From OUR EDITORIA STAFF we wanted to analyze what is the situation that is taking place in the labor market on a global scale for MBA graduates. Since then we have had some positive surprises. There is a first conclusion that can be drawn after considering the governments of most countries, that Covid-19 is becoming just another flu with which we will have to live from now on.
So after an initial drop from the pandemic, the opportunities are growing right now in the first third of 2022, but most especially in the sectors that did better during the pandemic. Because the very evolution of Covid-19 between 2020 and 2021 had a direct impact on the recruitment of MBA graduates from a buyer’s market to a seller’s market.
The job market tanked in 2020 as Covid-19 spread. In 2019, 92% of corporate recruiters told the Graduate Management Admissions Council (GMAC), the administrator of the Business Schools entrance exam, that they intended to hire MBA graduates the following year. In the end, only 80% of those recruiters followed through on their plans.
For our readers, we clarify that the “Graduate Management Admission Council (GMAC)” is an international non-profit organization of bBusiness Schools that offers products and services to academic institutions and prospective postgraduate students in management education. The organization owns the Graduate Management Admission Test (GMAT), a standardized assessment that is widely used by graduate business administration programs (for example, MBA, Master of Accounting, Master of Finance, Master of Science in Business/Management, etc.) to quantitatively measure verbal, analytical, and integrated reasoning abilities in applicants.
It was founded in 1953 and is headquartered in Reston, Virginia (United States). In 2007, the organization opened an office in London, its first international location. GMAC also has offices in Hong Kong and Gurgaon, India. The Graduate Management Admission Council has 212 member schools from 22 countries, including Australia, Canada, China, France, Great Britain, India, and the United Kingdom. In 2007, the organization embarked on an effort to increase its membership outside of North America. GMAC is governed by a 15-member board of directors that includes representation from Business Schools and private industry.
However, GMAC’s 2021 recruiting survey found that recruiters’ hiring intentions had returned to pre-Covid levels, with 37% predicting an increase in employer demand. And although the Omicron variant puts on alert about the unpredictability of the pandemic, there are reasons for optimism.
“Companies are trying to build their talent pipeline so they don’t fall short, as happened last year with the ‘big quit,'” says Sangeet Chowfla, GMAC president and CEO. He is referring to the sharp rise in vacancies and people leaving jobs during the 2021 economic recovery, particularly in the United States and the United Kingdom. Because according to Chowfla, in MBA candidates there is the notion that their line of management is important and must be developed. And this circumstance has been evidenced when some of the largest employers of MBA graduates are the companies that have done best during the crisis. These include the big tech companies that have provided online connections, banks that offer extended lines of credit to businesses, and pharmaceutical groups that have developed vaccines.
Amazon, for example, hired 20% more MBA students worldwide in 2021 than in 2020. It offered full-time jobs to graduates of more than 100 Business schools. This tech colossus that is Amazon values MBA students as they tend to fit well into their corporate culture as it is a cutting edge organization that is always customer obsessed, risk oriented, feisty and analytical.
From GMAC Chowfla clarifies that “we used to think of jobs with technology companies as business opportunities, but now they are growth opportunities.”
GMAC research found that 96% of tech sector recruiters surveyed planned to hire MBAs in 2021, up from 80% in 2019. The rise in tech MBA jobs is a reflection not only of the growth of the sector, according to Chowfla, but also that companies have reached a scale where they need the strategic and leadership skills that MBA graduates provide.
These companies seek candidates for Business Schools because they need management skills to grow, an essential element of MBA training.
The opportunities in technology have been a pleasant surprise for some
Many internship hopefuls during the year of the pandemic had their expectations dashed. It’s also true that virtual interviews have offered a way to make the hiring process easier.
Some MBA graduates state that during 2020 when they had the opportunity to accept an offer, even if it was not the one they were most interested in, at that moment everyone had the feeling that if they were giving you something when nobody was offering it, then you had to take it. And most importantly, that these types of candidates with an MBA behind them declare that, without the connections of the Business School, they would not be in their respective jobs now.
