2015 topmba.com jobs salary trends report v1

8/21/2019 2015 Topmba.com Jobs Salary Trends Report v1

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QS TopMBA.comJobs & Salary Trends

Nunzio Quacquarelli (MA Cambridge, MBA Wharton)

Susan Gatuguta Gitau (BSc USIU - Africa, MA Nottingham University Business School)

2014/15


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Introduction 4

Who will be interested in the survey? 4

Methodology and Scope 6

Summary of Key MBA Hiring Trends in 2014 7

Summary of Key MBA Salary Trends in 2014 12

Demographics & Sample of MBA Employer Respondents 14

Long-term trends in MBA Jobs 1990-201417

Demand for MBAs Around the World in 2014/15 20

5.1.1.MBA Jobs Trends in USA & Canada 22

5.1.2.MBA Jobs Trends in Latin America 23

5.1.3.MBA Jobs Trends in Western Europe 23

5.1.4.MBA Jobs Trends in Eastern Europe 24

5.1.5.MBA Jobs Trends in Asia-Pacific 25

5.1.6.MBA Jobs Trends in Middle East & Africa 26

MBA Jobs by Sector in 2014 and Forecast for 2015 27

5.2.1.MBA Jobs in Consulting 28

5.2.2.MBA Jobs in Financial Services 28

5.2.3.MBA Jobs in Technology & Telecoms 29

5.2.4.MBA Jobs in General Industry 30

5.2.5.MBA Jobs in Pharmaceuticals & Healthcare 32

Functional Roles on Offer to MBAs 33

Preferred MBA Experience Levels 34

Key MBA Skills 35

MBA Salaries and Compensation 39

Overview of Regional MBA Compensation in 2014 39

Comparing MBA Salaries in North America and Western Europe

1999-2014

42

MBA Salaries and Bonuses by Industry Sector in 2014 42

Contents


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Regional Review of MBA Salaries & Bonuses in 2014 44

6.4.1.USA & Canada 45

6.4.2.Latin America 47

6.4.3.Western Europe 47

6.4.4.Central Europe 49

6.4.5.Asia-Pacific 50


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The MBA (Master of Business Administration) is a graduate management degree that prepares

professionals for management responsibility. It is one of the best-known degrees in the world,

with more people taking it than any other postgraduate course. Deciding to take an MBA is

a crucial step in an individual’s career.

Since 1990, the QS Intelligence Unit, in collaboration with TopMBA.com, has conducted an

annual survey of MBA employers worldwide to determine trends in international salaries and

recruitment. QS is proud to produce the longest established, geographically broadest and

most comprehensive global review of MBA jobs and salary trends.

The 2014 International Employer Survey is as extensive as ever and presents an unrivalled

overview of the world MBA recruitment market. For the purpose of this report, responseswere received from 5,669 (4,318*) respondents from companies in 54 (39) countries, actively

recruiting MBAs** over a three-year period, with 1,632 brand new respondents in 2014. This

represents approximately four times the response of the GMAC MBA Employer Survey and

approximately ten times the response level of the Bloomberg Businessweek MBA Employer

Survey.

The 2014 QS International Employer Survey was conducted between March and July 2014.

* Comparative gures for 2013 are shown in brackets throughout the report

* QS Global Employer Survey also collects responses from companies seeking to hire

masters and undergraduate level students. In total 28,759 employer respondentscontributed to our reports in 2014.

Who will be interested in the survey?

This research will be of interest to all who follow the international MBA recruitment market.

It will help three groups in particular to make informed strategic decisions:

~ Companies and agencies that recruit MBAs

• National and international recruiters will nd the survey useful in managing

human resource policies, such as whether to determine salaries globally or locally,

and whether to benchmark their salaries against peer institutions.

~ Business school administrators and career services ofces worldwide

• MBA program administrators and career services professionals will nd the

survey valuable for providing guidance to students and managing relationships

with recruiters.

~ Current and future MBA graduates

• MBAs can use the research to determine which industries and geographies to

pursue in their MBA job search, and to help negotiate an optimum compensation

package.

Introduction

*


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About the Contributors

~ Editor - Nunzio Quacquarelli is founder and managing director of QS Quacquarelli

Symonds Ltd, publishers of TopMBA.com and organizers of QS World MBA Tour.

Nunzio has an MA from the University of Cambridge as well as an MBA from the

Wharton School and has been responsible for publication of the QS TopMBA.com

Jobs & Salary Trends Report since 1990.

~ Analyst – Susan Gatuguta Gitau is a research analyst and member of the QS

Intelligence Unit. Susan has an MA in Corporate Strategy and Governance from the

University of Nottingham.


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The QS TopMBA.com International Employer Survey, from the QS Intelligence Unit, collects

primary data on the state of the recruitment market and predictions of future trends from

recruiters in general industry, consulting, nancial services and technology.

QS obtains information directly from the employers who hire MBA graduates, offering unique

up-to-date insights into salary and MBA job trends around the world. Each respondent is

designated as being responsible for MBA recruiting within his or her company, whether as a

whole or in a division. They are asked to identify their geographical responsibilities, conrming

whether they recruit locally, regionally or globally. The data includes specic analyses by sector,

geography and year. Time trend analysis as well as sector and regional variations have been

incorporated into this nal report.

As the demand for MBAs grows around the world, it is increasingly important to differentiate

between local MBA employers who seek MBAs purely from local institutions, versus

employers with an international recruitment mandate seeking MBAs from a top-tier of up

to 200 global business schools. In particular, throughout the report, we seek to distinguish

salaries offered by local employers versus offers made by international employers.

QS produces a separate report – World Business Schools Rankings – Full-time MBA – that

identies the institutions most sought after by international MBA employers.

QS TopMBA.com also collects data directly from business schools which report average

salaries achieved by graduating students; this data is included in section six for comparison

with the data reported by employers.

QS further differentiates its research by the objectivity of its position as a third party, operating

between recruiters and business schools. Our long established contacts with recruiters who

share their information with QS, and the bank of data on MBA recruitment and remuneration

built up by QS over the last 20 years, allow meaningful trends to be identied over time. QS

operates the website www.global-workplace.com which provides career opportunities and

networking facilities exclusively for member business schools. Over 100 business schools and

1,000 employers subscribe to QS Global-Workplace.

Methodology and Scope


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1. Summary of Key MBA Hiring Trends in 2014

Each year, QS continues to conduct the largest survey of employers worldwide, with 5,669

(4,318) MBA employer respondents contributing to this year’s report, including 1,631

brand new respondents, from a total of 35,000 (27,000) respondents globally to our Global

Employer Surveys.

The QS TopMBA.com Jobs Index shows an overall 8% increase in MBA job opportunities in

2014, a drop from the 14% growth experienced in 2013, but still very favourable compared

to OECD GDP growth.

With employers forecasting 12% growth in MBA demand in 2015, we are perhaps seeing the

emergence of a mature qualication with a long-term growth rate likely to swing between

6-12%, rather than the phenomenal 15% average growth reported by QS TopMBA since 1990.

Since 1990, the MBA qualication has played a central role in the globalisation of business, with

export oriented companies in Western and emerging markets fuelling worldwide demand

growth for MBAs.

MBAs = Mobile, Bright, Ambitious

15% = Average Growth in MBA Demand Worldwide 1990 – 2012

10% = Average Growth in MBA Demand Worldwide 2013-15e

1.1. Summary of Key MBA Recruiting Trends

By Region:

~ NORTH AMERICA - The QS TopMBA.com report highlights that across

North America MBA demand has jumped 10% in 2014, in line with our

forecast from last year’s report. It seems that as condence in economic

recovery arrives in North America, we are seeing renewed demand for MBA

graduates from globally oriented and local employers.

~ WESTERN EUROPE - The story in Western Europe is one of a lag in

recovery of MBA demand, with 0% reported net growth in MBA demand in

2014. Growth in demand in Switzerland (15%), Germany (9%), Belgium (9%), France

(6%) and the UK (5%) has buoyed the region. Northern European MBA demand hasbeen offset by continued declines in Southern Europe, especially in Italy (-27%) and

Spain (-1%). However there is some good news for Europe’s MBAs. Growth across

Europe is forecast to accelerate in 2015, with Italian and Spanish employers leading

the way with a projected 15% and 7% growth in demand in 2015 respectively.

