The Graduate Management Admission Council (GMAC), a global association of leading graduate business schools, in partnership with MBA Career Services & Employer Alliance and European Foundation for Management Development (EFMD), has released its Business School Hiring Report based on findings from the annual Corporate Recruiters Survey, with over 1,200 employers in 45 countries providing insight into current market and hiring trends among MBA and business master’s graduates.
Comparision of salary with MBA and bachelor’s degree holder
Recent graduates with an advanced business degree, particularly in the US, are procuring substantial starting salaries. The median annual base starting salary US employers plan to offer new MBA hires in 2019 is US$115,000, more than double the median for new bachelor’s degree hires (US$55,000) and the highest ever recorded in the US when adjusted for inflation.
By industry among US employers, median MBA starting salaries are highest in the consulting (US$135,000) and finance/accounting (US$125,000) industries.
Employers clearly place a high value on acquiring MBA and business master’s graduates, said Sangeet Chowfla, President and CEO of GMAC.
We are seeing a highly active candidate marketplace in terms of geographical shifts in study destinations, but the value that both employers and graduates see in an advanced business degree is a constant.
Here’s the report
- Overall, most employers plan to increase MBA starting salaries in 2019 (56%), including 63 percent of Asia-Pacific employers, 56 percent of US employers, and 49 percent of European employers
- Median annual base starting salaries vary considerably by world region
- European companies plan to offer new MBA hires US$95,000 this year, and the median for Asia-Pacific companies is US$45,000
48% of US employers either plan to or are willing to hire international candidates in 2019, about the same as 2018 (47%) and down from 55% in 2017. This year’s survey was fielded in February and March, before the recent H-1B rule change became official on April 1.
The rule change stands to benefit international graduates with advanced degrees from US institutions of higher education over graduates with bachelor’s degrees.
There has been a feeling of uncertainty in recent years around the direction of US visa policy, which is impacting international hiring and application trends, Chowfla continued. It will be interesting to see how much positive impact this rule change may have on both the flow of international students to the US and their employment opportunities.
Employer MBA hiring plans remain strong but have moderated for the second consecutive year
While MBA hiring projections remain strong relative to historic trends, for the second consecutive year a smaller proportion of companies overall report plans to hire MBA talent compared with the previous year.
- Among US employers, 77 percent plan to hire MBA talent in 2019, down for the second consecutive year
- A slightly smaller proportion of responding US companies report plans to grow and expand this year (66%) compared with last year (69%), as worries associated with talk of trade wars and higher tariffs may be impacting employer plansNearly nine in 10 (87%) companies in Asia-Pacific plan to hire MBAs in 2019the highest share of any world region, though off slightly compared with last year (90%)
- Nearly 7 in 10 European companies plan to hire MBAs in 2019 (69%), up from 2018 projections (64%)
GMAC provides world-class research, professional development opportunities and assessments for the industry, designed to advance the art and science of admissions. Owned and administered by GMAC, the Graduate Management Admission Test (GMAT) exam is the most widely used graduate business school assessment, recognized by more than 7,000 programs worldwide.