The MBA Class of 2016 can look forward to being wooed by the best in the business with increased salaries as icing on the cake, according to no less than two reports, that of the MBA Career Services & Employer Alliance and the Graduate Management Admission Council (GMAC).
A majority of the B-schools in the US is witnessing a rise in campus recruitment for full-time positions compared to the same time period last fall, says an Alliance study.
As many as 65% of the respondents reported increased recruitment of full-time MBA students, from 64% last year. The sectors that saw the biggest increases were technology and consulting, apart from specialist Masters programs in Financial Services industry.
Interestingly, the highest increase in recruitments were in schools ranked 21 to 50 and even in those with no rankings at all. Such a situation occurs when the graduates in the top 20 ranks have already been absorbed. While 61% of the top 20 B-Schools reported a rise in recruitments, it was 83% in schools ranked 21-50 and 70% in unranked institutions.
Interestingly, the highest increase in recruitments were in schools ranked 21 to 50 and even in those with no rankings at all. Such a situation occurs when the graduates in the top 20 ranks have already been absorbed.
Meanwhile, the GMAC, in its ‘2015 Year-End Poll of Employers’ survey found an overwhelming 96% of employers of the opinion that business school graduates created value for their companies and 68% saying that hiring people with MBA and business master’s qualifications was a priority in their company’s hiring plans.
The survey, carried out between October 27 and November 16, by GMAC, tapped 179 recruiters from across 159 companies of varying sizes and industry sectors located in 31 countries or regions worldwide.
GMAC found that more than half (around 56%) of the firms proposed to offer increased base salaries for new recruits in 2016 at or above the rate of inflation. Around 41% said they will stick to 2015 salary levels. About 50% planned to hike average annual base salaries at or above the rate of inflation and 50% to maintain last year’s levels.
Among the recruiters in US campuses were a number of Fortune 500 companies as well as startups, those who have been in business for 12 months or less. While 58% of the schools recorded a rise in Fortune 500 firms recruiting, 48% saw hike in offers from startups.
GMAC found that more than half (around 56%) of the firms proposed to offer increased base salaries for new recruits in 2016 at or above the rate of inflation. Around 41% said they will stick to 2015 salary levels. About 50% planned to hike average annual base salaries at or above the rate of inflation and 50% to maintain last year’s levels.
However, mid-to-smaller sized companies and family-owned firms did not show the same enthusiasm in fresh recruitments. Mid-sized firms, with 100 to 500 employees, were up 38%, while small firms, with less than 100 employees, recorded 31%. For family-owned enterprises, the increase was just 18%.
On the negative side, job opportunities for international students showed a slight dip that is being attributed to ongoing problems regarding visa restrictions in the US. The increasing enrollment of international students by B-schools at a time when number of work visas remained static could have led to such a situation. Only 19% of the schools reported increase in jobs for non-US students, 36% recorded a fall and the remaining 44% no change.
Schools saw a slight decrease in job opportunities for International students, which could be attributed to the ongoing challenges surrounding visa restrictions in the United States. Hendricks said that the crunch was due to increasing enrollment of international students by business schools at a time when there has been no increase in work visas for them. Some 36% of the schools said job opportunities for non-U.S. students have fallen, while only 19% said they had increased. The remaining 44% reported no change.
JOB OPPORTUNITIES INCREASED FOR FULL-TIME MBAS IRRESPECTIVE OF RANKING