2. Trends Affecting Recruiter Attitudes

Globalisation is making the MBA market continually more dynamic. As more and more business schools increase the international diversity of their students, they become ever more attractive to recruiters in the global marketplace. 2005 was the year when China and India really began to make their mark on MBA recruiting. This has continued in 2006 and 2007. Salaries in these regions may be significantly lower than in developed regions, but many MBAs are interested in working in these countries, believing that entrepreneurial opportunities outstrip those in developed regions. Russia is also making its mark and benefiting from the boom in commodity prices, resulting in many opportunities for MBAs at highly competitive international salaries.

Central and Eastern Europe, Germany, Spain, Australia and South East-Asia are among areas of the world not traditionally associated with MBA hiring on a large scale. The strong performance of some of these regions in the recruiter preference tables indicates how they are now fertile ground for seeking MBA hires. QS’ prediction still stands that MBA recruiting in parts of Asia, Latin America and Central Europe will soon start catching up with the more mature US and Western European markets. ). In 2007, we have had to increase the number of schools featured from the Asia-Pacific region, reflecting their growing importance amongst international recruiters who are targeting the Asia region for growth and are turning increasingly to Asian business schools to meet this resource need. We are already seeing the previously predicted strong business schools emerging from these regions and we expect this trend to continue and many more recruiters to become active.

The reputation of elite schools stands them in good stead around the world. The research confirms that there are 15 - 20 schools in both, North America and Europe, of which almost all international recruiters are aware and would favour for MBA hiring. These schools feature on the priority lists of a high proportion of respondents. However, in negotiation, the high salaries demanded by graduates of these schools deter many smaller firms. There is a differential in salary levels between elite schools and strong local schools and this is helping to sustain demand for graduates from a wide number of institutions. As a consequence of high salary demands from the MBAs at top schools, recruiters may turn to strong local schools. There is a differential in salary levels between elite schools and strong local schools and this is helping to sustain demand for graduates from a wide number of institutions.

Regional and local North American recruiters reported an average starting salary of US$89,700; Western European recruiters reported an average of US$97,400 (outstripping North America for the first time); Eastern European recruiters reported an average of US$63,200; Asia Pacific recruiters reported an average of US$71,400 and Latin American recruiters reported an average of US$69,800. It is also true that the elite schools have limited numbers of places and therefore competition for entry is tough. Many good candidates therefore decide to study at less well-known schools and to undertake a pro-active job search. Recruiters may visit schools selectively, but they will review CVs of candidates from almost any school. Strong candidates at smaller schools are helping to build the reputations of these schools as evidenced by the new schools appearing in the recruiter preference tables across the world. There are strong local business schools emerging in Canada, Germany, Russia, Australia, China, Japan and several other countries that may soon start to challenge the existing incumbents. The reputation of elite schools stands them in good stead around the world.

The TopMBA.com Salary and Recruitment Trends Report 2007, provides extensive details on the renewed boom in MBA hiring. The MBA market has shown itself to be cyclical. Recruiter demand for Full-Time MBA hires fell back each year from 2001 to 2003, as telecoms, media, consulting and banking sectors shrank their employment numbers and cut back on new hiring. A strong recovery commenced in 2004 and by 2006, we see MBA demand exceeding the levels of 2000, and recruiters are predicting two more years of increase in hiring. By 2007, MBA demand is approximately 10% above the levels of 2000. This growth reflects the return to aggressive hiring by consultancies and banks, and also the increasing geographic spread of MBA employers in all sectors. We have seen a 22% increase in demand, a 4% increase in average MBA compensation in 2007.

Many small and medium- sized companies founded in the last decade by entrepreneurial MBAs have been hiring the current class at affordable salaries. It is too soon to say whether this trend will continue, as MBA salaries begin to rise again. Feedback from career services in particular suggests that alumni hiring remains an important source of new job opportunities for MBA graduates. These small businesses are lending dynamism to the current MBA hiring market. Ever more MBA alumni are returning to hire new MBAs in order to give their businesses the professional management skills necessary to progress to the next stage. In compiling this research, the researchers have benefited from access to Global-Workplace (www.global-workplace.com) that provides a recruitment platform for alumni seeking to hire from international business schools, or themselves seeking to be hired.