Since 1990, the QS Intelligence Unit, in col- laboration with TopMBA.com, has conducted an annual survey of MBA employer
2015/16
QS TopMBA.com Jobs & Salary Trends Report
Mansoor Iqbal (BA University of Leicester, MA University College London) Benjamin Clayton (BA University of Cambridge)
Introduction and Methodology
2
Since 1990, the QS Intelligence Unit, in col-
tive companies. We ask them to tell us
laboration with TopMBA.com, has conducted
about current and future levels of hiring
an annual survey of MBA employers world-
and remuneration, and use this to map out
wide to determine trends in international
global, regional and industry trends.
salaries and recruitment. QS is proud to produce the longest-established, geographically-broadest and most-comprehensive global review of MBA jobs and salary trends.
The 2015 QS Employer Survey is as extensive as ever and presents an unrivalled overview of the world MBA recruitment market. For the purpose of this report,
The survey is targeted at those with respon-
responses were received from 3,952 com-
sibility for MBA recruiting in their respec-
panies in 88 countries.
Contributors Mansoor Iqbal
Benjamin Clayton
(BA University of Leicester,
(BA University of Cambridge)
MA University College London) Mansoor is the author of the report and the
gence Unit, where he focuses on business
editor of TopMBA.com. He is a higher and
schools, MBAs, and the development of the
business education specialist with a back-
English language as a method of instruc-
ground in consumer journalism, and has
tion. He holds a BA in politics, sociology and
worked at QS since 2011. Mansoor studied
international relations.
English literature at both BA and MA level.
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Benjamin is an analyst with the QS Intelli-
Contents Introduction and Methodology 0. Fast Facts 1. Global Trends in MBA Jobs and Salaries 1.1 Growth in MBA jobs by region 1.2 Top 20 countries for MBA demand 1.3 Compensation by region 1.4 Growth in MBA jobs by industry 1.5 Salaries by industry (US & Canada and Western Europe) 2. Long-Term Trends in MBA Jobs and Salaries 2.1 Index of long-term hiring trends 2.2 Long-term trends in MBA salary levels 2.3 Long-term trends in functional roles
3. US & Canada 3.1 MBA hiring trends 3.2 Which regions do employers from the US & Canada look to when hiring 3.3 Salary trends 3.4 Top salaries by school 4. Western Europe 4.1 MBA hiring trends 4.2 Which regions do employers from Western Europe look to when hiring? 4.3 Salary trends 4.4 Top salaries by school 5. Asia-Pacific 5.1 MBA hiring trends 5.2 Which regions do employers from Asia-Pacific look to when hiring? 5.3 Salary trends 5.4 Top salaries by school
18 18 19 20 21 22 22 23 24 25 26 26 27 27 29
2 4 6 6 8 9 11 13 15 15 16 17
6. Eastern Europe 6.1 MBA hiring trends 6.2 Which regions do employers from Eastern Europe look to when hiring? 6.3 Salary trends 7. Latin America 7.1 MBA hiring trends 7.2 Which regions do employers from Latin America look to when hiring? 7.3 Salary trends 7.4 Top salaries by school 8. Middle East & Africa 8.1 MBA hiring trends 8.2 Which regions do employers from the Middle East & Africa look to when hiring? 8.3 Salary trends 8.4 Top salaries by school
9. What Employers Look For 9.1 Desired skills vs. satisfaction 9.2 Preferred years of work experience among employers 2011-2015 9.3 Functional roles offered 10. Who Responded to the QS Employer Survey? 10.1 Regional breakdown of MBA employer respondents 10.2 Employer response by size 2015 10.3 Employer response by industry 2013-2015 10.4 Sample of responding employers by region 2015
3
30 30 31 31 33 33 34 34 35 36 36 37 37 38
39 39 41 42 43 43 43 43 44
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0. Fast Facts
1. Global Trends in MBA Jobs and Salaries
3. US & Canada
ðð 14% growth in MBA jobs globally.
ðð Stellar year for the world’s
ðð US and India remain world’s biggest
4
markets for MBA jobs. ðð Growth in nearly every industry outstrips predictions. ðð Mixed results in terms of compensation levels, with some regions faring better than others. 2. Long-Term Trends in MBA
most mature market, with 26% growth in opportunities. ðð Employers in the region becoming more global in their hiring outlook. 4. Western Europe ðð A good year, with 9% growth in jobs significantly exceeding expectations. ðð Growth driven by technology
Jobs and Salaries
and industry & non-profes-
ðð Industry & non-professional services
sional services sectors.
sector growing rapidly. ðð Slow recovery towards pre-recession peak for MBA salary levels in the US & Canada and Western Europe.
5. Asia-Pacific ðð Rapid growth shows no signs of abating, with an 18% rise in opportunities. ðð India and China the engine rooms of growth, with the jobs market in the latter showing signs of increasing maturity.
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6. Eastern Europe
8. Middle East & Africa
ðð A slower year for the region, with only
ðð Growth is slower than anticipated
4% growth reported, though 2015/16
at 8%, with a further slowdown
expected to be a much stronger year.
predicted next year.
ðð A bad year for Russia with reduced salary offers compounding reduced opportunities. 7. Latin America ðð Not a good year for Latin American
world’s most outward looking. 9. What Employers Look For ðð Soft skills are an area for concern, with a clear disparity between
MBA employers, who report only 1%
employers’ expectations and
growth; better expected in 2015/16.
satisfaction levels.
ðð Brazil has experienced a slowdown, while Mexico and Peru have
5
ðð Employers in the region are the
ðð There is a long-term trend towards hiring more-experienced candidates.
seen healthy growth.
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1. Global Trends in MBA Jobs & Salaries 1.1 Growth in MBA jobs by region
26
4%
9%
%
18
%
6
8%
1%
Region
2014/2015 (forecast)
2014/2015 (actual)
2015/2016 (forecast)
Asia-Pacific
8%
18%
13%
Eastern Europe
5%
4%
17%
Latin America
8%
1%
14%
Middle East & Africa
12%
8%
3%
US & Canada
9%
26%
14%
Western Europe
3%
9%
2%
14%
11%
Global
The most eye-catching figure in this year’s report is the 26% growth in MBA jobs in the US & Canada – a stunning recovery in a region which has experienced sluggish progress in the years following the Great Recession. As recently as 2012/13, the region’s growth figure was as low as 2%, so this represents an amazing turnaround which, as we can see, far exceeds expectations.
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Growth in Western Europe – a region for
Recent years, however, have shown us that
which tumult seems to have become the
the MBA has become a truly global quali-
norm – will also make for welcome reading.
fication, best demonstrated by its aston-
For the first time in a good number of years,
ishing rise in Asia-Pacific. Indeed, during
the world’s two most mature MBA markets
times of slow growth in the US & Canada
seem to be in rude health – an indicator of
and in Western Europe, it has been noth-
the resilience of the MBA degree.
ing less than strident in the eastern power-
houses across the Asia-Pacific region – the engine room of growth in MBA hiring in recent years. The surprise this year is that while we expected a leveling out as Asia-Pacific’s markets grow
7
ever more mature, the appetites of the region’s employers for MBAs have shown no signs of dulling, with yet another year of remarkable growth. Unfortunately, growth has not exceeded expectations universally. It has been a particularly hard year for MBA employers in Latin America, while Eastern Europe has fared little better. In both regions, however, employers are optimistic that this time next year, we will have more positive findings to discuss. While opportunities in the Middle East & Africa have not quite grown to last year’s high expectations, 8% is a considerable improvement on 2013/14’s growth of 2%. After a few years of overoptimistic predictions, however, it does seem like employers have cooled their expectations for 2015/16 in the youngest of MBA markets. The current level of hiring, it seems, is perhaps sufficient for the region’s needs.
