Graduate job market

Matching market theory can be applied to improve the placement of employees within firms and organisations.

Matching theory can be applied to the placement of employees within firms. In particular, many companies or government organisations run a graduate programme and seek to allocate their graduates to various departments. This constitutes a matching problem: graduates have preferences over the departments within which they would like to work, department directors have preferences over the graduates they would like to add to their team and a maximum number of graduates they can accommodate. Organisations solve this problem in various ways but very few use modern market design techniques. The process can be optimised by improving the quality of the match while saving employees the time and energy necessary to solving the problem themselves.

The CMD has successfully applied these techniques to improve the placement of graduates to groups in the Commonwealth Treasury Graduate Programme. Rather than solving the problem by hand, employees can now simply enter the preferences and capacities into a spreadsheet and run the deferred acceptance algorithm to find the optimal matching. The CMD is working towards achieving a similar outcome with other organisations.