MBA: More Bucks for Applicants
From CFO.com [ June 26, 2002 in The
Compensation trends are changing, but the degree still brings rewards
So, you shelled out some serious cash to get that MBA. Was it a good investment?
Apparently, the answer is yes—according to a new survey.
Despite the current lousy economy, MBA-holders are still getting bigger paychecks
than others in the work force, according to the 2002 Graduate Management
Admission Council (GMAC) Corporate Recruiters Survey.
Recruiters report they are offering an average base salary of $75,000 to
individuals with MBAs. By comparison, recruiters say they're offering about
$50,000 for holders of other post-graduate degrees, and $41,000 for those
with undergraduate degrees. In addition, 69% indicate they will offer signing
bonuses to MBAs.
This said, the job market is now tipping in favor of the employer. Indeed,
68% of the respondents indicated the weak economy has created a "buyer's
market" for their companies.
Even so, recruiters still estimate that 30% of their 2002 hires will be MBAs,
increasing to 35% in 2003.
Which fields do MBA graduates head for? The most popular one is finance
: 52% of the recruiters say graduates are seeking MBAs for finance careers.
Marketing is a distant second (31%), followed by IT/MIS (25%)
and consulting (24%).
And what are the most important criteria recruiters consider when hiring
somebody with an MBA? Surprisingly, it's not the school that the candidate
attended. Internship and related work experience were
deemed the most important criteria, selected by 70% of the respondents. Other
key criteria included the candidate's history of increased job responsibility
(66%); industry-related internship or work experience (61%) and MBA concentration
of study (61%).
The reputation of the MBA school was only selected by 59% of the respondents,
followed by history of leading teams (55%).
Altogether, 550 recruitment professionals, representing 423 companies, participated
in the GMAC survey.
Other findings in the survey:
• Most recruiters (65%) in the health care and pharmaceutical industries
say they have not altered their hiring plans. The economy's impact was felt
most by recruiters for the consulting industry (86%), manufacturing (79%),
energy and utilities (71%) and technology (69%).
• Three-quarters of recruiters said they did not rescind offers, lay off
new MBA hires, delay job starts or move MBA hires into different departments
• Just 4% of recruiters rescinded offers this year.
• The number of recruiters for US companies making job offers to MBAs three
months or more prior to graduation dropped 10% in 2002. The number offering
jobs within weeks of graduation rose slightly.
• A majority of respondents (76%) said the most important criteria in selecting
schools at which to recruit are the school's reputation and their existing
relationships at the school.
• Other school recruitment factors included the retention history of previous
hires (50%) and a sufficiently large candidate pool (50%).
The Graduate Management Admission Council is a not-for-profit education
organization of graduate business schools worldwide. The organization sponsors
the Graduate Management Admission Test (GMAT) used as part of the admissions
process by graduate management programs around the world.
Copyright © 2002 The Economist Newspaper and The Economist Group. All