26% growth in MBA jobs in the US & Canada – a stunning recovery in a region which has experienced sluggish progress in the years following the Great Recession.
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UNITED N STATES
8
1
1.2 Top 20 countries for MBA demand
INDIA
2
BRAZIL
3
the world’s largest economy, leads the way in the terms
UAE
4
ond place is testament to the regard in which the degree
CANADA
5
SINGAPORE
6
The US, as one might expect of the MBA’s birthplace and
of its sheer volume of MBA jobs. India’s presence in sec-
is held in the South Asian nation (Pakistan’s presence in this list can be read along the same lines), while the other three BRIC countries are also present. Naturally, the rapid growth these nations have experienced calls for the busi-
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SOUTH KOREA
7
ness expertise that MBAs can bring to the collective table.
CHINA
8
Elsewhere, we see traditional big hitters in MBA hiring
PERU
9
assuming their positions in the table: the likes of Japan, South Korea and Singapore in Asia-Pacific; the UK, Ger-
MEXICO
10
SAUDI ARABIA
11
ITALY
12
opportunities for MBAs.
JAPAN
13
Egypt and Peru might be the more surprising inclusions
RUSSIA
14
EGYPT
15
SPAIN
16
GERMANY
17
UK
18
PAKISTAN
19
KAZAKHSTAN
20
many, Spain and Italy in Europe, and Canada and Mexico in the Americas. Oil-rich Middle Eastern nations, Saudi Arabia and the United Arab Emirates also offer plentiful
here. Egypt, however, has enjoyed a surge of MBA hiring over the past year driven by the financial services sector, while Peru has been something of stronghold in MBA hiring for the past few years after enjoying a period of rapid economic growth.
1.3 Compensation by region MBA salary and bonus levels by region (total compensation) *all figures are in US dollars, US$ Region
% Change (13-14)
% Change (14-15)
2013
2014
2015
US & Canada
$112,700
$128,600
$123,400
+14%
-4%
Latin America
$76,800
$71,400
$54,500
-7%
-24%
$109,000
$112,600
$111,100
+3%
-1%
Western Europe Eastern Europe
$69,500
$72,700
$62,300
+5%
-14%
Middle East & Africa
$81,900
$70,300
$81,000
-14%
+15%
Asia-Pacific
$88,800
$86,000
$95,200
-3%
+11%
2013
2014
2015
% Change (13-14)
% Change (14-15)
$90,000
$97,700
$97,300
+9%
-0.40%
9
MBA salary levels by region Region US & Canada Latin America
$58,900
$55,500
$46,200
-6%
-17%
Western Europe
$88,800
$90,600
$91,300
+2%
+1%
Eastern Europe
$61,700
$54,900
$53,000
-11%
-3%
Middle East & Africa
$65,300
$57,700
$68,700
-12%
+19%
Asia-Pacific
$68,300
$68,000
$69,200
-0.40%
+2%
2013
2014
2015
% Change (13-14)
% Change (14-15)
MBA bonus levels by region Region US & Canada
$22,700
$30,900
$26,100
+36%
-16%
Latin America
$17,900
$15,900
$8,300
-11%
-48%
Western Europe
$20,200
$22,000
$19,800
+9%
-10%
Eastern Europe
$7,800
$17,800
$9,200
+128%
-48%
Middle East & Africa
$16,600
$12,600
$12,300
-24%
-2%
Asia-Pacific
$20,500
$18,000
$26,000
-12%
+44%
Sadly, it cannot always be the case that
to bonus levels. Indeed, in terms of
we see unbroken upward trajectories
salary alone, we actually see a marginal
across the board. So it is with the MBA
increase in Western Europe. In both
compensation levels reported this year,
cases, the decline is also only a one-
which in most cases have declined a
year trend, and indeed, the packages
little. In the US & Canada as well as in
on offer are most certainly generous
Western Europe the declines have been
(particularly, as you will read later, if
small, and also seem to be tied largely
one attends a top school).
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Latin America and Eastern Europe have been hit a little harder. In both cases, salary levels stand slightly below their figures in 2013. In the case of the latter, this can again be explained largely by declining bonus levels – the region’s decline in salary levels is far less pronounced. Indeed, it seems a huge increase in bonus levels in 2014 renders the figures from that year as something of an outlier, so we need to take this with a pinch of salt. There is
10
no such qualification to be made in Latin America, which has traditionally been the region in which salary levels on offer have been among the lowest in the world; 2014/15 has clearly been a challenging year for the region’s employers.
The Asia-Pacific growth story continues unabated and the region’s potential is demonstrably far from exhausted.
Asia-Pacific has remained relatively consistent in terms of salary levels, though improved bonuses in 2014/15 have seen total compensation packages improve. It is certainly positive that despite the huge surge in the MBA hiring, employers are still eager to pay a premium for MBA talent. The Asia-Pacific growth story continues unabated and the region’s potential is demonstrably far from exhausted. Salaries in the Middle East & Africa have recovered after a small dip last year – this is perhaps the region in which one can expect the greatest degree of volatility, given the relatively small pool of employers.
Top 10 countries for MBA salary Country of Employer
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Average Salary
Average Bonus
Total
1. New Zealand
$145,000
$10,000
$155,000
2. Switzerland
$131,100
$21,400
$152,500
3. Australia
$124,800
$27,100
$151,900
4. United States
$103,300
$22,400
$125,700
5. United Kingdom
$98,500
$22,600
$121,100
6. Singapore
$95,600
$46,700
$142,300
7. Spain
$93,100
$15,400
$108,500
8. Canada
$92,800
$26,800
$119,600
9. Ireland
$89,400
$15,700
$105,100
10. Germany
$79,700
$8,900
$88,600
1.4 Growth in MBA jobs by industry Share: MBA jobs by industry 2015
d.
c. a. t.
e. f.
u.
b.
g.
s.
11
r. q.
h.
p. o. n. v. m. l.
a.
Aerospace / Defense
b.
Construction / Property
c.
Consulting / Professional Services
d.
Consumer Goods
e.
Education
f.
Electronics / High Technology
g.
Share MBA jobs: 0.3% 2014-15 forecast: 0% 2014-15 growth: 8% 2015-16 growth forecast: -3% Share MBA jobs: 4.1% 2014-15 forecast: 10% 2014-15 growth: 46% 2015-16 growth forecast: 14%
Share MBA jobs: 8.6% 2014-15 forecast: 8% 2014-15 growth: 24% 2015-16 growth forecast: 12%
Share MBA jobs: 1.6% 2014-15 forecast: 5% 2014-15 growth: 33% 2015-16 growth forecast: 8%
Share MBA jobs: 7.4% 2014-15 forecast: 2014-15 growth: 12% 2015-16 growth forecast: 13% Share MBA jobs: 6.3% 2014-15 forecast: 8% 2014-15 growth: 16% 2015-16 growth forecast: 6%
Energy Share MBA jobs: 2.7% 2014-15 forecast: 5% 2014-15 growth: 20% 2015-16 growth forecast: 8%
i.
k.
h.
i.
j.
k.
l.
j.
