Employer Hiring Up 4 Percent for MBAs
The job market continues to improve for graduate business school degree holders as more employers plan to hire MBAs and specialized business master’s talent than did so last year, according to new results of the 2013 Corporate Recruiters Survey. Globally, 75 percent of employers plan to hire MBAs, up from 71 percent that hired MBAs in 2012. The proportion of employers planning to hire other types of business school graduates is up from last year for master in management, master of accounting, master of finance, as well as other specialized business master’s (shown in the graphic below).
Business school graduates can improve their navigation of today’s labor market by understanding how companies’ organizational goals and operational plans drive decisions about who to hire, what positions to fill, and where to place new hires.
With support from partner organizations European Foundation for Management Development (EFMD) and MBA Career Services Council (MBA CSC) and 158 business schools worldwide, GMAC’s 2013 employer study drew responses from more than 900 employers in 50 countries around the world.
Insights into companies’ hiring plans, compensation trends, and regional demand are particularly important as employment outcomes continue to factor into a
prospective student’s decision for pursuing a graduate
2013 Key Findings
Globally, not only are more companies planning to hire recent MBAs (75%, up from 71% that hired in 2012), but they expect to increase the average number of new MBA hires, per company, from 11.4 in 2012 to a projected 14.6.
Asia-Pacific companies are experiencing robust growth and planning for market expansion in 2013 and as a result are creating higher demand this year for MBAs and master-level candidates, with a majority (59%) expected to offer starting salaries for new MBA hires at or above the rate of inflation.
European hiring projections reflect employer sentiments about the region’s struggling economy and focus on efficiency in organizational goals. Although the hiring outlook for MBAs remains stable compared with 2012, hiring projections for all other types of candidates decreased slightly.
The 2013 hiring outlook is positive in terms of the percentage of US companies that plan to hire MBA and business master’s graduates. The Northeast region of the country has the highest hiring demand with 92 percent of companies planning to hire for fresh MBA talent. The South will see the greatest increase in demand for non-MBA business masters compared with 2012 actual hiring results.
MBAs continue to command higher starting salaries compared with other master’s graduates in the US, with a median base salary of US$95,000, up from US$90,000 in 2012. This is a salary premium of US$43,000 over bachelor’s degree holders, up from an average of US$40,000 reported over the past six years.
Hiring trends show that the greatest growth in demand for MBAs compared with last year is coming from the energy/utilities and health care/pharmaceuticals sectors, industries not traditionally sought by MBA talent.
Compared with countries with high per capita income, a greater share of countries with medium per capita income plan to hire graduate management talent in 2013. And a greater share of employers in middle-income countries plan to increase base salaries compared to firms in high-income countries.
Of the employers that plan to hire MBA and business master’s graduates, 33 percent plan to place some new graduates in jobs outside of the home region of the recruiter.
“Earning a business degree continues to be a smart choice in today’s competitive job market. The proof is seen in the increased or steady hiring plans of employers for MBA and master’s talent, and the salary boost they’ll likely see is additional evidence,” said Rebecca Estrada, the GMAC survey research manager who authored the survey.