Only 22% of recruiters surveyed currently offer jobs or internships to business school graduates, while nearly 90% agreed that embedding work experience within business courses like MBAs would make graduates more employable, according to the data.
The report, compiled by the Chartered Management Institute, the Quality Assurance Agency and ABS, saw that meaningful work experience would develop MBA’s skills through learning by doing, applying theory learnt in the classroom to real-world situations and gaining a more rounded and realistic view of the world of work.
More than 50% of employers say they currently have difficultly hiring high-calibre managers. But the new survey reveals that they are not even looking at business schools for new hires; only 17% of employers recruit directly from schools when recruiting first-time managers.
Instead, 45% of firms surveyed use business schools to train and develop staff, focusing on executive education rather than recruitment. The data comes a month after business schools reported a surge in executive education demand – business schools’ main source of revenue.
“This report underlines that the curricula must be robust and relevant, enabling students to embrace an innovative, ethical and entrepreneurial ethos and bring this into the workplace,” said Jane Harrington, vice chair of ABS.
The findings, seen by BusinessBecause, were officially launched by Lord Young of Graffham, the UK Prime Minister’s adviser on small business and enterprise, last night.
The CMI, the Association of Business Schools and QAA reviewed the current business and management curriculum, working closely with the ABS’s membership of 118 UK business schools and over 500 employers and management experts, through CMI’s Regional and Devolved Nation Boards across the UK.
The report also highlights the disconnect employers have with the UK’s top business schools. Some 40% of employers surveyed could not say if business schools did or did not understand the needs of organisations like theirs, while 47% could not say whether or not business schools in their area are well-connected with the local business community.
These outmoded perceptions mean that 31% of employers do not think there is a business case for working with b-schools. This is despite evidence that business and management education provides £3.25 billion of revenue to the UK, and that businesses that are physically located nearest to business schools have better-quality management.
Ann Francke, chief executive of the CMI, said: “Stronger collaboration between business schools, employers and professional bodies will result in a better generation of leaders.”
She added: “It’s a win-win situation because employers get professionally trained, practically-skilled managers who can deliver results from day one – while graduates boost their career and progression prospects and universities improve student satisfaction, attracting more and better candidates.”
The report also highlights the flagging connection between MBAs and start-ups. Nearly 70% of employers believe that business courses are too focused on the agenda of big business, rather than preparing students for working in SMEs.
That will do little to ease fears that less MBA graduates are pursuing entrepreneurship, opting for the corporate track instead. A survey released last week by GMAC, providers of the b-school entry test the GMAT, showed that just 4% of 2013 MBA students intend to pursue entrepreneurship after graduation.
In the UK, about five million SMEs currently employ 24 million people, according to ABS’s report, which recommends that business schools forge closer working relationships with start-ups.
“The more effectively universities work with business and with the professional bodies that support businesses and growth, the greater opportunities we have for effectively developing UK talent,” added Jane, ABS vice chair.
Anthony McClaran, CEO of QAA, said that a practice-based curriculum can be best achieved through closer working relationships between employers and business schools.
“This collaboration will not only reap rewards for both HEIs and businesses but, crucially, develop the work readiness of new and future graduates,” he added.
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