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Ind dex of Figu ures Figure 1: Re egional Distrib bution of Responding Recruiiters 2007 Figure 2: Re ecruiter Respo onse by Industry 2007 Figure 3: Ex xamples of Ressponding Employers by Region Figure 4: Ind dex of MBA Re ecruitment 1990-2008 Figure 5: Pe ercentage chan nges in MBA opportunities o by b sector worldwide Figure 6: Tre end in Employyment Opporttunities by Reg gion 2005-200 07 Figure 7: No orth American and European n Recruiter Re esponsibility by b Region 2007 Figure 8: Functional Roless Offered to MBAs M in 2007 Figure 9: Pre eferred Levelss of Experiencce for MBAs Figure 10: Key K MBA Skills Figure 11: Average A Salarie es in US & Eurrope 1996-200 07 Figure 12: MBA M Salaries in n US and Europe by Industryy 1996-2007 Figure 13: Average A MBA Earnings E by Sector 2007 Figure 14: MBA M Salaries by Region 2007 7 Figure 15: MBA M Salaries by Region - Loccal Employerss vs. Average Figure 16: MBA M Salaries accross Regions 1996-2007 Figure 17: MBA M Salaries in n North America by Sector in i 2007 Figure 18: MBA M Salaries in n North America by Countryy Figure 19: MBA M Salaries in n Europe by Co ountry Figure 20: MBA M Salaries Asia A Figure 21: MBA M Salaries in n Asia by Coun ntry Figure 22: Comparing C Ave erage Salaries in Asia Figure 23: Comparing C Ave erage Salaries in Latin America Figure 24: MBA M Salaries in n Latin Americca by Country

4  4  5  6  8  13  14  19  19  20  21  22  23  24  25  25  27  27  28  28  29  29  30  30 

QS Quacquarrelli Symonds Ltd 1 Tranley Me ews Fleet Road London NW3 2DG United Kingd dom

The entire content c of th his publication is protectted by intern national copyright. All riights reserve ed. No part of this publication may be copied or reproduced d in any form m without th he prior writtten permission of the publisher. on: Tables an nd charts ma ay not be rew worked or prresented in any a other form without written w Reproductio permission from the publishers: Any excerptts must be so ourced: QS T m International Recruiter Survey 2007 7. All charts must m be sourcced: QS TopM Intternational Recruiter R Surrvey 2007.

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Conten nts 1. Introdu uction

Who willl be interestted in the survey?

2. Summa ary of Findings

3. Method dology and Credentia als

4. Companies Surve eyed

5. Long Te erm MBA Recruitmen R nt Trends

Reaching g a new peak k

6. Short Term T MBA Recruitme ent Trends 2007

6.1 Demand for MBA As As by Region 6.2 Demand for MBA merica 6.2.1 North Am 6.2.2 Europe 6.2.3 Asia merica 6.2.4 Latin Am v Local Employers 6.2.5 Global versus As by Sector 6.3 Demand for MBA 6.3.1 Consulting al Services 6.3.2 Financia ogy 6.3.3 Technolo 6.3.4 General Industry d Healthcare e 6.3.5 Pharmacceuticals and nterprises an nd Entrepren neurship 6.3.6 Small En 6.4 Funcctional Roless 6.5 Expe erience Levels 6.6 Skillss

8  10 0  10 0  10 0  11  2  12 13  5  15 15 5  16 6  16 6  17 7  18 8  18 8  19 9  19 9  20 0 

7. MBA Sa alaries and Compensa ation


7.1 Glob bal trends in 2007 7.2 Salarry & Bonus Combined C 7.3 Bonu uses 7.4 Tren nds by Region n 7.5 Strattegies for MB BA Salary Analysis 7.6 Regional Focus merica 7.6.1 North Am 7.6.2 Europe 7.6.3 Asia merica 7.6.4 Latin Am

21  2  22 23  4  24 26 6  27 7  27 7  27 7  28 8  29 9 

8. Append dix – Some e participating companies

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1. Intro oduction n Since 1990,, QS Researrch, in colla aboration with, has co onducted an n annual surrvey of MBA A employers worldwide w to o determine trends in international salaries s and recruitmentt. The 2007 survey s is the e most extensive ever and presents an a unrivalled d overview of o the world MBA recruitment marke et. Complete e w receive ed from 489 companies (445) (comp parative figu ures for 2006 6 are shown in bracketss responses were throughout the report and a in some instances double brackets are used d to denote results from 2005) in 35 5 (33) differe ent countrie es. This reprresents apprroximately twice the re esponse leve el of the Bussiness Week k Employer MBA M survey and includes five timess the numbe er of non-USS responden nts than anyy other MBA A recruitmentt survey.

Who willl be inte erested in n the surrvey? This researcch will be of o interest to o all who follow the inte ernational MBA M and recrruitment ma arket. It willl help three groups g in particular to make m informe ed strategic decisions:

1. Com mpanies an nd Agencie es that reccruit MBAs Nattional and in nternationall recruiters will find th he survey usseful in managing human resource e poliicies, such as a whether to o determine salaries globally or loca ally, and to b benchmark their t salariess aga ainst peer insstitutions.

2. Bussiness scho ool adminisstrators an nd career services s wo orldwide MBA A program administrato a ors and care eer services will find the survey invaluable fo or providing g guid dance to students and managing m the relationship ps with recru uiters.

3. Currrent and future f MBA A graduate es MBA As can use the t research to determine which ind dustries and d geographie es to pursue in their job b search, and to help h negotia ate an optimu um compenssation package.


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2. Summary off Findin ngs In recent ye ears, severa al MBA comm mentators be elieved that MBA education would ne ever return to the gloryy years of the e late 20th Century. C Yett in 2007, MB BA recruiter demand excceeds the le evel at the height h of the e dot com boom and look ks likely to co ontinue its upward u marc ch. Paul Danos,, Dean of Tu are up for over uck observess “Today… applications a o 2/3 of all business schools and d the demand d for graduatting MBAs is through the roof.” MBA recruitters around the world are in the midst of a battle for talent. t As w world growth h continues, demand fo or MBAs is spiralling, particularly p anking. The e in the servvice sectorss of consultting and ba m Internatio onal MBA Reccruitment an nd Salary Re eport 2007 re eports on th he trends in recruitmentt and salariess earned in the t primary internationa i l markets to oday. Hiring predictions from MBA recruitters suggest that MBA de emand world dwide will se et a new record in 2007. Index x of MBA Re ecruiting sho ows for the second s year in successio on an overall 24% (24%)) The TopMBA increase in demand forr MBAs in 200 07, with the e technologyy sector repo orting a masssive 29% (20 0%) increase, financial se ervices 23% (2 24%), genera al industry 24 4% (18%), an nd consulting g 22% (39%). In 2007, ave erage MBA salaries in We estern Europ pe have incre eased by a massive m 6.5% % (a full 4% ahead a of the e average Eurropean inflation rate), compared c to a worldwide e increase in n MBA salaries of 3.5%. MBA M salariess are now we ell in excesss of the pre-downturn le evels of 200 01 with a No orth America an/European n average off US$93,400 (US$90,500)). This incre ease reflectts a high le evel of optim mism amonggst MBA rec cruiters and d c for the top p talent. Th he average reported bo onus is a sizzeable US$2 24,100, with h increased competition banks/finan ncial servicess companies leading the bonus field,, with an ave erage bonus of $46,400. MBA recruitters around the world have a stro ong preferen nce for cand didates with three to fiive years off professional experience e. They seek k strong com mmunication and interpe ersonal skillss, strategic thinking t and d ell as the ha arder skills taught by bu usiness schoo ols. In generral, whilst th hey are veryy leadership skills, as we t is stilll room for im mprovement in terms off happy with the harder skills ingrained in MBA graduates, there the softer skills. s Regionally there t is a ca atch up occurring in term ms of demand for and salaries receivved by MBAs in emerging g markets, co ompared to North Ameriica and Westtern Europe.. Though the ere is still a 30% salary gap g between n the highest and lowest paid p regions, this gap is narrowing n each year.

3. Meth hodolog gy and Credent C ials The Interrnational Recruiter Survvey collects primary datta on the sttate of the recruitmentt d predictionss of future trends from m recruiters in industry, consulting, financial se ervices, and d market and technology.. The data includes speccific analyse es by sector,, geography,, and year. T Time-trend analysis and d sector/regio onal variatio ons have be een incorporrated into this t final rep port. Unlike e many surveys, the QSS research do oes not rely on MBA gra aduates to re eport their earnings, e bu ut obtains th he informatio on from the e employers who w pay the em. Each respondent is designated as a responsib ble for MBA rrecruiting wiithin his/herr company ass a whole orr division. Th hey are aske ed to identifyy their geographical responsibilities, confirming g whether the ey recruit locally in their domestic market, m regio onally, or glo obally. QS further differentiate es its research by the ob bjectivity of its position as a third p party operatiing between n a business schools, by virtue of th he long estab blished contacts with re ecruiters who o are willing g recruiters and to share infformation wiith QS, and by b the bank of data on MBA M recruitm ment and rem muneration built b up overr the last 17 years y which allows mean ningful trend ds to be iden ntified over time. t

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4. Com mpanies Surveye ed Responses were w receive ed from acro oss the globe. 44% (38%) of respond dents were b based in Norrth America, 27% (28%) in Western Europe, E 16% (11%) in Asiia-Pacific, 5% % (13%) in Latin L America, 7% in Easstern Europe e e Middle East & Africa. This T providess detailed inssights acrosss regions. (6%) and <1% (4%) in the

Re egional Disstribution of Respon nding Recrruiters 2007 16%

7% 5% 1 1% USS & Canada W Western Europ pe Assia Pacific Ea astern Europe La atin America a Miiddle East & Africa


44% Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 1: Regio onal Distributio on of Responding g Recruiters 200 07

The spread of recruiters spans a wide w spectru um of industtries, reflectting the global range off companiess M Financiial services and consultiing make up p the largestt source of rrespondents followed byy that hire MBAs. technology,, industry, banking b and consumer c go oods. Respon ndents from the recruitm ment consultting industryy are kept separate altho ough they havve a bias tow wards financ cial services and consulting recruitme ent.

