Many potential applicants that approach us are still undecided about whether or not pursuing an MBA or MS makes sense for them. It is expensive, time-intensive, and as a full-time student you need to forgo present income while earning the degree. Given all of the costs and lost earnings, does it really make sense?
The Graduate Management Admission Council (GMAC) recently released their annual Corporate Recruiters Survey Report for 2016, according to which about 88 percent of recruiters surveyed plan to hire MBA graduates in 2016. We will refer to and quote from the survey in the article below, and anyone interested in reading further can find a link at the bottom.
Methodology
GMAC’s survey included a sample framework consisting of 27,023 employers who recruit MBA and master’s-level business students. A total of 842 employers located in 40 countries worldwide responded to the survey, including adequate sample sizes to report details for Asia-Pacific, Europe, Latin America, and the United States.
Key Findings
- A greater percentage of companies in Asia-Pacific, Europe, Latin America, and the United States plan to hire MBAs in 2016 compared with those who did so in 2015.
- Hiring projections for graduates of non-MBA business master’s programs, such as management, accounting, and finance, vary depending on world region:
- A greater share of companies in Asia-Pacific and Latin America plan to hire Master in Management and Master of Finance graduates in 2016 compared with 2015;
- A greater share of companies in Asia-Pacific, Europe, and Latin America plan to hire Master of Accounting graduates in 2016 compared with last year.
- Nearly 9 in 10 (89%) companies plan to conduct on-campus recruitment in 2016, up from 85 percent in 2015.
Compensation
It is clear that employers value business school talent, as seen by the highly competitive salaries they expect to offer to MBAs and other recent business school graduates. See these key compensation findings.
- US-based companies plan to offer recent MBA graduates a starting median 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 in Data Analytics and Master in Marketing programs is expected to exceed the median salary they will offer to graduates of Master in Management and Master of Accounting programs.
- Recent graduates with a Master in Supply Chain Management degree can expect to see a median starting salary of US$75,000, on par with Master of Finance graduates.
Hiring on the Rise
According to GMAC’s Survey:
“Regional hiring demand for business school graduates shows strong growth across job markets in all world regions analyzed in this report.”
Furthermore, the outlook for MBA hiring in Asia continues to grow, and remain promising:
“Employer hiring demand for graduate business school candidates remains high in the Asia-Pacific region, with 84 percent of employers planning to hire recent MBA graduates in 2016, compared with 73 percent that hired these candidates last year (Figure 4). In 2016, more employers in Asia-Pacific also plan to hire graduates of Master in Management programs (75% vs. 71%), Master of Accounting programs (49% vs. 39%), and Master of Finance (54% vs. 48%) programs compared with 2015.”
Whether you intend to work in the United States, Europe, or Asia-Pacific after completing an MBA, your prospects for being hired look extremely bright, according to the GMAC recruiter survey.
While the companies surveyed are larger corporations, and are not inclusive of startups or small- to medium-sized enterprises (SMEs), the data above clearly shows the amount of pivot, leverage, and career power that an MBA or MS can give you.
If you have been considering pursuing an MBA or MS degree at a top global business school and are ready to get started on the process, we are always here to help and guide you. We are proud to have achieved outstanding results for our clients since we started in 2010. Feel free to view our results from 2010 – 2016 summarized here, and reach out to us with questions at info@TranscendAdmissions.com