Are MBA Graduates Facing Better Employment Prospects?

Feb 22, 2011
Pervin Shaikh

Succeeding in a Challenging Job Market - Renjith Khrishnan

According to MBA Careers Service Council, the prospects for MBA employment immediately after graduation, looks much brighter.

Prior to the economic crises in 2008, MBA students had an easier time gaining employment at a good company upon graduation. However, graduates in 2009 were reported to have had a more challenging time whilst seeking employment. Employers were reluctant to hire and invest in hires possessing an MBA, especially, when market economics and global events played a pivotal role in shaping business models and strategies.

According to industry experts, MBA Careers Service Council, the tide is now turning in the favour of the MBA students. This is by no means the end of the challenges that many MBA students face, but the labour market seems to be easing up with more companies coming onto campus and hire directly.

MBA Degree

There are many reasons why people choose to undertake MBA studies, including gaining softer skills, broadening knowledge or aiming to secure a senior position upon graduation. Interestingly, Business Schools saw an increase in the number of students applying for MBA programs post the economic downturn in 2008/9, when many people experienced job redundancy and thought going to b-school may help them to increase their future employment prospects.

MBA Employment Prospects

According to MBA Careers Service Council, company recruitment is up to 81% in 2010 from 60% in 2009. The survey was conducted in December of 2010 and surveyed 79 public and private Business Schools worldwide. All participants reported a positive increase in campus recruiting and job postings. This upward trend is also reiterated by The Graduate Management Association Council, surveyed over 200 employers, who reported that 64% of employers (up from 60% in 2010) were seeking to recruit MBA graduates in 2011.

Notably, there has been an increase in consulting and financial services roles, both sectors saw a decline in on campus recruiting post the financial crises in 2008. This was also marked by the 89 universities which participated in the MBA career Council survey in 2009, which saw consulting being the hardest hit sector.

Even though, things are looking more promising in terms of MBA graduate employment, the job hunting process is still very challenging. Job hunting has become more or less a full time occupation in itself. Students are now expected to find the time to adopt a focussed approach to job hunting. Instead of the employer coming to the student and hiring on campus as has been the case in many business schools across the world, more students have to be creative and inventive in securing interviews. For many students, networking has now become the norm when seeking employment.

However, organisations are also expecting to do much from MBA graduates and helping them improve services, products and positively impact bottom line performance. MBA graduates are expected to adopt an enterprising mindset from the outset and apply their theoretical knowledge within a practical setting. Thus enabling the company to capitalise upon opportunities within the markets;

Both the business schools and MBS students have had to re-evaluate the way MBA students present themselves to the market and to potential employers. More preparation and background work has been needed to assist the student in gearing up for the many challenges in an ever changing working environment.

Business Schools

Business schools are also appreciating the challenges facing students when it comes to employment and are also having to adapt the way they provide services. Both the business schools and the students have been required to work together to better prepare candidates for interviews, case studies and presentations to employers. According to the survey, 64% of the schools saw in increase in direct referrals to employers, whilst 58% saw an increase in alumni initiated hiring of students. Additionally, there was a 51% increase in the number of internships offered to MBA students.

Careers departments have also had to re-evaluate the service offerings to MBA students, to reflect the changing employment market. Business schools have continued to develop and maintain excellent working relationships with organisations and to encourage open dialogue between the student pool and the organisations.

Adopting such a win/win approach to the recruitment process works best for both sides. Employers are able to select the best possible candidates from a large talent pool. Students are provided with opportunities to interview with leading organisations, thus adding to the credibility of the business school.

Many universities may have found that students may have been more demanding in terms of requirements, but again, this is reflective of employer expectations and labour market conditions. Many Careers department have bought in services from external organisations to help the students prepare for the recruitment process.

Prospects for MBA recruitment may be on the up, but many challenges still lie ahead. Events on the global scale have presented long term challenges to both employers and business schools. Both business schools and employers have needed to collaborate closely together to form partnerships and benefit both sides. If anything, the collaborations between MBA graduates and employers will serve future MBA students well.

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