~ CENTRAL EUROPE - Central European employers reported growth of

10% in 2014, not quite the dramatic increase we forecast in last year’s report, but

but still a respectable gure. The growth gures are boosted by global companies

expanding operations in Central Europe, with Russia and Kazakhstan reporting 19%

and 18% growth in MBA demand respectively. There is a growing appetite for Western

educated MBAs to return home after their MBA to local/regional employers.


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~ ASIA – After several boom years, demand for MBAs in Asia is settling at

a sustainable rate of 11% per year . In recent years, the MBA qualication has

been embraced by Asian employers, particularly in India and China, where demand is

growing in consulting and professional services, manufacturing, IT/computer services,nance and micro-nance. Since 2011, India has been vying with the USA to be the

largest MBA job market and there is no sign of this trend reversing with forecast

growth of 8% in 2015.

~ MIDDLE EAST - From a small base, MBA demand has grown rapidly in

recent years and it is not surprising that growth rates have settled down to

just 2% in 2014. Growth has centered on the recovery in the United Arab Emirates

and Saudi Arabia. Parts of Africa are reporting optimism for 2015 MBA demand in

sectors like energy, mining, consulting and nance. Demand is forecast to jump by 12%

in 2015.

~ LATIN AMERICA - MBA demand in Latin America has become muchmore plentiful in recent years amongst local employers and this trend is continuing,

albeit at a more sustainable growth rate of 7% in 2014 after a year of 10% growth in

2013. Employers in the region are utilising MBAs as a key talent pool as companies

battle to internationalize across the region. Brazil, Argentina and Mexico continue to

be the engines of MBA growth in the region.

By Sector:

~ ENERGY – Although relatively small by volume, but very attractive to MBAs,

the large energy companies have reported 18% growth in MBA demand in 2014,

supplemented by many smaller companies operating in renewable energy elds.

~ TECHNOLOGY –The big story in 2014 is the spread of demand amongst global

technology companies, which are now recruiting in almost every region of the world.

Top technology rms such as Amazon and Apple feature prominently in rankings of

popular MBA employers as multinationals spread their reach to recruit MBAs from

a growing number of business schools all around the world, in large numbers. Miriam

Park, who heads up Amazon’s MBA recruiting team, says, “We love MBAs because

they’re strong analytical thinkers and problem solvers. They are a strong pipeline of

leadership talent for the long-term.” Other technology companies are responding

in kind with several expanding (or establishing for the rst time) large global MBA

recruitment programs. High tech/electronics companies report 11% growth in

demand in 2014. IT/computer services report 8% growth whilst telecoms report 7%growth.

~ CONSULTING – Since 1990 there has been a six-fold increase in the number

of MBAs recruited annually by the consulting sector. The global expansion of

this industry and the demand for MBAs have gone hand in hand. Consulting and

professional services report a 9% demand growth in 2014 continuing this long-

standing pattern, albeit at a slower rate than previous years. Consulting is a bellwether

of the health of the MBA and the sector is forecasting 8% growth in 2015.


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~ MEDIA – Media & Entertainment has traditionally been a small sector in terms of

MBA demand but 2014 has been the best year for MBA hiring since the dotcom

boom, with 11% growth reported. The spread of broadband is fuelling the demand

amongst traditional media companies looking to digitise their products and alsoamongst many smaller companies seeking to become new media giants. Facebook and

LinkedIn are the biggest brands embracing MBAs, but the list of hiring companies is

extensive.

~ MANUFACTURING & FAST MOVING CONSUMER GOODS – Though

not seen as typical MBA recruiters, there are a growing number of local and national

players who seek MBAs (salaries tend to be below average). Consumer goods is

reporting 12% growth in 2014, whilst manufacturing is reporting 10% growth and the

numbers being hired are signicant, especially in emerging markets.

~ PHARMACEUTICALS & HEALTHCARE – This industry is dominated by global

players, many of which have run global MBA hiring schemes for many years. After a bitof a lull, their appetite for MBAs seems to be resuming with 9% growth in demand in

2014.

~ FINANCIAL SERVICES – Traditionally the nancial services industry has

accounted for about one third of MBA demand. Since the nancial crisis this sector

has undergone signicant regulatory and structural change, which has slowed hiring

patterns, especially in the USA and Western Europe. In 2014 we are seeing some

recovery in demand growth for MBAs in nancial services, especially in Latin America,

but also in North America and parts of Europe. However, this has been offset by

a slowdown in demand for MBAs in this sector in parts of the Middle East and

Southern Europe. The result is an overall growth of just 7%, which perhaps hides

an underlying recovery story. The forecast for 2015 is 5% growth but if the NorthAmerican recovery carries on apace, there could be rapid re-evaluation of hiring

needs.

By Employer Requirements:

The MBA recruitment market is probably the most globally exible recruitment market of

any profession, with employers willing to embrace career changers and targeting an incredible

breadth of nationalities and skill sets. Our 2014 research reveals that employers continue to

seek more experienced MBA candidates, preferably with international experience, combined

with strong interpersonal and ‘soft’ skills. Employers also are increasingly willing to look

internationally to nd the right talent.

~ In 2014, we identify that more MBA employers are recruiting on a pan-

regional or global basis, rather than on a purely domestic basis.

• Despite only 19% of respondents focusing on global recruiting compared to 32%

last year, it is not that North American employers have withdrawn from global

MBA hiring. Rather, we have seen a big increase in the numbers of domestic-only recruiters returning to MBA hiring in 2014, reecting the growing strength

and condence in the US economy. Amongst North American recruiters 63%

focus purely on national recruiting whilst 13% are localised in their search. Not

surprisingly, Asia is the next biggest source region for these employers as the


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technology industry witnesses a revival.

• European recruiters are more globally minded than their North American

counterparts with 36% recruiting globally, up 14% from 2013, and 20% recruiting

across Europe, down from 29% last year. Nonetheless, close to 50% are recruitingCentral Europeans in particular. Between 24% and 34% of European employers

are also very actively looking for North Americans, Asians and Latin Americans.

• Amongst Middle Eastern employers, 95% are targeting local or domestic MBAs,

while 41% are targeting European MBAs. Demand for MBAs across all regions

has increased in comparison to last year.

• Fewer Asia-Pacic employers are targeting local or domestic MBAs down 7%

from 2013. In spite of this decline, 83% of their recruitment activities are based

in Asia-Pacic while 36% are targeting MBAs in North America and 28% are

targeting MBAs in Western Europe. However, a greater proportion is targeting

Central & Eastern European candidates (34%).• Latin American employers are locally focused with 97% targeting their domestic

and local MBAs. In 2014, 15% of Latin American recruiters expressed an interest

in Western European MBAs, up from 10% last year.

~ Business school graduates are still not meeting expectations in terms

of their soft skills including communication, interpersonal and strategic

thinking skills, which are highly sought after. Soft skills are far and away

the most important skills employers are looking for from new MBA recruits.

Communications, interpersonal, strategic thinking and leadership skills make up four

of the ve most important skills for new hires to possess. Relevant work experience

is the fth criteria.

~ Employers are broadly satised with the technical skills acquired by MBA

students, and this result seems to be independent of which business

schools employers target. This refers to academic achievement, computer skills,languages and skills acquired in nance, marketing, e-business, and risk management.

~ International study experience is sought by 67% of MBA employers.

Recruiters strongly agree that screening for language skills and inter-cultural

communication skills is an important part of the hiring process for international

MBAs. The type and duration of study experience is also important. They most

signicantly agree that candidates with international experience outperform those

without.

~ There was a big increase in demand for MBAs with more than ve years of

work experience in 2014, with 29% of employers preferring this group compared

to just 24% in 2013.


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~ In recent years there has been a steady drop in employer demand for

MBAs with less than three years of experience and especially for MBAs

with less than one year of work experience. This trend has continued in

2014 – 33.6 % in 2014 compared to 35% in 2013. Demand for young and pre-experienced MBAs is low in Western Europe and Latin America – in both these

regions there is an above-average demand for MBAs with 5 to 8 years of work

experience. By contrast, Asia-Pacic employers are much more willing to recruit

younger MBAs with 0 to 3 years’ experience.

~ Some signicant changes have appeared in the functions offered to MBAs in 2014.

Business development and marketing are the two most popular functions on

offer, overtaking general management, nance (other) and consulting.

~ The favorite MBA majors/study specializations amongst employers are strategy and

leadership, whilst business innovation has been growing in popularity in

recent years and has caught up with nance.


