear unless the student accepts the job by a certain date. These "declining bonuses", offered to promising summer interns, may be as high as $45,000 and will be cut in half or withdrawn if the student does not accept the job offer by an early deadline, typically the middle of October. Organizations offering declining bonuses include Mercer Management Consulting, Microsoft and Kraft.
On the flip side, many other organizations are staying away from the practice, criticizing the declining bonuses as stressful for the students and disruptive to the hiring practices. At least one business school -- Harvard's -- has decided not to allow the practice, citing the belief that their students shouldn't be making employment decisions under pressure.
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