Salary levels for Business school hires have also risen
Median salaries for the full-time MBA class at the Haas School of Business, at the University of California, Berkeley, increased from $140,000 in 2020 to $149,000 in 2021. Three months after graduation, 88% of the class of 2021 full-time MBA had accepted a job offer. This was marginally higher than the 87% at the same point in 2020, though below the high of 93% for the class of 2018.
All of this reflects the continued strength and confidence in the full-time student classes, according to Abby Scott, assistant dean of career management and corporate partnerships for MBA at Berkeley Hass: “This is particularly encouraging, given the pandemic and the slower reopening of California’s economy,” she says. “The effort our graduates put into their job search and the help of our alumni, who went above and beyond, really helped this class land jobs.”
Some of the MBA students who took them in 2020 say that being able to do so with the sacrifice that it meant during the pandemic has prepared them for any crisis scenario.
The hiring market for MBA graduates is “very candidate-driven,” says Ruth O’Leary, director of community and postgraduate career development at Trinity Business School in Dublin. And this has an explanation according to O’Leary, because it is the employers themselves who are going from hiring for a specific role to hiring for a set of skills that the candidate has.
Of Trinity’s MBA class graduating in November 2020, 70% remained in Ireland: almost half of them took jobs in the tech sector, around a third were hired by pharmaceutical companies, and most of the rest took jobs in financial services or consulting.
Employers have embraced virtual interviewing, which may have made it easier for MBA students to find jobs, O’Leary says. “Students don’t prefer that method, but it helps on the job side,” she says.
Successful candidates are those who can demonstrate that they possess the general management skills provided by an MBA, adds O’Leary. Employers are “moving from hiring for a specific role to hiring for a skill set,” she says. “One of the skills is the ability to learn and the love of learning. Anyone who can relearn is a winner.”
What is the scope of the MBA?
The first thing to clarify is that one thing is the scope that the labor market has at the time of the candidacy of an MBA graduate for certain jobs, and quite another is the prospects that this same market has in the short term and medium term for these candidates. In other words, the career prospects after the MBA depending on how the economy is doing, the reaction of the labor market, etc.
The Master of Business Administration offers various areas of specialization such as Administration, Finance, Operations, Hotel Management, Public Relations, Human Resources, Information and Technology. An MBA career is progressive and brings with it many advantages.
Very feasible positions and responsibilities for an MBA graduate
It is a merely illustrative list, but it does illustrate some possibilities:
– Marketing director.
– Director of sales and/or commercial operations.
– Director of health services in the hospital setting.
– Financial director and/or financial controller.
– Director of IT and information systems.
– Investment fund manager.
– Head of Technology.
– Director of Information Technologies.
What is expected of an MBA graduate?
Your MBA allows you to enter that world and achieve a level of success that you might not otherwise experience. While the MBA offers the technical skills of business, finance, and management, graduates of MBA programs don’t always have the invaluable soft skills to land a job in the business world.
Can an MBA student become a CEO?
Among the MBA concentrations that propel future CEOs’ journey to the top are finance, marketing, public policy, information technology, environmental sustainability, and health administration. Electives such as strategic management, organizational theories, and managerial economics also prepare prospective CEOs.
Will the MBA increase the salary of an MBA graduate?
While an MBA degree is a considerable investment in both time and money, research indicates that the return on investment for graduates can be as high as $20,000 per year in additional salary and compensation.
What are employers looking for in MBA graduates?
A 2021 Bloomberg Businessweek survey identified the top skills recruiters look for in MBA graduates. Respondents rated these five qualities as the most important: problem-solving skills, followed by communication skills, collaborative teamwork, leadership skills, and an entrepreneurial mindset, all soft skills.
What skills should an MBA graduate have in the field of HR?
To establish a successful career in this field, MBA in Human Resources graduates require the following skills: very good communication skills, networking skills, teamwork, leadership skills, psychological understanding, knowledge about human behavior, mentality innovative and creative etc.
What are the skills after the MBA?
What we can call skills acquired after successfully completing an MBA, among them we highlight:
– Ethical decision making.
– Analysis and strategic research.
– Risk management.
– Interpersonal and people management skills.
– Knowledge and experience.
This information has been prepared by OUR EDITORIAL STAFF