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2. Summary of Key MBA Salary Trends in 2014

Overall MBA salaries have increased 4% on average in the mature North American and

Western European markets for the rst time in several years, with an average salary of

$94,200, whilst average MBA compensation in North America (including bonuses) is up a

whopping 15% to $128,600. With evidence of MBA demand picking up steadily in North

America as well as in several European markets, we continue to predict that MBA salaries are

likely to increase again in 2015 in these regions. At the elite end of the MBA hiring market

we see salaries between $110,000 and $150,000 as the norm in North America and Europe.

The QS TopMBA.com Jobs & Salary Trends Report provides the rst view of MBA

compensation trends in 2014 based on our survey of 5,669 actively hiring MBA recruiters,

including 1,632 new respondents.

~ Average total compensation offered by MBA employers in North America increased

by 15% to $128,600 ($112,200), with salaries of $97,700 and bonus of $30,900.

~ Total compensation offered by MBA employers in Western Europe grew by 3% to

$112,600 ($109,100). By contrast, total compensation for MBAs in Central & Eastern

Europe is $72,700, up 6%.

~ Total compensation offered by MBA employers in Asia-Pacic actually fell by 2% to

$86,000 after several years of strong growth. MBA salaries in the region remained

roughly at at $68,000 with bonuses being cut back.

~

Total MBA compensation in Latin America, at $71,400, and Middle East, at $70,300,were both slightly down in 2014, compared to 2013. This can be explained by

increases in the numbers of local employers in sectors like consumer goods and

manufacturing, which typically offer below- average salaries. Salaries offered by

international employers in these regions were at.

When comparing salaries and compensation by country, QS looks only at responses from

domestic employers: The top ten countries in terms of average domestic MBA compensation

in 2014 are: Switzerland ($122,000), Australia ($115,600), Denmark ($112,000), UK ($98,000),

USA ($93,200), France ($89,800), Germany ($89,800), Spain ($83,100), Japan ($83,000), and

Canada ($87,500).

Ten years ago an MBA was effectively a passport into a career in strategy consulting andinvestment banking with salaries as much as 50% higher than those in other sectors. These

sectors still pay well, but they are no longer the top-paying sectors as they were in the past.

~ Metals & Mining Among all employers in Europe and North America, the highest

paying sector in 2014 remains metals & mining, offering an average MBA salary of

$134,250 ($139,000).

~ Energy – This sector has seen a surge in employment demand in 2014, jumping into

the No. 2 spot for average salaries on offer, at $107,000.


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~ Pharmaceuticals – Dominated by multinationals, pharmaceuticals have dropped

from the top spot in 2012 to No. 3 in 2014, with an average MBA salary of $99,200

($100,300).

~ Construction/ Property – Coming in at No. 4 is the construction/property sector,

with average salaries of $98,350 ($97,200).

~ Financial Services – With an average salary of $95,050, nancial services ranked

No. 5 overall, although bonuses in this sector can often be quite large, with total

compensation often exceeding $200,000.

~

High Tech/Electronics – The boom in demand in high tech and electronicscompanies raised the average salary to $94,950, with the sector placing sixth overall

~ Consulting – Global strategy consulting rms offer salaries between US$110,000

and $160,000 in Europe and the USA, but there are a large and growing number of

small and niche consulting rms recruiting locally, resulting in an average reported

salary of just $88,250 ($89,150) across the sector.

~ The lowest average MBA salaries are offered in retail, utilities, law,

transportation, travel & hospitality and the public sector all below $80,000

per year.

As more employers compete in the global market for top MBA talent, we observe a longer-

term trend toward equalization of MBA salaries across regions (this trend has been on-going

for over a decade). Western European and North American salaries remain very similar overall

and across most industries. The gap between the highest-paying region (North America) and

the lowest (Latin America) narrowed to only 30% in 2013, compared to 50% a decade ago.

However, with upward pressure on US salaries in 2014 this gap has widened once again to

almost 40%.


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Africa & Middle East

Asia Pacic

Eastern Europe

Latin America

US & Canada

Western Europe

19%13%

30%

6%

18%

14%

2012

Less than 50 staff Between 50 and 250 staff Over 250 staff

2013

2014

22.1% 21.9% 56.0%

22.4% 23.1% 54.5%

17.6% 16.4% 66.0%

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3. Demographics & Sample of MBA Employer Respondents

The 28,759 employers responding to the QS Global Employer Surveys between 2012 and

2014 include 5,669 who were actively recruiting MBAs, whilst the remainder were recruiting

only undergraduates or Masters students. All employers that responded to the survey are

guaranteed condentiality for the components of their individual responses, except for any

open-ended feedback they have chosen to provide, on the value of an MBA or concerns with

MBA hires.

Chart: Regional Breakdown of MBA Employer Respondents

Responses were received from employers across the globe, with 19% of employer respondents

based in Western Europe, 14% in North America, 30% in Asia-Pacic, 6% in Eastern Europe,

13% in Middle East and Africa, 18% (of which the majority were hiring locally) in Latin America.

Among respondents in Asia-Pacic, 12% were employers in Australia and New Zealand. This

breadth of response provides detailed insights into MBA recruiting patterns across the globe.

Chart: Employer Response by Size 2014


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Aerospace / Defence

Construction / Property

Consulting / Professional Services

Electronics / High Technology

Energy

Consumer Goods

Financial Services / Banking

IT / Computer Services

Law

Manufacturing / Engineering

Media / Entertainment & Arts

Metals / Minig

Pharmaceuticals / Biotech & Healthcare

Public Sector / Govt. / Non-prot

Recruitment / HR service

Retail

Telecoms

Transprtation / Distribution

Travel / Leisure / Hospitality

Utilities

Other

Eduction

400 600 800 1000200

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In 2014, a higher proportion of respondents worldwide was made up of large companies with

over 250 employees. This points towards a potential shift in the MBA recruitment market

from small consulting and nancial services rms to larger industry players.

Chart: Employer Response by Industry 2014


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Consulting and professional services was the largest responding sector in 2013 and once

again in 2014. Banking and nancial services was the second largest responding sector,

followed by manufacturing and engineering, which displaced HR/recruitment services from

third place. IT, consumer goods and pharmaceuticals were also extremely well represented in

the sample. Companies select their own industry denition and the other category is made

up of respondents across all sectors who felt their companies did not quite t the narrow

industry denitions provided.

Table: Sample of Responding Employers by Region 2014

The following table gives a snapshot of some of the organizations that took part in the survey

across the world all of which are recruiting 25 or more MBAs in 2014. A more comprehensive

list can be found in the appendix at the end of this document.

Asia Europe US & Canada Latin America

Consulting Beijing Consulting Group AT Kearney Booz Allen Hamiliton Accenture

Grant Thornton LLP Bain & Company Deloitte Deloitte

Ernst & Young BCG Ernst & Young KPMG

IBM PwC Towers Watson PwC

Finance Commonwealth Bank AXA American Express Banco Santander

Citibank Bloomberg BlackRock Bancolombia

Nomura BNP Paribas Citibank BBVA Continental

OCBC Bank Deutsche Bank ING HSBC

Industry Air Liquide Abbott 3M Colgate Palmolive

Alstom Alstom Best Buy Daimler

Baxter Bayer ConAgra Foods Exxon

Bombardier Boehringer DHL Merk

Technology Hitachi Alcatel-Lucent Brightstar Corporation Hewlett-Packard

Microsoft Google Apple Atos

LG Electronics Avaya Oracle BlackBerry

Tata Microsoft Microsoft MercadoLibre


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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

50

00

50

00

50

00

50

00

Industry Consulting Finance Technology

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Since 1990, QS has conducted the largest survey of MBA employers worldwide – the only

available long-term study of global MBA employment demand.

MBAs = Mobile, Bright, Ambitious

Average 15% Growth in Demand Worldwide 1990 – 2011 (see chart)

Average 10% Growth in Demand Worldwide 2012– 2015e (see chart)

The MBA qualication has proven to be probably the most recession-proof postgraduate

degree since the nancial crisis in 2008. Despite all the shocks to the nancial system and

despite contraction in nancial services, MBA graduates have been successfully nding well-

paid jobs in diverse sectors all around the world.

Since the nancial crisis, MBA employer demand contracted only slightly in 2009 and 2010

but had a stellar year of over 25% growth in 2011, fuelled by a boom in demand in emerging

markets. Since 2012, we have seen steadier growth, slightly below the long-term growth rate

of 15%.

