Bright prospects for MBA jobs in 2011
MBA programs should benefit from a continuing rise in MBA jobs in 2011. Some business school graduates could even match the feat of a Stanford Graduate School of Business MBA who landed a $330,000 private equity job in 2010, according to the Poets & Quants MBA network.
In 2011, the number of MBA jobs could increase due to a recovering economy and the need to implement pending corporate projects, according to the 2010 Year-End Poll of Employers from the Graduate Management Admission Council (GMAC). Conducted between November 3 and 19, 2010, the survey is based on the responses of 210 employers in 194 companies. Nearly two-thirds of respondents worked in U.S. companies, while the remaining third represented companies in 29 countries.
"The job market for graduating business students is improving, and more hires are expected," one of the survey participants says. "The personnel cuts that took place during the crisis have stopped. Business is recovering and looking for stability and steady growth."
MBA hiring: key employer survey findings
- Thirty-four percent of the companies polled report that they expect to hire more recent business school graduates in 2011. More companies could hire graduates of MBA programs in 2011, as more than a fourth reported hiring fewer than planned in 2010.
- MBAs are the most popular among master-level business school hires. In 2010, 60 percent of master-level business school grads hired possessed an MBA. In 2011, 64 percent should have an MBA degree.
- When it comes to salaries, companies remain cautious. Twenty-six percent plan to offer higher salaries to 2011 MBA graduates. The rest of the salaries should remain close to 2010 levels.
The number of MBA jobs has been increasing for some time, according to the GMAC. Nearly nine in 10 business school graduates from the class of 2010 had a job after graduation, the GMAC reports, noting a slight improvement from 2009 when 84 percent said they were employed. In 2010, business school graduates reported a median starting salary of $78,820, up from $75,000 in 2009, GMAC reports.
GMAC CEO Dave Wilson is convinced graduates of MBA programs are an asset for companies. "Companies are managing through an unprecedented economic environment," he says. "It is precisely because of these pressures that they place such a high value on newly minted MBAs to help them survive and thrive."
MBA programs: required business knowledge
MBA programs should prepare business school graduates to meet company goals, according to the GMAC employer survey. In 2011, the survey reports, 78 percent of companies plan to improve performance and productivity, 61 percent to expand their customer base, and 58 percent to reduce costs. Nearly half should also launch new products and services and implement initiatives to improve customer service. Companies could likely search for business school graduates for key areas: marketing and sales, finance and business development.
Many MBA programs are already going the extra mile to ensure their business school graduates are prepared for available positions. While soliciting feedback from companies, MBA programs have learned that some would like their hires to arrive with solid industry and position knowledge. Therefore, MBA programs have been expanding concentrations to provide students more specialized knowledge. New concentrations address health care, technology, energy and government sector needs.
To ensure its MBA graduates stand out in the job market, The Wharton School of the University of Pennsylvania has gone a step further. Wharton has modified its curriculum to address current corporate challenges and strengthen crucial MBA skills. The new Wharton curriculum allows students to focus on six business areas.
- Finance and the Global Economy
- Ethical and Legal Responsibility
- Managing the Global Enterprise
- Understanding and Serving Customers
- Corporate Reporting and Control
- Management of Operations, Innovation, Information, and Decisions under Uncertainty
Wharton is also emphasizing the teaching of analytics, ethical and legal responsibilities in business, oral and written communication and leadership skills. In addition, it's guaranteeing new MBA graduates tuition-free executive education every seven years throughout their careers.
According to Poets & Quants, 2010 MBA employers included McKinsey & Co., the Boston Consulting Group, Goldman Sachs and Morgan Stanley. Johnson & Johnson, Amazon.com, Deloitte Consulting, Microsoft and Bank of America hired at MBA programs, as well.
