Industrial companies have traditionally favoured hiring
“second-hand” MBAs – those who have cut their teeth in banking or
management consultancy and want to move on. Now, this is changing.
spite of recent concerns in the business school world that MBA degrees
do not teach students skills that companies need, recruiters are
increasingly giving the professional services firms a run for their
money when it comes to recruiting newly minted MBAs directly from
business school. These days companies such as BP, BT, Google, Pepsico,
Samsung and Shell are names as familiar on the business school campus
as investment banks and management consultancies.
The sea change came with the classes that graduated in 2002 and 2003...
Congratulations to the class of 2007: It is an excellent year in which to venture forth into the real world, and even onto Wall Street. For the very best and brightest among you, the bulge bracket firms (aka the really big guys) are hiring like mad. For the traditional entry-level position of "analyst," the firms are paying a base compensation of about $70,000, with a bonus of anywhere between $65,000 and $95,000. Not bad, right?
Not bad, but, astonishingly, not good enough. These days, the Wall Street firms are struggling to keep their top hires, many of whom move onto the greener pastures of private equity and hedge funds after their obligatory two-year stints.
LONDON, England (CNN) -- Another new survey of business schools, this time exclusively in the U.S., has confirmed one increasingly evident fact for those considering an MBA -- there is a clear elite in the field.
The top of the list of graduate business schools produced by U.S. News and World Report sees a series of names familiar from other, similar league tables.
In top place comes Harvard Business School, followed by Stanford, the University of Pennsylvania's Wharton school, MIT's Sloan and, in joint fifth, the Kellogg school at Northwestern University and Chicago.
Other well-known names -- Tuck, Haas, Columbia, Stern -- follow to make up the rest of the top 10....
Markets may be plummeting but profits – and pay – for finance recruiters remain robust.
“The general feeling is that some of the smaller recruitment firms are
having to offer big pay increases,” says Simon Hughes, a consultant at
Strata Search, a headhunter of headhunters (‘rec to rec’) firm.
“Consultants who would have earned a £30k base two years ago are now on
Rising pay reflects recruiters’ rising profitability. Last week Michael
Page and Robert Walters reported pre-tax profits up by around 50%
year-on-year on the back of strong global demand for lawyers,
accountants and finance staff.
Hays announced a more modest six percent rise in profits, but revealed
it was purchasing IT in finance and pharmaceutical recruiter James
Harvard for an impressive £24m upfront, followed by £19m over three
How much longer will finance hiring stay firm? Matthew Earl, a
recruitment industry analyst at Investec, says City recruiters should
be able to cruise through the remains of 2007 without too much trouble,
and that 2008 looks fairly good too.
“We think conditions should be good for one to two years,” says Earl.
“You’re seeing much higher jobs growth in the financial services sector
than elsewhere in the economy and there’s a huge shortage in the supply
of skilled labour.”
Individual recruitment consultants are likely to profit from this state
of affairs, but by less than might be anticipated. Recruiters are
increasing salaries, but Hughes says they are also increasing the
benchmarks that need to be reached before commission is paid out. “A
rule of thumb is that everyone gets a third of what they invoice, but
only above a certain threshold – typically three times salary,” he
Not content with bumper pay rises and soaring bonuses, some American chief executives also saw the value of their stock options more than triple last year, thanks to the booming stock market.
A study by consultancy Watson Wyatt has found U.S chief executives across the board, but particularly those at higher performing companies, saw considerable increases in the value of their unexercised stock options last year.
The finding comes against a background of rising concern about CEO remuneration and compensation, with even President Bush criticising the excessive salaries and bonuses of some corporate bosses.
Last month, a study by the Economic Research Institute and the Wall Street Journal's executive careers' website CareerJournal.com reporting that top U.S executives saw their salaries and bonuses rises by nearly a third last year....
Women took on slightly more than half of U.S. jobs created in the first part of the decade and made gains in securing the most lucrative openings.
