New MBA jobs and salaries report shows growth in job opportunities

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Wednesday, October 24, 2012

A major annual report shows that global growth in employer demand for MBA graduates rose by 12% in 2012, with emerging markets contributing more than ever.

Released annually since 1990, the QS TopMBA.com Jobs and Salary Trends Report provides a unique insight into the MBA graduate job market worldwide.

Taking in survey responses from over 3,300 MBA recruiters worldwide, this year’s report shows that though growth in global demand for MBA graduates continues, it is doing so more slowly than in 2011. 

This year’s growth rate of 12% represents a drop from the 36% recorded in 2011. Demand in consulting and finance, traditionally two of the most popular industries for MBA hiring, both saw a 16% growth in demand in 2012, but the forecast for next year sees this drop to 9% and 3% growth respectively.

Nunzio Quacquarelli, editor of TopMBA.com says “The MBA job market continues to bounce back from its slump in 2009, though last year’s growth rate has stabilized. We can expect technology sectors to lead the way in MBA recruitment in 2013, with a forecast growth of 27% in MBA demand worldwide.”

Emerging MBA job markets

The report shows that the MBA qualification continues to play a central role in the battle for global economic supremacy, with companies in emerging markets fuelling worldwide growth in demand for MBAs.

The Middle East has been the most dynamic region, with growth of 21% in MBA demand in 2012 and a further 23% forecast for 2013. Asia and Latin America also record solid growth, though Western Europe trails at just 5%.

Growth in MBA demand in North America remained at a respectable 16% in 2012, but employers are cautious about 2013, with forecast growth of just 2% in 2013.

Quacquarelli says “The US remains one of the largest markets for MBA employment. A partial economic recovery; stabilization of the financial services; the recovery of some manufacturing industries and the appearance of new mid-sized MBA employers on campus have all contributed to the growth.”

“We can also expect technology sectors to lead the way in MBA recruitment in 2013, with a forecast growth of 27% growth in MBA demand  worldwide.”

He continues, “With the economic conditions uncertain in the euro zone, growth slowing in Asia and the upcoming US presidential elections, it’s not surprising to see that employers, especially multinational corporations, are reporting prudent MBA hiring plans in 2013 in order to avoid being potentially pulled back into 2008/9 conditions where they had to reverse some MBA hiring decisions and overall MBA demand declined 5%.”

Increase in MBA salaries

The report also found that salaries offered by international employers in North America have increased from US$87,200 in 2011 to US$89,100 in 2012. However, the average bonus payable fell slightly from $23,000 in 2011 to  $17,700 in 2012. Stanford (US$127,200), Harvard (US$121,700) and Wharton (US$118,000) were the top-reporting business schools in terms of base salary, excluding sign-on or starting bonuses.

Quacquarelli says, “This is the first time in my twenty years in the MBA industry where I have seen MBA employment demand grow in regions suffering from recession and negative GDP growth. We have witnessed this in both the USA and Northern Europe.”

“The increases in MBA salaries is an added surprise and the only downside to such high average salaries for MBA graduates is that smaller prospective MBA employers may be deterred from trying to compete for the best MBA talent.”

• Read the full report here >

5 Things to Weigh Before Applying to B-School

All aspiring MBAs must decide how many and which business schoolsto apply to; the key is to be aware of where you are in the application "window"—or where you are in life in general.

The vast majority of MBA students are in their mid-20s to early 30s. Only a small portion comes directly from college, and only a few attend full-time business school in their late-30s or 40s. But even within the prime eight-year window—from 24 to 32—applicants should consider five issues when deciding where to apply.

1. Age: Many applicants in their mid-20s decide to apply only to their first two choices, figuring that if they don't get in, they can reapply down the line when they have more experience. While this approach may work for some younger candidates, it's not recommended for applicants who are a bit older. Instead,older candidates should apply to a wider array of schools to ensure that they will at least have the option of attending business school next fall.

Of course, the best scenario involves an intelligent mix of "reach" and "safety" schools that will yield a choice of MBA programs for the applicant. Unfortunately, some candidates get on a misguided "Harvard or Stanford … or nothing!" kick that doesn't serve anyone's interests.

2. Career path: Some MBA aspirants hold positions where they can continue for many years, but others work in areas, such as consulting or investment banking, where policy or tradition encourages young employees to get further education.

In environments where one can continue to advance unfettered, a candidate might consider applying solely to his or her top choice programs. However, candidates coming from companies with two- to three-year analyst programs, which don't allow for much upward progression, should probably cast their nets wider and assemble a bigger portfolio of schools.

[Learn more about applying to business school.]

3. Career track satisfaction: Several MBA applicants, who feel locked in roles that are too technical or too narrowly defined, have told me they want to apply to just a couple of very highly ranked programs.

However, when people hope to transition to either an entirely new role or industry sooner rather than later, they should apply to a broad range of business schools. There are incredible programs throughout the top 20 in the b-school rankings (and even beyond) that can provide the classes, career programs, and alumni networks that aid this kind of transition.

4. First timer or reapplicant: A candidate who is going through his or her second round of business school applications should almost always apply to more schools. If the candidate is applying a couple of years down the line after dramatically improving her experience base, then she might add two or three new schools to the mix, but should still target her top programs from a few years before.

However, if the candidate is applying the very next year without significant changes in role, experience, or extracurriculars, he should pursue a different base of schools, with perhaps one or two holdovers from the previous year.