Financial Services / Banking Share MBA jobs: 18.1% 2014-15 forecast: 5% 2014-15 growth: 9% 2015-16 growth forecast: 5%
IT / Computer Services Share MBA jobs: 11.3% 2014-15 forecast: 12% 2014-15 growth: 16% 2015-16 growth forecast: 19%
Law Share MBA jobs: 0.4% 2014-15 forecast: 21% 2014-15 growth: 34% 2015-16 growth forecast: 1%
Manfacturing / Engineering Share MBA jobs: 7% 2014-15 forecast: 13% 2014-15 growth: 22% 2015-16 growth forecast: 4%
Media / Entertainment & Arts Share MBA jobs: 0.4% 2014-15 forecast: 2% 2014-15 growth: 11% 2015-16 growth forecast: 4%
m.
Metals / Mining
n.
Pharma/Biotech & Healthcare
Share MBA jobs: 2.3% 2014-15 forecast: 1% 2014-15 growth: 3% 2015-16 growth forecast: 6% Share MBA jobs: 4.5% 2014-15 forecast: 0% 2014-15 growth: 17% 2015-16 growth forecast: 15%
o.
Public Sector/Govt./Nonprofit
p.
Recruitment / HR services
q.
Retail
r.
Telecoms
s.
Transportation/Distribution
t.
Travel/Leisure/Hospitality
u.
Utilities
v.
Other
Share MBA jobs: 1.7% 2014-15 forecast: 8% 2014-15 growth: 16% 2015-16 growth forecast: -4% Share MBA jobs: 3.5% 2014-15 forecast: 9% 2014-15 growth: 24% 2015-16 growth forecast: 5% Share MBA jobs: 2.6% 2014-15 forecast: 4% 2014-15 growth: 7% 2015-16 growth forecast: 7%
Share MBA jobs: 3.4% 2014-15 forecast: 11% 2014-15 growth: 4% 2015-16 growth forecast: 12%
Share MBA jobs: 1.4% 2014-15 forecast: -3% 2014-15 growth: 14% 2015-16 growth forecast: 26% Share MBA jobs: 6.3% 2014-15 forecast: 1% 2014-15 growth: -10% 2015-16 growth forecast: 31%
Share MBA jobs: 0.5% 2014-15 forecast: 1% 2014-15 growth: 18% 2015-16 growth forecast: 30% Share MBA jobs: 5.9% 2014-15 forecast: 8% 2014-15 growth: 17% 2015-16 growth forecast: 10%
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Breaking down MBA job growth by industry shows just how good a year it’s been for MBA hiring. With only two exceptions, we see growth that has outstripped our predictions – often by quite some distance. Many of the biggest figures come from smaller sectors – consumer goods and construction/property, for example. This demonstrates the growing diversity of the degree, with organizations in more and more sectors looking to leverage those with the business exper-
12
tise afforded by MBA study. QS’s annual research into prospective MBA students shows a concomitant rise in the diversity of the applicant pool to match this. One of the biggest surprises among these rises comes from the pharmaceuticals/biotech & healthcare industry, which has experienced a slowdown in recent years to the extent where we anticipated no growth this year. Instead, we see a very healthy 17% increase, with a similar increase predicted for next year.
Growth, however, is not limited to smaller MBA job sectors. As a consequence of some of the astounding growth we see elsewhere, consulting/professional services accounts for a smaller percentage of the worldwide market’s total than in previous years, yet this year’s growth of 24% signals that the sector is in confident shape. In the competitive and entrepreneurial age in which we live, it seems there is a great call for external business expertise. We’ve also seen confident growth of 9% in the financial services industry.
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1.5 Salaries by industry (US & Canada and Western Europe) Average Salary
Average Bonus
Average Salary
Average Bonus
Aerospace / Defense
$94,000
$25,000
Media / Entertainment & Arts
$66,000
$6,000
Construction / Property
$92,400
$28,200
$120,700
Metals / Mining
$86,100
$31,400
$117,500
Consulting / Professional Services
$87,400
$19,500
$106,900
Pharma / Biotech & Healthcare
$97,800
$22,000
$119,800
Consumer Goods
$67,100
$22,400
$89,400
Public Sector / Govt. / Nonprofit
$95,700
$15,500
$111,200
Education
$83,300
$19,000
$102,300
Recruitment / HR Services
$81,100
$23,700
$104,800
Electronics / High Technology
$89,900
$18,900
$108,800
Retail
$83,100
$50,000
$133,100
Energy
$80,000
$20,000
$100,000
Telecoms
$50,300
$8,400
$58,700
Financial Services / Banking
$99,000
$30,600
$129,500
Transportation / Distribution
$91,300
$12,100
$103,400
IT / Computer Services
$89,600
$32,300
$121,900
Travel / Leisure / Hospitality
$87,000
$8,500
$95,400
Law
$165,000
$25,000
$190,000
Utilities
$83,700
$11,000
$94,700
Manufacturing / Engineering
$94,400
$14,100
$108,500
Other
$92,600
$15,000
$107,700
Industry Sector
Total
$119,000
Industry Sector
Total
$72,100
13
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14
For our consideration of MBA salaries by
In terms of the more mainstream MBA
industry, we limit ourselves to the mature
professions, while pay packages have
MBA markets of the US & Canada and
never been anything short of generous in
Western Europe. These figures should
the sector, it has been a stellar year for a
make for happy reading, with total com-
resurgent financial services industry, and
pensation comfortably into six figures
only the outliers are rivaling the pay pack-
across the vast majority of industries.
ages it currently offers. Confidence and
Smaller sectors when it comes to MBA
returns are on the up.
jobs, such as law, aerospace/defense,
Consulting has remained fairly level; as
metals/mining and retail tend to throw up
evidenced by the strong growth in jobs
high figures as a result of both the niche,
witnessed by the sector, it is a diversify-
specialized knowledge required as well
ing space in which the big names (which
as the innate lucrativeness of the indus-
offer the highest salaries) are no longer
tries in question. In addition, there is the
the only players in town. The presence
smaller sample size to consider here –
of smaller ‘boutique’ firms must be taken
simply put, these are sectors which very
into account when considering the over-
few MBAs will be targeting.
all average figure – though this year’s number could hardly leave many with cause for complaint. The IT/computer services and the electronics/high tech sectors, between which there is much overlap, also offer compensation packages at which few would baulk, with the former not too far behind financial services and the latter a touch ahead of consulting. The closeness of these figures can be taken as further testament, should it be required, of the technology sector’s status as the third major player in MBA hiring.
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2. Long-Term Trends in MBA Jobs and Salaries 2.1 Index of long-term hiring trends
9 1 9 9 0 9 1 9 1 9 1 9 2 9 1 9 3 9 1 9 4 9 1 5 99 1 9 6 9 1 9 7 9 1 9 8 9 2 0 9 0 2 0 0 0 2 0 1 0 2 0 2 0 2 0 3 0 2 4 00 2 0 5 0 2 0 6 0 2 7 00 2 0 8 0 2 0 9 1 2 0 10 2 0 1 1 2 0 2 1 2 0 3 1 2 0 4 1 2 0 5 1 2 6 10 7
0
15
1
1
2
3
4
5
6
Technology Finance Consulting Industry
This graph maps out long-term trends in MBA hiring, looking at finance, consulting, technology and industry, to see how they have compared over the past 25 years in terms of growth, relative to previous years. For these purposes we have grouped together aerospace/defense, electronics/high technology, IT/computer services and telecoms as ‘technology’ and everything else under ‘industry’. One of the most eye-catching trends here
with slight hiccups here and there – for
is the rise of the last category. In 2013 it
example, the bursting of the dotcom bub-
pulled into the lead, and we anticipate this
ble had a negative effect just over a decade
lead to grow further in the years to come,
ago though, more recently, the Great Reces-
while growth levels in other sectors ought
sion did not cause as much damage outside
to remain relatively stable. This points, once
of the finance sector.