With the on-going economic recovery, North America and Europe will see renewed demand

for MBA graduates. This, combined with steady demand growth in emerging markets, suggests

that we are perhaps seeing the emergence of a mature qualication where the long-term

growth rate is likely to swing between 6 and 12% per year, rather than the phenomenal 15%

average growth reported by QS TopMBA since 1990, as shown in the chart below.

Chart: Index of MBA Recruitment 1990-2015e (Year 2000 = 1)

4. Long-term trends in MBA Jobs 1990-2014

Source: QS TopMBA.com Jobs & Salary Trends (www.topmba.com)


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From 1990 to 2012 worldwide demand for MBAs grew at an average compound annual

growth rate of 15%. This growth was spread across all the major continents and focused on

graduates from the world’s top 200 business schools, in particular.

There have been dips in demand. The period 1990 to 1992 saw a brief global contraction that

impacted MBA demand. Between 2001 and 2004 following the dotcom crash, slow growth

in major economies as far apart as the US and Japan, took its toll and demand for MBAs fell

sharply. By contrast the post-Lehman nancial crisis of 2008-10 proved to be relatively benign

for MBAs. Although there was retrenchment within nancial services overall demand was at

and then recovered quickly.

So why has the MBA experienced this long-term growth of 15% annually? The answer lies,

rstly, in its exibility, allowing early career professionals to bring about signicant career

changes in either industry or function, and perhaps most importantly to relocate to a new

part of the world.

Isabella Pinucci, career service coordinator at Italy’s SDA Bocconi School of Management, says

changing one or more aspects of their careers motivates many MBAs. “Whether it’s sector,

industry or function or country or region, [switching careers] seems to be driving a greater

proportion of candidates.”

Secondly, an MBA is increasingly a recognized route for accelerated career progression for

aspiring business leaders. For example, it has become common for engineers and technology

managers to take an MBA to help progress from a technical to a managerial position, or if

already managing a team, then to reach the next step in their career.

Thirdly, the MBA qualication fosters entrepreneurs who start businesses and then come

back and recruit MBAs into their small, fast-growing companies. There will always be the

Bill Gates and Michael Dells of this world who drop out of college only to become wildly

successful. Yet ask a venture capitalist or an angel investor what they look for in aspiring

entrepreneurs, and beyond the requisite experience in the chosen eld, an MBA is usually

mentioned.

Demand for MBAs in consulting has been growing consistently. The chart above reveals that the

absolute number of MBAs hired into the consulting sector has more than tripled since 2000,

and increased six-fold since 1990. As business becomes ever more global and complex, the

demand for specialised consultancy skills is growing exponentially, and the MBA qualication

is a key selection criteria for a sector that values generalist skills and deep intellect above all

else. This enormous expansion in MBA demand in the consulting sector simply reects the

enormous growth in this industry since 1990 – consulting services generated over US$100billion by 2007, up from US$10 billion in 1990.

The chart reveals that MBA demand in nancial services has also increased, albeit less rapidly

than consulting – doubling between 2000 and 2007 and, following a period of retrenchment,

seemingly entering a new growth phase since 2012. Despite the drama of nancial crises,

MBA demand has remained remarkably resilient in this sector over the long term. However,

demand in nancial services is not recovering at the same pace as consulting within developed

markets.


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Since the turn of the millennium, MBA demand in general industry (consumer goods,

construction, energy, manufacturing, mining, retail, etc.) has really taken off as demand in

emerging markets has accelerated. In 2014, there have been more MBA jobs reported in

general industry than in nancial services.

Demand for MBAs in the technology sectors has experienced an era of unprecedented

growth, especially in Asia. As reported last year, more and more high technology and

computer services companies are looking to MBAs to commercialise their products. Most of

this growth is taking place in Asia with big US employers actively hiring in the region. In 2014,

overall demand grew by 11% in high technology and by 7% in telecoms.

Paul Danos, dean of the Tuck School of Business at Dartmouth College, explains the enduring

appeal of top international MBA programs. “Demand for graduates of top MBA programs by

the great businesses of the world continues to be strong. As businesses grow in complexity

and scope, companies need more and more skilled and well-educated leaders,” says Danos,

who is stepping down as dean in 2015. Danos says he foresees “no end to the insatiabledemand of top businesses to employ high-quality MBA talent.”


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5. Demand for MBAs around the World in 2014/15

It’s beginning to look as if 2014/15 will be the year in which employers in Western economies

will gradually expand their hiring programs, rather than taking a wait-and-see attitude. The

QS Survey suggests many HR managers, especially in North America, believe their companies

were too cautious in 2013. They’ve increased MBA hiring in 2014 and are predicting a further

increase in MBA demand in 2015.

By contrast MBA demand growth in emerging markets, which has outstripped Western

markets in recent years, is beginning to settle down to more sustainable rates. All in all the

qualication seems to be entering a more mature phase in terms of employer patterns of

hiring.

The table below shows the year-over-year change in numbers of MBA job opportunitiesreported by employers in 2014, by region and their expectation for 2015. The business

cycle plays a major part in the short-term trends in MBA hiring, with local demand patterns

uctuating quite rapidly.

Table: Percentage Increase in MBA Jobs by Region

World Region

Projected Change2014/13

Projected Change2015/14

Africa & Middle East 2% 12%

Asia-Pacic 11% 8%

Eastern Europe 10% 5%

Latin America 7% 8%

US & Canada 10% 9%

Western Europe 0% 3%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Employers in the US & Canada have ramped up MBA hiring by 10% this year and are looking

to grow demand by a similar amount again next year – really impressive gures for such a

large and mature MBA market.

European employers are also becoming more optimistic for 2015. Northern European

economies are already back on track with strong demand in the UK, Germany and Scandinavia.

Southern European countries are also showing signs of recovery in 2015.

Whereas Asia-Pacic reports the highest growth in 2014, employers in Africa and the Middle

East project a 12% increase in MBA recruitment in 2015, by far the most impressive growth

across all the regions.

The surge in employer demand in emerging markets has inevitably brought about a change

in behaviour of international MBA students. A few years ago, an international MBA was a

route to a new life in the USA, Canada or Western Europe. In 2013, an international MBA is

as much about learning international business practices and creating a network - a powerful

career advantage for MBAs seeking to exploit the rapid growth of China, Southeast Asia, Latin

America, the Middle East and other emerging economies.


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MBA Job Market Rank 2014 Rank 2013

United States 1 2

India 2 1

China 3 3

Mexico 4 6

United Kingdom 5 4

South Korea 6 5

Argentina 7 7

Canada 8 12

Brazil 9 8

Singapore 10 11

Mauro Guillen, director of the Lauder Institute at Wharton, emphasizes that since 2008 “a

higher percentage, perhaps as many as two out of every three international students, are

returning to work in their home countries, or in emerging markets, rather than staying in the

USA. This trend, however, could lose steam if emerging-market growth falters, as it has already

in Brazil.”

The table below shows the top ten countries by volume of MBA hiring.

Table: Top 10 Countries for MBA Demand


The United States regains the lead as the largest market for MBA candidates, vying with India,

which moves to second place.

China remains in third place, while Mexico has displaced the UK and South Korea from

fourth and fth place respectively. Singapore enters the top 10 by volume of MBA jobs,

for the rst time. The growing demand in both Mexico (a non-BRIC emerging economy)

and Singapore (a member of the ASEAN network) signals a shift in global perceptions of

MBAs. Research by Bank of America Merrill Lynch reveals that Mexico’s rising population and

lower labour costs in comparison to China have made it a strategic market for the US. This

has resulted in increased foreign direct investment in the manufacturing sector. A growing

labour force goes hand-in-hand with demand for qualied managers, creating a ripe marketfor MBA recruitment. Singapore has experienced vibrant economic growth in recent years

and employers in the region seem to be embracing the MBA qualication.

The UK leads the European contingent of MBA employers. Germany, France and Spain follow

but do not make the top-10 list. The UK shows a continued commitment to MBA hiring,

which reects the dominance of the service sector in the UK economy and the sensitivity

of MBA hiring to the performance of the service sector, with the banking and nance sector

being a major employer. Germany is quite different from the UK in terms of the prole

of companies hiring MBAs, with technology, engineering and software companies sitting

alongside consulting rms as the major MBA employers. MBA opportunities in France and

Spain are also more common in general industrial companies and consulting rms.