Women posted a net increase of 1.7 million jobs paying above the median salary, while men gained a net increase of just over 220,000 of such positions, according to a Bureau of Labor Statistics report for the years 2000-2005.
Overall, men gained 1,804,000 jobs and women 1,996,000, or 52.5% of the total increase, for the period studied.
Women outpaced men in obtaining work that pays in the top quarter of all jobs, primarily positions in the health-care, financial and managerial fields, according to the report. At the end of 2005, 1.1 million more of those jobs were held by women, while 200,000 fewer men held such jobs as widespread layoffs cut manufacturing employment. But the wage gap persists: In 2005, the median weekly pay for women was $486, or 73% of that for men -- $663.
The BLS report by economist Randy Ilg found that from 2000 through 2005, service jobs accounted for the largest portion of the net 3.8 million increase in wage and salary positions...
Wall Street will pay a record $23.9 billion in bonuses this year after investment banks raked in profit from global expansion and demand for alternative investments such as hedge funds, according to an estimate released Tuesday by New York State Comptroller Alan Hevesi.
The bonus forecast is 17% higher than last year, Hevesi added. The average bonus this year will be $137,580, 15% up from 2005, he noted.
Bonuses will range from a few hundred dollars for support staff to tens of millions of dollars for key executives, Hevesi said. Last week, Morgan Stanley Chief Executive John Mack got a bonus of almost $40 million.
"The securities industry had another great year in 2006, with some of the largest firms having their best year ever. This translates into record year-end bonuses and great news for the region's economy," Hevesi said in a statement.
An overwhelming 95% of India’s leading B-school graduates are willing to forego hefty pay packages for the sake of a job profile of their choice, even though 79% of these students are keen on working offshore right at the start of their career, according to an Assocham Business Barometer Survey.
The survey was conducted among 271 students of top B-schools which include IIM (Kozhikode), Indian Institute of Foreign Trade, Institute of Management Technology (Ghaziabad), Symbiosis Institute of International Business (Pune), Xavier Institute of Management (Bhubaneswar), ICFAI Business School, and Birla Institute of Management Technology.
In connection with launching and developing the initiative of European Institute of Technology (EIT), intensely supported by President José Manuel Barroso, following elements should be considered:
With network communities having an increased influence in future world economy, it will be necessary to nourish initiatives as the Airbus and the cooperative development projects of the European automotive industry through relevant attachment to joint research forces, as presently under establishment under the auspices of the EIT. Additional links to CERN could be most appropriate.
The proposed structure organized within the framework of Knowledge and Innovation Communities (KIC’s), under the strategic direction of a Governing Board may contain insufficient leadership possbilities. Thus it is strongly recommended to intensify leadership and structure profile to create and sustain adequate commitment and identity. Future world economic development will demand new priority paradigms additional to traditional technologies. Thus the EIT initiative portfolio should adapt trans disciplinarily and multiculturally, thus including the business and service sector together with elements from the humanities as relevant focal points.
For inspiration, please visit http://www.stanford.edu/group/dschool/ (Big Picture, 03 Multidisciplinary Approach) together with www.globalisering.dk publishing the Danish approach to the future challenges of Globalization. Modernising and reforming the professional career and functional conditions in general for the academia will be relevant as part of developing the EIT. This will not only comprise incentive measures and packages, however, focus should also be set on professional conditions as key elements of development.
With Business School competences as relevant platform for the development of cross cultural and trans disciplinary faculties, it is advisable that the Business School Community be represented in the management structure – politically as well as operationally – thus participating in the development of the strongest possible governance process and structure. The above has been communicated to the EU, Directorate-General for Educationand Culture together with Commissioner Jan Figel.
London has always been a mecca for the business world's most talented MBA graduates, and recent trends indicate that graduates feel that there are superb opportunities citing to colleagues that the 'streets are paved with gold'. London has always scored high in preference among MBA graduates. Particularly in finance, larger numbers are targeting the City with its fast-paced lifestyle and telephone number salaries. For example, starting salaries for recent graduates of London Business School going into finance have reported $102k + signing bonuses.