more, to the diversity of MBA skills (and indeed, among those taking the degree). With sustained competitive advantage becoming ever more elusive across industries, the expertise of MBAs is demanded by an increasingly diverse range of employers. All four of our groupings have enjoyed
Average growth since 1990 has stood at around 15%. We expect this to slow to a more sustainable level in years to come. With the impressive growth figures being reported this year, however, it would also be wrong to rule out a continuation of this strident average.
steady upward curves in recent years and over the larger scale of this exercise, albeit
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2.2 Long-term trends in MBA salary levels $1
00
,00
0
$8
0,0
$6
0,0
00
Average MBA Salary ($)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$73,800 $78,150 $82,250 $73,900 $75,200 $83,250 $85,000 $89,550 $93,250 $95,250 $91,500 $89,650 $92,700 $91,400 $90,930 $94,130 $94,260
9 0 0
4 1 0 0 2
This year’s figure is up very slightly on 2014’s – though, perhaps
1
5
2
Europe, the two most mature markets for MBA hiring.
2
0
1
3
2
0
1
our focus to the US & Canada and Western
2
2
0
1
1
2
MBA salaries, we once again restricted
0
1
0
2
To map out longer-term trends in
2
0
0
8
2
0
0
7
2
0
0
6
2
0
0
5
2
0
0
4
2
0
0
3
2
0
0
2
2
0
0
1
2
0
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0
1
9
9
9
16
00
Year
it would be more accurate to label this as stability rather than growth. It not the highest figure we’ve ever reported – that came in 2008. It is, however, an astounding 28% higher than the levels seen in 1999.
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As you can see, there have been dips as
for reasons we hardly need to spell out
well as rises over the 17-year period we
here. We have seen a few fluctuations here
are taking into consideration here. The
and there in the years thereafter, but it
dotcom crash saw lower salaries offered
seems that since 2013 we have returned to
in 2002 and 2003 than in the preceding or
a steady upward curve; this is now the first
following years, and a steady upward tra-
time we’ve been able to look back at two
jectory was interrupted in 2009 and 2010
consecutive years of growth since 2008.
2.3 Long-term trends in functional roles Role
2011
2012
2013
2014
Consultant
39%
37%
37%
34%
2015 34%
E-Commerce
10%
8%
9%
10%
10%
Finance - Advisory
29%
26%
28%
22%
23%
Finance - Other
39%
33%
44%
36%
42%
General Management
43%
41%
44%
36%
37%
IT / Technology
26%
24%
21%
25%
20%
Marketing
44%
41%
36%
38%
38%
Operations / Manufacturing
23%
24%
24%
23%
23%
Other Roles
11%
10%
34%
30%
6%
Sales / Business Development
40%
42%
46%
44%
28%
Strategic Planning
42%
40%
19%
17%
44%
Supply Chain / Logistics
23%
25%
9%
7%
18%
17
While much of the discussion around MBA hiring trends revolves around industries, it is also important to take functional roles into account; function being, of course, one of the three main forms that an MBA-enabled career change can assume. Over the five years in our sample, it has
sumably after most companies had already
been into finance roles – split between
found who they were looking for at a point
advisory and other – which most compa-
in time when the spotlight really began to
nies hire MBAs, as one might expect. Con-
shine on supply chain management. This
sultants and marketers are also consist-
year, however, has seen a resurgence of
ently in high demand.
hiring into supply chain and logistics roles
It should be noted that companies may choose multiple options for this part of our
– perhaps simply due to inevitable need to renew talent after some years.
survey, given that they may have diverse
The years 2013 and 2014 also saw a decline
requirements to be met by MBA talent. This
in companies looking for strategic planning
also means, however, that this is exercise
professionals, which this year leapt back to
is somewhat open to volatility, given the
its position as the number one functional
ever-shifting requirements of each com-
role offered to MBAs by employers, if we
pany as well as the general mutability of
separate the two finance functions. It may
the business landscape.
be that after a couple of years of relative
We see this evidenced in the demand for supply chain/logistics professionals, which declined massively in 2013 and 2014, pre-
stability we are returning to a more complex, unpredictable business (and wider) landscape. Who better to navigate such a terrain than an MBA?
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3. US & Canada 26
% 14
%
10
%
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3.1 MBA hiring trends
The 26% growth in new MBA job opportunities in the US & Canada is surely the headline story
Consulting
26%
Finance 17%
of this year’s QS TopMBA.com Jobs & Salary Trends Report, far in excess of the 10% growth
Technology & Telecommunications 29%
we anticipated. Recovery has been slow since the
Industry & Non-Professional Services 6%
banking crisis of nearly a decade ago, but with the
Pharmaceuticals & Healthcare
36%
US economy proving increasingly muscular (after weathering the storm rather well, however, things
Canadian telecoms and consulting
look less positive for Canada’s economy at the
industries in particular have been
time of writing) it seems things are looking much
strong drivers of growth in MBA jobs.
better for MBA employers. Growth is spread over a range of industries. The
seems to be in confident shape, and
technology sector is the fastest growing of the
like Canada, the nation has enjoyed
groupings we employ. US tech companies now
a surge in consulting hiring which we
represent some of the world’s most ubiquitous
expect to continue into next year (in
brands – both in the business world and the
both nations). The rapid increase in
household. Their appetite for global domination
hiring in the pharmaceuticals space
continues, and with that comes an appetite for
in both nations marks an impressive
MBA talent. We anticipate this to continue next
recovery for this sleeping giant of an
year, albeit at a slightly more sustainable rate. It’s
industry in terms of MBA jobs.
not just the US which has seen growth though; the
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The US financial services sector
3.2 Which regions do employers from the US & Canada look to when hiring?
19 100
50
0
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
99%
22%
35%
24%
19%
32%
US & Canada
Geographical scope of hiring 2014
2015
Global
19%
Global
38%
Local
13%
Local
20%
National
63%
National
32%
Regional
5%
Regional
10%
We have seen a significant shift in terms
These same employers, however, also seem
of the geographical extent of employers
to be looking further afield – obviously with
in the US & Canada this year. A notably
a view to expanding globally. With growing
larger proportion of employers are hiring
middle classes around the world - as well
on a global scale this year as compared to
as nations in which relative affluence is
previous years, while the proportion of
the norm - hungry for technology, the
those hiring on a national scale has fallen.
globalization of the supply chain, and
This does not mean that North American
international financial markets remaining
employers are no longer looking to US or
volatile and complex, there is great demand
Canadian talent. Indeed, no other region
for internationally-savvy MBAs.
reports as high a percentage of employers looking to their own region for new hires.
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20
These graduates may well come from within
latter’s rapid ascent to the same. Insight
the region, but employers can also see the
into these markets, therefore, is crucial for
benefits in looking further afield. Western
businesses with global aspirations. They
Europe and Asia-Pacific are the most favored
are also the regions (particularly Western
regions – unsurprisingly given the former’s
Europe) which boast the strongest business
established powerhouse status and the
schools outside of North America.
