The hiring of MBA graduates in 2018 will be softer compared to the previous years but more companies plan to recruit fresh graduates who will continue to command a salary premium, according to the 2018 Corporate Recruiters Survey released by the Graduate Management Admission Council (GMAC).
The Survey said overall, 81% of the responding companies revealed plans to hire recent MBA graduates, compared to 70% in 2017. While larger firms are more likely to offer employment, start-up companies have the largest increase between their 2017 MBA actual hiring rate of 55% and the projected hiring rate of 77% in 2018.
Specialists in Data Analytics continue to be in high demand with 71% of employers proposing to induct fresh recruits. Trending data for Master of Data Analytics, collected for the first time, revealed that while 35% of the companies had hired the graduates in 2017, 52% of companies proposed to hire them in 2018.
Around the world, most of the companies also reported plans to increase starting base salaries for MBA graduates who continued to command a salary premium relative to direct-from-industry hires and bachelor’s degree hires.
The analysis is based on responses received from 1,066 employers in 42 countries worldwide who work directly with participating business schools, including 20% in the Fortune Global 100.
Companies in the United States were willing to offer a median base starting salary of US$105,000 to MBA graduates compared to US$85,000 for direct-from-industry new hires and US$65,000 for bachelor’s degree new hires.
MBA graduates who land opportunities with the Asia Pacific, European, and Latin American companies also could expect a salary premium. Across the world, 52% of companies propose to hike base starting salaries for MBA hires this year compared with last year. While 16% of the firms plan to increase salaries above the rate of inflation, 36% will do it at the rate of inflation.
Meanwhile, the hiring of international business school graduates may witness a drop in 2018. The Survey found 47% of the US companies were willing to hire international talent in 2018, down from 55% in the previous year. Though employers tend to place new recruits in the company’s home region, MBA graduates have placement opportunities across the world.
ALSO READ: CAT 2018: Registration Opens On August 8, Exam on November 25
About a quarter of US companies plan to place new recruits in East and Southeast Asia (27%) and Central and South Asia (22%).
Internships continue to be an avenue to jobs for many business school graduates. MBA internships are offered by most employers in the Asia Pacific and the United States, while business master’s internships are offered by most employers in Europe.
GMAC, together with survey partners EFMD and MBA Career Services and Employer Alliance (MBA CSEA), had conducted the Survey in February and March 2018, in association with career services offices at 96 participating graduate business schools worldwide. RelishMBA also assisted with recruitment of survey participants.
The analysis is based on responses received from 1,066 employers in 42 countries worldwide who work directly with participating business schools, including 20% in the Fortune Global 100.
