Despite the crisis, there is still a gap in salaries in the global labor market between MBA graduates and those without such a degree. Recruiters are fighting among themselves for young talent from business schools. Nunzio Quacquarelli, editor and topmba.com, talks about the latest data on this topic.
In an era of financial instability and intense global competition, the MBA degree is becoming a safe haven for young professionals seeking career growth. For the first time ever, continental European business schools reported higher wages graduates than their counterparts from the US and UK, while the US still remains the leader in terms of bonuses and bonuses.
The average salary for MBA graduates in consulting is $101,137, surpassed only by salaries in the telecommunications and high-tech industry, which is $106,142. By comparison, the average salary for a candidate with four years of work experience but without an MBA degree is $66,271, and for a candidate with who worked for four years in the telecommunications industry - $74,378.
In developing countries, MBA salaries range from $32,000 to $160,000. These salaries are unlikely to decline given the projected demand for managers in the coming years.
Media and entertainment MBA salaries rank third at $97,295, compared to $63,745 for candidates with four years of industry experience. The salaries of people with a master's degree or PhD are also always lower than those of MBA graduates.
On average, a business school graduate starting out in a bank makes $89,169. By comparison, a non-MBA colleague with four years of experience in banking makes an average of $80,236. According to this year's respondents, salaries for MBA graduates in banking sector reached the $140,000 mark and the rather low $25,000 mark in some emerging markets.
KPMG, the global market leader in providing audit, tax and consulting services, in Europe traditionally gives preference to ordinary accountants over candidates with an MBA degree. Lord Michael Hastings, Global Head of Diversity at KPMG International, says this is changing. KPMG constantly works with clients around the world who not only ask for advice when faced with tax problems. They are interested in how they could function and best grow their business in countries where challenging situations arise. An MBA degree opens up broader prospects than a standard one. financial education.
Salaries of MBA graduates depending on region
A weaker dollar and apparent compensation increases in Western Europe have resulted in salaries for Western European MBA graduates averaging $99,156, compared to $91,283 for Western European MBAs. North America(more details in).
Salaries in other regions, apparently, are also approaching this level. Salaries in Asia and the Pacific rose by more than 10% in 2008 to an average of $83,380 (Australia, Japan, Singapore, Korea, Taiwan, not including data from China, India and Thailand).
Salaries in Latin America are also growing quite quickly, reaching an average of $70,456 in 2008. In all regions, international corporations offer higher salaries to MBA graduates than local companies.
Within countries, MBA salaries are 20% higher in capital cities and financial centers than in small towns. The UK saw the highest salaries at $111,000 in 2007, thanks largely to London recruiters. It is unknown whether the picture will remain the same next year.
When comparing salaries in different regions, MBA graduates should also take into account living expenses - the real ratio of expenses and compensation in a particular country and company.
Every year the OECD (Organization for Economic Co-operation and Development) publishes a study comparing purchasing power in different countries. According to the study, purchasing power in Mexico City is 24% higher than in the United States. Despite the fact that salaries for business school graduates in Latin America are 23% lower than in North America, graduates living in Mexico City will be able to afford more than their counterparts living in the United States. In contrast, purchasing power in Japan is 36% lower than in the United States, but higher prices will lead to a lower standard of living if wages here are the same as in other countries.
* The QS TopMBA.com Salary & Recruitment Trends Report is published in August each year. Its summary results are available on TopMBA.com for registered candidates for the QS World MBA Tour and other QS forums and events.
Recently, topmba.com, known for organizing the World MBA Tour, publishing MBA reference books: The MBA Career Guide and conducting MBA market research, conducted another survey of the world's largest employers, International Recruiters Survey 2003. The purpose of this large-scale study is to identify the latest trends in the business market -education and employment of MBA graduates. Read about some of them below.
Trends
4,000 employers took part in the survey - international corporations and companies that do not limit the search for high-quality professionals outside their country. The globalization of business education and the MBA degree is one of the main trends identified by the study.
MBAs (Masters of Business Administration) are becoming in demand on a truly global scale, no matter whether the employer is located in Bombay or Buenos Aires, Boston or Brussels. And this expands the capabilities of business school graduates and makes them more mobile.
For example, in Lately The number of jobs for MBAs in New York has decreased, but in Beijing there is a real boom in these specialists. There has also been growth in Eastern Europe, Australia and India, countries that until recently had little interest in MBAs.
Graduates of lesser-known schools are slowly beginning to compete with the elite. They do not have such high salary requirements, and often have the same amount of knowledge. Many companies, especially those not among the international giants, prefer graduates of local strong schools to those with a diploma from a world-famous school.