3.3 Salary trends
US & Canada
Average Salary
Average Bonus
Canada
$92,800
$26,800
United States
$103,300
$22,400
By Region
$99,300
$24,000
Increase Increase
Salary trends in the US & Canada are
susceptible to global unpredictability. The
positive this year, with both nations seeing
vitality and global dominance of innovative
an increase in compensation (these figures
US MBA employers in the tech space on the
pertain to employers based in the region as
other hand looks like something in which
opposed to the figures in section 1.3 which
the nation can remain confident (as much as
also include those hiring in the region who
one can be confident of anything in this age
are not be based there). Stronger than
of peaks and troughs). In Canada, despite
expected growth, as the US continues to
economic difficulties, it seems that MBA
recover and strengthen, will have played
hiring is in fairly robust shape; resultantly,
its part, with the financial services sector
so are the salaries on offer.
looking tougher, though obviously still
Follow us
Year on Year Trend
3.4 Top salaries by school US Threshold: $110,000
Average Salary, Class of 2014 (US$)
School
State
Stanford Graduate School of Business
California
$129,600
Harvard Business School
Massachusetts
$125,000
University of Pennsylvania (Wharton)
Pennsylvania
$123,400
University of California, Berkeley (Haas)
California
$121,800
Massachusetts Institute of Technology (Sloan)
Massachusetts
$121,300
University of Chicago (Booth)
Illinois
$120,000
Northwestern University (Kellogg)
Illinois
$119,200
Columbia Business School
New York
$118,700
Dartmouth College (Tuck)
New Hampshire
$117,900
University of Michigan (Ross)
Michigan
$115,300
Duke University (Fuqua)
North Carolina
$114,100
University of Virginia (Darden)
Virginia
$112,300
New York University (Stern)
New York
$112,100
Cornell University (Johnson)
New York
$110,900
University of California, Los Angeles (Anderson)
California
$110,300
21
Canada Threshold: $80,000
Average Salary, Class of 2014 (US$)
School
State
University of Calgary (Haskayne)
Alberta
$94,300
York University (Schulich)
Ontario
$87,000
University of Ottawa (Telfer)
Ontario
$83,500
Queen’s University (Smith)
Ontario
$81,500
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4. Western Europe
9%
3%
2%
22
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4.1 MBA hiring trends
While it does not compare to the astounding
Consulting
growth we see in North America, the figure
0.2%
Finance 3%
reported here by Western European employers is extremely positive for a region in which growth
Technology & Telecommunications 15%
has been sluggish in recent times. Indeed, given
Industry & Non-Professional Services 34%
the seemingly ever-present economic turmoil
Pharmaceuticals & Healthcare
-1%
from which much of region has suffered over the last seven years, this figure can be read as
It is, however, the industry and non-
extremely reassuring and another indicator of
professional services space in which
the MBA’s resilience.
we’ve seen the strongest growth. It
The region’s growth in consulting and finance has been modest. That said, growth in the UK, as ever, is driven chiefly by the City. In Switzerland the financial services sector is also the engine room of MBA hiring, though levels have remained flat. Technology & telecommunications hiring, on the other hand, has shown healthy growth across Western Europe; in no small part due to the presence of London and Berlin in the region, two of the world’s most vibrant tech hubs. Germany in particular has seen solid growth in the technology sector (as well as in consulting). Follow us
seems a diverse range of employers are actively seeking MBA talent to help navigate these uncertain waters. We see this evidenced, most notably, in the huge growth in MBA hiring in Italy’s
manufacturing/engineering
sector, a sector which has also grown significantly, albeit less spectacularly, in France and Germany.
4.2 Which regions do employers from Western Europe look to when hiring?
23
100
50
0
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
32%
26%
85%
50%
25%
29%
Western Europe
Geographical scope of hiring 2014
2015
Global
36%
Global
35%
Local
10%
Local
12%
National
34%
National
33%
Regional
20%
Regional
20%
Western
European
employers
have
Though the figure is still significantly higher
traditionally been outward looking. We
than it is for any other regional hiring scope,
see little change this year, with just over a
Western European employers are in fact the
third of employers employing on a global
least inclined towards targeting candidates
scale, and 20% within the region as a
from within their own region. Half of this
whole. The biggest surprise might be that
year’s sample of responding employers
they are now being outdone in terms of
reported looking to their neighbors in
global-scale hiring by employers in the US
Eastern Europe also, with freedom of
& Canada. The difference is small enough,
movement across the two regions making
however, that it might be fairer to call this
this one of the more feasible examples of
further proof, were it needed, of the MBA’s
cross-regional hiring.
status as a global degree.
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24
The US & Canada ranks next, unsurprisingly
next. However, employers from this diverse
given the resonances and high level of trade
region report relatively high figures across
between the two, with Asia-Pacific coming
the geographical board.
4.3 Salary trends Western Europe
Average Salary
Average Bonus
Belgium
$78,300
$7,300
Denmark
$68,800
$5,600
France
$71,400
$26,400
Germany
$79,700
$8,900
Ireland
$89,400
$15,700
Italy
$63,300
$12,000
Netherlands
$78,300
$16,800
Norway
$157,300
$62,900
Portugal
$50,000
$20,000
Spain
$93,100
$15,400
Switzerland
$131,100
$21,400
United Kingdom
$98,500
$22,600
By Region
$85,900
$19,600
Decrease Decrease Decrease Decrease Increase Decrease Increase Decrease Increase Increase Increase
We see a mixed story in terms of MBA salary
one would hope to find them, with five of
levels in Western Europe with declines in
the world’s top 10 salary levels by country
Belgium, Denmark, France, Germany, Italy
to be found in Western Europe (Norway has
and Portugal offset by increases in Ireland,
been excluded due to the smallness of its
Norway, Spain, Switzerland and the UK.
sample size) including Germany, in spite of
As mentioned previously in this report,
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Year on Year Trend
its decrease this year.
however, we cannot always expect to see a
The figures on offer in Italy and Portugal
constant upward trend in salary levels. Offers
are perhaps the exceptions, though the
made, it seems, are largely in the region
positive trends in hiring in the former
mean that we can at the very least hope
Spain may also serve as an example of the
for an improvement there. The healthiness
possibility of a more positive narrative in a
of salary levels currently available in
troubled Southern European nation.
25 4.4 Top salaries by school Threshold: $100,000
Average Salary, Class of 2014
School
Country
University of St. Gallen
Switzerland
$130,000
Business School Lausanne
Switzerland
$122,000
IMD
Switzerland
$121,500
London Business School
United Kingdom
$118,900
Aberdeen Business School, The Robert Gordon University
United Kingdom
$115,000
Mannheim Business School
Germany
$114,500
INSEAD
France
$114,100
EDHEC Business School
France
$111,700
Cass Business School
United Kingdom
$109,400
University of Strathclyde Business School
United Kingdom
$107,000
IESE Business School, University of Navarra
Spain
$103,100
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5. Asia-Pacific
18
%
13
%
8%
26 ) as t (F or
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5.1 MBA hiring trends
It has been another good year for MBA jobs in
Consulting
Asia-Pacific, the standout region in growth terms
35%
Finance 15%
in recent years. Growth in 2014/15 far outstrips Technology & Telecommunications 10%
our expectations, driven by large increases in MBA hiring in both India and China. We anticipate
Industry & Non-Professional Services 25%
another strong year in 2015/16. Part of Asia-Pacific’s strength comes from the breadth of opportunities in this huge and diverse region. The tech sector has been the key driver of growth in recent times, and this has been another good year, particularly in China, India and, to a slightly lesser extent, South Korea. The finance sector has also enjoyed healthy growth, and not just in the Tiger economies. Indeed, hiring in Singapore has remained relatively level. It is once again China and India that are driving growth in this respect, and even the Pakistani financial services sector (naturally, from a lower level) has seen growth. MBA hiring in industry and non-professional services, following the global trend, is also on the up. Australia joins the region’s two BRIC economies in driving growth this time. The standout story, Follow us
Pharmaceuticals & Healthcare
-1%
however, is the massive rise in hiring in consulting and professional services – an indication of AsiaPacific’s growing maturity as an MBA jobs market. While India, Australia, Pakistan and South Korea have all enjoyed increases, recruiters in China can take most of the credit for this incredible rise. Western MBAs looking for opportunities in this space would do well to look east. Outside
of
employers Malaysia
the
bigger
markets,
in
Vietnam
and
also
report
very
healthy levels of hiring.
