Employes Target Jobs at People with Graduate Business DegreesMore

Employers plan to boost the number of new MBAs they hire in 2007 and are reporting less interest in people with only an undergraduate education, new research from the Graduate Management Admission Council® (GMAC®) shows.

McLean, Va.—Employers plan to boost the number of new MBAs they hire in 2007 and are reporting less interest in people with only an undergraduate education, new research from the Graduate Management Admission Council® (GMAC®) shows.

Corporate recruiters expect to hire an average of 18 percent more workers with MBAs and other graduate business degrees this year than they did in 2006, according to the 2007 GMAC Corporate Recruiters Survey. This increase follows the 18 percent jump in MBA hiring recruiters projected in last year’s survey.

The survey also found that employers plan to increase the number of jobs for people with graduate degrees in areas other than business by about 16 percent. But recruiters told GMAC researchers they anticipate trimming the number of positions aimed at people completing undergraduate degrees this year by more than 7 percent.

“Employers are saying clearly that an MBA brings value to their enterprises,” said Dave Wilson, president and chief executive officer of GMAC, an international association of business schools and owner of the Graduate Management Admission Test® (GMAT®). “A typical MBA graduate today brings maturity, intellect, experience, determination and a willingness to invest in his or her own intellectual capital. What a perfect combination for an employer!”

Recruiters also appear to be placing increased emphasis on the specialized skills people develop in graduate business school—and are willing to pay more for these abilities in new employees.

Respondents to the survey said they are especially drawn to the expertise in managing corporate strategy and motivating teams of workers that MBA students build in business school. The recruiters indicated that people with graduate business degrees are likely to be more adept in these areas than those with less extensive management educations or degrees in other disciplines.

In addition, the pay gap between people with graduate business degrees and their counterparts with other credentials is widening. Recruiters said they plan to offer annual base salaries to people with graduate business degrees that are 28 percent higher than what they extend to new hires with other types of graduate degrees. That figure was 23 percent in 2006.

Meanwhile, recruiters are willing to pay 84 percent more to new MBAs or other high-level business degree recipients than to people with only an undergraduate education, according to the survey. In 2006, the difference was 75 percent.

The 2007 GMAC Corporate Recruiters Survey includes responses from 1,382 recruiters representing 1,029 companies around the world that hire MBAs or others with graduate business educations. These companies include 149 of the Fortune 500 and 109 of the Fortune Global 500.

GMAC partnered with the MBA Career Services Council (MBA CSC) in developing questions for the survey and enhancing distribution of the survey to corporate recruiters. The MBA CSC is the international professional association representing individuals in the field of MBA career services and recruiting. The organization provides a forum for the exchange of ideas and information and addresses issues unique to the needs of MBA career services and recruiting professionals. It also provides professional development and networking opportunities for members, and develops and promotes its Standards for Reporting MBA Employment Statistics©.

The Graduate Management Admission Council (http://www.gmac.com/), based in McLean, Va., is a nonprofit organization of leading graduate business schools worldwide dedicated to creating access to and disseminating information about graduate management education. GMAC annually surveys thousands of corporate recruiters, MBA students and business school alumni to gauge their feelings about the job market and collect other data. The Council also owns the Graduate Management Admission Test, used by more than 4,000 graduate management programs around the world to assess applicants. The GMAT was created in 1954 and remains the first and only standardized test specifically designed for graduate business and management programs.