Recruiter Ressponse by Industry 2007 2 120 100 80 60 40 20 0

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 2: Recruiter Response by Industry 200 07


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The 489 nattional and in nternational companies that t respond ded to the su urvey are gua aranteed confidentialityy for the com mponents of their individ dual responsses, except for f any open n-ended feed dback they have h chosen n to provide on o the value e of an MBA or concerns with MBA hiires. The folllowing Figure 3 gives a snapshot off some of the e organisatio ons that took k part in the e survey acro oss the world d. A more co omprehensive e list can be e found in the e Appendix at a the end off this docum ment.

Example es of Respo onding Em mployers by b Region Consultin ng Asia

Accenture LEK

Fin nancial Servic ces OCBC Bank ANZ

In ndustry

Techn nology

LG Electronics E

Ava aya

HTC Electronics

De ell


Standard Chartered

Rio Tinto

Bloom mberg

AT Kearn ney

C Credit Suisse e

Exx xon Mobil

Sun Micrrosystems


M Merrill Lynch h

Azko Nobel


McKinse ey

Goldman Sach hs


Goo ogle

Bain & Co. C

Ba anco Santand der


Compu userman

NCG Consulting


Jo ohnson & J Johnson


Ernst & Yo oung


Booz Alle en Hamilto on


Latin Am merica


Deloitte e Consultin ng IBM Consullting

A Asturer

Huawei Tech de Vene ezuela

Ba ank of America

Ca aterpillar

Boe eing

JP Morgan Cha ase


Moto orola

Lehman Brothe ers



Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 3: Exam mples of Respon nding Employerss by Region

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5. Long g Term MBA M Rec cruitme ent Tren nds Reachin ng a new peak The MBA (Master of Business Ad dministration) is a gra aduate man nagement de egree, whic ch preparess gement resp ponsibility. Itt is one of th he best-know wn degrees iin the world d, with more e professionals for manag p e course. De eciding to ta ake an MBA is a cruciall step in an n people takiing it than any other postgraduate individual's career. A growing number n of co ompanies arround the wo orld see a to op MBA as an n essential m managementt entry-levell qualification. Without an a MBA, it iss almost imp possible to be ecome an an nalyst at a le eading investtment bank, O recent trrends, it is also a becomin ng common for businesss or a senior consultant at a top consultancy. On developmen nt and techn nology manag gers to take an MBA to help h reach th he next step in their care eer. Dee Clark, MBA M Recruitment Manag ger at Goldm man Sachs (Lo ondon) says, "We recruitt MBAs to devvelop future e leaders and d Directors, add a value an nd strategic thinking, t divversity, interrnational exp perience and d networks." Jacinta Low w of OCBC Bank, B Singap pore says “W We view MB BAs as our pipeline p of ffuture leaders. As MBA A graduates, they are exp pected to accelerate the eir learning and a contribute to the orgganisation qu uickly. Theirr d mature wo orkforce, com mpared with fresh undergraduates.” work experiience makess them a morre stable and For the consulting secctor, MBAs are a a source e of “smartt people wh ho can thinkk strategicallly and in a nst & Young g. John Frasser, Principa al at Fraserr structured manner” acccording to Mithran Dorraisamy, Ern anagement Consultancy C adds "A go ood MBA will w enhance the studen nt's businesss awarenesss Dawson Ma (particularlyy of areas in which they don't have h direct experience)) and, thus, should im mprove theirr contribution n to a subseq quent emplo oyer." More and more m industriial companie es are also recruiting r MB BAs, from a broader num mber of business schoolss than ever before. Som me are look king for a skills match - Daniela Grienwald G o of Hilti Corp poration, an n h group p in Europe says "The co ombination of o a technical study bacckground, re elevant work k industrial holding experience and an MBA A makes a go ood fit for co ompanies lik ke Hilti." Oth hers, like Wiilliam Grant Johnston att GE, are looking for raw w talent – “Ex xperience an nd education nal pedigree,, backed up with exposure to a wide e ness experien nces.” variety of liife and busin

Inde ex of MBA Recruitme ent 1990-2 2007

7 6

Index 1990=1


Industtry Consulting Financcial Services Techn nology

4 3 2 1 0

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 4: Index x of MBA Recruiitment 1990-2008


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Figure 4 sh hows the trend in MBA hiiring worldw wide, by secttor. Consulting and finan ncial servicess, especiallyy investment banking havve rebounde ed particularrly sharply. These T two sectors s will a account for 50% of MBA A hires at many schools. Additionally, A , the absolutte number off MBAs hired d into the con nsulting secttor has more e ed since 2003 3 and will ha ave trebled if i 2008 forec casts are ach hieved. than double urpose of simplification, this surve ey groups to ogether as ‘general ind dustry’; manufacturing, For the pu logistics, ch hemicals, automotive, FM MCG etc. dwide deman nd for MBAs grew at an average of 15% CAGR. This growth was spread d From 1994--2001, world across all th he major co ontinents and d benefited graduates frrom all of th he world’s to op 100 busin ness schools. Recession in n the USA, however, h and slow grow wth in major economies as a far apart as Germanyy and Japan, took their toll t from 200 02-2004 and demand for MBAs fell byy around 20% % from 2000-2003. In thiss period, on-campus com mpany visits fell significa antly and many MBA stu udents had to o resort to o off-campus job j searchess and networrking amongsst alumni. In 2007, th he situation could not be more different. d Bu usiness scho ool career sservices are delightedlyy reporting their t best ye ear on reco ord. In the most recent MBA Care eer Service Council survvey, 95% off responding business schools reportted an incre ease in emp ployer activitty on campu us, with 68% % of schoolss reporting an n increase in n employer activity a of 10 0% or more. Chris Higgin ns of the Carreer Service at Wharton reports 779 companies on-campus tto recruit Wharton MBAss in 2007, a 9% 9 increase on o 2006. “I started s work king at Whartton in April 2001, 2 just in n time to exp perience the e and consulting g crash. Dem mand for MBA As is cyclical and you nevver know wh hat is around the corner, d the outlook k is pretty go ood.” but the current market is great and g of Tuck Bu usiness Schoo ol, US, agree es that the MBA M job marrket is heatin ng up to levvels not seen n Kim Keating before. "We e expect all the class to have offers by graduation." At Lond don Business School, Gra aham Hastie, reports tha at 99% of the class of 2007 2 had pa aid summer internships – a record for the scho ool. Lindseyy McQuade, Careers C Direcctor at Cass Business Sch hool, reports a 100% inccrease in on--campus recrruiting since e 2005, with continued growth g this year, "benefiting from the booming g job marke et in consultting and the e City." QS Global-W Workplace (w, a jobss and careerrs site opera ated by QS on o behalf off many of the world's to op business schools s saw over 10,000 0 new MBA jobs j added tto the site during d 2006. es of Global-W Workplace says, "...the big b demand for MBAs lasst year came e from the se ervice sectorr Mike Holme – banks and d consultanccies – not jusst the big na ame firms, but b also manyy smaller orgganisations. In 2007, we e are seeing more m techno ology companies competting to hire the t best MBA As. An ongoin ng trend in recent r yearss is for MBA alumni, a who o are now in a position of o hiring ressponsibility, to return to o their schoo ol to pick up p new talent.."

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6. Shorrt Term MBA Re ecruitme ent Tren nds 200 07 6.1 Dem mand for MBAs Recruiters are a currentlyy optimistic.. In 2007, 39 9% (35%) of employers e expect to inccrease MBA hiring e h in the e next twelve e months, 57 7% (62%) exp pect MBA hirring to be att the same le evel as in 20 006, and a mere m 4% (3%)) expect a de ecrease in MB BA hiring in 2007. 2 Hiring predictions from MBA recruitters suggest that MBA de emand world dwide will se et a new record in 2007. d for MBAs is spiralling, particularly in the serviice sectors of o consulting g As world grrowth continues, demand and bankin ng. General industry an nd technolo ogy also rep ported doub ble figure growth in de emand. The e m Index of MBA M Recruiting shows for the t second year y in successsion an overrall 24% (24% %) increase in n demand for MBAs in 2007 7, with the technology se ector reportin ng a massive 29% (20%) increase, finan ncial servicess 23% (24%), general g indusstry 24% (18%), and consullting 22% (39% %).

Percen ntage chan nges in MB BA opportunities by y Industry Sector Wo orldwide in n 2007 70% 60%


2007/ /6 2008/ /7

50% 40% 30%

26% % 22%

29% % 24%

23% %

20% %

20% 10%


11% % 6%

0% Consulting g

Financiial Services


Tecchnology Recrruitment / HR Services

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 5: Perce entage changess in MBA opportunities by secto or worldwide

Looking ahe ead, it seems that most recruiters re emain confid dent that dem mand will co ontinue to grrow in 2008. Although re ecruitment agencies re emain bullish, only a 6% 6 increase in demand d is anticipa ated in the e technology sector, onlyy 7% in financcial services,, but a robusst 26% in con nsulting and 11% in indusstry. From the po oint of view of MBA recrruiters aroun nd the world, there seem ms to be no iimminent ind dicators of a possible red duction in demand. How wever, there e is a feeling g that the hu uge growth iin demand over o the lastt three yearss cannot be sustained, not least because b the supply of MBAs M is not growing as rapidly and d companies may not be willing w to pu ush salaries much m higher..


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At the same e time, it is always worrth expressin ng words of caution. c A recession r as seen betwee en 2001 and d 2004 is not on the card ds, but with h falling house prices, a growing deficit in the USA, and rissing interestt me regions in n 2008 is po ossible. Chriss Higgins at Wharton cautions “MBA A rates, a falll in MBA demand in som candidates need to rem main flexible about their career aspirrations.” ers is now also being reflected in applications tto do an MB BA. Between n The increassed demand by employe 2003 and 2005 2 there was a 20% % decline in MBA applications worrldwide. In some counttries, young g professionals seeking ca areer progre ession within their functiion or industtry were relu uctant to tak ke a risk and d d was eviden nt in the US, leave to take an MBA, in case theyy missed outt during their time awayy. This trend ally in China a, where MB BA applicatiions fell by 50% during these yearss – a period d of Chinese e and especia economic boom. b Visa restrictions r f entry intto the USA also resulted in less comp for petition to gain g entry to o the best sch hools than in n the years before b 2002. The good news n for bussiness schools is that MBA applicatiions are aga ain on the riise and com mpetition forr places is inttensifying on nce again. Ro ose Martinelli, Associate e Dean of Adm missions at C Chicago Grad duate Schooll of Business reports thatt domestic US U applications have incre eased by 100 0% in two ye ears, whilst internationall applicationss have increa ased by overr 30%. In most cou untries aroun nd the world d, we see a rise in dema and for MBA A places amo ongst people who seek a career chan nge or who wish w to startt their own business. b These young professionals are trying to time theirr MBA so thatt they graduate into a "h hot" job market, making 2008 start dates d look ve ery attractive. However, entry into top t business schools is increasingly co ompetitive.