5.2 Which regions do employers from Asia-Pacific look to when hiring?
27
100
50
0
Asia-Pacific
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
34%
18%
29%
22%
23%
91%
Speaking of the opportunities for those
the interest of fewer than one in five
looking east, it seems that employers in Asia-
recruiters. It is Western recruits, however,
Pacific are fairly keen to bring in expertise
who are clearly the most in-demand.
from outside the region to offer a different perspective, particularly those from key trading partners in the US & Canada. Western Europeans are also in high demand. Other regions are being targeted to a lesser extent, with only Latin American recruits registering
The figure posted for in-region hiring is towards the lower end of the scale, though this is certainly not an indication that employers are not looking for new recruits within Asia-Pacific.
5.3 Salary trends In terms of MBA salary levels, the trend
same for India, in which the volume of MBA
is largely upwards in Asia-Pacific, with
jobs and the popularity of the degree sees
employers from New Zealand and Australia
salary levels which may be somewhat less
proving particularly generous. China can
appealing for the expat. China is, in fact,
couple impressive growth with improved
reporting higher salary levels than Hong Kong
salary levels, though we cannot say the
this year (that our survey is self-selecting
Follow us
28
must be borne in mind when considering
MBA markets – the levels of hiring we see in
findings such as this). Employers based in
Vietnam and Malaysia, in particular, are an
Singapore, whose strength is based on its
indication of growth among this grouping
strong financial services sector, however,
which may well mean that a few years down
continue to pay out some of the world’s
the line we’ll be looking at much improved
best salaries. Salary levels are, as would
figures. Decreases in MBA salary levels in
be expected, lower across the other ASEAN
Japan and South Korea are perhaps the only
nations, though these are, of course, younger
negative finding to report here.
Asia-Pacific
Average Salary
Average Bonus
$124,800
$28,400
China
$70,200
$30,600
Hong Kong
$76,700
$22,500
India
$22,700
$3,700
Indonesia
$50,000
$15,000
Japan
$46,900
$18,300
Malaysia
$38,900
$18,600
New Zealand
$145,000
$10,000
Pakistan
$39,000
$4,000
Philippines
$38,300
$8,300
Singapore
$101,500
$46,000
South Korea
$60,000
$40,000
Taiwan
$41,200
$20,600
Thailand
$28,000
$400
Vietnam
$20,000
$4,000
By Region
$68,300
$25,600
Australia
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Year on Year Trend Increase Increase Increase Decrease Decrease Increase Increase Increase Increase Decrease Increase Increase -
5.4 Top salaries by school Asia Threshold: $50,000 Average Salary, Class of 2014
School
Country
INSEAD - Singapore
Singapore
$114,100
The University of Hong Kong
Hong Kong
$94,400
The Hong Kong University of Science and Technology
Hong Kong
$85,600
Peking University
China
$72,100
China Europe International Business School (CEIBS)
China
$67,200
NUS Business School
Singapore
$62,400
Nanyang Business School, Singapore
Singapore
$53,000
Indian Institute of Management, Ahmedabad
India
$53,900
The Chinese University of Hong Kong
Hong Kong
$51,400
29
Australia Threshold: $50,000
School
Country
Average Salary, Class of 2014
University of New South Wales
Australia
$139,900
The University of Adelaide Business School
Australia
$130,000
Melbourne Business School
Australia
$120,300
La Trobe Business School
Australia
$108,300
Monash University
Australia
$85,000
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17
6. Eastern Europe 5%
%
4%
30
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6.1 MBA hiring trends
As anticipated, it has been a slightly slower year Consulting
for MBA hiring in Eastern Europe, following last
4%
year’s 10% increase. Employers in the region
Finance 2%
have, however, indicated that they intend to
Technology & Telecommunications 40%
increase hiring levels over 2015/16, so we may
Industry & Non-Professional Services 14%
well be discussing a significantly larger figure next Pharmaceuticals & Healthcare
year. Nevertheless, we must still take this with a pinch of salt as growth does not always live up to expectations; indeed, the 10% growth reported last year was below expectations – though the anticipated figure for that year of 34% was, shall we say, on the more optimistic side.
MBA employers in Kazakhstan (we include Central Asia in our Eastern Europe grouping), on the other hand,
have
reported
increased
hiring, largely across industry & non-
The growth we have seen this year has been
professional services sectors. In this,
driven by the technology sector, while growth
the education and construction/
levels in industry & non-professional services are
property industries have had a
also at a healthy level. Russian tech employers in
good year in particular.
particular have enjoyed a good year – though MBA employers in the country as a whole are hiring at lower levels than in 2013/14. Again, we expect a recovery next year.
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-25%
6.2 Which regions do employers from Eastern Europe look to when hiring?
31 100
50
0
Eastern Europe
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
15%
9%
29%
96%
12%
8%
Eastern European MBA employers like
in hiring Western Europeans than vice versa.
Eastern European talent, it seems. They
Employers’ key focus at this point in time,
are certainly less interested in hiring
we can assume, is on doing business within
MBAs from outside their home region than
the region, for which hires from one’s own
those based anywhere else in the world.
home country or those nearby are perhaps
Naturally, Western Europe is the exception,
best suited, for reasons of language and
though it is notable that Eastern European
culture as well as business knowledge.
employers are significantly less interested
6.3 Salary trends Russia, it appears, has not had a stellar year,
Russia’s salary levels, however, remain
with a decrease in average salary levels
the second-highest in the region, behind
compounding the slowdown in MBA hiring.
Western
Perhaps we will see a recovery next year, if
which remuneration is at a very healthy
demand increases in line with expectations.
level (albeit based on a relatively small
European-adjacent
Poland,
in
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sample of employers). Kazakh employers
However, we must factor in a relatively
report higher salaries, consolidating a good
lower cost of living into this equation, as
year for the Central Asian nation.
well as the more insular nature of Eastern
Salary levels in the region overall are the
32
lowest reported outside of Latin America. Average Salary
Average Bonus
Year on Year Trend
Estonia
$29,000
$6,700
-
Greece
$38,000
$5,600
Kazakhstan
$50,000
$3,000
Lithuania
$39,100
$5,600
Poland
$89,400
$8,900
Romania
$33,500
$3,400
Russia
$67,600
$13,200
Ukraine
$30,000
$3,000
By Region
$54,000
$9,900
Eastern Europe & Central Asia
Increase Increase Increase Increase Decrease Decrease Increase
Russia, it appears, has not had a stellar year,
Salary levels in the region overall are the
with a decrease in average salary levels
lowest reported outside of Latin America.
compounding the slowdown in MBA hiring.
However, we must factor in a relatively
Perhaps we will see a recovery next year, if
lower cost of living into this equation, as
demand increases in line with expectations.
well as the more insular nature of Eastern
Russia’s salary levels, however, remain
European employers.
the second-highest in the region, behind Western European-adjacent Poland, in which remuneration is at a very healthy level (albeit based on a relatively small sample of employers). Kazakh employers report higher salaries, consolidating a good year for the Central Asian nation.
