Sweet temptation for employers

Projections for 2012 suggest firms aim to hire management graduates, making such degrees more valuable than ever

Europe might be heading for a mild recession and unemployment may be climbing in the UK, but there is some brighter news for business graduates. A survey of employers conducted by the Graduate Management Admission Council (GMAC) has found that graduates of MBA programmes and other Masters degrees related to business could find their job prospects improve in 2012.

GMAC oversees the graduate management admission test for business school applicants. Every year, it canvasses companies and organisations throughout the world about job prospects and salaries for those with business-related degrees. The most recent study consulted 216 companies and organisations and found a notable increase in those planning to hire recently graduated management students in the coming year.

The headline figures are encouraging: nearly three-quarters of the companies surveyed plan to hire MBAs in 2012, up from 58 per cent in 2011. Nearly four times as many companies are planning to increase the number of MBAs they hire in 2012, while more than half of employers expect to recruit people with a Masters in management or another specialised subject. Overall, there may also be more jobs out there for business school graduates. The survey reveals that companies plan to boost the number of positions available in 2012. The barometer is rising for remuneration too: 32 per cent of companies aim to increase salaries for MBAs joining them, and 65 per cent are planning to keep starting salaries at the same level as 2011.

"These figures bear out the fact that, in recessionary times, you can only cut costs so far," explains Dave Wilson, CEO of GMAC, talking from its headquarters in the USA. "What we are seeing in the marketplace here, and I suspect in Europe also, is that companies have cut as far as the bone and can go no further. As they start to grow and retool, they will need to bring in the best possible talent. That's where the MBA and Masters graduates become particularly attractive in providing exceptional players who can come in hitting the ground running. If you can bring someone in on 3 January who starts being productive immediately, it makes sound economic sense. While much of the world grapples with economic uncertainty, our survey shows there is cautious optimism in the market that we are starting to come out of the economic downturn. When that happens, you have to have players who are going to grow and thrive with that market. If hiring projections for this coming year remain robust, the class of 2012 can look forward to entering a markedly improved job market when they graduate."

Although the majority of the companies responding were based in the USA, Wilson believes the survey still has value for graduates applying for jobs in Europe. "The jobless recovery in the US is starting to happen and companies are looking to grow. It's true that the US is a little more optimistic than Europe, yet many of the American companies surveyed recruit worldwide. I also feel upbeat about the European job scene too."

The view from a major recruiter of graduates in the UK appears to support Wilson's level of optimism. Paul Stephenson, graduate recruitment partner at the accountancy and professional services group Deloitte, explains: "The 2011/12 recruitment season has been a positive one for us and the firm's potential recruits. During the downturn, Deloitte's hiring targets for graduates stayed at approximately the same level and over the past two years have increased to 1,200. We offer careers in 21 offices across the UK and have seen an increase in applications."

When Deloitte's buoyant analysis is seen together with activity it has observed from other employers, Stephenson believes it suggests that the market is on course to "returning to pre-recession levels".

Going for an MBA or any business-related Masters is a big investment in both time and money, particularly when the effects of the global downturn are still being felt. There may be better news for graduates entering this year's job market, but as Wilson points out, anyone who is considering applying for a graduate management degree course should always carry out a thorough economic analysis, including an evaluation of the potential return on the hefty investment it would require.

Hard on the heels of the employers' survey, GMAC has just released the findings of its alumni perspectives survey, which can help those considering applying for business Masters to make a more informed decision. More than 4,000 alumni responded from all over the world and graduates reported that they had recouped one third of the financial investment in their degree within the first year of completing their course, and 100 per cent after four years in the workplace.

European graduates earned the highest starting salaries, with an average of $84,000 (£54,000). Significantly, three out of four alumni of the class of 2011 who are currently in a job report that they could not have obtained that job without having earned their graduate management degree.

The findings of these surveys could be good news for self-funding students, whose numbers appear to be rising. At the University of Bath School of Management, for example, the fees of 45 per cent of participants in the executive MBA are not paid by companies. As Maggi Preddy, MBA admissions manager at Bath, sees it: "Managers today are willing to invest more in developing their own human capital, particularly in areas that pay off immediately, such as improving conflict resolution skills and key management competencies. We see this as an important trend for the executive MBA in particular."

According to Wilson: "One of the advantages of the MBA in general is that it gives you one more credential in your portfolio. It tells a potential employer that this is the kind of person who has made an investment in his or her intellectual capital. In tough times, that investment becomes even more valuable to enable you to distinguish yourself from the competition and increase your street value. These survey results demonstrate that a graduate management degree is, in fact, a solid investment in your future whichever way the economy turns."

PROMOTED VIDEO
Arts and Entertainment
Jamie Dornan stars as Christian Grey in the Fifty Shades of Grey movie
filmFirst look at Jamie Dornan in Fifty Shades of Grey trailor
News
Lars Ulrich of Metallica performs on the Pyramid Stage at Glastonbury 2014
music
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
Farah returns to the track with something to prove
Commonwealth games
Life and Style
fashion Designs are part of feminist art project by a British student
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs Student

Year 4 Teacher

£100 - £163 per day + £100 - £163 per day : Randstad Education Leeds: We are l...

KS1 and KS2 Primary NQT Job in Lancaster Area

£85 - £110 per day: Randstad Education Preston: Randstad Education is urgently...

Primary Teacher

Negotiable: Randstad Education Plymouth: Randstad Education Ltd are seeking KS...

Foundation Teacher

Negotiable: Randstad Education Plymouth: Randstad Education Ltd are seeking EY...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game