"There is intense competition at the moment to hire the most talented and most intellectually able people ... We have a shortage of talent both within countries and between countries, and there is an intense battle between companies trying to hire the most talented workers and also between countries which are looking to recruit talented young immigrants.”
AN MBA is about much more than a piece of paper. It’s not essay marks or
assignment results that define participants’ success: it’s whether or not they
finish the course with the skills, experience and contacts that will help them
to develop their careers and their organisations. ______
A handful of business schools offer specialised MBA programmes for the public
sector, including Birmingham, Nottingham and Warwick... But Jeanette Purcell,
chief executive of the Association of MBAs, says that this specialist market is
static. “They were established some years ago in response to the market, but
demand isn’t growing.” ______
Study where the money is, August 31, 2006, The Times Steve Little, a Brit who recently graduated from Tuck Business School in the US,
took some classes in the US and UK before deciding where to apply. “The energy
in the classroom is just at a higher level in the US. You got a real feeling
that anything is possible; there is a buzz that I just didn’t get in the UK.”
Historically, business schools have been ranked by different media and education analysts more often than other segments of higher education. In the past years, however, the progressive globalisation of higher education, and particularly of postgraduate programmes, has resulted in increasing competition among universities to attract a larger number of international students, mobility of professors and knowledge as well as in the proliferation of university rankings. This month, Newsweek magazine has published a ranking of global universities where, for the first time, 19 out of the top 45 listed instittuions are non-US universities. Richard Levin, who writes the cover story of this survey, explains that "as never before in their long history, universities have become instruments of national competition as well as instruments of peace. They are the locus of the scientific discoveries that move economies forward, and the primary means of educating the talent required to obtain and maintain competitive advantage. But at the same time, the opening of national borders to the flow of goods, services, information and especially people has made universities a powerful force for global integration, mutual understanding and geopolitical stability".
On the other hand, US News and World report has published recently its America´s Best Graduate Schools 2007 - Ranking of Top Business Schools. The Complete Guide to Business Schools. This survey is a classical in the US, athough not exempted from critics. In a recommendable article published in The New York Times on August 16th, David Leonhardt affirms that "by now, 23 years after U.S. News got into this game, the responses have become pretty predictable. Disappointed college officials dismiss the ranking as being beneath the lofty aims of a university, while administrators pleased with their status order new marketing materials bragging about it — and then tell anyone who asks that, obviously, they realize the ranking is beneath the lofty aims of a university".
This week's issue of The Economist also comments on the US News and World Report rankings. Interestingly, its author opts for pragmatism: "whether the rankings are fair is beside the point, because they are wildly influential. In the 1983 survey barely half of the presidents bothered to respond. Today, only a handful dare abstain".
I have argued in this blog -where rankings have been a recurrent issue of discussion- that rankings, if conducted according to the basic principles of impartiality, transparency and consistency, add real value to the market. In the past years, many new ranking schemes have entered the scene, evidence that the market demands them. Different stakeholders –prospective students, recruiters and corporate clients- see rankings as additional criteria to gather further information and make the educational offerings more easily comparable. However, the remaining question is how can we make rankings more consistent and reliable.
The Wall Street Journal's article of 2005, details the extra measures that Proctor & Gamble have taken to effectively
court what's described as a "cynical and media-savvy" generation of new MBAs.
From exercising sensitivity to students' schedules in timing correspondence and
treating the recruiting process as an exercise in branding and marketing, this
now novel approach might become the new norm in hiring.
Futher to the article, other recruiters agree with P&G about the need for a
more personal courtship of M.B.A.s. "There's a cacophony of noise out there
as M.B.A.s are inundated with information from more recruiters," says
David Sanderson, global recruiting chief at Bain, a major management
consultancy. Beyond the usual presentations to a mass audience, Bain also
connects its consultants and partners with specific M.B.A. prospects and stages
events and dinners for smaller, targeted groups of students.