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European employers.
*salary data for schools in this region not provided.
7. Latin America
14
%
7%
1%
33
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7.1 MBA hiring trends
It has not been a strong year for MBA hiring in Consulting
Latin America, which has grown by a mere 1% –
33%
far short of the 7% anticipated (growth that would
Finance 18%
have matched that which we saw in 2013/14).
Technology & Telecommunications -19%
Of course, as with any story, there are nuances.
Industry & Non-Professional Services 14%
MBA job opportunities in consulting and finance Pharmaceuticals & Healthcare
have both increased in number, with rises spread across the continent. In line with the global trend, we also see a healthy rise in MBA hiring related to industry & non-professional services. Technology, on the other hand, has had a weaker year. Brazil remains one of the world’s biggest MBA jobs markets, with hiring largely centering on industry & non-professional services. It has, however, not enjoyed the best of years, with its huge travel/leisure/hospitality industry seeming to weaken in particular (now that the World Cup is a thing of the past and its hosting of the Olympics is fast approaching, perhaps the strongest growth
1%
growth across the financial services, consulting, and industry & nonprofessional services sectors. Peru, on the back of strong recent economic growth, is also one of the world’s biggest MBA jobs markets. Again, the
hiring
is
largely
within
industry/non-professional
services sector, though 2014/15 saw increases to hiring in financial services and consulting.
in this industry is behind us). Mexico, on the other hand, has had a better year, with healthy
Follow us
7.2 Which regions do employers from Latin America look to when hiring?
34
100
50
0
Latin America
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
21%
98%
15%
12%
10%
10%
Latin America is one of the world’s more
to the US & Canada when searching for new
insular regions when it comes to MBA hiring,
recruits, but beyond that the search seems
which we can ascribe to linguistic issues,
to be largely trained on recruits from within
as well as those of business culture, in this
Latin America. The percentage of employers
relatively young MBA market. Employers in
who look for talent within their own region
the region are most inclined to look north
is second only to the US & Canada.
7.3 Salary trends MBA salary levels are lower in Latin America
As with hiring levels, MBA salaries in Brazil
than they are anywhere else in the world,
have taken something of a hit this year – a
though the significantly lower cost of living
similar fate to fellow BRIC nation, Russia.
as compared to Western Europe and the
While Mexico and Peru have enjoyed better
US & Canada must be taken into account,
years, salary levels in both have declined.
as well as the youth of the MBA jobs
MBA employers in Argentina on the other
market in this region.
hand – the preferred base for international financial services and consulting firms in the
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region – are offering improved packages,
Argentina’s neighbor, Chile, has seen a
as are those in the smaller markets of
reduction, though it can still boast among
Uruguay, Venezuela, Panama and Colombia.
the highest salaries in the region.
Latin America
Year on Year Trend
Average Salary
Average Bonus
Argentina
$52,200
$10,100
Brazil
$35,700
$4,300
Chile
$52,800
$8,200
Colombia
$68,200
$21,800
Costa Rica
$38,000
$3,000
-
Dominican Republic
$22,500
$4,000
-
Ecuador
$42,400
$4,200
Mexico
$44,000
$9,600
Panama
$37,400
$4,100
Paraguay
$17,000
$500
Peru
$46,200
$7,800
Uruguay
$72,000
-
Venezuela
$39,100
$4,800
By Region
$44,600
$7,500
Increase Decrease
35
Decrease Increase
Decrease Decrease Increase Decrease Increase Increase
7.4 Top salaries by school Threshold: $40,000
School
Country
Average Salary, Class of 2014
EGADE Business School - Tecnológico de Monterrey
Mexico
$50,000
CENTRUM Católica Graduate Business School
Peru
$46,000
IPADE Business School, Universidad Panamericana
Mexico
$42,000
INCAE Business School
Costa Rica
$41,500
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8. Middle East & Africa 12
% 8% 3%
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8.1 MBA hiring trends
We have seen reasonable growth in the Middle
Consulting
26%
East & Africa, driven by consulting and industry & non-professional services, though it has not quite come at a rate to match our expectations. This has been something of a regular theme in
Finance 2% Technology & Telecommunications 0.1% Industry & Non-Professional Services 29%
the region in recent years; estimates for next year are, however, conservative.
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Pharmaceuticals & Healthcare
-8%
It is a young MBA market, though in the oil-rich
MBA hiring levels in the Emeriti
Saudi Arabia and United Arab Emirates, and in
financial services sector, on the other
Egypt, which has enjoyed a huge surge in hiring
hand, has gone down in what has
in the financial services, it also can lay claim to
been a slower year for the country
three nations in which employers reported some
as a whole. Saudi Arabia has fared
of the world’s highest hiring levels in 2014/15. In
better, with hiring in consulting,
the case of Egypt, further growth is expected in
finance and law playing their parts
a financial services sector which seems to have
in an overall increase, in addition
weathered years of political turmoil quite well
to a smaller percentage rise in a
and is clearly benefiting from relative stability.
large retail sector.
8.2 Which regions do employers from the Middle East & Africa look to when hiring?
37
100
50
0
Middle East & Africa
US & Canada
Latin America
Western Europe
Eastern Europe
Middle East & Africa
AsiaPacific
36%
27%
39%
32%
88%
42%
In the Middle East & Africa, we find the
most keen to look. As well as geographical
world’s most outward-looking employers –
proximity, high levels of trade and cultural
business education is relatively young in the
resonances, experience gleaned in emerging
region so this is driven by necessity as much
economies a little further down the line
as anything. Even the region to which the
will be directly applicable to the region’s
fewest employers look – Latin America – is
employers. Western Europe edges a little
on the radar of over a quarter of employers
ahead of the US & Canada, while Eastern
in the region. It is to the east, towards Asia-
Europe registers the interest of around a
Pacific, that employers in the region are
third of employers.
8.3 Salary trends The salary levels reported to us in this young
big three, in terms of hiring growth, have
market vary greatly, from a mere $17,000 in
all reported decreases in salary levels,
Palestinian territories to an astronomical
giving something of a negative edge to the
$205,200 in South Africa (from a relatively
positive story, though the levels on offer in
small sample, it should be noted). The
UAE are certainly credible. Africa’s biggest
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economy, Nigeria, has also seen a decline
identify the norm. There are certainly clear
in MBA salary levels. It is, of course, harder
indications here, however, that employers in
to map out concrete trends in immature
the Middle East & Africa are willing to pay a
markets, in which we cannot yet confidently
premium for MBA talent.
38 Middle East & Africa
Average Salary
Average Bonus
Egypt
$30,000
$5,000
Ghana
$50,000
$6,000
Iraq
$25,000
$4,000
Nigeria
$35,000
$15,000
Palestinian Territories
$17,000
$1,500
Saudi Arabia
$30,000
-
South Africa
$205,200
$22,400
United Arab Emirates
$66,300
$4,000
By Region
$71,000
$7,300
Year on Year Trend Decrease Increase Decrease Decrease Decrease
8.4 Top salaries by school Threshold: $60,000
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Average Salary, Class of 2014
School
Country
Graduate School of Business, University of Cape Town
South Africa
$87,000
University of Stellenbosch Business School
South Africa
$64,500
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9. What Employers Look For
9.1 Desired skills vs. satisfaction
IMPORTANCE
SATISFACTION
39
2.5
2.0
1.5
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There is a reason - or maybe we should say reasons – that employers hire MBAs, and that is the diverse range of skills that they offer. As part of our survey, we ask employers to specify how important each of a range of skills are to them, and how satisfied they are that their MBA hires are in possession of them.
