MBA Shining: High placement awaiting MBAs: Global Corporate demand to rise to 84%; choose your pick

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MBAUniverse.com News Desk |
May 27, 2015
Employers` demand for recent business school graduates continues to show a strong upward trend in 2015, as 84 percent of companies worldwide plan to add new MBAs
"The MBA, as an area of study valued by employers, is showing more strength than ever with hiring of new graduates" Sangeet Chowfla, GMAC president and CEO.

The phase of economic slowdown on low placement of MBAs in B schools appears to be over and new hope of high placement at higher packages is visualized in coming sessions as per the Global recruiters survey of GMAC.

Anticipating the Corporate global demand for MBAs in forthcoming placement season to reach  a new high, GMAC survey has found more employers Plan hiring more Business School Graduates than in previous years. Accordingly the Salaries of MBAs and Business Master’s Graduates are also expected to rise globally

According to a global survey of employers conducted by GMAC and published on May 20, 2015– Employers’ demand for recent business school graduates continues to show a strong upward trend in 2015, as 84 percent of companies worldwide plan to add new MBAs to their workforce -  up from 74 percent in 2014 and 62 percent five years ago.

 “The MBA, as an area of study valued by employers, is showing more strength than ever with hiring of new graduates projected to rise for the third year in a row,” said Sangeet Chowfla, GMAC president and CEO.

The projection according to GMAC survey is that the employer demand for recent business school graduates, notably those skilled in data analytics will continue to increase as companies expect these new workers to use data to drive business decisions starting the moment they are hired.

Emphasising the future prospects of placement for an MBA degree holder,  GMAC President says “Students of any undergraduate background would do well to consider taking a graduate management degree because of the contributions it can make to their career aspirations.”

Employers listed in Fortune 100 participated

The 2015 Corporate Recruiters Survey by GMAC  in partnership with EFMD and the MBA Career Services & Employer Alliance (MBA CSEA), drew responses from 748 employers in 47 countries around the world, including 46 companies listed in the Fortune 100.

The annual survey provides a view into the current employment landscape, gauges the demand for MBA and master-level business graduates, and offers insight into hiring practices and trends across industries and world regions.

MBA employability highlights

Sharing the highlights of the survey  GMAC anticipates more than 9 in 10 (92 percent) companies in the United States to hire MBA graduates in 2015— up from 80 percent that hired MBAs in 2014 while seventy-five percent of Asia-Pacific companies (69 percent in 2014) plan to hire recent MBA graduates.

More than half of European-based companies plan to hire MBAs (56 percent of employers, up from 53 percent in 2014) and Master in Management graduates (52 percent, up from 51 percent).

Expressing a good placement season for MBAs in coming sessions Damian Zikakis, president of the MBA Career Services & Employer Alliance says “Employers are even more bullish on MBAs this year”

MBAs to expect higher packages

According to the survey, more than half of global employers will increase starting salaries for new MBA hires in 2015, either at the rate of inflation (30 percent of companies) or higher (21 percent).

The median starting salary expected in 2015 for recent MBA graduates in the United States is US$100,000. This represents an increase of US$5,000 over 2014 salaries and is nearly double the expected starting salary of US$55,000 for bachelor’s candidates in 2015.

Prior work experience is key in helping students stand out in the job market, especially for MBA graduates. Depending upon the degree earned, employers expect recent graduate business candidates to have an average (median) of two to four years of prior work experience.

According to Prof. Eric Cornuel, CEO and director general, EFMD “The next decade will see a massive demographic shift as the ‘boomers’ leave the workforce and companies clearly see business schools as a key resource in finding new talented graduates.”

In addition to these findings, the 2015 survey also explores job level placement and anticipates that globally, the majority of recent MBA/PGDM holders can expect to be placed in a mid-level or entry-level position.

When choosing graduate business candidates to interview- 9 out of 10 employers cite a demonstrated track record, strong communication skills, and solid technical or quantitative skills as their top 3 selection criteria.

About GMAC

 The Graduate Management Admission Council (gmac.com) is a nonprofit education organization of leading graduate business schools and owner of the Graduate Management Admission Test (GMAT), used by more than 6,100 graduate business and management programs worldwide — along with other products designed to help students find, connect and apply and gain admittance to business and management programs around the world. GMAC is based in Reston, Va., and has regional offices in London, New Delhi and Hong Kong.

The GMAT exam- the standardized test designed expressly for graduate business and management programs worldwide — is continuously available at 600 test centers in 113 countries.

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