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MBA Hiring Demand to Rebound Post-Pandemic
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Corporate recruiters project robust hiring demand for business school graduates post-COVID, with 9 in 10 projecting hiring to increase or remain stable in the next five years.
This news comes from the Corporate Recruiters Survey 2021, a poll of employers conducted annually by the Graduate Management Admission Council (GMAC), a global association of leading graduate business schools and the maker of the GMAT™ exam.
“As corporations recover from the pandemic and rebuild their workforces, it is no surprise that business school graduates—with their leadership and managerial skills in high demand—are specially strengthened in their value proposition as an employee and uniquely positioned to meet today’s economic challenges,” said Sangeet Chowfla, president and CEO of GMAC.
MBA salary and hiring expected to return to pre-pandemic levels
In 2020, the projected MBA median starting salary reached an all-time high of US$115,000 before COVID-19’s disruption of the global economy, contributing to its temporary decline to US$105,000 three months into the pandemic.
However, according to the new survey findings, the median MBA starting salary for 2021 is projected to recover to its pre-pandemic 2020 level. Responses from recruiters show that the median starting salary of MBA graduates is 77 percent more than those with only a bachelor’s degree (US$65,000) and 53 percent higher as compared to those hired directly from industry (US$75,000).
Before the pandemic, 92 percent of recruiters indicated they were planning to hire MBA graduates in 2020. However, the disruptions caused by COVID-19 adversely affected those plans, and hence the actual hiring of MBA graduates (80%) was lower than 2020 projections. Looking ahead, the proportion of recruiters planning to hire MBAs in 2021 (91%) returns to the same level as pre-pandemic 2020 (92%).
The MBA hiring projections exhibit strength across key regions and industries. Specifically, 95 percent of the recruiters in the consulting sector, an industry in most demand by MBA graduates, are projecting to hire them—a reversal from the 2020 actual hiring of 76 percent.
Tech sector embraces MBAs
MBA hiring in the tech sector is projected to see a notable increase from pre-pandemic levels, according to the survey findings. Among responding tech employers, 96 percent expect to hiring MBAs this year, up from 86 percent in pre-pandemic 2020.
“Technology companies are placing a high value on leaders who are not just technically skilled, but also have strong strategic, interpersonal, communication and decision-making skills, as well as an understanding of the importance of diversity and inclusion and sustainability in their organizations—these will be critical to driving organizational growth and innovation," said Peter Johnson, Assistant Dean of UC Berkeley's Haas School of Business.
"These core skills represent the signature business schools are imbuing in graduates from their MBA and business master's programs.”
More than 2 in 3 recruiters in the tech sector (68%) agree that leaders in their organizations tend to have a graduate business school education.
Mixed feelings on online programs
Online programs have been gaining traction in recent years. According to GMAC data, 50 more Online MBA programs accepted GMAT scores in the testing year 2020 as compared to five years earlier. In addition, 84 percent of online MBA programs reported an increase in applications in GMAC’s 2020 Application Trends Survey.
However, when corporate recruiters were asked about their level of agreement with the statement “My organization values graduates of online and in-person programs equally,” only one-third (34%) of them agreed.
By industry, recruiters from the finance and accounting industry (41%) are more likely to view graduates of online programs as equal to their on-campus peers, compared to their recruiting counterparts in consulting (25%) or technology (28%).
“As business schools continue to evolve modalities and more candidates are able to access MBA and business master’s programs through online delivery, this presents the graduate management education community with an opportunity to align expectations and outcomes for graduates and corporate recruiters,” said Chowfla.
Should a graduate business degree be a part of your career plan?
How will you stand out in a competitive hiring landscape? Gaining a graduate business degree, like an MBA or business master’s, will give you the skills, network, and credibility you need to reach your career goals.
Whether you’re just starting out, trying to get promoted, or considering a career change, taking the time to create a career plan is important to thinking through and envisioning the path to the career and life you desire.
Our free Career Planning Guide will walk you through key personal and professional questions you need to explore to set the course for the next steps of your career.