According to the study, the hiring situation for MBA graduates has improved this year compared to the previous year. This applies to two areas: production and consulting. Manufacturing companies, especially actively developing an international network of branches (for example, Siemens, DaimlerChrysler, BASF), even create special programs to attract the best MBAs. Another fast-growing market is IT and telecommunications companies. There are no significant changes observed in the financial sector. However, according to recruiters' forecasts, next year growth is expected in all
areas. MBA salaries increased by 2% this year, but overall over the past seven years they have risen by 16.5%. Wages are forecast to continue to rise, especially in North America and Asia.
When making forecasts for next year regarding the fate of the MBA, experts are full of optimism. "Recruiters are returning to campus and planning to recruit many more MBAs in 2004 than in recent years," says Alison Edmonds of Manchester Business School. Her words are confirmed by Melissa Carlson from the American Tuck School of Business: “We expect 100 percent employment of next year’s graduates.”
Adds Adrian Barrett of MBA Global Employment Services: "More and more small companies are hiring MBAs. It's working." chain reaction: first, one MBA gets a job in such a company, and having received the right to hire new employees, he attracts his own kind.”
It is generally accepted that the holder of an MBA diploma will have a career as a senior manager whose responsibilities include strategic management and company development. However, statistics show that the majority are engaged in consulting and marketing. The least popular area of application for an MBA diploma recently is e-commerce.
What do MBA graduates do?
Consulting - 18%
Marketing - 14%
Strategic planning - 12%
Financial consulting - 10%
Sales and development - 10%
Finance - 9%
General management - 8%
Operations management - 6%
IT/technology - 5%
Logistics/purchasing - 5%
E-commerce - 3%
Top Ten MBA Recruitment Consulting Firms in 2003
Accenture
AT Kearney/EDS
Boston Consulting Group
Booz Allen
Bain & Company
Deloitte Consulting
IBM Consulting
McKinsey & Co
Mercer Management Consulting
Roland Berger
Ten leading banks and financial companies hiring an MBA in 2003
ABN Amro
American Express
Barclays Capital
Citigroup
Deutsche Bank
GE Capital
Goldman Sachs
JP Morgan Chase
Merrill Lynch
Morgan Stanley
Top Ten manufacturing companies hiring an MBA in 2003
Eli Lilly
Ford
General Electric
General Motors
GlaxoSmithKline
Johnson & Johnson
L'Oreal
Pfizer
Procter & Camble
Unilever
Top 10 Hiring MBA Hiring Companies in 2003
AOL Time Warner
AT&T
Bertelsmann
British Telecom
IBM
Lucent
Microsoft
Philips
Siemens
Vodafone
What do employers want?
The study shows that more than half of employers (53%) are looking for candidates with work experience from one to four years, 38% are interested in specialists with experience from 4 to 8 years. According to recruiters, it is these MBAs who have the optimal combination of youth, energy, professionalism and reasonable ambitions. Those with more than 8 years of professional experience can already expect a much higher salary, a higher position and a more exclusive job. But there are few such candidates, and therefore employers (9%), as well as absolute beginners without experience (5%).
When talking about professional skills, employers prioritize the ability to manage people, think strategically, and leadership skills. This, in their opinion, is much more important than academic, financial and IT knowledge. Other important components of a successful candidate and future manager include entrepreneurship, knowledge of the international market and availability international relations, the ability to think and work on a global scale.
What do MBAs want?
As you know, an MBA degree is obtained not only for the sake of a career, but also for the sake of high income. The surge in Internet business in 1999 (the so-called dot.com boom) raised MBA salaries to stratospheric heights. However, the collapse of this market the following year and the economic recession that began in 2001 cooled the ardor of employers, and the average level of wages fell. And only this year there is a slight rise again, which, according to forecasts, will continue in the future, and by the end of 2004 it will reach the pre-crisis level. (see chart 2). True, an increase in MBA salaries has been observed only in the USA and Asia,
In Europe, everything remains the same for now. In anticipation of the next boom, experts advise not to waste time and accept jobs that may not meet salary expectations, but can help develop professional skills, knowledge and connections. Although, despite the instability of the economy, the game is worth the candle: after all, according to statistics, an MBA diploma provides its owner with an increase in income by 50-100% compared to what he had before.
Average MBA salary in the US and Europe ($)
1996 - 65106
1997 - 66678
1998 - 66563
1999 - 73807
2000 - 78372
2001 - 81680
2002 - 74367
2003 - 75846
The highest salaries are in the financial sector, and here are the largest bonuses and compensations, as a result of which the average total annual income of MBAs working in this area exceeds $100 thousand. The second place in terms of financial attractiveness today is occupied by consulting. However, if you take into account bonuses, then high-tech business (IT, telecommunications, telephony) is almost as good as it.