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6.2 Dem mand for MBAs by y Region 6.2.1 Norrth Americ ca In the USA A, the large est MBA em mployment market, m rec cruitment is booming a again accord ding to the e m Recruiter Survey. Demand is growing botth amongst mainstream, high volum me recruiterrs and comp panies seekin ng a smallerr ol. Maryana Ayerbe of Merrill M Lynch h USA says “we are inccreasing ourr MBA hiring g more select entry poo BAs bring in the t new tale ent and energ gy that the business b needs to grow.” ” because MB Debbie Sehulster of Ing gersoll Rand USA says “W We have bee en able to im mprove our lleadership sttrength overr b bringing on o a handful of MBAs each year. We have a rig gorous hiringg process and d have been n the years by successful in i recruiting g and retaining high calibre talent that in the long term b become high h performing g and/or hig gh potentiall leaders in n our organ nization. MB BAs bring us u greater business ac cumen than n undergraduate studentss and through our relatio onship with selected s scho ools.” However, many m industrrial companiies are havin ng to look outside the top-tier t scho ools in orderr to find the e MBAs which h match the eir skill requ uirements att a competittive salary. Mesha Mott of Mead We estvaco USA A observes “D Depending upon u the un niversities and a the skills sets requ uired, salaryy requirements may be e misaligned with what the candida ates actuallyy bring to the t table. This usuallyy is a functtion of both h utation of prrogram and skill s set of hiires.” school/repu For many candidates, c e entry to a top-tier US business b scho ool channelss them into a banking or o consulting g career postt-MBA in ord der to pay ba ack the feess, as well ass natural pee er-pressure tto get the ‘best job’. A growing num mber of can ndidates are actively loo oking for spe ecialist smaller schools w which can better match h their caree er aspiration ns. This requ uires a more e thorough self-assessm ment prior to the MBA, a thorough h school searcch and a red duced reliancce on overalll rankings. It is still a challenge fo or foreign sttudents to obtain o H1 visas to stay and work in n the US, though recentt evidence co onfirms that as the labour market tiightens, recrruiters are finding f ways to hire the people theyy really want. The Dire ector of th he Career Service S at Wharton W co omments, "O Over 60% of Wharton'ss al students accepted a full-time positiions in the United U Statess last year." A At UC Irvine, Tom Kozikii internationa reports tha at 90% of th heir internattional students obtained d work perm mits to stayy and work in Southern n California, but a handfu ul of students were unab ble to stay beyond b theirr F1 visa whiich guarante ees a year off n MBA. work experiience in the USA after an

6.2.2 Eurrope MBA recruittment is verry much on the t agenda of o European-based comp panies seeking to be intternationallyy competitive e. Lucy Tarra ant of Barcla ays Bank sayys “To becom me a truly global bank, we need intternationallyy minded futu ure leaders.” ” Usha Kakaria-Cayaux off Nike Nethe erlands says “we look fo or MBAs for their learning agility, internationall d to evolve, e interrest in contiinual learnin ng and broad d manageme ent exposure e experience,, conscious decision (although so ometimes so omewhat surface level).” ” Several We estern Europ pean countrries are beccoming hot spots for MBA M recruiting. The UK K is at fulll employmen nt, particularly due to the t impleme entation of the t Highly Skilled Migrant Programm me, the visa a regime that is favourable to MBAss of almost any nationa ality. Spain and a Italy ha ave growing numbers off nd technolog gy companie es regularly recruiting MBAs, M as welll as a grow wing consulting industry. financial an The German economy is i also on the move. Fra ance remainss sluggish, th hough a new w right wing governmentt ustrial secto or and majo or companies are active e. Dominique D’Arcy off seems set on revitalisiing the indu “ y the MBA is becoming the main sstream qualiification forr Manchesterr Business Scchool says “increasingly recruiters in n many Westtern Europea an countries, as has been n the case in n the USA forr many yearss.”


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In Central Europe, E the MBA M is less prominent. p G Good Czech or o Hungarian n candidates are highly sought s after, but mainly outside the eir home co ountry. Russiia is the on nly Eastern European E m market with a large and d growing dom mestic dema and for MBAss. on Business School S obserrves: "The MB BA job marke et in Europe e is at record d levels and I Graham Hasstie of Londo can’t see any a clouds on n the horizo on. We expe ect most stud dents to havve several offfers at grad duation. “Att the currentt £/US dolla ar exchange rate, the UK U is now pa aying the highest salarie es for MBAs worldwide. Dominique D’Arcy of Manchester Business Scho ool says "the I-banks and d strategy co onsultants arre recruiting g ut they have e been joined by comm mercial bank ks and the professional p service com mpanies like e actively, bu KPMG, E&Y Y and Deloittte’s all of whom are targeting MBA M recruiting this yea ar. And man ny industriall companies have been enticed e into the t MBA marrket in the la ast three yea ars and they have enlarg ged the totall A employerss compared to the pre-d dotcom era. We are alsso seeing renewed activvity amongstt pool of MBA technology and telecom ms companies." al news in 2007 2 is Duba ai. D’Arcy comments c “c companies in Dubai are e booming and they are e But the rea seeking MB BAs in large numbers, in particularr, Indian MB BAs who havve some linkks with the region. Forr example OC C&C has acq quired Middle East Strategy Associa ates and is hiring active ely from MB BS.” Graham m Hastie conffirms that Du ubai and the Middle East is a hot spo ot, “a bit like e the wild west – some banks b expectt to double in n size every six months and a are recru uiting accord dingly.” and in Africa a is subdued. LBS have turned t awayy employers from Kenya and Nigeria a By contrastt, MBA dema because the ey do not have the righ ht profile off candidates. Meryll Folb of Standard Bank of South S Africa a observes “salary is a big g barrier for African emp ployers.”

6.2.3 Asia a In Asia, the e MBA is beco oming more in vogue. Assian candida ates are amongst the highest GMAT scores s in the e world and are a focused on o developin ng excellent technical sk kills, often at a the expensse of integra ating fully in n the social aspects of the t MBA. Bu ut Asian reccruiters are looking for well rounde ed MBAs. Ph hilip Cho off apore says “We tend to t focus lesss on academic or tech hnical skills,, and place e Lehman Brothers Singa m on comm munication, interpersona al skills and leadership traits. emphasis more e many MBA holders who have strong g T. Takenouchi of Coperrnicus Associates in Japan agrees “we favour the nal skills, as well w as a goo od understan nding of Marketing, Finan nce, or Strattegic Plannin ng.” interperson China is the e hottest ma arket. "More and more MBAs M are join ning Chinese e companies from intern national MBA A programs and Asian MB BA programs," says Michael Yang, General Mark keting Managger, Motorola a (China). "II s sala ary, but the growing opp portunity. For F example, think the atttraction forr these MBAss is not the starting the average e MBA salary growth rate e is higher th han 15% per year y here in China." Yue Zhang is an Oxford MBA A who works for TopMBA A Careers in China. He reports r thatt "(they) are e generating over 100 MBA M jobs perr month for TopMBA T Care eers and thiis is only like ely to increa ase further. With visa re estrictions in n the US we e may even se ee a shortag ge of MBAs in n China in the e near future e." Sei-Woong Yoon, Y an MB BA alumnus from IMD and d CEO of Ove erture Korea, says "a top p MBA is a ga ateway to an n internationa al career forr a young Assian. Before I took my MBA, M I worke ed in advertiising in Kore ea and had a totally dom mestic focus. Since my MB BA, I worked d with Saatch hi & Saatchi in London, became a CO OO of Yahoo o in Asia and d now run Overture. O Myy whole inte ernational managerial pe erspective w was shaped by my MBA. Today I thin nk such a glo obal perspecctive is even more imporrtant." He ob bserves the increasing im mportance off the MBA am mongst Asian n companiess. "In Korea, our largesst companiess, like Samssung and LG G, have welll established MBA recruiitment progrrams. Now we w are seeing many mo ore companiies seeking experienced d MBA managers. I think this t trend wiill continue."" Australian employers are somew what more sanguine about a MBA hiring. Miitch O’Brien n, Emissaryy ments “MBAs are not the e be all and end all how wever they represent r an n Pharmaceutticals in Ausstralia comm interesting pool of pote ential future e leaders witth broad busiiness skills. MBAs M often ccome with an a arrogance e that jobs will w fall in the eir lap and false expecta ations as to career c path.. I would like e to see morre emotionall intelligence e taught and realistic carreer counselling provided d.”

