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UK B-Schools Condemn Proposal To Charge Business £1,000 To Hire Foreign MBAs

Fresh visa curbs damage British b-schools' appeal

Wed Jan 20 2016

BusinessBecause
UK businesses will be forced to pay £1,000 to hire MBA grads from outside the EU under new proposals being considered by the British government.

The fresh curbs on skilled migrants, put forward by the Migration Advisory Committee (MAC) on Tuesday, are the latest in a long line of measures that are damaging UK business schools and the companies that hire their students.

In 2013, the Tier 1 post-study work visa was axed, which allowed UK postgraduate students to stay in the region and seek work for a further two years after completing their studies.

Cana Witt, MBA careers advisor at Lancaster University Management School, said the government’s clampdown on UK work visas makes it “much more difficult” for international students to find jobs.

“They are concerned,” she said. “They are wondering whether there are going to be opportunities for them in the UK.”

This is damaging the appeal of British business schools among the international students they covert, who are instead considering countries with more relaxed visa regimes, such as Australia and Canada.

Cana said: “Students value the education they have here, but if their main criteria for doing an MBA is international career opportunity, they will study in a country where they perceive the greatest chance of getting work.”

Sir David Metcalfe, chairman of the MAC, said that skilled migrant workers make important contributions to the UK economy, but that needs to be “balanced on their potential impact on the welfare of existing UK residents”.

The MAC said the proposal could raise £250 million to go towards helping train British-based workers in UK firms.

Sir David added: “Raising the cost of employing skilled migrants via higher pay thresholds, and the introduction of an Immigration Skills Charge, should lead to a greater investment in UK employees and reduce the use of migrant labour.”

The MAC proposes that the government raise the minimum salary threshold for the Tier 2 visa from £20,800 to £30,000.

MBA students will have no trouble making the threshold — but the additional burden of cost on employers incurred by the Immigration Skills Charge makes it even more difficult to recruit talent from outside the EU.

It is already a daunting process for employers to secure visas for overseas workers, say UK business schools’ career departments, which are fearful of commenting publically.

They say employers are reluctant to hire students from outside Europe, preferring the ease of recruiting someone who already has the right to work in Britain.

And for the 20,700 yearly cap on skilled workers imposed in 2011 is easily filled.

Simon Walker, director general of the Institute of Directors, which represents UK companies, said the proposals would damage business and hurt “thousands” of firms, which will find it harder to recruit skilled talent.

He said: “This will send a message around the world that the UK is no longer open to international talent.”

Neil Carberry, director for employment and skills at the CBI, the UK employers’ lobby group, said the proposals “could hold back firms’ ability to grow and create jobs”.

He said that skilled migrants are “important to addressing UK skills shortages and to attracting investment”. But, “it’s critical to invest in our own skills system”.

A survey of MBA students who graduated in 2011 by the Financial Times found that 87% of students were from outside the EEA. But only one-third still worked in the UK three years later.

Financial services and consulting are the two industries that benefit most from hiring internationals. They collectively employ 55% of MBA graduates who stay in the UK.

Chris Cummings, chief executive of TheCityUK, which represents financial services firms, said the proposals are “bad for business”.

“Firms need the flexibility to employ the best people here in the UK and from overseas.”

Mark Hilton, immigration director of London First, the business membership group for the UK capital, said the visa curbs are an “unfair burden” on employers.

“It seems bizarre to be clamping down on the employment of very highly skilled immigrants, who bring much-needed skills into the country.”

Student Reviews

Lancaster University Management School

Jesse

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28/09/2018

An exceptional educational establishment in the North West of England.

This university has been a fantastic life experience as well as a great academic one. I first decided to go to Lancaster University Management School due to its exceptional business education facilities and have not been disappointed. I recommend the university to anybody that wants to put themselves in a strong position for a career upon graduation.

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24/11/2022

On Campus

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Overall, the instruction is decent, however it also depends on your department. The people are friendly, in my opinion. The sporting events are enjoyable, and there is a good sense of community. Although the city is quite remote, it is nonetheless attractive.

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3/08/2020

Lancaster University honest review

The education system in the university is excellent especially that of the Management School. The campus has great facilities for students to study and live in a relaxed manner. The students can engage in various activities through the socities.

Student

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17/06/2020

Great opportunities to think beyond

Lancaster University provides a lot of good opportunities to think beyond.There Entrepreneurship in residence program helps students to meet and seek guidance about entrepreneurship and the challenges.Their Work in progress program help to fabricate your startup idea and further to pitch to the potential investors.Apart from that there are lot of programs like Enactus, guest lectures and guidance from seniors to help and shape your career needs. They provide lot of opportunities to shape up your employability skills.

Student

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9/10/2020

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A top university in the UK for management science!

If you’re interested in management science studies, Lancaster University is one of the top universities in the UK. The faculty is renowned and have a sterling reputation for research in management science. Candidates specifically interested in Forecasting would find the Centre for Marketing Analytics and Forecasting especially relevant to their field. Besides, the ROI is good as the overall cost compared to other universities is less.

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10/04/2019

Great university for academia – not great for 'entrepreneurs'

Please keep in mind that my review is nuanced by my expectations of an Entrepreneurship degree :) I came to Lancaster University because it was one of the top universities to have a course in Entrepreneurship. After 4 years in this degree, my most valuable experience has been my placement and not the actual course. The course is heavily focused on impractical elements, which is a bit odd for an Entrepreneurship degree. There are some modules that involve hands-on work but the faculty support for such things has not been great. My course also involved a lot of teamwork which has been fantastic and really prepared me when it comes to dealing with the diversity of opinions. In terms of career prospects, the management school does A LOT to host events, workshops and support sessions to help you build up your employability skills. Although, I wish there was more acknowledgement of SMEs/startups as a viable career option. The entrepreneurship team which is meant to support budding businesses is really stepping up their game with tons of guest speakers, workshops and pitching opportunities. The location is a concern if you're not in STEM, Law or Accounting and Finance. Business requires networking with the broader community. However, for Lancaster students, the best bet is a trip down to Manchester or London. On the flip side, living in Lancaster is much cheaper! Overall, if the purpose of your university experience is to receive top academic education and have great facilities at your disposal, Lancaster is a great choice. But if you want to be in business and entrepreneurship, I would look elsewhere.

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