MBA recruitment up by 33% in last 5 years; GMAC annual Corporate Recruiters Survey reveals

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MBAUniverse.com News Desk |
June 29, 2016
GMAC Annual Corporate Recruiters survey has revealed that 88 percent of corporate recruiters who work directly with graduate business schools plan to hire recent MBA graduates in 2016 which is up by 33% from 2010
The difference in hiring projections between the two surveys highlights the value business schools provide to students in connecting them with employers that want to hire them Bob Alig, GMACs executive vice president for school products

Allaying the fear and apprehensions about the dim future of MBA education and subsequent career opportunities, GMAC annual Corporate Recruiters survey has revealed that 88 percent of corporate recruiters who work directly with graduate business schools plan to hire recent MBA graduates in 2016. The number is up by 8 percentage points from last year and 33 percentage points higher than 2010, the lowest point of the Great Recession.

According to a global survey report released on June 22, 2016 by the Graduate Management Admission Council (GMAC),  the companies working directly with business schools plan to hire more MBAs this year than they hired in 2015. The study shows the strongest business school corporate recruiter demand for MBA talent since post-recession low in 2010

842 Employers from 40 countries confirm
GMAC conducted the 15th annual Corporate Recruiters Survey in February and March together with survey partners EFMD and MBA Career Services & Employer Alliance (MBA CSEA), in association with 109 participating graduate business schools. The survey findings are based on responses from 842 employers representing more than 530 companies in 40 countries worldwide who recruit directly from participating business schools.

B-Schools connect students to robust hiring market
The report highlights the value that on-campus recruiting brings to job-seeking business school graduates. For the first time, GMAC broadened its reach among employers by conducting a supplemental survey of an employer sample purchased through an outside private vendor.

This “General Population Employer Survey” yielded responses from 1,282 companies located in the 6 largest markets for graduate management education — China, France, Germany, India, the United Kingdom and the United States. The results show overall that half of the companies responding to the supplemental survey have plans to hire an MBA in 2016 — ranging from 35 percent of companies in Germany to 70 percent of companies in China.

“The difference in hiring projections between the two surveys highlights the value business schools provide to students in connecting them with employers that want to hire them,” said Bob Alig, GMAC’s executive vice president for school products. “These results are compelling evidence for admissions professionals to demonstrate the value of a graduate business degree to prospective applicants.”

Damian Zikakis, MBA CSEA president and director, Career Services, at the University of Michigan Ross School of Business says “Nearly 9 in 10 employers that work with career services plan to conduct on-campus recruitment this year, giving students a tremendous advantage in finding job opportunities that are a great match for their talent and aspirations.”

Expected Starting Salaries in 2016
54 percent of employers plan to increase MBA starting salaries going by either at the rate of inflation (33% recruiters proposes) or above that level (21% recruiters confirm).  46% of the recruiters proposes to keep starting MBA salaries the same as 2015.

  • These MBA salary projections for 2016 are similar to those projected for new hires with non-MBA business master’s degrees, with one exception: 67% of companies that plan to hire graduates with Master in Supply Chain Management degrees expect to increase their starting salaries either at the rate of inflation (46 percent) or above (20 percent).
  • US-based companies plan to offer recent MBA graduates a median starting base salary of US$105,000 in 2016, up from a median of US$100,000 in 2015.
  • The median starting base salary of US$85,000 that US employers will pay to graduates of both Master of Data Analytics and Master of Marketing programs is expected to exceed the median salary they will offer to graduates of Master in Management and Master of Accounting programs.

International Job Placement to go up
Out of 52% of corporate recruiters, 24% report that their companies have plans to hire while 28% are willing to consider hiring recent business school graduates who require additional legal documentation, such as work permits or visas.

30% of companies that plan to hire business school graduates in 2016 will place these candidates in multiple world regions.

Eric Cornuel, director general and CEO of EFMD says “A graduate business degree is rewarding from a personal, professional and financial standpoint no matter which country you study in. The advantages students get from on-campus recruitment will pay dividends throughout their careers.”

Recruiters plan to hire from specialized programmes
Hiring projections for graduates of non-MBA business master’s programs in management, accounting, and finance vary by world region:

  • A greater share of companies in the Asia-Pacific region and Latin America plan to hire Master in Management and Master of Finance graduates in 2016 compared to 2015.
  • A greater share of companies in Asia-Pacific, Europe, and Latin America plan to hire Master of Accounting graduates in 2016 compared to 2015.

Many corporate recruiters have shared their hiring plans for graduates of other non-MBA business master’s programs. 27% propose to hire graduates from Master of Supply Chain Management; 26% from Master of Data Analytics and 24% from Master of Marketing programs.

Graduates from supply chain management programs are in greatest demand among companies in the manufacturing, technology, and products and services sectors, whereas graduates of master’s-level programs in data analytics are in greatest demand in the technology sector, sought by 43 percent of companies — nearly twice as many companies as in other industries.

High demand in Asia-Pacific region
The report indicates that hiring demand for both MBA and non-MBA business master’s candidates is up among employers in the Asia-Pacific region compared to last year.

  • In total, 84% of Asia-Pacific employers plan to hire recent MBA graduates in 2016, up from 73 percent in 2015.
  • 75% of Asia-Pacific employers plan to hire Master in Management graduates (up from 71%), 54% plan to hire Master of Finance graduates (up from 48%), and 49% plan to hire Master of Accounting graduates (up from 39%).

The Graduate Management Admission Council (GMAC) is a nonprofit education organization of graduate business schools and is the owner of the Graduate Management Admission Test (GMAT exam). GMAC is based in Reston, Virginia, and has regional offices in London, New Delhi and Hong Kong. The GMAT exam is considered as the only standardized test designed for graduate business and management programs worldwide. GMAT is continuously available at 630 test centers in 115 countries.

EFMD management development network includes over 860 institutional members from academia, business, public service and consultancy across 84 countries worldwide. EFMD offers a range of services, including surveys and the dissemination of knowledge, quality improvement and accreditation via EQUIS, EPAS, EOCCS and CLIP, as well as the EDAF mentoring programme and BSIS impact assessment system.

MBA Career Services & Employer Alliance (MBA CSEA) is an 800+ member global alliance of graduate business career management professionals and employers. Programs and services provided include annual conferences in Asia, Europe and the United States, regional forums in cities across the globe, recruiting trends and benchmarking surveys, employment data reports, webinars, and member-to-member communications.

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