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Table: Top 10 Countries for Projected Growth in MBA Demand

Growth Rank 2014 Country Expected 2014 Growth

1 Russia 19%2 Kazakhstan 18%

3 China 17%

4 Switzerland 15%

5 Mexico 14%

6 Colombia 13%

7 South Korea 13%

8 United Arab Emirates 12%

9 Saudi Arabia 12%

10 Canada 12%

Russia and Kazakhstan lead the table in terms of growth in demand for MBAs in 2014.

Traditionally the volume of MBAs hired locally in each country has been relatively small, so in

a sense this represents a catchup with other emerging MBA markets that have experienced

rapid growth in recent years.

Saudi Arabia and UAE are also demonstrating very high growth levels. UAE is recovering from

a severe recession and would seem to be back on track. Saudi Arabia is just entering the MBA

hiring market and is in an early phase of development.

Latin American companies are now reaching out to American, Spanish and other European

schools to pick up the talented nationals choosing to study overseas. Mexico and Colombia

back this trend; both nations are well placed within the top-10 projected growth markets.

5.1.1. MBA Jobs Trends in USA & Canada

The QS TopMBA.com report highlights that across North America MBA demand has

jumped 10% in 2014, very much in line with our forecast from last year’s report.

It seems that as condence in economic recovery arrives in North America, we are seeing

renewed demand for MBA graduates from globally oriented and local employers.

Table: Projected Increases in MBA Recruitment Levels - US & Canada

The recovery of the US economy has previously been shaky and seemed to have held2014/13 2015/14

US & Canada 10% 9%

The recovery of the US economy has previously been shaky and seemed to have held

back condence in increasing MBA hiring numbers, but this changed in the past year. The

stabilization of the nancial services, the recovery of some manufacturing industries and the

return of new MBA employers, all look set to create strong demand in 2014.

Technology companies are underpinning the growth in demand in the USA, with the big

brands like Google, Amazon and IBM at the forefront. Miriam Park, who heads up Amazon’s

MBA recruiting team, says, “We love MBAs because they’re strong analytical thinkers and

problem solvers. They are a strong pipeline of leadership talent for the long-term.” Endeca

(Oracle) is very active as are international companies like Samsung.



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Internship programs – still the favourite screening mechanism of MBA recruiters – have been

a popular rst step for companies testing the MBA recruitment market, and this year saw the

birth of several. Look for a steady increase in the number of internship opportunities as rms

continue the trend towards the ‘try before you buy’ approach.

The US job search continues to be a challenge for international students seeking the coveted

H-1B visa. The HR manager at KIMC in the US told TopMBA.com “Visa issues can cause

problems. However, in our case, the STEM (Science, Technology, Engineering and Mathematics)

visa extension has helped.”

5.1.2. MBA Jobs Trends in Latin America

MBA demand in Latin America has become much more plentiful in recent years

amongst local employers and this trend is continuing, albeit at more sustainable growth rate

of 7% in 2014 after a year of 10% growth in 2013. Employers in the region are utilising MBAs

as a key talent pool as companies battle to internationalise across the region. Brazil, Argentinaand Mexico continue to be the engines of MBA growth in the region.

Table: Projected Increases in MBA Recruitment Levels – Latin America

2014/13 2015/14

Latin America +8% +7%

The QS TopMBA.com Employer Survey reveals a 14% increase in MBA demand in Mexico, 9%

uplift in MBA jobs in Brazil, and a 13% increase in MBA jobs in Colombia.

Professional service companies like Ernst & Young, Deloitte, KPMG, Accenture and IBM all

report big jumps in MBA hiring throughout Latin America, with the biggest increases in

Argentina. The attractions of Buenos Aires seem to be a factor for these professional service

companies.

Mining and industrial companies are adding to the demand for MBAs. Companies like Senac

Mines in Brazil and Grupo Elektra in Mexico are very active.

Many European banks now own the major Latin American banks and they actively recruit

MBAs, as do consultancies and major industrial companies. The biggest such recruiters are

BBVA and Banco Santander, which have emerged as regional banking leaders in Latin America,

though HSBC is not far behind.

5.1.3. MBA Jobs Trends in Western Europe

The story in Western Europe is one of a lag in recovery in MBA demand, with 0% reported

net growth in MBA demand in 2014. Growth in demand in Switzerland (15%), Germany (9%),

Belgium (9%), France (6%) and the UK (5%) has buoyed the region. Northern European MBA

demand has been offset by continued declines in Southern Europe, especially in Greece, Italy

and Spain. However there is some good news for Europe’s MBAs. Growth across Europe is

forecast to accelerate in 2015, with Italian and Spanish employers leading the way with 15%

and 7% projected growth in demand in 2015. The vibrancy of the consulting sector within the

region underpins this better growth forecast for 2015.


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Table: Projected Increases in MBA Recruitment Levels – Western Europe

2014/13 2015/14

Western Europe +0% +3%

MBA hiring in nancial services has seen some improvement in 2014. The nancial centres

of London and Frankfurt are recovering and bank prots have begun to pick up once again,

but MBA hiring is still restrained. Many European banks have strengthened their capital/asset

ratios and are now highly liquid and looking for talented traders to make good use of all the

cheap government money available in the system. BNL in Italy, Paribas and Santander are

amongst the European banks with optimistic projections for 2015 MBA recruitment.

The German economy is usually the engine of MBA demand in Western Europe. Siemens,

BMW and Daimler Benz are examples of German companies with longstanding MBA

recruitment programs. Strong demand for German goods in Asia in particular, has fuelled ademand for Asian MBAs to join German companies. Likewise, many service companies are

desperate to recruit German MBAs to serve their successful German clients.

Another source of growth in Europe is bi-lingual Chinese-European language speakers.

Europe gradually has to acclimatize to Chinese investment in European business and China is

also becoming a major market for European exports. As a result, future business leaders with

experience of both China and Europe are rapidly increasing in demand amongst recruiters.

“We do see increased interest in hiring Chinese MBAs and international MBAs who speak the

major Chinese languages,” reports Vinika D. Rao, executive director of the Emerging Markets

Institute at INSEAD, which has campuses in France and Singapore where MBA students study.

“Currently, the focus continues to be primarily on China, Hong Kong and other Asia-basedpositions. However, as Chinese investment in Europe grows, we anticipate increased interest

in hiring bilingual MBAs who can communicate effectively and adapt comfortably to both the

site ofce in Europe and the HQ in China.”

5.1.4. MBA Jobs Trends in Eastern Europe

Eastern and Central European employers reported growth of 10% in 2014, not quite the

dramatic increase we forecast in last year’s report, but still signicant either. The growth

gures are boosted by global companies expanding operations in Central Europe, with Russia

and Kazakhstan reporting 19% and 18% growth in MBA demand respectively. There is a

growing appetite for Western-educated MBAs to return home after their MBA to local/

regional employers.

Table: Projected Increases in MBA Recruitment Levels – Eastern and Central

Europe

2014/13 2015/14

Eastern and Central Europe 10% 5%

Russia has sustained strong growth in MBA demand throughout the recent world nancial

crisis and is projected to have a further surge in MBA hiring in 2014, fuelled by the energy

boom and expansion of the nancial services sector. PricewaterhouseCoopers is typical ofWestern consultancies hiring signicant numbers of MBAs within Russia.


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Elizaveta Komolova, an HR consultant with Morgan Hunt in Moscow, told TopMBA.com that

Russian companies “are looking to hire more and more MBAs compared to recent years. An

MBA is becoming a default attribute of a successful manager.”

Komolova adds “MBAs in Russia are expected to be more practice-oriented, have more

structured knowledge and a broad business network. MBAs are known for their ability to

think long-term and use their business contacts for the best.”

Kazakhstan and Azerbaijan are oil economies that are encouraging their local young

professionals to study for an MBA. Strong demand in energy and nance has resulted in a

strong uplift in MBA demand in both ecomomies since 2010. Central governments are also

encouraging state-backed companies to recruit more MBAs, both locally and internationally.

Good Czech or Hungarian candidates are highly sought after, but mainly outside their home

countries. Romania has a growing domestic demand for MBAs, and increasingly EU recruiters

are hiring these nationals who now hold EU citizenship.

