Global MBA Hiring Saw 13% Rise in 2017

The year 2017 saw a 13% rise in global MBA hiring, continuing the annual increases over the past decade, according to the QS TopMBA.com Jobs & Salary Trends Report 2018.

The report, based on the responses of 3,463 employers across the world shows that MBA hiring levels are now three times higher than pre-2007 financial crisis levels.

In Asia-Pacific region, the hiring levels touched 18%, much higher than the employers’ expectation of a 13% rise. However, the report predicts that it would slow down to 7% in 2018 and 2% in 2019 once the market reaches maturity.

Chile has reported the highest at US$94,900 followed by Argentina at US$84,300, Mexico at US$78,800 and Colombia at US$74,600.

The average total compensation was US$85,900, a slight drop from US$89,000 in 2016 mainly on account of lower bonus payments. While the salary may not match US levels, the lower cost of living in some of the region’s major countries would compensate for it.

The report says in terms of total compensation packages, graduates in Australia were able to draw US$116,200, Singapore US$105,300 and Japan US$80,000.

For the US & Canada, belying low estimates of just a 3% increase, a 10% rise in hiring across the region was reported for 2017. This has led to a forecast of a 7% increase for 2018.

However, the region scores well in terms of salary that has recovered from a  slight drop in 2016 to edge closer to 2015’s record-high levels. While bonus packages are down, average total compensation packages for the US at US$120,900 and Canada at US$111,100 is only bettered by Switzerland at US$140,900.

Eastern Europe & Central Asia exceeded a predicted growth of 10% in hiring to touch 12%. However, hiring is expected to slow down in 2018 to 3% and even contract in 2019 to -3%.

The soccer World Cup scheduled to be held in Russia in the coming year may provide a boost to the region’s economy and lead to improved figures, the Report says.

The Report noted that basic salaries had increased by 15% in the region, with the MBA graduates drawing an average salary of US$57,000. However, low bonus levels pulled down the total compensation by 6% at US$69,100.

While the region ends up at the bottom of the list in terms of total compensation, when the cost of living is factored into the equation, the salary levels are still advantageous.

Latin America saw an 11% growth in 2017 against a predicted increase of 5%. Employers are confident that they will see similar increases in the next couple of years, estimated at 9% in 2018 and 10% in 2019.

In the region, both basic salary at 6% and total compensation at 5% have steadily increased over the past year. The total compensation figure has touched US$75,900.

Chile has reported the highest at US$94,900 followed by Argentina at US$84,300, Mexico at US$78,800 and Colombia at US$74,600.

Western Europe, where the prediction was just 2%, saw a 10% increase in hiring levels. However, uncertainty caused by the ongoing political upheaval in the region has dampened the prediction for 2018 to 7% and to 5% for 2019.

Switzerland has the highest average total compensation at US$140,900. The United Kingdom comes next with US$122,900 followed by France US$116,200, Italy US$111,800 and Germany US$94,100.

The only disappointment in 2017 was in Africa & the Middle East. The marginal 2% predicted increase was in line with the predictions. The outlook for 2018 is even less positive at -2%.

However, the region is expected to recover from the uncertainties caused by fluctuating oil prices and touch 10% by 2019, the report says.

The basic salaries are up 16% year-on-year. However, the fluctuation of bonus packages has led to overall compensation remaining static in 2017 at US$90,700 in comparison to 2016 at US$89,400).