Overall income level by sector ($)
Production: salary 69392, bonus 13642
High technologies: salary 69281, bonus 20656
Consulting: salary 73964, bonus 16143
Finance: salary 81144, bonus 26107
Companies operating in the USA and Western Europe, offer approximately the same salary to MBA graduates. International corporations and investment banks located in Asia (albeit mainly in large financial centers - Hong Kong, Tokyo, Shanghai) are also slightly inferior. More low income from MBAs in Latin America and Eastern Europe. This is due to a number of reasons: an unstable economy, less investment attractiveness, unstable currency, and also a lower cost of living. The latter, by the way, is of great importance when choosing
e places of work. After all, of course, real income is much more important than nominal income. And the numbers say that, for example, in Mexico the cost of living is 24% lower than in the States. This means that the noted difference in salary of 33% is not very significant, because the standard of living of a Mexican and an American with an MBA is approximately the same. At the same time, say, Japan is 36% more expensive than the United States, while a Japanese MBA earns on average 10% less, so his standard of living is significantly lower. If you believe the numbers, those with an MBA who live and work in Eastern Europe feel the best. On
For example, the cost of living in Hungary is 55% lower than in the USA, and wages are only 44% lower. There are no similar figures for Russia in the study. But if we take into account that Moscow is one of the most expensive cities in the world, then it is unlikely that the same optimistic picture would emerge as with Hungary.
Average MBA salary by region ($)
USA - 76953
Western Europe - 75929
Asia - 70182
Latin America - 51070
Eastern Europe - 49667
Patrick MacDonald
Every business school graduate dreams of getting a prestigious, responsible and high paying job. But what are his real chances of success? Graduate employment statistics are the most important indicator of the success of an MBA program. A good position in a reliable company with decent wages and great growth prospects is the very goal that justifies the considerable amount of money, financial and time, invested by the program student in their own training.
How are ratings compiled?
One significant nuance should be noted here. If the performance of a school in the ranking unexpectedly worsens, this is not yet a reason to panic. In some cases, this may indicate that many graduates of this educational institution are trying to launch their own startups or go to work in non-profit organizations. Accordingly, if you dream of creating your own innovative business, you might want to consider a school that has the most startup-friendly environment—not one whose students sign lucrative contracts with large corporations.
Business schools are leaders
Based on class of 2014 statistics, four US business schools boast that 98% of their former students were employed within three months of graduation: Chicago Booth, Goizueta, Tuck and Wharton. Goizueta has consistently achieved this figure for the third year in a row, thus holding the world record for the number of students successfully employed 90 days after graduation. However, if you look at employment statistics at the time of graduation, the international leader is Tuck with 91%.
Interestingly, schools also differ in the willingness of their graduates to accept job offers. For example, at Chicago Booth, 98% of diploma holders were invited to take a position within a company within three months, and 97% accepted. At Columbia Business School, 97% of former students received offers, but only 91% accepted them.
An applicant who has not only a set of relevant skills, but also impressive work experience and an impressive portfolio of projects completed before enrolling in an MBA can count on the highest level of income. Some graduates can expect a starting salary of $300,000, the same figure listed in the contracts of several professionals who left Stanford, Wharton and Harvard last year to work in investment banking, private equity and venture capital.
In recent years, more and more professionals have dreamed of working with private equity capital, as they offer very substantial remuneration. However, the demand for MBA graduates in this field is relatively small compared to that in consulting, banking or customer service. high technology. Recruiters recruit young professionals from a very limited range of prestigious educational institutions, and we have to fight hard for a place in the sun in a promising industry. In 2014, Stanford graduates entering the private equity world earned a median salary of $170,000, an all-time high for an MBA graduate. On top of their salaries, these specialists received a starting median bonus of $40 thousand, and the total amount of compensation given to them for the year was $175 thousand on average and $300 thousand at its maximum.
Speaking of bonuses, in 2014, the world's largest annual compensation of $350 thousand went to a Wharton graduate. Taking into account the basic salary, the lucky person's income for twelve months reached (and possibly exceeded) half a million dollars. According to the balance of power today, for high bonuses in addition to your salary, you should go to hedge funds: there, the annual compensation for effective employees reaches $150 thousand with a salary of $125 thousand.
The most modest salaries are usually offered in retail trade, healthcare, entertainment and media. MBA degree holders employed in non-profit organizations cannot boast of phenomenal income either. Standing apart are those specialists who go to work in Asia or other regions of the world, where, in accordance with the local standard of living, their salary is more than competitive, but in terms of dollar equivalent it seems modest. So, last year, a graduate of Kenan-Flagler Business School, who left for an Asian country with a developing economy, began to receive only $23 thousand. Three more graduates of schools such as Columbia, Michigan and Carnegie Mellon started with a salary of $24 thousand - and this was a record low for 2014.