5.1.5. MBA Jobs Trends in Asia-Pacific

After several boom years, demand for MBAs in Asia is settling at a sustainable

rate of 11% per year. In recent years, the MBA qualication has been embraced by Asian

employers, particularly in India and China, and especially in consulting and professional

services, manufacturing, IT/computer services, nance and micro-nance. Since 2011, India

has been vying with the USA to be the largest MBA job market and there is little sign of this

trend reversing with 8% growth forecast in 2015.

The QS TopMBA.com report highlights that across Asia employers are continuing to embrace

MBAs as they pursue global expansion. The MBA is becoming more in vogue. Asian candidates

are amongst the highest GMAT scorers in the world, and are focused on developing excellent

technical skills often at the expense of integrating fully in the social aspects of the MBA.

Projected Increases in MBA Recruitment Levels - Asia Pacific

2014/13 2015/14

Asia-Pacic 11% 8%

Without a doubt, the TopMBA.com International Employer Survey is reecting the emergence

of more and more Asian companies seeking MBAs – they represent over a quarter of total

respondents. Some employers are willing to hire from local business schools at relatively lowsalary levels, whilst other Asian employers remain fully committed to hiring from top North

American, European and Australian business schools and are often willing to pay the higher

salaries expected by graduates of those schools, with a slight ‘cost of living’ adjustment. The

rise of an elite cadre of Asian business schools is underway, but will probably take another ten

years to be fully established.


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For the last few years, the most dynamic MBA market has been India, which has experienced

an explosion in employer demand for MBAs, at least those from top-tier programs. India

reports similar levels to the USA in terms of volume of reported MBA jobs for fresh graduates.

But among the many Indian companies that responded to the QS Employer Survey, there areseveral distinct groupings. Whilst multinational employers still have a strong preference to

recruit MBA graduates from international business schools, local companies concentrate on

locally educated MBAs. The majority of Indian employers are actively looking to recruit from

local business schools like the IIMs, the Indian School of Business as well as many others.

Other local Indian companies that are looking for MBAs without work experience, almost

as an alternative to a fresh undergraduate, are offering salaries below US$30,000. These

employers have been excluded from the results of the survey.

Demand for MBAs in China is also strong and getting stronger. It is ranked as the third largest

MBA market in the world. Banks in China are recruiting large numbers of MBAs. China

seems to be maturing as an MBA hiring market with a good number of opportunities in the

professional services and consulting sectors, although these numbers are now growing more

slowly than some other sectors. The projected demand levels from IT / computer services

surpassed consulting for the rst time in 2014.

As reported last year, demand is so strong that the Municipality of Shanghai has funded the

launch of its own local business school – Shanghai Advanced Centre for Finance - to compete

with other local schools like CEIBS and Cheung Kong Business School. Employers in China

could not nd enough Chinese MBAs returning from US and European business schools,

spurring the local government into action.

South Korea is joining the MBA party in Asia. Fuelled by big multinationals like Samsung, LG

and Hyundai, South Korea is reporting 13% growth in MBA demand in 2014. South Korean

employers told TopMBA.com they valued MBAs for their “passion and attitude,” “strategic

thinking” and leadership skills.

Japan is a mature MBA market, with a long tradition of companies sponsoring students to

study at Western business schools. Yet here too we see vibrancy with 10% growth in 2014.

5.1.6. MBA Jobs Trends in Middle East & Africa

From a small base, MBA demand in this region has grown rapidly in recent years

and it is not surprising that growth rates have settled down to just 2% in 2014.

Growth has centered on the recovery in the United Arab Emirates and Saudi Arabia, but parts

of Africa have also reported increased demand, albeit from a relatively low base, in sectors

like energy, mining, consulting and nance. Demand is forecast to jump again by 12% in 2015.

Ameera Al Kaabi of UAE University in the United Arab Emirates, says the biggest constraint

on more MBAs coming to the Middle East is pay: “The salary package is not attractive to

them.”.

Projected Increases in MBA Recruitment Levels – Africa & Middle East

2014/13 2015/14

Africa & Middle East 2% 12%


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Even so, the UAE seems to be on the path to recovery, also showing a 12% increase in MBA

demand led by banking, energy and IT companies with ofces in the UAE. Banks like Standard

Chartered are basing much of their back ofce operations globally in Dubai.

5.2. MBA Jobs by Sector in 2014 and Forecast for 2015

Two of the biggest MBA job markets by volume of job opportunities have traditionally been

nancial services and consulting (with 22% and 12% of total MBA demand respectively) which

require the technical skills and high levels of motivation that MBAs are so well-suited to

provide. However, the volume of job opportunities from nancial services declined by 2% in

2014 from 24% in 2013.

The second largest sector for MBA demand is IT/Computer Services at 13% of the total

share of MBA jobs, a 4% incline in comparison to its 2013 volume. Recruitment/HR is gaining

ground as a top destination for MBA graduates and accounts for the fourth highest job share.

Increasing demands on human resources departments have driven the need for skilled HRmanagers.

In addition to showing these shares of the MBA job market, the table below also shows the

growth in reported jobs by sector in both 2014 and forecast for 2015.

Table: Growth in MBA Demand by Industry Worldwide - 2014 and 2015e

Sectors Worldwide

Share (%) MBA Jobs2014

Growth 2014/13

Growth 2015/14

Aerospace / Defence 1% -12% 0%

Construction / Property 2% 12% 10%

Consulting / Professional Services 12% 9% 8%Electronics / High Technology 7% 11% 8%

Energy 4% 18% 5%

Consumer Goods 1% 12% 5%

Financial Services / Banking 22% 7% 5%

IT / Computer Services 13% 8% 12%

Law 1% 37% 21%

Manufacturing / Engineering 5% 10% 13%

Media / Entertainment & Arts 0% 11% 2%

Metals / Mining 2% 10% 1%

Pharmaceuticals / Biotech & Healthcare 4% 9% 0%

Public Sector / Govt. / Non-prot 2% 8% 8%

Recruitment / HR services 9% 9% 9%

Retail 2% 0% 4%

Telecoms 5% 7% 11%

Transportation / Distribution 1% -2% -3%

Travel / Leisure / Hospitality 1% 8% 1%

Utilities 0% 10% 1%

Other 7% 8% 8%



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5.2.1. MBA Jobs in Consulting

Since 1990, the number of MBAs recruited annually by the consulting sector has increased

six-fold. The global expansion of this industry and the demand for MBAs has gone hand-in-

hand. Consulting and professional services reports 9% demand growth in 2014 continuing

this longstanding pattern, albeit at a slower rate than previous years. Consulting is a bellwether

for the health of the MBA and the sector is forecasting 8% growth in 2015.

The table below looks at growth in consultancy demand by region. As we enter a likely period

of economic growth, consultancies tend to acquire a different type of project compared to

recessionary environments. Big recession projects like business restructuring and process

re-engineering tend to dry up, to be replaced by M&A and strategic growth projects. This

adjustment can take a year or so to work through from pipeline to live assignments and this

particularly seems to be the case in Africa & Middle East where economies are recovering but

this has not yet been reected in consulting growth, resulting in a decline in MBA demand in

2014. By contrast consulting rms in other regions have worked through this phase and areexperiencing something of a boom. In Latin America, Western Europe and the US and Canada

consulting rms are hiring accordingly, creating lots of opportunities for internationally

exible MBAs.

Table: Growth in MBA Demand in Consulting

Region 2014/13

Africa & Middle East -4%

Asia-Pacic 8%

Eastern Europe 8%

Latin America 15%

US & Canada 11%

Western Europe 8%

Worldwide 9%


5.2.2. MBA Jobs in Finance

Almost all major investment banks actively recruit MBAs. The credit crunch caused huge

cutbacks in MBA hiring amongst some banks – especially Citigroup and Bank of America, which

received the largest US government bailouts. Despite redundancies amongst experienced

bankers however, entry-level recruitment remained steady in most other banks throughout

the credit crisis.

Demand for MBAs collapsed during 2001-2003. Goldman Sachs, Morgan Stanley and others

cut MBA hiring by up to 80% in some ofces, but 2009 was completely different with many

banks hiring actively. Today, investment banking isn’t the only destination sought by many

nance-minded MBAs. “MBA students with relevant nancial or strategy experience can nd

more opportunities at some of the ‘boutique’ corporate advisory rms or in private equity,

but this requires more proactive networking,” says Mark Davies, employer relations manager

at Imperial College Business School. “At Imperial, we have also seen MBA graduates hired

into compliance, wealth and risk management roles, where demand for talent at all levels has

been growing recently.”