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6.2.4 Lattin Americ ca Latin Ameriica has also been a rela atively inacttive region for f MBA recrruitment, with most Lattin American n MBAs choossing to studyy and work abroad in Europe E or North Americca. Salary allso remains a big issue. Yogesh Chavda of Proctter & Gamble e Venezuela a sees MBA re ecruiting as “an opportunity to gain people with h o thwartted because “expectatio ons are too high.” the right levvel of maturrity”, but is often Neverthelesss, Latin Am merican comp panies are now reaching g out to US, Spanish and other Europ pean schoolss to pick up the talente ed nationals choosing to o study overrseas, becau use of the n need for intternationallyy minded lead ders. Alejandra Herrera of Asturer, Mexico lookss for MBAs who w “have grreat potentia al to grow in n to leaders within w the orrganisation.” ” "There is definite d movvement in the t market"" confirms the t Directorr at Institutto de Empre esa's careerr managemen nt centre. Many M European banks no ow own the major Latin n American B Banks and they activelyy recruit MBA As, as do consultancies and major industrial co ompanies. Th he biggest su uch recruite ers are BBVA A and Banco Santander, which w have emerged as regional banking leaderrs in Latin A America, tho ough HSBC iss xican markett is very stro ong, but we are a seeing a region-wide e improveme ent. not far behiind. The Mex


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6.2.5 Glo obal versuss Local Em mployers More and more m compan nies are global in their operations without tiess to any one e region. Ma any of these e companies have recruitters with global responsibility for hirring MBAs. In total, 58 (5 56) recruiterss responding g ey had globa al responsibiility for MBA A hiring. The ese global re ecruiters include strateg gy consulting g to our surve firms, invesstment bank ks, pharmace euticals, sup pplemented by a small number n of companies in n most otherr sectors. uiters headqu uartered in one o location n will have re esponsibility for a region n elsewhere. In addition,, many recru These regio onal and glob bal recruiterrs tend to pay higher sa alaries and recruit largerr numbers of o MBAs than n local emplo oyers, but th here are few wer in numbe ers â&#x20AC;&#x201C; there are far more e local emplloyers in the e market forr MBAs. s the growth g in number n of MBA opporttunities. Re egional and global MBA A employerss Figure 6 shows headquarte ered in the US U and Europ pe is fuelling g the growth in demand worldwide. Local compa anies in Asia a and Latin America A still account forr relatively few f MBA opportunities and a recruite ers in such organisations o s have reportted only limited plans for an increase e in MBA hiriing.

Trend in Emplo oyment Opportunitiies by Reg gion 2005--2008 350 00

2006 2007 2008

300 00

MBA Demand

250 00 200 00 150 00 100 00 50 00 0 US & Canada Western W Euro ope

Asia Pacific P

Ea astern Europ pe Latin Am merica

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 6: Trend in Employmen nt Opportunitie es by Region 200 05-2007

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However, this data pottentially und derestimates the actual number of opportunities o s in certain regions. Forr m MBAs in n Asia, Latin America and d Eastern Europe are hire ed through h head offices in the US orr example, many Western Europe. Althou ugh 44% of responding re ecruiters are e based in No orth America a, Figure 7 reveals thatt e, Asia or La atin America a 24% of thesse recruiters have some responsibilitty for recruitting globallyy or in Europe (76% are pu urely domesttic focused). E reccruiters make e up 27% of our o sample, but a massivve 71% of th hese recruite ers also have e Similarly, European some responsibility for recruiting globally g or in n North America, Asia orr Latin America (only 29% % are purelyy ocused). domestic fo

No orth Amerrican and European Recruiterr Responsiibility by Region 200 07 North Am merican Reccruiters

Europe ean Recruite ers

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic Only O Europe e-Wide Nortth America Latin L America Asia, Austtralia (US & Canada) & New Zea aland

Glo obal

Geogrraphic Resp ponsibility Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 7: North h American and d European Recrruiter Responsib bility by Region n 2007

The predom minance of MBA recruitter headqua arters in the e US and Western W Euro ope sheds light l on the e continued popularity p o US and Eu of uropean business schoolls. Internatio onal MBAs a at these schools benefitt from proximity to the ese headqua arters and being able to meet such s recruitters on cam mpus before e graduation.


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6.3 Dem mand for MBAs by y Sector 6.3.1 Con nsulting Top 10 Co onsulting Re ecruiters of MBAs in 2007: 2 Accenture, AT Kearne ey, Bain & Co, C BCG, Boo oz Allen Ha amilton, Ern nst & Young g Business Consultancy,, IBM Consullting, McKin nsey & Co, Deloitte Co onsulting, Oliver Wyma an/Mercer M Managementt Consulting g (Roland Berger & Partn ners replace ed from 200 06) The consultting industryy had been growing at phenomenall rates for the t last 20 yyears, becom ming a $100 0 billion industry. After a temporary slowdown at the start of o the new millennium, m tthe sector is hitting new w 07; the consu ulting marke et is in the middle m of a bo oom phase. highs in 200 Responses to the In nternational Recruiter Survey S sugge est that larrger strategyy consulting g a actively seeking s many new peoplle in 2007. In n addition, the professio onal services, technologyy recruiters are and outsourrcing firms are a re-staffin ng their stra ategy departtments – ma any of which h were decim mated in the e downturn. Last year Errnst & Young re-launche ed its busine ess advisoryy/business co onsultancy division d with h g revenue es to $2 billio on by 2009. targets to grow Overcapacitty in 2001 sa aw an MBA hiring h cut bacck. A 22% (38%) increase e in demand for MBAs in 2007 placess demand ahe ead of 2001 levels and, based b on currrent forecassts, demand will continu ue to grow. Global-Workplace (www m), the caree er platform for global professionalls, including g und the world, has seen the number of jobs liste ed on its site e the community for 50 top business schools arou p three ye ears. Mike Holmes H from m Global Wo orkplace sayss, “In 2006, over 4,600 0 grow throughout the past e site, an increase of over o 20% in two years. Consulting job listingss consulting jobs were listed on the onsulting firm ms as well ass many smaller firms.” feature all the major co ding firms have returned d to aggresssive MBA hirring. In partiicular, the b big strategy players like e All the lead McKinsey, BCG, Accen nture, Bain, Booz Allen n, and Rola and Berger are recruitting heavily.. Accenture e een 10,000 and a 17,000 people, p globa ally, each ye ear. Outsourccing remainss the fastestt historically hires betwe growing seg gment of con nsulting servvices, accoun nting for 65% % of Accentu ure's new bussiness. IBM Consulting C iss also a large e player in outsourcing o consulting projects p and is benefitin ng from this trend. For this type off consulting, Sej Butler of IBM UK looks for “sspecific pre--MBA skills - either dee ep industry and processs knowledge or knowledg ge of solution n areas.” The growing g number off corporate consultancie c s is experien ncing strong growth in M MBA hiring. For F example, Siemens Ma anagement Consulting C s specialises in technolog gy and busin ness outsourrcing. Dell has h recentlyy changed itss name from Dell Computers, reflectting the intention to builld up its bussiness consulting division n helping Dell hardware customers c to o plan their IT requirem ments. Such strategies s fo ollow in the footsteps off t world's largest provvider of conssultancy servvices, by re evenue and employment e t IBM, which is, today, the numbers. There are also a a growiing number of small specialist conssultancies lo ooking to hire MBAs. Ch hris Lavin off Sierra Syste ems, Canada a finds MBAs the perfect talent pool “They have e a strong ma anagement toolkit t that iss the basis fo or good management con nsulting. And d maturity an nd analytical skills to inte eract with senior clients.”” Many such firms are ussing search agencies, orr web servic ces such as, ratherr ple ZS Associates, with a than visiting schools. There is also a growth in specialist consultanciess, for examp keting. focus on salles and mark

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6.3.2 Financial Serrvices Top 10 Fin nancial Serrvices Recruiters of MBAs M in 200 07: Barclays, Citibank, C KP PMG, Ernst & Young, GE G Commercial Finance & GE Capittal, Goldma an Sachs, JP P Morgan, Me errill Lynch,, Morgan Sta anley, UBS (Deutsche ( Bank replace ed from 200 06). Almost all investment banks b activelly recruit MB BAs. Most people associate investment banking with w mergerss his is just on ne departme ent within the global ba anks – albeitt a departme ent which iss and acquisitions, but th m top ban nks reporting record tra ansaction fig gures. Most o of the top ba anks look to o booming in 2007 with most recruit MBA As into globa al markets (sales ( and trrading securrities, fixed income and derivativess), managing g assets, stru uctured fina ance, corporrate finance e and increa asingly on-an nd-off balan nce sheet hedge funds. There are also a many ba ack office positions in risk, financial control c and technology. This deman nd for MBAs collapsed during d 2001-2 2003. Goldm man Sachs, Morgan M Stanley and othe ers cut MBA A hiring by up u to 80% in i some offfices. 2007 shows a co ompletely diifferent envvironment with w demand d increasing by b 23% (24%)). All the big banks are back b on camp pus competin ng for talentt, evidence of o which can n be found in this survey in the sectio on relating to o salaries. Maryana Ayyerbe, Merrill Lynch USA says “MBAs bring in the e new talent and energy that the bussiness needss to grow.” Mergers and d acquisitions departme ents are the e driving forrce behind MBA M recruiting in investtment bankss right now. Many bankin ng divisions are prospering, such ass derivatives, hedge funds, sales and trading off e strructured fina ance, publicc sector and private se ector corporate finance e, property, debt and equities, private equ uity and wea alth managem ment. Financce hiring is no n longer resstricted to b banks. GE Ca apital is now w one of the biggest b recru uiters of MBA As worldwide e. American Express is allso emergingg as a major player. Belinda Reg gan of Fideliity Internatio onal prioritisses MBA hiring because of “intensive e training frrom businesss schools and d the fact tha at candidate es are usuallyy very motivated to commence a new w career.” So what turrns a bright new n businesss school grad duate into a successful banker? b Acco ording to Ang gela Cassidy, a recruiter at Deutsche e Bank, her firm f looks fo or, "high achiievers who are a both focused and mo otivated and d who can de emonstrate a good understanding of o our indusstry. We also o want people who are e bright and d energetic and a not afraid of workin ng hard. We don’t just look at wha at an individual has achiieved in the e workplace, but also tak ke into accou unt what the ey have been n doing outsid de their academic activiities." Insurance stteadily hiress MBAs and picked p up notticeably in 2006 2 and thiss trend has ccontinued in 2007. In the e US there are a numbe er of insuran nce companiies that rec cruit 10 or more m MBAs each year such s as AIG, group), CIGNA, and Liberrty Mutual. Travellers (part of Citig 07 has been the entrancce of Private Equity and Venture C Capital house es into MBA A A new featture for 200 recruiting in i significan nt numbers. In the passt they have e focused on o more experienced MBA M alumni, recruited th hrough a network. Toda ay, they are recognising the need to o recruit you unger MBA graduates g to o meet the grrowing mark ket opportuniities.