5. Family considerations: Taking two years to get an MBA is not just a business decision—it's also a life decision. Sometimes, the interests of boyfriends, girlfriends, husbands, wives, or children are critical factors in making the decision of if, when, and where to apply. These considerations are much more complex and varied than the factors listed above, so it's difficult to work through them in depth here.

For instance, some students want to get through business school quickly so they can start a family afterward, while others may view business school (with day care, low travel requirements, etc.) as a great environment to begin to build up their brood.

Candidates should talk with family, friends, and mentors (and potentially an MBA application adviser) early in the process to determine where they are in this window for business school. It's an absolutely critical step in managing this multi-month application process thoughtfully.

Source: USNews

Convince MBA Admissions Officials You’ve Done Your Research

Question to applicants: "Why an MBA, and why this program?" Some do so explicitly on the application, while others pose the question during the interview stage. Either way, you need to know enough about the schools you are applying to so you can answer the question properly.

Don't leave it to the various rankings to decide your list of schools for you. A lot of applicants forget that they are the customer—and should be the ones making the decision.

Schools are constantly tweaking their programs, printing cutting-edge brochures, and traveling from city to city to convince you—the prospective MBA—to consider their programs. Your personal ranking and fit with schools can differ widely from what the leading magazines and websites may suggest, so it's important to have at least some sense of what you are looking for before you start your research.

[Watch a video with tips for choosing an MBA program.]

Each MBA application will cost you a couple of hundred dollars and dozens of hours, so make sure the programs you choose to apply to have most of the things—both large and small—that you want from a school.

Are you looking for a program that is strong in generalmanagement and leadership? Or are you more interested in brushing up on your financial and accounting knowledge to complement your existing skillset?

To find answers to those questions, be proactive. Go to the information sessions and ask real questions. Many candidates try to use these sessions as a forum for impressing the admissions officers, which I don't believe is a very fruitful strategy. Call the admissions department and ask for the names of recent alumni in your area. Get in touch with one or more of those folks and take them out for a coffee.

When it comes to your essays, I can't tell you how many first drafts I've read that cite the "unmatched student body, world-class faculty, and committed alumni network" as the reasons the applicant has chosen a certain MBA program. This person has said nothing.

You need to get specific in order to demonstrate to admissions officials that you've taken the time to thoroughly research the school, and that you have some legitimate reasons why you think their program fits well with your professional needs.

[Check out 6 tips for getting to the heart of your MBA application.]

That said, don't hold yourself to too high a standard here; you're not going to blow the committee away with some statement that shows you are the figurative "soul mate" of their MBA program. I doubt any director of admissions has ever exclaimed, "My gosh, when she mentioned our emphasis onentrepreneurship, I just knew she had to be a part of our community!"

While you'll have to dive deep in preparation for interviews, you can effectively research schools in just a few hours. Read firsthand accounts of the schools through blogs and guest posts on popular websites.

Also place particular emphasis on the following offerings or traits of the school to see the ways they mesh with your professional goals, learning agenda, personality, and preferences:

• Program format: Explore aspects such as case study method vs. lecture; traditional vs. accelerated; opportunities for study abroad; and opportunities for "hands on learning."

• Academic offerings: Research specific classes in your areas of interest. Don't make a laundry list; find a couple of courses and show how they might impact you.

• Faculty: Cite specific professors that you might want meet with, help with research, etc.

[Learn how to contact professors as a grad school applicant.]

• Initiatives: Often schools will emphasize certain disciplines or issues for several years, and will host events and develop new classes on those topics. These series may have names like, "The Entrepreneurship Program," "The Healthcare Initiative," or "The Technology Roundtable."

• Field studies: Check out faculty support for independent research, business plan development, etc.

• Cross-registration opportunities: What other resources does this university have to offer?

• Clubs: Explore academic and extracurricular groups available at the school.

Four to six sentences of solid material on "Why our program?" should set you up nicely. If you have the time and means to schedule a campus visit beforehand, you'll have an even better sense of the program, allowing you to be more convincing when you discuss the school's fit. Successfully articulating how a particular program suits your needs is a crucial first step in the b-school application process.

Source: USNews

1 yr vs 2 yr MBA

Advantage of 1 year programs over 2 year programs

1. An equivalent degree in half the time and cost.
2. The lost opportunity cost of not having a job for 2 year.
3. Despite the shortened academic experience, MBA employers tend to award one-year grads the same starting salaries they pay MBAs of two-year programs. In fact, several schools report that their one-year MBAs make slightly more than graduates of their traditional programs, largely the result of differences in work experience.

Advantage of 2 year programs over 1 year programs

1. Losing out on the summer internship which is almost a yardstick of recruitment.
2. Losing out on networking and socializing with future co-workers. 
3. 2 year programs almost always are less than 2 years in tenure by a couple of months at least.
3. Limited number of schools offering the one year MBA program.
4. One major distinction between most of the one-year U.S. programs and the European MBAs is that the U.S. versions generally require a business undergraduate degree and/or a bunch of core prerequisites.

The Best One-Year MBA Programms in the U.S.
School	Tution Fees	Intake
Northwestern(Kellogg)	$80,453	100
Cornell(Johnson)	$86,336	45
Emory(Goizueta)	$65,991	48
USC(Marshall)	$80,116	58
Notre Dame(Mendoza)	$61,600	65
Boston University	$71,006	27
Babson(Olin)	$69,686	78
Thunderbird	$70,007	NA
Florida(Hough)	$40,130	NA
Pittsburgh(Kaiz)	$53,825	NA
Pepperdine(Graziado)	$62,363	10
Willamette(Atkinson)	$30,306	NA

Source: Poets and Quants, Official Websites.