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So, what turns a bright new business school graduate into a successful banker? Nebal Fahed,

head of graduate recruitment – Americas for Deutsche Bank, says personality is a big piece

of the puzzle. “While numerical ability is certainly essential, the sheer scale of our business

means that we need MBA students from a wide range of disciplines and backgrounds,” Fahedsays. “We look for high achievers with the intellectual curiosity and the determination to

deliver innovative solutions for our global clients.”

Most people associate investment banking with mergers and acquisitions, but most of the top

banks look to recruit MBAs into global markets (sales and trading securities, xed income

and derivatives), managing assets, structured nance, corporate nance and increasingly on-

and-off balance sheet hedge funds. There are also many back ofce positions in risk, nancial

control and technology.

Changes in regulations are creating more MBA opportunities. Market risk and compliance

departments are seeing increased MBA hiring as banks seek greater security and control

of risky investment classes. In fact, an overall emphasis on compliance experience may bespreading throughout the nancial services industry.

Another new feature in recent years has been the entrance of hedge funds, private equity

and venture capital houses into MBA recruiting in signicant numbers. In the past they

have focused on more experienced MBA alumni recruited through a network. Today, they

are recognising the need to recruit younger MBA graduates to meet the growing market

opportunities. Jairaj Singh, a recruitment consultant specializing in investment banking and

global markets at Michael Page Hong Kong, states that roles available to MBAs have shifted.

“Risk and compliance have been key areas of growth, while corporate nance and M&A teams

have become leaner due to cost cutting pressures,” he says. “There has been relatively strong

activity on the buy side, with client attention focused on China; multiple hedge funds, to which

much risk has been deleveraged, and asset management rms have made their presence felt.”

It is not just banks, hedge funds, and private equity shops that recruit MBAs into nancial

services. GE Capital is now one of the biggest recruiters of MBAs worldwide. American

Express is also emerging as a major player. Insurance steadily hires MBAs. In the US there

are a number of insurance companies that recruit ten or more MBAs each year such as AIG,

Travellers, CIGNA and Liberty Mutual.

5.2.3. MBA Jobs in Technology & Telecoms

The big story in 2014 is the growing demand for MBA talent amongst global

technology companies, which are now recruiting in almost every region of the

world. Top technology rms such as Google, Amazon and Apple feature prominently in

rankings of popular MBA employers as multinationals spread their reach to recruit MBAs

from a growing number of business schools around the world, in large numbers. Other

technology companies are responding in kind with several expanding (or establishing for the

rst time) large global MBA recruitment programs. High tech/electronics companies report

11% growth in demand in 2014. IT/computer services 8% growth while telecoms report 7%

growth.


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Table: Growth in MBA Demand in Technology & Telecommunications

Region 2014/13

Africa & Middle East -14%Asia-Pacic 9%

Eastern Europe 14%

Latin America 0%

US & Canada 21%

Western Europe 2%

Worldwide 8%


Apple is now the most successful high tech company in the world and, along with Microsoft

and Oracle, is undertaking an MBA hiring drive, recruiting into nance, sales, marketing and

product management. Chloe Chometon of Oracle Ireland looks for MBAs with “Internationalexposure [and] structured thinking.” Tom Kozicki, executive director of the MBA Career

Center at UC Irvine says “the high tech corridor on the west coast has been an important

source of jobs for our MBAs and remains strong.”

The web is attracting MBAs, with household names like Google and eBay snapping up

entrepreneurially minded graduates. “MBAs at Google nd plenty of opportunities to do

cool things that matter, whether in product management, sales and nance, marketing, people

operations and everything in between,” says Kyle Ewing, head of the tech giant’s global stafng

programs. “While we value all levels and types of education, we look for MBA candidates with

creativity, passion, and a healthy disregard for the impossible.”

Telecommunications companies such as Samsung, Apple, British Telecom and Vodafone are veryactive. Asian technology recruiters are hiring actively in China, Taiwan and Korea. Although

we still lack many Chinese recruiter respondents in the research, Korea is an example of the

dynamism of technology in Asia.

5.2.4. MBA Jobs in general industry

MBA demand in general industry (consumer goods, construction, energy,

manufacturing, mining, retail etc.) is strong as many local employers in emerging

markets expand the overall demand for MBAs. Though not seen as typical MBA

recruiters, there are a growing number of local and national players who seek MBAs (salaries

tend to be below average). The consumer goods sector is reporting 12% growth in 2014,

whilst manufacturing is reporting 10% growth, with large numbers of MBAs being hired,especially in emerging markets.

Media & entertainment has traditionally been a small sector in terms of MBA demand but

2014 has been the best year for MBA hiring since the dotcom boom, with 11% growth. The

spread of broadband is fuelling the demand amongst traditional media companies looking to

digitise their products and also amongst many smaller companies seeking to become new

media giants. Facebook and LinkedIn are the biggest brands and are embracing MBAs, but the

list of hiring companies is extensive.


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Table: Growth in MBA Demand in General Industry

Region 2014/13

Africa & Middle East 18%Asia-Pacic 16%

Eastern Europe 5%

Latin America 5%

US & Canada 12%

Western Europe 11%

Worldwide 12%


Manufacturing and general industry were among the success stories of the North American

market, with many companies repatriating operations from overseas back home, creating

demand for general managers. But Asia will not give up the ght easily and still outstripped

the USA in terms of demand growth. Our “General Industry” category is a broad grouping

of industries covering aerospace, automotives, chemicals, logistics, manufacturing and steel.

Each industry reveals individual trends, but a common theme is the continued recovery in

MBA hiring.

More and more industrial companies are fully embracing globalization and understand that

MBAs represent an essential pool of international managers who are capable of working

in diverse cultures and business situations. In particular, multinational supply chains and

procurement require internationally minded, multilingual managers, making MBAs a natural

talent pool.

A sizeable number of MBAs who do nd roles in the industrial sector will do so with

multinational companies such as General Electric, Samsung, Toyota and Motorola, where

specic MBA training programs have been the norm for over a decade. Internationally minded

European companies like Siemens have established MBA entry programs as well.

The energy sector continues to report strong MBA recruiting with an 18%

increase in MBA jobs in 2014. There seem to be three drivers of this trend. First of all the

search for alternative energy sources is attracting many MBAs into smaller, entrepreneurial

organizations. Secondly, many of the big oil companies will need to replace their senior

management over the next ten years as they come up for retirement. Finally, the growth of

renewable energy sources is creating demand for new talent. “Today’s ever-changing energy

landscape with increasing focus on renewables, energy security and energy efciency createsexciting career opportunities,” says Zeynep Flouret, assistant director of the INSEAD Career

Development Centre. “According to INSEAD’s 2013 Employment Statistics, energy giants

remain solid recruiting partners of INSEAD but career opportunities in energy come from a

wide range of sources including entrepreneurial rms.” Exxon Mobil and BP are among the

largest MBA employers in the energy sector, though the impact of the 2010 Gulf of Mexico

oil spill cast a shadow over the prospects of all big players in the oil sector as governments

increase regulations to limit drilling.


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Consumer goods companies have been committed to MBA hiring in the US for many years,

but MBA careers in this sector have grown slowly in Europe and Asia, with worldwide growth

at a very respectable 12% in 2014. Johnson & Johnson Consumer Products traditionally hires

many MBAs in the US and around the world; this program has remained unchanged in recentyears. By contrast Procter & Gamble has traditionally hired small numbers of MBAs as have

many other consumer goods companies. But the situation is changing and it is now common

for both local operations and head ofces of consumer goods companies like Diageo, BAT

and Coca Cola to hire signicant numbers of MBAs.

The increasing globalization of international trade, growing interdependence of common

markets and increased international competition, have fuelled interest in MBAs across the

sector, but also made it vulnerable to a global recession.

Inated MBA salaries remain a problem for MBA recruiters in the industrial sectors. A

consistent message from recruiters in the industry is that they have to look outside the

top-tier business schools to nd the talent they need. However, they are almost all reportingsuccess in their search.

5.2.5. MBA Jobs in Pharmaceuticals & Healthcare

This industry is dominated by global players, many of which have run global MBA hiring

schemes for many years. After a bit of a lull, their appetite for MBAs seems to be resuming

with 9% growth in demand in 2014.