6.3.3 Tec chnology Top 10 Te echnology MBA M Recruiiters in 200 07: Amazon, Av vaya Communications, Compuserm man, Dell, Go oogle, IBM, Microsoft, P PTC, Vodafo one, Yahoo. (BT, HP, Ph hilips, Samsung replace ed from 2006) Recruitmen nt of MBAs into technolo ogy companies has finally bounced back, reporting the largest sectorr increase of 29% (17%). Avaya Comm munications is one of th he largest re ecruiters of MBAs in the e technologyy field. Teleccommunicattions companies such as a British Te elecom and Vodafone are very ac ctive. Some e software co ompanies, lik ke Microsoft and Oracle for example e, have incre eased their iintake. Chlo oe Chometon n


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of Oracle Irreland looks for MBAs with “International expossure, structu ured thinkingg.” Tom Koziki, Directorr of Career Se ervices at UC C Irvine sayss “the high te ech corridor on the Westt Coast is vib brant”. We were un nable to obttain significa ant data from Asian technology recruiters in 20 007, but rep ports suggestt that hiring in China, Ta aiwan and Ko orea is extre emely active. We expect some Chine ese companie es to appearr t research h in the future. strongly in this Sue Warren n at BT Retail, which was w the fourrth largest recruiter at London Bussiness Schoo ol last year, reported th hat MBAs can "challenge e the status quo by introducing dynamic new thinkers and d innovative e leaders to the t companyy. These arre bright peo ople with the latest busiiness trainin ng. They are e not tied to o the 'way we e do things around a here'."

6.3.4 Gen neral Indu ustry Top 10 Ind dustrial MB BA Recruite ers in 2007: BP, Ford, General G Electric, Generral Motors, Hilti, Johnsson & Johnsson, LG Elecctronics, Ph hilip Morris, Procter & Gamble, G Uniilever (Siem mens, Compu userman rep placed from 2006) This broad grouping off industries covers, aerrospace, auttomotives, chemicals, c lo ogistics, manufacturing, steel and for f the purp pose of this report, con nsumer good ds and retaill. Each ind dustry reveals individuall trends, butt a common theme has been b a stead dy increase in MBA hirin ng for the la ast three yea ars with the e 2007 surveyy reporting an increase e in hiring of o 24% (18%)). The incre easing globallisation of internationall trade, grow wing inter-de ependence of common markets m and increased in nternational competition n has fuelled d the interestt in MBAs acrross the secttor. In particula ar, those org ganisations that t have fully embraced d globalisatiion understa and that MBA As representt an essentia al pool of intternational managers m wh ho are capable of workiing in diversse cultures and a businesss situations. A sizeable number of MB BAs who do find roles in the industriial sector wiill do so with h companiess such as Gen neral Electriic, Ford and d General Mo otors where specific MBA A induction programmess have been n the norm for f more th han twenty years. Interrnationally-m minded Euro opean compa anies like Siemens S and d DaimlerChryysler have esstablished MBA M entry pro ogrammes. Sangeeta La aForges of General G Moto ors NA looks for “More sttrategic, glob bally minded d MBAs.” Butt finds manyy “are shoppiing the mark ket for the best b deal. Fiinding the riight candidate that trulyy wants to work w for yourr company is a challenge at times.” “For our pu urchasing fun nction, the MBA M is the prrime hire, if they have re elevant expe erience. Fro om the start, an MBA em mployee is re esponsible for f purchasin ng hundredss of millionss of dollars in parts/pro oducts” sayss Alberto Picccone of Ford d. But Albertto cautions that t “the yea ars of experiience betwe een their und dergrads and d MBAs have been b shrinking… This lim mits the hirin ng evaluation n to just a co ouple of jobss.” The energy sector has reported r the e largest incrrease in MBA A recruiting within w industtrials. There e seem to be e two drivers of this trend d. First of alll the search h for alternattive energy sources s is attracting man ny MBAs into o smaller, en ntrepreneuria al organisattions. Second dly, as Grah ham Hastie of London Business Sch hool reportss “many of th he big oil co ompanies will need to re eplace their senior mana agement ove er the next ten t years ass they come up for retirement. Th hese compan nies have id dentified th hat they nee ed new MBA As for theirr leadership programmes p and are offe ering excepttional packag ges to get th he best people.” Consumer goods g compa anies have been committed to MBA hiring in the e US for man ny years. Levver Brotherss traditionallyy hires 50+ MBAs M in the US and man ny fewer in Europe. E Thiss situation iss changing. As A more and d more peoplle graduate with MBAs, they are pe enetrating consumer goo ods companiies around the t world in n ever increa asing numberrs. It is now common for both local operations and a head offfices of such h companiess as Diageo, P&G, P BAT an nd Coca Cola a to hire MBA As. For local industrial i co ompanies, the t high levvel of multtinational sa alaries rema ains a barrier and can n discourage MBAs from pursuing p loca al opportunitties that ma ay bring them m rewards in n the longer term. Manell any based in Spain, has tthe following advice forr Gasca of Riittal Disprel,, a consumer products/rretail compa

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MBAs: "Too much releva ance is placed on salaryy straight aftter an MBA. Since the ye ear I gradua ated I had to o learn that the t true vallue of my MBA M was the knowledge I acquired and a not the job I got sttraight afterr graduation. MBA recruittment is verry sensitive to t economic conditions and a we should not value studying an n btain after graduation." g MBA by the salary we ob i a downside to such a "hot" MBA A job marke et. First of all, many MBA employyers will be e But there is disappointe ed and not atttract the ta alent they arre seeking. Neil N Currie of o Johnson & Johnson sayys, "I recruitt internationa al MBAs - ca andidates offten are relu uctant to sh hare vital infformation ab bout their personal p and d career obje ectives and we w waste th heir time and ours going g through se everal intervviews on cam mpus and on n site, make offers o only to t discover th hat they wan nt to work in n consulting after all." nger that we e return to th he bad old days, when MBAs M had a re eputation for arrogance, Secondly, there is a dan p con ntribution. A consistent message from recruiterss in industry is that theyy which tarnished their potential o find the ta alent they ne eed. Howeve er, they are e are having to look outsside the top-tier businesss schools to r succcess in theirr search. almost all reporting

6.3.5 Pha armaceuticals and Healthcare e Top Ten Healthcare H MBA Recru uiters in 20 007: Astra Zene eca, Cigna Healthcare, H Eli Lilly, Gllaxo Smithkline, Genen ntech, Johnsson & Johnsson, Merck,, Novartis, Pfizer, Scherring Plough. (Medtronicc replaced frrom 2006) Pharmaceuttical compan nies have allways been very v active MBA recruitters and payy the best sa alaries afterr consulting and a investm ment banking g. They also offer attrac ctive benefits and interrnational mo obility. Theyy have remaiined committted to MBA As throughou ut the last decade d and growth in recruitment numbers iss steady rather than specctacular.

6.3.6 Sma all Enterprises and Entrepren neurship The Interne et revolution n has given many m MBAs the t confiden nce to start their t own bu usiness on grraduation orr to join smaller entrepre eneurial orga anisations. Some S schoolss are reporting that 10% or more havve chosen to o do so. ark of Easterrn Mountain Sports sayss "MBAs brin ng business acumen, a cre eative thinking and new w Colleen Cla knowledge (technology, people, brranding and product devvelopment) to t a businesss. They cut down d on lag g een start up and a ROI." time betwe Karena Zornow of Drive e thru Desig gns in the US reports th hat MBAs “ha ave proven tto be smart, ambitious, l The ese qualities enable them m to progresss quickly thrroughout the e driven, quicck learners, adaptable, leaders. organization in cross functional role es to make a real impactt.” Technologyy has reduce ed the cost of starting a business, even for rissk-averse MB BAs. At US schools, s the e percentage of class sttarting theirr own busine ess is consisstently less than 5%, w whereas man ny European n schools excceed this le evel. Schools reporting g particularly high leve els of stude ents starting g their own n businesses include: i The e Judge Institute, Cambrridge Universsity, EM Lyon n, Instituto d de Empresa, Manchesterr Business Sch hool, Tanaka a School Imp perial College e London. A growing number n of MBAs M are inte erested in working w for Small S Medium m Enterprise es, start-ups or boutique e consultancies. Many su uch firms arre owned or o managed by MBAs who w want to hire dynam mic businesss s s salesmen, fin nancial "wiza ards" and ana alysts: all cla assic MBA ro oles. developers,, marketing specialists,


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6.4 Functional Roles Figure 8 re eveals that over 16% of o responding g employerss offer roless in finance e (other), whilst 13% off employers offer o roles in marketing (in our 2007 survey, em mployers cou uld only pickk the primarry functionall role for whiich they recruit). Genera al management and stra ategic planning follow att 10% each. Consulting C iss not the most common function f ava ailable to MB BAs, selected d by only 9% % of respondiing employe ers, followed d way from e-by Finance Advisory – 7%. Roles offered reflect a return to the basics of managgement – aw commerce and a towards marketing, strategic pla anning, saless, and financce.

Functiional Roles Offered to MBAs in n 2007 18% 15% 12% 9% 6% 3% 0%

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 8: Funcctional Roles Offfered to MBAs in 2007

6.5 Expe erience Levels MBA recruitters consiste ently show a strong bias towards t cand didates with h 3 - 5 years experience, targeted byy 60% of emp ployers, but there is a trend toward d recruiting younger peo ople. Gradua ates taking an a MBA with h less than 1 year of ex xperience are e targeted by only 5% of employerrs. These inexperienced d candidatess ate level possitions. MBAss with 1-3 years y of expe erience are targeted byy typically acccept lower paid gradua 28% of emp ployers. MBAss with 5-8 ye ears of expe erience are targeted t by 29% 2 of employers. MBAs with over 8 years of ex xperience are a targeted d by only 4% 4 of emplo oyers (Figurre 9). This only implie es that thiss experienced d group falll outside th he needs of mainstream m international MBA reccruiters as experienced d professionals are more likely to use e a search co ompany to identify suitab ble opportun nities.

