Robust Hiring of MBA, Business Masters Graduates in 2017, Predicts GMAC Survey

There’s good news for MBA and Business Masters program graduates as Corporate hiring plans for 2017 indicate robust employment opportunities, according to the 16th annual Corporate Recruiters Survey report from the Graduate Management Admission Council (GMAC).

The Survey found that globally, 86% of companies propose to hire fresh MBA graduates this year, up from 79% in the previous year. Demand for these MBA graduates was strongest in the United States and Asia-Pacific, where 9 in 10 companies plan fresh recruitments.

“Despite the political uncertainty about the status of immigration and work visas in the United States and other parts of the world, companies are keen to hire graduates from this year’s MBA and business master’s programs, including international candidates,” GMAC President and CEO Sangeet Chowfla said.

In terms of compensation, MBA salaries are expected to reflect 83% premium over recent bachelor’s salaries. Globally, more than half of the survey respondents (52%) reported that MBA base salaries will increase at (34%) or above (18%) the rate of inflation in 2017.

The Survey respondents in Asia-Pacific, Europe, Latin America and the United States had declared their intention to hire international graduate business candidates. Overall, 59% of the survey participants plan to hire or are willing to hire MBA and business master’s graduates requiring legal documentation. This was a gain of seven percentage points from 2016.

In the US, 55% of the companies either plan to hire (28%) or are open to hiring (27%) an international candidate as against 49% in the previous year. The technology industry in the US is the most likely to hire international business graduates this year. Half of US tech firms (50%) have hiring plans, up from 27% in 2016, the survey report said.

GMAC conducted the survey in February and March this year with EFMD and MBA Career Services & Employer Alliance (MBA CSEA) as survey partners, in association with 97 graduate business schools.

The findings are based on responses from 959 employers representing more than 628 companies in 51 countries worldwide. Two additional organisations, CEMS and RelishMBA, assisted with recruitment of survey participants, GMAC said in a release.

For Business Master’s graduates, the employment outlook was bright, especially those with Master in Management and Master of Accounting degrees. The largest increase in hiring demand compared with 2016 was seen in the number of companies that globally touched 59%, up nine percentage points from the previous year.

The Survey found that 70% of manufacturing companies planned to recruit Master in Management graduates, up from 50% in 2016.

Data analytics expertise continues to be in high demand. Almost 69% of employers plan to place recent graduate business school hires into data analytics roles in 2017, just behind marketing, business development, and finance roles, each with 71%.

Yet another piece of good news is that more start-up companies plan to employ fresh graduates. The survey report, for the first time, provides responses from start-up companies. It states that 3 in 4 start-ups plan to recruit fresh talent in 2017, up from the 52% in the previous year.

More start-ups also plan to make 2017 hires from graduates of Master in Management (37%), Master of Accounting (23%) and Master of Finance (25%) programs.

In terms of compensation, MBA salaries are expected to reflect 83% premium over recent bachelor’s salaries. Globally, more than half of the survey respondents (52%) reported that MBA base salaries will increase at (34%) or above (18%) the rate of inflation in 2017.

Latin America (74 % of respondents) and Asia-Pacific (59%) have the greatest share of companies that plan to increase MBA salaries either at or above the rate of inflation this year.

However, a majority of European (57%) and US companies (51%) will maintain 2016 salary rates for new MBA hires in 2017. The projected median base starting salary for recent MBA graduates in the US in 2017 will be $110,000, up from a median of $105,000 in 2016. This represents an 83% premium over recent bachelor’s degree holders in the US, who could expect to receive a median starting salary of $60,000 in 2017.

“Once again, this year’s report brings to light the continued value of the MBA degree to the marketplace. The increased interest in speciality master’s talent provides further indication of the relevance of these programs at our member schools,” Megan Hendricks, executive director of MBA CSEA, said.(Image Source:Google.com)