Table: Growth in MBA Demand in Pharmaceuticals & Healthcare

Region 2014/13

Africa & Middle East 0%

Asia-Pacic 2%

Eastern Europe 4%

Latin America -4%

US & Canada 20%

Western Europe 8%

Worldwide 9%


The major pharmaceutical companies have always been very active MBA recruiters and pay

the best salaries after consulting and investment banking. They also offer attractive benets

and international mobility. They have remained committed to MBAs throughout the lastdecade and growth in recruitment numbers is steady rather than spectacular. There are also

many smaller pharmaceutical and healthcare companies that are aggressively pursuing MBA

hiring to help them meet their growth potential.

Healthcare employers say MBAs’ communication, multitasking and teamwork abilities make

them valuable. But a lack of international experience, high expectations for responsibility and

promotions, and unreasonable salary demands make recruiting MBA talent difcult.


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2014 2013

C o n s u l t a n t

E - c o m m e r c e

F i n a n c e -

A d v i s o r y

F i n a n c e -

O t h e r

G e n e r a l M a n a g e m e n t

I T / T e c h n o l o g y

M a r k e t i n g

O p e r a t i o n s / M a n u f a c t u r i n g

O t h e r R o l e s

S a l e s / B u s i n e s s D e v e l o p m e n t

S t r a t e g i c P l a n n i n g

S u p p l y C h a i n / L o g i s t i c s

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

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5.3. Functional Roles on Offer to MBAs

MBAs come from very diverse backgrounds and industries, with as many as 50% looking

to make a career change after their MBA. This is reected not just in the wide variety

of companies seeking to employ MBAs, but also the variety of functions they enter after

completing their course. Many companies recruit MBAs into more than one function. At 3M,

for example, MBAs are generally found in one of three functions: HR, nance or marketing/

strategy.

Chart: Functional Roles Offered to MBAs


The chart above shows some signicant changes in the functions offered to MBAs in 2014.

Sales/ business development, consulting, nance – other, and management continue to account

for the largest proportion of roles offered. However, IT/technology (+5%), marketing (+2%)

and E-commerce roles (+2%) surpassed their 2013 levels.

The heat map table below highlights the shifts in roles offered to MBAs over a four-year

period. The higher the proportion of roles offered, and the darker colour, means more interest

in the particular function in comparison to the previous year.


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5.4. Preferred MBA Experience Levels

MBAs with three to ve years’ experience remain most in demand and, together with MBAs

of ve to eight years of work experience, account for 57% of MBA employer demand.

The least popular experience range is 0-1 years of experience. This contradicts the policy

of several top-tier US business schools which are actively recruiting these “pre-experience”

candidates in the pursuit of ever-higher average GMAT scores, a policy with which employers

do not agree.

As a general rule, employers seek out MBAs with both the academic knowledge an MBA

imparts and highly developed leadership and teamwork skills. Randall Lewis, executive

director of the Professional Development Center at Purdue University’s Krannert School of

Management, says “Employers want candidates that are problem solvers, great communicators

and work well with others.” Adds Susan Shald, director of talent scouting for Gallup: “We’re

looking for people that have this technical expertise that they can get down to the nuts and

bolts of what they need to deliver, but also talk to someone at a high level if they need to.”

James Prazak, operations manager at Tricon Energy in the USA, argues strongly against pre-

experience MBAs. “They lack maturity, and feel they can command more money and prestige

than undergrad counterparts when they really have a minimal advantage,” Prazak says. “Too

many simply get an MBA because they couldn’t get a job after undergrad – [they’ve spent] toolong in school so they don’t understand the real world, plus they have no business experience.”

Table: Functional Roles Offered to MBAs 2011-2014

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com) 5.4.

2011 2012 2013 2014

Consultant 39% 37% 37% 34%E-commerce 10% 8% 9% 10%

Finance - Advisory 29% 26% 28% 22%

Finance - Other 39% 33% 44% 36%

General Management 43% 41% 44% 36%

IT / Technology 26% 24% 21% 25%

Marketing 44% 41% 36% 38%

Operations / Manufacturing 23% 24% 24% 23%

Other Roles 11% 10% 34% 30%

Sales / Business Development 40% 42% 46% 44%

Strategic Planning 42% 40% 19% 17%

Supply Chain / Logistics 23% 25% 9% 7%


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0-1 Years

2014

2013

2012

2011

1-3 Years 3-5 Years 5-8 Years 8+ Years

% 27% 37% 20% 9%

30% 40% 19% 5%

% 28% 39% 20% 7%

% 28% 37% 19% 8%

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Of particular note is the increased demand for graduates with more than 8 years of work

experience. However, this experienced group typically falls outside the needs of mainstream

on-campus MBA recruiters and the true demand for this group is unlikely to be reected

fully in this research. They are more likely to nd a post-graduate career through means other

than campus recruiting.

Demand for young and pre-experienced MBAs is almost zero in Western Europe and Latin

America – in both these regions there is an above-average demand for MBAs with 5 to

8 years of work experience. By contrast, Asia-Pacic employers are much more willing to

recruit younger MBAs with 0 to 3 years’ experience.

5.5. Key MBA Skills

The QS TopMBA.com Jobs & Salary Trends Report has for many years reported on the

importance and satisfaction of key skills attained by MBA students during their studies.

Employers are, broadly, satised with the technical skills acquired by MBA

students, and this result seems to be independent of the business schools from

which the employers recruit. Whether it’s academic achievement, computer skills,

languages or skills acquired in nance, marketing, e-business, and risk management, employers

seem to have few qualms about the quality of MBA graduates.

However, business school graduates are still not meeting expectations in terms

of their soft skills such as communication, interpersonal skills and strategic

thinking, which are at a premium. Soft skills are far and away the most important skills

employers are looking for from new MBA recruits. Communications, interpersonal, strategic

thinking and leadership skills make up four of the ve most important skills for new hires to

possess. Relevant work experience is the fth criteria.

There has been a long-standing shortfall in terms of leadership and interpersonal skills, which

is apparent year after year in this research.

Muhammad Asim of Monsanto Pakistan conrms that his rm selects MBAs based primarily

on “communication skills, leadership skills, and interpersonal skills.”

Chart: Preferred Years of Work Experience Amongst Employers 2011-2014



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A

c a d e m i c A c h i e v e m e n t

E

- B u s i n e s s s

E

n t r e p r e n e u r s h i p

F i n a n c e S k i l l s

I n

t e r n a t i o n a l A w a r e n e s s

I n

t e p e r s o n a l S k i l l s

I T

/ C o m p u t e r S k i l l s

L

e a d e r s h i p S k i l l s

M

a r k e t i n g

M

u l t i - l i n g u a l

R

e l e v a n t E x p e r i e n c e

S t r a t e g i c T h i n k i n g

C

o m m u n i c a t i o n s S k i l l s

R

i s k M a n a g e m e n t

C

S R

3.00

2.50

2.00

1.50

1.00

0.50

0.00

Importance Satisfaction

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Chart: Importance and Satisfaction with MBA Skills amongst Employers in

2014


5.6. The Global MBA Recruitment Market – a profile of employer recruiting

patterns and target nationalities (by region)

The MBA recruitment market is probably the most globally exible recruitment market of

any profession. The MBA qualication is geographically mobile and this section looks at what

proportion of MBA employers recruit globally, regionally or locally and which nationalities

they are targeting.

It is not that North American employers have withdrawn from global MBA hiring despiteonly 19% of respondents focused on global recruiting compared to 32% last year. Rather, we

have seen a big increase in the number of domestic-only recruiters returning to MBA hiring

in 2014, reecting the growing strength and condence in the US economy. Among North

American recruiters, 63% focus purely on national recruiting whilst 13% are localised in their

search. Not surprisingly, Asia is the next biggest source region for these employers as the

technology industry witnesses a revival. Stalled immigration reforms in the US have had an

impact on internationally sourced talent. Canada’s more lax visa rules have resulted in a new

wave of tech companies from Silicon Valley descending upon Vancouver. Facebook opened a

temporary ofce in Vancouver in 2013 as a stopgap solution for international recruits waiting

for American work visas. 1

1 Vancouver, the New Tech Hub http://www.businessweek.com/articles/2014-05-22/

vancouver-welcomes-tech-companies-hampered-by-u-dot-s-dot-work-visa-caps


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estern Europe 2013

10% 20% 30% 40% 50% 60%

2015 topmba.com jobs salary trends report v1

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