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MBA still in demand despite recession

Less jobs, but higher salaries, for MBAs in 2011

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Article by Leah Germain

International MBA organisations have released two surveys predicting a future for MBA graduates that is surprisingly optimistic, despite last year's global economic collapse. The UK-based Association of MBAs and QS TopMBA.com have produced individual reports highlighting the stability an MBA degree offers employees during times of market instability.

The Association of MBAs' research and consultancy centre published an Economic Downturn Survey highlighting changes in salary and career progression for MBA graduates worldwide over the past few years. Natalie Clark, Association of MBAs director of marketing, said more than half the MBA alumni surveyed felt their degree had given them a sense of "job security" during the recession.

The report noted that the average salary of MBAs in the UK had increased since 2008 from £70,250 (US$117,083) to £75,092 (US$125,153) in 2009.

The second survey, International MBA Recruiter Survey 2009, was released by QS TopMBA.com's Nunzio Quacquarelli, author of the report. He said there was a greater demand for MBA graduates with business experience as opposed to recent MBA graduates.

"This recession is making employers actively look for MBAs to fix problems or help them expand into emerging markets. Greater focus is being placed on leadership and communication skills. Employers are looking for people with experience who they feel can make a real difference straight away," Quacquarelli said.

The report noted that 77% of employers worldwide were looking for MBAs with more three years of work experience, while 42% of employers preferred MBAs with more than five years of hands-on work experience.

As far as the inexperienced MBAs hoping to get a job immediately upon graduation, the outlook is not at all promising. Only 2% of employers surveyed were looking for MBAs with less than one year of work experience, said the QSTopMBA.com report.

Despite the decrease in employment options, the salary for most MBA graduates is still well above the national average for many countries. For MBAs in the United States and Europe, the survey found that US$91,500 was the common salary. In other countries, local MBA employers offer average salaries of US$55,000 in Asia, US$53,300 in Latin America and US$49,500 in Eastern Europe.

"The MBA is becoming more and more relevant in emerging markets where companies are looking to business educated graduates to assist them in capturing opportunities for growth in the global economy," Quacquarelli said. "This is stimulating demand for MBAs from elite Western business schools, but also from the growing number of regional business schools around the world, whose MBAs often command lower salaries."