Higher pay likely for new MBA hires

GMAC survey reveals nearly all employer respondents (96%) agree graduate biz school hires create value for their organisations

Fifty-six per cent employers globally plan to increase annual base salaries in 2016 at or above the rate of inflation for new MBA hires, says the Graduate Management Admission Council (GMAC) survey of employers.

Nearly all employer respondents (96 per cent) who participated in the survey think graduate business school hires create value for their companies. Sixty-eight per cent said recruiting such graduates was a priority in their company’s hiring plans.

Compared to last year, a greater share of employers this year intends to hire graduates of Master of Accounting and Master in Management programmes. In addition, 73 per cent of employers plan to offer internships to MBA candidates in 2016. GMAC surveys have indicated internships remain one of the most successful ways for masters level business school graduates to receive job offers. The survey also said 92 per cent of the responding employers who offered MBA internships in 2015 plan to increase (26 per cent) or maintain (66 per cent) the number of MBA internship openings in 2016.

“Employer demand for graduate management talent is projected to remain strong in 2016 for MBAs and other masters-level business candidates,” said Bob Alig, GMAC's executive vice-president for school products. Alig added recent graduates from business and management programmes should see high demand for their skills because employers understand they are valuable assets to their organisations.
 

Expected Change in 2016 Average Annual Base Salaries Compared With 2015 Salaries by Candidate Type* (in %)
	MBAs	Masters of Accounting	Bachelors	Experienced Hires
Decrease compared with 2015	3	0	1	0
Stay the same as 2015	41	50	45	31
Increase with rate of inflation	32	27	40	48
Increase above rate of inflation	24	23	14	22
*Percentages may not sum to 100 due to rounding All figures in percentage Source: GMAC

Each November, GMAC conducts a short poll of employers across the globe to collect data on hiring outcomes for masters-level business school graduates in the past year and gain insights into the job market for these candidates in the coming year.

This year’s results reveal solid 2015 hiring numbers and 2016 hiring projections, which reflect healthy demand for fresh graduates of business programmes.

The report’s findings represent survey responses from 179 recruiters from across 159 companies of varying sizes and sectors located in 31 countries  or regions.

A majority of the employers participating in this year's survey indicate that they will be striving towards improving performance and productivity, expanding their customer base, and launching new products and services and less focused on overcoming economic challenges and cutting costs than in recent years. 

MBA graduates are a hit among employers

• Nearly all employers who responded to the poll (96%) say that hiring recent business school graduates creates value for their companies
• Sixty-nine percent of employers agree that recruiting graduates of MBA and specialized business master’s programs is a priority in their company’s hiring plans
• Three in four (75%) employers expect to hire MBA graduates in 2016, compared with 71 percent of these same companies that hired MBA candidates in 2015
• A greater share of employers intend to hire graduates of Master of Accounting and Master in Management programs in 2016 than did so last year
• In 2016, nearly 3 in 4 (73%) employers surveyed said they will offer internships for MBA candidates
• Nine in 10 (92%) employers who provide internships for MBA students expect either to increase (26%) or maintain (66%) the number of internship openings next year compared with 2015