There is good news for graduates of MBA and Business Master’s Programs, as there are corporate massive hiring plans to robust employment opportunities. According to a new employer survey report from the Graduate Management Admission Council (GMAC), globally 86 percent of companies plan to hire recent MBA graduates this year, up from 79 percent that hired them in previous year 2016.
Demand for these MBA graduates is strongest in the United States and Asia-Pacific, where 9 in 10 companies plan recruitment to hire these fresh candidates.
Sangeet Chowfla, GMAC President and CEO said, “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. This signifies the value these programs create for students and the vital role their skillsets bring employers.”
At the time GMAC conducted the Corporate Recruiters Survey in early 2017, respondents in Asia-Pacific, Europe, Latin America and the United States declared their intention to hire international graduate business candidates. Overall, 59 percent of the survey respondents plan to hire or are willing to hire MBA and business master’s graduates requiring legal documentation. This is a gain of seven percentage points from 2016.
Most U.S. companies (55 percent) either plan to hire (28 percent) or are open to hiring (27 percent) an international candidate in 2017 as against 49 percent in the last year.
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The technology industry in the U.S. is the most likely to hire international business graduates this year. The survey report said that half of U.S. tech firms (50 percent) up from 27 percent that planned in 2016, plan to hire MBA graduate candidates this year (2017).
GMAC together with survey partners EFMD and MBA Career Services & Employer Alliance (MBA CSEA), conducted the 16th annual Corporate Recruiters Survey in February and March 2017 in association with 97 participating graduate business schools.
The Survey data are based on responses from 959 employers representing more than 628 companies in 51 countries worldwide. Two additional organizations, CEMS and RelishMBA, assisted with recruitment of survey participants.
The hiring outlook in 2017 is also bright for Business Master’s Graduates especially those with Master in Management and Master of Accounting degrees. The largest increase in hiring demand compared with 2016 is seen in the number of companies that plan to hire Master in Management graduates; globally, 59 percent plan to hire fresh Master in Management graduates, up nine percentage points from the previous year.
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Also in 2017, 70 percent of manufacturing companies plan to hire Master in Management graduates, up from 50 percent of companies that hired them in 2016.
Data analytics expertise continues to be in high demand. Around Sixty-nine percent of employers plan to place recent graduate business school hires into data analytics roles in 2017, just trailing the marketing, business development, and finance roles, each with 71 percent.
Another piece of good news is that more Start-Up Companies also Plan to Hire Business School Graduates this year. Survey report states that three in 4 start-ups plan to hire recent MBA graduates in 2017, up from the 52 percent that hired them in last year 2016.
More start-ups also plan to make 2017 hires from graduates of Master in Management (37 percent), Master of Accounting (23 percent), and Master of Finance (25 percent) programs.
Compensation For MBA Graduates
MBA Salaries Will Reflect 83 Percent Premium over Recent Bachelor’s Salaries. Globally, more than half of survey respondents (52 percent) report that MBA base salaries will increase at (34 percent) or above (18 percent) the rate of inflation in 2017.
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Latin America (74 percent of respondents) and Asia-Pacific (59 percent) have the greatest share of companies that plan to increase MBA salaries either at or above the rate of inflation this year.
A majority of European (57 percent) and U.S. companies (51 percent, respectively) will maintain 2016 salary rates for new MBA hires in 2017. The projected median base starting salary for recent MBA graduates in the U.S. in 2017 is US$110,000, up from a median of US$105,000 in 2016. This represents an 83 percent premium over recent bachelor’s-degree holders in the U.S., who can expect to receive a median starting salary of US$60,000 in 2017.
Megan Hendricks, executive director of MBA CSEA said, “Once again, this year’s report brings to light the continued value of the MBA degree to the marketplace. The increased interest in specialty master’s talent provides further indication of the relevance of these programs at our member schools.”
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