Preferred Levels of Expe erience forr MBAs 70% 60% 50% 40% 30% 20% 10% 0% < 1 ye ear

≥ 1, < 3 years

≥ 3, < 5 years

≥ 5, 5 < 8 years

> 8 ye ears

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 9: Prefe erred Levels of Experience for MBAs

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6.6 Skillls Wise MBAs will seek opportunities to deve elop skills that t are im mportant to recruiters. Figure 10 0 demonstrattes how "softt skills" such as interperssonal, strategic thinking,, and leadersship are morre importantt than finance abilities, academic a succcess, and knowledge off IT. According to t recruiters around the world, business school graduates are a still not m meeting exp pectations in n terms of their soft skillls. MBAs havve for many years met or o exceeded expectation ns in terms of o hard skillss ong-standing short fall in terms off like; financce, accountiing or academic abilityy. There hass been a lo leadership skills and in nterpersonall skills, whicch is appare ent year afte er year, in this researc ch. Choosing g es to demon nstrate masttery of thesse skills – perhaps throu ugh club or project lea adership, forr opportunitie example – will w help MBA As to differe entiate them mselves in the e recruitmen nt process.

Key MBA M Skills 2007: Imp portance versus v Sattisfaction (as ranked d by recru uiters) 3.0



2.5 2.0 1.5 1.0

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 10: Keyy MBA Skills


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7. MBA A Salarie es and Compens C sation 7.1 Glob bal trend ds in 2007 MBA salary increases ha ave not bee en as steep in i 2007 as th hey were in 2006, despiite the ongo oing surge in n MBA deman nd. The Nortth American/ /European average reported MBA sa alary in 2007 7 is US$93,40 00 compared d to US$90,50 00 in 2006 - an increase e of 3.5%, co ompared to a 7% increasse the year before. Regiionally, MBA A salaries in Western W Euro ope increase ed the most – by 6.5% (4% % ahead of th he average E European inflation rate). MBA salarie es have jump ped 25% since e 2002, exce eeding the le evels reached d before the e crrash of 2001. This increasse reflects a high level of o optimism amongst MB BA recruiterss and increa ased competiition for top p talent. Chrris Higgins, Associate A Director of Ca areer Servic ces at Whartton confirmss “we have seen salaryy increases accross industrries – an earlly estimate would w be an 8% increase for Wharton n MBAs as a whole.” w The lower overall o incre ease of 3.5% suggests tha at employerss are expand ding the pooll of target MBAs M to keep p down starting salaries, by recruiting g from a larg ger number of o business schools s than in the past – this theme e ols was often n quoted byy employers around the e of looking beyond the traditional top-tier bussiness schoo 2 Tom Koziki, Dire ector of Carreer Service es at University of Callifornia Irvin ne observess world in 2007. “companiess have learntt from the do ot-com era and a are show wing restrain nt in what they are willin ng to pay forr new MBA hires, preferriing to offer strong s performance related incentives.” Global MBA A recruiters report highe er salaries averaging a in excess of US$95,000. U T These represent an elite e cadre of employers wh ho seek MBA As worldwid de and are willing to pay p a premium to attra act the bestt est schools — but the salary s differential with other emplo oyers is sma aller than in n candidates from the be previous ye ears. They are a not just made up off banks and consulting firms, but also healthcarre and some e manufacturring, techno ology and service comp panies, whic ch have ad dopted a global approa ach to MBA A recruiting.

A Average Sa alaries in US & Euro ope 1996-2 2007 (US$ $) 100,000 93449 50 9055

90,000 82812 84001

80 8168 78372

80,000 73807

US$ 70,000

6510 06



66678 66 6563

60,000 50,000 1996 6 1997 19 998 1999 2000 2001 1 2002 20 003 2004 2005 2006 6 2007 Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 11: Ave erage Salaries in n US & Europe 1996-2007

The levels of o global MB BA salaries te end to be cyyclical reflec cting econom mic trends. T The 1990s was w a decade e of uninterru upted econo omic growth resulting in ever-increasing salary and a bonus pa ackages. A growing g pooll of MBA grad duates was eagerly e recru uited by busiinesses world dwide. Despiite the dotco om disruptio ons in the USS market in 2000, the momentum m behind this trend fuelled increasiing salaries until 2001. This trend d aries fell alm most to the 1998 1 pre-dottcom boom le evel (Figure e 11). reversed in 2002, howevver, and sala

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In 2007, avverage consu ulting base salaries s in North N Americ ca and Europe at US$99 9,500 have, once again, exceeded th hose in finan ncial servicess at US$93,5 500 (the latte er edged ahe ead in 2003 ffor one year only). Banking salaries for fre esh MBAs revvealed a wid de range, rea aching as high as $155,0 000, amongsst this year'ss w as US$20,000 in some e emerging markets m – ho owever the mainstream investmentt respondentss and as low banks all re eported veryy similar sala aries in the ranges of USS$95-105,000 0. Consulting salaries fo or fresh MBA A hires reached a high off US$140,000 0 and a low w of US$25,000 in emerg ging marketss. These sala aries remain n orecast incre eases in dem mand for MBA As by consulttants and banks over the e unlikely to slacken off, given the fo ears. next few ye ms to be a relationship between MBA M salaries in all secto ors, includin ng general industry and d There seem technology sectors. As firms comp pete for tale ent, they ad djust salarie es. As the cchart shows,, during the e dotcom boo om of the la ate nineties,, technologyy salaries we ere consisten ntly 10% abo ove industryy salaries. In n the subsequent techno ology crash,, industrial salaries jum mped ahead d, but have e now slippe ed again ass d the world start s hunting g for talent. technology firms around

MBA Salaries S in US and Eu urope by Industry 1996-2007 7 (US$) 110,,000 100,,000 90,,000

Industry Consultin ng Finance Technolo ogy

US$ 80,,000 70,,000 60,,000 50,,000

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 12: MBA A Salaries in US and Europe by Industry 1996-2 2007

Figure 12 tracks t MBA salaries s in th he US and Eu urope from 1999 to 2007 by key MBA A recruiting sectors. s Thiss chart revea als the long-term globa al increase in i salaries in consulting g, finance, ttechnology and generall industry, sin nce 1993.

7.2 Sala ary & Bon nus Comb bined When comp paring compensation levvels, it is im mportant to consider c nott just the ba ase salary, but also the e likely total earned in on ne year, inclluding bonuses. Overall MBA A earnings (ssalaries and bonuses) arre on the inc crease in alm most every ccountry in th he world. Ass demand forr MBAs surge es in consultiing and finan ncial service es, recruiterss must comp pete on totall earnings to o secure their preferred candidates. But, some regions r of th he world are e ‘hotter’ than others, with w parts off ar and parts of Europe (tthe UK in pa articular)) re eporting largger earnings increases in n Asia (China in particula dollar terms. In 2007, the t average reported bo onus is a size eable US$24,,000, with in nvestment ba anks leading g mes of www m the bonus field, with an average bonus of US$46,500. Mike Holm With so man ny service co ompanies hiring more aggressively, there t is now strong upwa ard pressure e observes. "W on total com mpensation in i many marrkets."


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The larger bonuses b paya able by bank ks and financcial services companies in particularr, ensure tha at they offerr the greatesst overall com mpensation for the first year out of business sch hool, averagging US$140,0 000 in 2007. Some investment bankss reported six s figure bonuses pushin ng overall co ompensation n in excess of o $200,000. f are only just ahead d of other se ectors in the e overall pay bracket, at US$129,500 per annum. Consulting firms This is partly because many m smaller consulting firms responded to the survey, but also becausse the largerr o the first year, where eas other sectors have e consulting firms rarelyy pay large bonuses att the end of p in 2007. All se ectors, apartt from Goverrnment, have e average co ompensation n increased their bonus payments ranging bettween US$100-140,000. nology comp panies – one e European and one US - reported the highestt For the firsst time everr, two techn starting sala aries for new w MBAs in this year’s survvey. They allso reported large bonuse es. e also much higher this year than in any previo ous year, re eflecting the e Salaries in Metals and Mining were h this sector is experienccing. boom which ompensation n, due to a te endency nott The government sector lags behind private industry in averrage total co World Bank pay compensa ation compa arable with p private secto or banks and d to pay end of first yearr bonuses (W is included in ‘banking’ sector).

Average e MBA Earn nings by Se ector 2007 - Salarie es & Bonusses in W. E Europe & US (US$) 15 50,000 13 30,000

Bonuses B Salaries

11 10,000


9 90,000 7 70,000 5 50,000

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 13: Ave erage MBA Earniings by Sector 2007 2

Figure 13 presents avverage salarries and bonuses reporrted by emp ployers, witth each indu ustry sectorr disaggregatted to provide greater insight. Different indu ustries have e their own n methods of o providing g compensation. Some in ndustries offfer a higher base b salary, while otherss offer a high year-end bonus. b When n etween jobs, candidates are recomm mended to asssess their ow wn risk profiile and levell of financiall deciding be flexibility.

7.3 Bonuses Figure 13 also revealss the averag ge reported bonus whic ch range between US$0 0 and US$46,000 with a 4,000. Bankss are reportiing a massivve average bonus b of US$ $46,200 with h investmentt sizeable average US$24 eporting bonuses of betw ween US$25,,000 and US$130,000 for first year MBAs. M While e banks, in particular, re ors will find it hard to compete with h these figurres, banking g bonuses do o tend to be much more e other secto volatile tha an those in otther sectors.

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Recruitmen nt firms also o report hig gh average bonuses, re eflecting the eir role in ffeeding cand didates into o investment banks, placcing more experienced e MBAs and the t growing number of executive MBAs. M Damirr Latte of Gllobal-Workpllace Recruittment reportts that man ny companies are very a actively eng gaging head-hunters and d agencies with w a focus on o more expe erienced MBA talent. The energyy, IT & techn nology and the t manufacturing sectors all reportt average bo onus figures in excess off US$30,000. Of all secto ors covered in i the researrch, only govvernment ag gencies reported average e bonuses off less than USS$10,000 perr annum. It is importtant for cand didates to understand u the fiscal sta atus of theirr bonus. Maxximizing afte er-tax bonuss value shoulld be priorittised: in som me US State es, they are e taxed at nearly n 50%. In the UK K, relocation n expenses an nd tuition re eimbursemen nts can be claimed c tax-ffree. In such h cases the ccost is the same s for the e recruiter, but b the benefit far greate er for the ca andidate. Furthermorre, an up-frront start bonus b carriess greater va alue than a year-end or performa ance bonus. Candidates can comparre their offe ers with their peers to ensure e they are a getting a competitivve offer and d communicate this bencchmarking to t the recru uiter. In at least one ca ase, a top-ttier consulting firm hass t entire entering MBA class in ord der to match h competitorrs. No MBA graduate g can n increased itts offer for the count on th he promise of a performa ance bonus, making financial plannin ng, includingg meeting miinimum loan n repaymentss, more diffficult. Perrformance bonuses, b wh hether tied to individu ual, team or o companyy performancce, are a me eans for an employer e to introduce va ariable comp pensation an nd to ensure they do nott make financcial promises they may not n be able to t keep.

