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Career switchers benefit from strong MBA demand
Traditional recruitment is founded on employers seeking prior relevant work experience and identifying competencies that match a given role. An MBA is often the only way someone can bring about a mid-career switch, but it is never easy.
TopMBA’s research shows that roughly 50% of MBA applicants are considering switching from one function or industry to another, through their MBA. Approximately 23% wish to start their own business (typically 5-10% actually do so straight after their MBA) and 65% seek career progression. David Wilson, President of GMAC, believes that many of the career progressors opt for part-time MBAs and executive MBAs. As a result, an even higher proportion of candidates taking full-time MBAs are considering switching careers.
“Many companies see an MBA as an essential management entry-level qualification. Without an MBA, it is difficult to change career paths to become an Associate at a top Investment Bank or a Senior Consultant at a top consulting firm.”
Global-Workplace.com & TopMBA.com/ Careers, the leading web-based career services for MBAs, jointly run conferences with career service directors looking at best practice. Much of the discussion revolves around teaching MBA switchers to be proactive in their job search. A mix of web-based research, networking and career service support is required for a successful job search.
The following data, drawn from TopMBAs Recruiter research, sheds some light on functional and sector opportunities available to MBAs.
Functional Roles Offered to MBAs
In terms of roles offered to MBAs in 2005, marketing, finance, consulting and sales & development were the most plentiful. Consulting roles have risen from fifth place to third place in the last twelve months and early evidence suggests that it will top the list in 2006.
Many companies see an MBA as an essential management entry-level qualification. Without an MBA, it is difficult to change career paths to become an Associate at a top Investment Bank or a Senior Consultant at a top consulting firm. As firms in these sectors start hiring again, the numbers of opportunities for career switchers who wish to enter these functions will also increase.
It remains true, however, that candidates seeking to progress within the same industry will have the easier job search and are likely to negotiate the best packages. Andy Chow is working as a VP in investment banking at Wells Fargo in San Francisco. He took an ExecMBA at Wharton in San Francisco. He comments “Wharton’s MBA was a natural fit for my career in investment banking. The majority of vice president-level bankers have MBA degrees already, and the MBA is a must-have credential in my profession. I would like to continue with investment banking or eventually transition over to the "buy-side" in venture capital or public equity. Either way, the Wharton name adds credibility to whatever I end up doing.”
Source: TopMBA.com International Recruiters Survey 2005
Diversity MBA Hiring
The upturn is being used by many companies to change the profile of their hires and this can be to the benefit of career switchers. The traditional MBA profile - young local male, aged 26-35 - may still be the majority choice, but women and ethnic minorities are increasingly being targeted as part of diversity drives. Ellen Miller, Recruitment Manager at Lehman Brothers says “Lehman Brothers is very committed to the concept of diversity…our success is dependent on being able to recruit and retain very high caliber people – individuals who can demonstrate communication and problem solving skills, creativity, initiative, personal presence and the ability to work well in a team. People like this aren’t easy to find and they certainly aren’t the monopoly of any particular gender, culture or colour.”
Minorities and women are in a very favourable position. Graham Hastie, Careers Director at London Business School, confirms "almost every company that comes on campus at LBS is eager to hire women.“ Although the number of women taking MBAs is on the increase, Hastie feels there is a shortage. As a result, there is greater opportunity for women to achieve a career change. Dr Isabella Erb-Herrmann, a Principal at Booz Allen Hamilton agrees "Booz Allen is completely committed to increasing the percentages of both women and minorities in its client staff…the belief is that the more diverse our teams are, the more creative and effective they will be.”