40
Generally, we see that MBAs meet or are
There is also a concerning gap between
close to meeting expectations across a
expectations and reality when it comes to
healthy spread of skills. In technical skills
strategic thinking – something one would
such as finance, e-business and marketing,
hope MBAs would be in possession of. With
we see a match between the ascribed impor-
close to half of our respondent pool hiring
tance and satisfaction. Employers are also
into strategic planning roles, it is worrying
satisfied with the global outlook of MBAs,
that they feel that MBAs do not possess a
with international awareness and language
satisfactory level of strategic thought. With
skills both registering respectable scores.
competitive advantage a more and more
One area in which we find that MBAs fall short of employer expectations is those which we would call soft skills – namely leadership, communication and interpersonal skills. Could schools be doing more to engender these? Or are employers’ expectations over the extent to which such skills
difficult thing to maintain, this is certainly an area that schools and candidates alike must seek to address. The same can be said, though to a lesser extent, for entrepreneurship. Again a difficult thing to teach, but not something for which one would want to see a low score.
can be taught unrealistic? Or might it be a
To end on a positive note, however, it is
third option – that MBAs are more inclined
refreshing to see that MBAs score well in
towards developing more quantifiable tech-
terms of CSR. In an age when the effects of
nical skills rather than harder-to-judge soft
not paying adequate attention to the wider
skills? Whichever it is, there is clearly an
impact of a business’ activities are all too
issue here which needs to be addressed,
clear, this is certainly heartening.
particularly when it is a set of skills on which employers place such a high premium.
One area in which we find that MBAs fall short of employer expectations is those which we would call soft skills – namely leadership, communication and interpersonal skills.
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%
11
9.2 Preferred years of work experience %
among employers 2011-2015
22
9%
%
20
5% %
19
%
39
%
37
7%
%
20
8%
%
40 %
22
2015 2014 2013
6%
41
%
19 %
28
%
6%
30
5%
28
%
39
%
37
>8+ YEARS >5-8 YEARS
%
>3-5 YEARS
2012 2011
6%
8%
2
>1-3 YEARS 0-1 YEARS
7%
Mapping the trend over a few years shows a
behind them are more likely to be found in
steady increase in the years of experience
possession of them.
for which employers are looking. In 2011, 35% of employers sought employees with three years’ experience or less; in 2015, this figure has fallen to 28%. On the other hand, those with at least five years under their belts were targeted by 27% of employers in 2011; the figure in 2015 stands at 33%.
We might also note that the insecurity that characterized the start of the decade may well have led employers to look for hires who were not tainted by the events of the end of previous 5-10 years. Employees with less experience, it might also be noted – if a little cynically – may also be offered
Perhaps we can connect this desire
lower salary and bonus packages. As we
for more experience with some of the
reach relative (the word ‘relative’ must be
perceived shortcomings in terms of MBA
emphasized) stability midway through the
skills we outline in the section above.
current decade, employers can now afford
Things like strategic thinking and soft skills
to turn to more experienced candidates
may be better learned on the job; ergo,
on both counts.
employees with more years of experience
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9.3 Functional roles offered We have discussed MBA job trends largely in
34%
terms of industries throughout this report (in
E-Commerce
10%
line with the remit of this report). But, we also
Finance - Advisory
23%
Finance - Other
42%
General Management
37%
MBAs, to get a better idea of the purposes for
IT / Technology
20%
which MBAs are being recruited.
Marketing
38%
Operations / Manufacturing
23%
Despite the diversity of industries into
Sales & Development
28%
which MBAs are being hired, we can see here
Strategic Planning
44%
that what you might call ‘traditional’ roles
Supply Chain / Logistics
18%
predominate. Financial roles register highly, with 23% of firms hiring MBAs into advisory roles and 42% in another financial capacity. Around a third hire MBAs into consultancy roles
and
slightly
more
into
general
management and marketing. The role into which the greatest proportion of MBAs are being hired, however, is strategic planning (a rise after a couple of years of reduced hiring into this role, as you can see in the second chapter of this report). This is as you might expect; these are exactly the functions for which MBAs are being trained. Supply chain/logistics roles (though this does mark an increase after
employers are looking to hire MBAs over a fairly even spread of traditional job roles
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%
Consultant
ask employers into which functions they hire
42
Role
Other
6%
a couple of years of lower levels of hiring into the function) and IT/technology roles are slightly more niche, though around one in five employers seek both, with slightly more looking for operations/manufacturing specialists. Hiring into e-commerce roles is significantly lower, but this may be because the fact that business takes place online is simply a reality across job functions in 2015; the need for specialists is reduced, therefore. The main thing we can take from this is that employers are looking to hire MBAs over a fairly even spread of traditional job roles, with no function showing any clear signs of being in, or falling out of, fashion. Opportunities exist for specialists across a healthy range of job roles.
10. Who Responded to the QS Employer Survey? 10.1 Regional breakdown of MBA employer respondents 8%
Middle East & Africa Asia-Pacific
32%
Latin America
23%
US & Canada
11%
Western Europe
21%
Eastern Europe
6%
Total Responses
3946
43
10.2 Employer response by size 2015 2013
2014
2015
Between 50 and 250 staff
21%
16%
18%
Less than 50 staff
21%
18%
18%
Over 250 staff
58%
66%
64%
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10.3 Employer response by industry 2013-2015
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10.4 Sample of responding employers by region 2015
Consulting
44 Finance
Industry & Non-Professional Services
Technology
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Asia
Europe
US & Canada
Latin America
Mu Sigma Inc
PwC
Accenture
Nathan Associates
Partners in Performance
Deloitte
Sage
EY (Ernst & Young)
Edanz Group Ltd.
KPMG
Deloitte
Simon-Kucher & Partners
Nexia TS
Bain & Company
Dillon Consulting Limited
Everis Group
Citibank
Capgemini
JP Morgan Chase
Bancolombia
Standard Chartered Bank
HSBC
Bank of America Merrill Lynch
BBVA
Goldman Sachs
Rothschild Group
BlackRock
Citibank
United Overseas Bank
Barclays
Scotiabank
Compañía Internacional de Seguros
Dow Chemical
Ocado
Rolls Royce
Adidas
Louis Vuitton
Shell
Huffington Post
Coca-Cola
Toshiba
Pfizer
BP America
Minera Chinalco Perú
Johnson & Johnson
Amazon
Siemens
Unilever
Samsung
Cisco
Wolfram Research
British Telecom
IBM
Ericsson
Elemica
Atos
LG
IBM
Amazon
Nextel
Acer
Dell
Home Depot
Arrow Electronics
QS Quacquarelli Symonds Ltd QS Quacquarelli Symonds was founded in 1990 and has established itself as the leading global provider of specialist higher education and careers information and solutions. Education and career decisions are too important to leave to chance, so QS ensures that candidates have access to the best tools and the best independent expert information before making a decision. QS organizes the largest business education event in the world, the QS World MBA Tour and boasts an extensive product range including print and online publications. It produces a range of annual primary research reports including the QS TopMBA.com Applicant Survey, the QS TopMBA. com Jobs and Salary Trends Report and the QS Global 200 Business Schools Report, as well as the globally renowned QS World University Rankings®. Website: www.TopMBA.com All information © QS Quacquarelli Symonds Ltd 2015