7.4 Tren nds by Re egion Regional No orth Americcan recruiterrs reported an average of US$89,500 (US$87,0 000), Westerrn European n recruiters reported r an average of US$97,400 (US$91,700) ( M salariess (this is the second yearr European MBA have signifiicantly excee eded North American sa alaries, thou ugh the figurre has been boosted in dollar d termss by the wea akening dollar exchange e rate). Easstern Europe ean recruite ers reported the lowestt average off US$41,500 â&#x20AC;&#x201C; with salaries particularly low in Tu urkey, Greec ce and previous Yugoslavv states. Lattin American n recruiters reported r a significant jum mp in averag ge salaries att US$69,700 (US$62,500)), though the ere are wide e variations by b country within Latin n America. Asia-Pacific recruiters reported an n average off US$71,400 0 (US$67,600). These regiional averag ges are shown n in Figure 14. 1

MB BA Salariess by Region 2007 (U US$) 100 0,000 80 0,000

84628 367 713


60 0,000 US$


89540 8

40 0,000

4145 57

20 0,000 0 US & Canada

Latin America

Western Europe

Eastern pe Europ

Asia Pacific P


Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 14: MBA A Salaries by Re egion 2007

Average sallaries have risen r across the board, globally, an nd some leve el of converrgence is ap pparent. The e average salary reporte ed by globa al MBA recrruiters excee eded US$95 5,000. Multin national com mpanies co-ecruitment on a global level, and d do not want w to drivve top cand didates awa ay from keyy ordinate re


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geographiess because of a salary differential. d As international companies set up operations in emerging g markets, th hey are incrreasingly willing to payy more for MBAs, M who they see ass critical for building a foothold in each region n. Over time e, it is likelyy that differrentials with h local comp panies will disappear d ass they respon nd by trying to t attract ta alent for equ uivalent posittions with more m competiitive salariess.

MBA Salaries by Region Comparing C g Local Em mployers against a the e Average (US$) 100,000

Domesttic Employerrs

All Em mployers (Do omestic, Intternational)

80,000 60,000 US$ 40,000 20,000 0 W.Europe W

E.Europe e

Asia Pacific P

Lattin America

N.Americ ca

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 15: MBA A Salaries by Re egion - Local Em mployers vs. Ave erage

There is a significant differential d in salaries across a regions. Asian an nd Latin Am merican salarries are 19% % e in the US. Average sala aries are low wer in Latin America, A Asia and Easttern Europe, (20%) lowerr than those partly due to weak excchange ratess and the low w status of those region ns for busine ess developm ment. But ass omies grow more rapidlyy than theirr Western co ounterparts, salaries around the worrld will tend d these econo to equalise e. The time trend inform mation in Fiigure 16 de emonstrates that there is an overalll long term m trend towarrds converge ence in salaries.

MBA Sala aries acro oss Regionss 1996-2007 (US$) 100,000 80,000 US$ 60,000 40,000


1997 7


19 999





200 04


2 2006


North America 64,349 65,87 78 68,109 75,,231 81,125 84,321 8 71,512 76,953 85,34 48 85,933 87 7,693 89,540 LatAm

49,375 51,25 50 55,250 59,,290 50,625 52,538 5 59,750 41,271 48,070 57,067 64 4,826 69,760

W W.Europe

65,862 67,47 77 69,109 72,,384 75,231 80,177 8 76,324 75,366 81,214 84,000 91,408 97,358

A Asia

50,618 52,87 75 57,300 61,,500 65,500 68,500 6 67,500 70,182 71,732 73,100 67 7,624 71,367 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 16: MBA A Salaries across Regions 1996--2007 Note: Asian salaries exclude China, C India &T Thailand compan nies that offer much m lower MBA A salaries when n converted to dollars. d

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7.5 Stra ategies fo or MBA Sa alary Ana alysis The downsiide to such high salariies is that some s emplo oyers becom me disaffecte ed with MBA As, or have e excessive performance expectations relative to o non-MBA staff on lowerr salaries. Patrick Smiith, Bank off America, USA U believess many MBAss “have unre ealistic expe ectations ab bout starting g salary and speed of ad dvancement.” Mitch O’B Brian of Emisssary Pharma in Australia makes a hard hitting g en come witth an arrogan nce that job bs will fall in n their lap a and false exp pectations. I assessment: “MBAs ofte t see more emotional in ntelligence taught t and re ealistic career counsellin ng provided.” would like to But the situ uation does not n seem to be as severe e as last year when John n Sikking of G Gartner Grou up described d the recruitm ment scene as "a cattle e call… Often times it seems as if all a the firmss are compe eting for the e same 5-20 candidates." c In 2007, mo ore and morre employerss are looking g to recruit MBAs from non n top-tier business sch hools having g found salarries and can ndidates to be unapproa achable at the elite institutions w when an eve er increasing g number join n strategy co onsultancies or investme ent banks. Mesha Mottt, Mead Westtvaco USA co onfirms “dep pending upon the univerrsities/reputtation and th he skills setss required, sa alary require ements mayy be misalign ned with what the candidates actua ally bring to the table.” ” Such recruitters have reported greatter success looking beyond the tradittional pool o of schools. The messag ge for newly graduating MBAs is not always to chase the hig ghest short-tterm salary offer, o but to o look for an n organisatio on which wiill lay the foundations for a successsful long-te erm career – otherwise e recruiters will w start looking elsewhe ere. MBA gradua ates are kno own for theiir analytical ability. In negotiating salary offerrs or decidin ng on targett geographiess for a job se earch, it is important to o take a step p back from the t numberss and think of o the biggerr picture. Job b applicants should conssider the cosst of living when w comparring salary pa ackages acro oss regions – the real, ve ersus the nom minal wage a company and country offers. o The OECD publishes p ann nual research comparing g purchasing power betw ween countries (a good proxy p for the e cost of livin ng). According to the OECD, the pu urchasing power in Mexico is 24% m more than in the US. So, even though the surveyy reveals th hat MBA grad duates are paid p 34% lesss in Latin A America than n in the US, w in Me exico will en njoy a standa ard of living comparative e with that o of their US co ounterparts. graduates working By contrast, purchasing g power in Ja apan is 36% lower l than in n the US, so, the higher cost of livin ng will resultt s of living l if the same salaryy is paid as elsewhere. e La astly, Hunga ary's purchasing power iss in a lower standard 55% higher than that of o the US, which w means that an MBA A earning 44 4% less in Hu ungary will still s enjoy a higher stand dard of living than a US graduate.


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7.6 Regiional Foc cus 7.6.1 Norrth Americ ca Within regio ons, there are substantia al difference es in salariess offered acrross industrie es. Figure 17 1 shows the e salaries offfered in diffferent indusstries within n the US and Canada. Salaries S in tthe US are consistentlyy slightly high her than those in Canada a.

MBA A Salaries in North America A by b Sector in i 2007 (U US$) 110,,000 90,,000 US$ 70,,000 50,,000

Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 17: MBA A Salaries in North America by Sector in 2007

MBA Sa alaries in North Ame erica by Country C Regional Headquarte ers of Recruiiter

Average Salary S 2007 ((US$)



Canad da

87,500 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 18: MBA A Salaries in North America by Country

7.6.2 Eurrope Western Eu uropean salarries have be een the mostt dynamic in n 2007, drive en by a stron ng employment market, but also by the weakne ess of the US dollar to th he Euro and UK U Pound. In n reality an M MBA graduatte today willl face similarr prospects on o either sid de of the Attlantic. Salarry levels in financial f serrvices and co onsulting, in n particular, are very sim milar in both regions. Tecchnology sala aries and tho ose in generral industry are a also veryy similar. graphic area as, there are e major variations. For instance, Ea astern Europ pean recruite ers reported d Within geog an average salary of jusst over US$4 41,000, while e Western Eu uropean recruiters reporrted salariess US$97,400. Within coun ntries, MBAs in smaller cities can exp pect salaries 20% lower than t in large er ones.

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Figure 19 compares MBA M salaries in companies recruiting g in Western Europe an nd Central, Eastern and d urope, segm mented by th he location of o the recru uiters' headquarters. The ere is great variation in n Southern Eu salaries. Ge erman, Italia an and UK re ecruiters paid d more than their Greek k, Hungarian and Polish counterparts c s surveyed. (The French data may contain a bia as due to a high proporttion of locall consulting firms in the e sample).

MB BA Salariess in Europe by Coun ntry Regional Headquarte ers of Recruiiter

Average Salary 2007 (US$)

United Kin ngdom Francce

108,372 9 97,692

Germa any

8 89,141

Netherla ands

8 88,091

Spain n

8 84,434

Russia a

4 48,847 (no banks inncluded in sam mple)


4 43,615


4 43,058

public Czech Rep Roman nia

38,037 3 3 36,905 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 19: MBA A Salaries in Eurrope by Countryy

7.6.3 Asia a From 1996 to 2007, ave erage salarie es for MBA graduates g ha ave risen an impressive 65% in US dollar d terms. 7 Asian finan ncial crisis an nd SARS etc)) Throughoutt all the challlenges that Asia has facced in recentt years (1997 MBA salarie es have continued to rise e in the regio on as a whole e.

