Stanford GSB: Class of 2015 Employment Report

The technology industry isn’t far off finance's number, though. The number using the school’s links to tech employers based both inside and outside of the San Francisco Bay Area to enter the industry has grown from 24 to 28% of the class.

This means that there are now twice as many Stanford GSB graduates taking MBA jobs in technology as there are taking jobs in consulting, after that sector’s proportion dropped from 16 to 14% of the class total. The most popular tech areas of employment have proven to be marketing, software and internet services – each of which accounts for 6% of the class of 2015. A 6% class proportion also represents the number taking jobs in healthcare, a rise from 4% last year.

Given the recovery seen to the market for MBA jobs in the US this year, it is perhaps a little surprising to see that the number of Stanford GSB students who have landed, and accepted, a new position within three months of graduating has declined from 92 to 86%. However, the school says this is because the recovery has empowered its charges to hold out for the right position:

“This cohort has a very positive outlook on the market and a higher tolerance for risk. The strong market has allowed them to defer decisions about multiple offers, and in some cases, turn down offers to remain focused on searching for an ideal opportunity,” said Maeve Richard, assistant dean and director at Stanford GSB’s career management center.  Despite this, the number of those receiving an offer in this three-month timeframe has also fallen, albeit more marginally, from 94 to 92%.

Some of this could conceivably come down to the number of students leaving the school to start their own businesses, rather than seeking new employment opportunities. Entrepreneurs among Stanford’s class of 2015 represent a sizeable 16% of the total. But, this is actually a fraction down on 2014’s proportion of 17%, and the 18% recorded in 2013. Still, it is worth noting that the proportion of this year’s entrepreneur graduates is higher among its international student population (20%) than it is among its US citizens (15%). The most popular startup areas this year are consumer products/services, healthcare and finance which, when combined, account for a third of the class’ entrepreneurs. Energy/clean tech, which was second only to finance on 2014’s entrepreneurial list, has disappeared from this year’s list altogether.

The school says that its international students are also showing a keen interest in joining existing startups and that the greater complications associated with securing work visas at smaller companies might be prolonging their job search. The proportion of international students accepting offers of MBA jobs within three months from the class as a whole was indeed down this year, from 89 to 82%.

As for locations taken up by this year’s graduates, it is also interesting to note that the number of entrepreneurs setting up shop overseas is four times as high as the number of students accepting jobs outside of the US. More than a quarter (28%) of MBAs who are starting new businesses are doing so outside the US, compared to the 7% class proportion who have accepted jobs abroad – a number that has fallen by almost a half since last year and is some distance short of the 20% peak seen at Stanford back in 2010. Since 2014, the number leaving California for positions in Asia-Pacific has dropped from 4 to 2% and in Europe, from 2 to 1%. Instead, more than two-thirds of the class, 68%, are staying on the US’s West Coast (defined as a region including California, Oregon, and Washington), up from 61% last year.

Much of Stanford’s report this year relates to the 71% of students (from a total of 396 graduates) who were seeking employment. In this, the number of students using their own initiative to secure MBA jobs (54%) outweighs those benefitting from school-facilitated resources (46%). These numbers were very similar last year. However, on-campus recruiting activity facilitated by the school has risen substantially in 2015 and now accounts for 15% of class employment, up from 9% last year. The avenue through which 30% of students have found their own job opportunities is loosely defined as ‘networking’ and is up from 25% last year.