However, it should be understood that personal income is a very sensitive topic. The majority of successfully employed graduates, if they make something public, it is, as a rule, the level of their salary, but not the size of the bonuses. Some business schools - including Harvard - do not publish the salaries of their former students, even under conditions of complete anonymity, limiting themselves to more abstract indicators (for example, that 13% of their graduates working in private equity and leveraged buyouts can expect a median bonus of amounting to $80 thousand). Confidentiality is observed to ensure the privacy of specialists, as well as to ensure that applicants do not have inflated expectations regarding their own prospects.
Caroline Zimmerman's MBA from INSEAD came with the usual set of benefits: an understanding of business fundamentals and a wide network of connections. However, one skill the program did not offer was programming in Python.
Python is one of the most important tools in Zimmerman's work (she runs data analysis and processing at the music company BMG). However, her lack of technical skills did not prevent her from applying for a position, because at INSEAD she learned the right attitude towards problems - not to be afraid of them. And Zimmerman taught herself Python through online courses.
The desire to learn something new that you don't know is valued over extensive knowledge in the technology sector, Zimmerman says.
The ability to solve complex problems is one of the top five MBA skills sought by employers, according to the FT's 2018 FT MBA Skills Gap Survey. More than 70 of the world's largest employers took part in the study.
FT data shows that employers are keen to hire graduates with the right social and psychological qualities (soft skills), such as the ability to work in a team and find mutual language with the most different people(among the most important they were named by 64 and 54% of FT respondents, respectively).
MBA programs traditionally provide a variety of hard skills, and employers say candidates with the right hard skills (e.g. accounting who know marketing, economics, programming or foreign languages) is easier to find.
Susan Sandler Brennan, associate dean of the Sloan School of Management at MIT, says useful social-psychological skills will help them protect their jobs in the age of automation. However, at the stage of hiring an employee, such qualities are more difficult to assess than the same knowledge of accounting. Nowadays, companies are increasingly using preliminary online testing of candidates, which means that only applicants with the necessary professional knowledge and experience reach the interview stage. The ability to build, maintain and expand networks can be very valuable to an employer, but without the necessary technical skills, a graduate will not be invited to an interview, says Sandler Brennan.
Leading employers have increasingly begun to express skepticism regarding business schools as a channel for training employees with the necessary skills - both socio-psychological qualities and professional knowledge.
The most important skills for employers
1) Ability to work in a team 2) Ability to work with a variety of people 3) Ability to solve complex problems 4) Ability to build, maintain and expand relationships with people 5) Time management and ability to prioritize
“We expect candidates professional experience, the ability to manage a team and coordinate work with clients,” says Anna Purchas, partner at KPMG UK. Consulting company is looking for candidates with relevant experience, leadership qualities and passion for work. However, KPMG UK found that such candidates can be found not only in business schools, but also in other companies, especially in the technology sector. “We don’t recruit MBAs or even track how many of our employees have MBAs,” Purchas said.
Employers across all industries have admitted that big data analysts are the hardest job to find. 13% of FT respondents said it was impossible to hire such specialists.
Candidates for cybersecurity or data analytics roles at KPMG should have a strong understanding of programming languages such as Python and R and data visualization tools such as Tableau.
Zimmerman says the lack of technical content in the MBA program did not affect her satisfaction with the course, and the knowledge and experience gained was already valuable, but she feels that business schools do not pay enough attention to technical skills, while many of their graduates go to work. into the technology sector.
Sangeet Chufla, CEO of the Graduate Management Admission Council (the organization that administers business school entrance exams), says that business schools are trying to add technical disciplines to their programs and this process is happening quite quickly.
However, a third of tech companies surveyed by the FT said they were having the hardest time finding MBAs with programming skills.
Five skills that are hardest for employers to find
1) Ability to influence others 2) Strategic thinking 3) Energy and resilience 4) Ability to analyze big data 5) Ability to solve complex problems
Nearly half of the study participants admitted that they have difficulty finding business school graduates with the skills and attributes they need, and that the difficulties are getting worse every year.
Chufla recommends that business schools act in two directions: identify candidates with to the right employers potential and force students in the learning process to solve unusual problems and interact with people unlike them. All this will help them in their work.
MBA graduates generally agree with employers that suitable social and psychological qualities are most important, the FT survey found. However, they evaluate their strengths than employers. Graduates of elite business schools most often cited energy and resilience, as well as the ability to solve complex problems, as their strongest qualities. Recruiters say these are the qualities they find most difficult to find in business school candidates. Sandler Brennan admits that MBA graduates overestimate their capabilities.
Translated by Nadezhda Belichenko
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