MBA Salarries Asia: Excluding E India & Ch hina (US$)) 75,,000 70,,000 65,,000 US$

60,,000 55,,000 50,,000 45,,000 40,,000 1996 1997 19 998 1999 2000 2001 2002 2003 2004 2005 2 2006 2007 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 20: MBA A Salaries Asia


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Figure 21 shows averrage salariess reported by b companie es based in n each coun ntry, providiing a directt er cost counttries of Chin na and India with those in the higherr comparison of average MBA salariess in the lowe nd Hong Kon ng. cost regionss of Singaporre, Japan, an

MBA Salarie es in Asia by Countrry Regionall Headquarte ers of Recruiter

Average Salary 2007 (US$)

Singapo ore


Hong Ko ong




a China


India Thailan nd

<25,000 <25,000 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 21: MBA A Salaries in Asiia by Country

Compa aring Averrage Salaries in Asia a (US$) 80,000 70,000 60,000 50,000

2005 2006 2007

US$ 40,000 30,000 20,000 10,000 0 China, India, Thaila and

Japan, Korea, Singa apore, Austrralia Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 22: Com mparing Average e Salaries in Asiia

7.6.4 Lattin Americ ca Average La atin America an MBA grad duate salarie es have increased by 27% 2 from 19 996-2006, to o US$69,400 0 (US$62,600). In Latin America, A a se eries of currrency devalu uations negatively impaccted on the reporting off es in US dolllars, holding g back the fiigures in 200 03-5, but as currencies strengthen, their dollarr MBA salarie values are now n catching g up with oth her regions. Figure 23 shows s how salary s levels in Latin Am merica have risen r and falllen regularlly since 1996 6, but based d on the tren nd of the lasst three yearrs, average MBA M salariess should exce eed US$70,0 000 for the first f time byy next year. Volatility V is, however, a feature of the t region. A little over a decade aggo, it seeme ed that Latin n America had escaped th he trap of po overty. Foreign direct investment an nd trade surp pluses buoye ed the majorr t region and a prospectts for the fu uture looked d bright. The e dotcom bo oom experienced by the e nations of the

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rest of the e world, ho owever, had negligible impact herre. Instead, a series off economic shocks and d destabilisattions haunted d major Latin American nations thro ough the turn n of the centtury. t salary offers of 1999 only to fall again in 200 03. Since the en, however, Latin Ameriica returned in 2002 to the the trend iss upward again and, witth many business schools in the regiion and a grrowing popullation, Latin n America loo oks to be set for greater salary gain ns in the futture. The 2003 Argentine e devaluatio on, against a backdrop of recession and hyperin nflation, mayy be a temp porary setback, but a m much-needed correction. g of the striikes in Vene ezuela and the t success of o the war on o drugs in Colombia were w positive e The settling outcomes in n 2004. f enco ouraging sign ns for the region in 2007 7 with emplo oyment risin ng in Brazil and a GDP perr There are further capita risin ng across the region. A weaker US dollar has helped lift exports and d reduce de ebt burdens, encouraging g more inward investmen nt. MBA sala ary gains have reflected these t improvved conditions.

C Comparing Average Salaries S in n Latin Am merica (US$ $) 65,0 000 60,0 000 55,0 000 000 US$ 50,0 45,0 000 40,0 000 35,0 000 1996


19 998



2001 1


20 003



200 06


Source: S QS TopM Intern national Recruitter Survey 2007 7 Figure 23: Com mparing Average e Salaries in Lattin America

Figure 24 shows s variations in MBA salaries in Latin L America according to the locattion of the headquarters h s of the recrruiter. There e is less varriation than in Asia and d the increasse in numbe ers of US an nd European n companies recruiting MBAs in the re egion has alsso had a posiitive impact..

MBA Salaries in Latin Ame erica by Country Regionall Headquarte ers of Recruiter

Average Salary 2007 (US$)

Mexico o




Venezue ela



42,500 Source: S QS TopM Intern national Recruitter Survey 2007 7

Figure 24: MBA A Salaries in Lattin America by Country C


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8. Appe endix – Some participa p ating co ompanie es Argentina Aeropuertos Argentina 2000 Assist Card Intternational Baufest Bayton SA El Rey del Carttucho Paradigma Socciedad de Soluciones Radio Victoria Fueguina Rousselot Arge entina Stracienta Corrp. Tech Mind TGS Tiens Group In nternational

Austria Egon Zehnder International

Azerbaijan Pedersen & Pa artners


BASE Eli Lilly Fortis Greenwich Con nsulting Michael Page International Pricewaterhou useCoopers


CIBC Wood Gundy Deloitte Department off Energy Kids Futures ement Consultin ng Mercer Manage

Procter & Gamble G

Hong Kong

Alpha Zeta Ltd American In nternational Asssurance American In nternational Grroup Chevron China Opto otech Company China Overseas Land & Invvestment B Deutsche Bank DHL Logistics DYK Associa ates General Millls Global Forttune China Hamon Inve estment Group Jada Toys Co C LRT Consulting Microsoft National Se emiconductor Peace Mark k

Hungary Boyden Epicor Softw ware Corporatio on Hudson Glo obal Resources Kornferry In nternational Microsoft Procter & Gamble G Satyam Com mputer Servicess Solvo Biote echnology

Iceland Atlantis Gro oup



ZenSar Technologies

Accenture CANAAN Empresas BDS - Terracorp L'Oréal Travel Club

Indesit Com mpany Merck Sharp & Dohme ners Value Partn Wind Teleccomunicazioni Spa




Chem Internattional CommBank Ma anagement Conssulting Dell Dragon EXecuttive POD Management Consultantss SgT




Bogofoods Fisconsejo

Czech Repub blic

Pedersen & Pa artners


Nordea Bank SamiCon & Parrtners


Emerging Comunication Merck & Co


Deutsche Post World Net / DH HL Porsche Henkel Hypo Real Esta ate Holding Interpool Leitz TRUMPF Volkswagen


Diners Club Pricewaterhou useCoopers

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Hilto Corpo oration Lithuania Euromonito or International Asturer Elektra y Ba anco Azteca Embotellad doras ARCA Grupo Ame erican Industriess Grupo Calid dra Grupo Finattrade Grupo Nesttle Home Depo ot Ingenium Johnson & Johnson J Kelly Servicces Kornferry In nternational Medica Inte egral Merck Sharp & Dohme Scotiabank Sterigenics

Netherlan nds General Ele ectric Limbourg & Partners Mercuri Urvval Triceps


El Guanaco o Azul

Poland Boston C Consulting Grou up Chronoss Consulting Warta G Glass

Portuga al

Banco Finantia Boston C Consulting Grou up Heidrickk & Struggles McKinse ey & Company


British A American Tobac cco Russia Eli Lilly Nasta In nsurance Polair Troika D Dialog

Singapo ore

Accentu ure Allianz G Global Investorss Singapore Limited AXA Asia a Regional Centtre BP Cisco Se ecurity Hay Gro oup Pte Ltd OCBC Ba ank Synovate e Pte Ltd


City University

South A Africa

Burlington Strategy Advvisors Calibre People Cape Ve enture Partners Capital Outsourcing Gro oup Deloitte e Frost & Sullivan HR Soluttions ITP SA H Human Resource es Holdings Lwazi La ams Networkk Recruitment Paracon Peloentlle Quigliess Rand Pe ersonnel Renault South Standard d Bank

South K Korea Doosan Heavy Industry & Construction n Samsungg Fire & Marine Insurance

Spain Sun Bodegass Melgosa Circulo d de Progreso El Cortijjosa Ergodeccor EuroPraxxis Consulting Ficosa In nternational Grupo B BBVA Grupo In ntermark Hernest Consulting ICEX Isolux Mafre Multican nal Mundo E Edificio Novartiss Oticon Sun Plan net Toldos C Conil


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Adecco Financce & Accounting g BBVA Briggs & Strattton Credit Suisse Medtronic UBS


HTC Corp.

Ukraine AES

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Copyright © QS Q Research 2007 7

QS Rese earch QS has unde ertaken survveys with a view v to the generation g off primary research since e 1990 and, although a the e m Internatio onal MBA Reccruitment & Salary Reporrt was the first, there arre various other projectss with which QS is deeplyy involved, in ncluding:

QS TopMB Internationa al Recruite er Survey The princip pal source off data for this report the e QS TopMBA Intern national Recruiter Surveyy also yieldss information n resulting in n the Global Top 100 Business Schools and Specia alisations Rep port

THES â&#x20AC;&#x201C; QS S World Un niversity Rankings R In collabora ation with Th he Times Hig gher Educatio on Suppleme ent, QS comp piles this pre estigious ann nual study off comparative e internatio onal universiity quality. The ranking gs are aggre egated from a number of separate e indicators including varrious quantittative measu ures as well as the resu ults of intern national survveys of both h a employe ers. academics and

QS TopMB Internationa al MBA Ap pplicant Su urvey In over a decade d of op perating the e World MBA A Tour, QS has h developed a unique e position to o gauge and d understand the opinion of MBA applicants aroun nd the world d. Each year,, in excess o of 5,000 prospective MBA A applicants respond r to our o survey, providing p us with a uniq que insight in nto their mo otivations fo or pursuing a course, the eir criteria fo or selecting a school, their opinions on career choices and d preferred destinationss and much more. m

QS TopUn Inte ernational Masters & PhD Applicant Surv vey Similar in nature to the e MBA Applica ant survey, the t Masters & PhD Appliccant Survey examines the outlook off g audience of people considering c al postgradu uate study o other than an MBA. Off QS growing internationa particular in nterest in th his context, is i how certaiin subjects vary v by natio onality and o other demogrraphics.

Bespoke Research Projects As a result of all of the ese projectss, QS has devveloped exp pertise, audie ences and valuable toolls that when n combined can c respond d to a wide e range of individual research nee eds. In the past QS ha as delivered d benchmarkiing reports for f internatiional universsities, recruitment trend ds data for internationa al employerss and an enormous range e of individual analyses to t support articles a and features f in m major media a around the e t respond to o almost anyy specific ressearch need in the fields of educatio on or careerr world. QS iss equipped to developmen nt. For more information n on any off our existin ng research h services, or about yo our own re equirementss wter, Head of o Research on m or +44 (0) 20 7284 7213 please conttact Ben Sow

Copyright Š QS Research 2007

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MBA Salary and Recruitment 2007