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QS TopMBA.com Jobs & Salary Trends

Nunzio Quacquarelli (MA Cambridge, MBA Wharton)Susan Gatuguta Gitau (BSc USIU - Africa, MSc Nottingham University Business School)

2014/15

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Introduction 2

Who will be interested in the survey? 2

Methodology and Scope 3

Summary of Key MBA Hiring Trends in 2014 4

Demographics & Sample of MBA Employer Respondents 10

Long-term trends in MBA Jobs 1990-2014 13

Demand for MBAs Around the World in 2014/15 16

5.1.1.MBA Jobs Trends in USA & Canada 18

5.1.2.MBA Jobs Trends in Latin America 19

5.1.3.MBA Jobs Trends in Western Europe 19

5.1.4.MBA Jobs Trends in Eastern Europe 20

5.1.5.MBA Jobs Trends in Asia-Pacific 21

5.1.6.MBA Jobs Trends in Middle East & Africa 22

MBA Jobs by Sector in 2014 and Forecast for 2015 22

5.2.1.MBA Jobs in Consulting 23

5.2.2.MBA Jobs in Financial Services 25

5.2.3.MBA Jobs in Technology & Telecoms 26

5.2.4.MBA Jobs in General Industry 27

5.2.5.MBA Jobs in Pharmaceuticals & Healthcare 28

Functional Roles on Offer to MBAs 30

Preferred MBA Experience Levels 31

Key MBA Skills 32

MBA Salaries and Compensation 36

Overview of Regional MBA Compensation in 2014 36

Comparing MBA Salaries in North America and Western Europe

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MBA Salaries and Bonuses by Industry Sector in 2014 39

Regional Review of MBA Salaries & Bonuses in 2014 41

6.4.1.USA & Canada 41

Contents

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6.4.2.Latin America 43

6.4.3.Western Europe 44

6.4.4.Central Europe 45

6.4.5.Asia-Pacific 46

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The MBA (Master of Business Administration) is a graduate management degree that prepares professionals for management responsibility. It is one of the best-known degrees in the world, with more people taking it than any other postgraduate course. Deciding to take an MBA is a crucial step in an individual’s career.

Since 1990, the QS Intelligence Unit, in collaboration with TopMBA.com, has conducted an annual survey of MBA employers worldwide to determine trends in international 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 2014 International Employer Survey is as extensive as ever and presents an unrivalled overview of the world MBA recruitment market. For the purpose of this report, responses were received from 5,669 (4,318*) respondents from companies in 54 (39) countries, actively recruiting MBAs** over a three-year period, with 1,632 brand new respondents in 2014. This represents approximately four times the response of the GMAC MBA Employer Survey and approximately ten times the response level of the Bloomberg Businessweek MBA Employer Survey.

The 2014 QS International Employer Survey was conducted between March and July 2014.

* Comparative figures for 2013 are shown in brackets throughout the report

* QS Global Employer Survey also collects responses from companies seeking to hire masters and undergraduate level students. In total 28,759 employer respondents contributed to our reports in 2014.

Who will be interested in the survey?

This research will be of interest to all who follow the international MBA recruitment market. It will help three groups in particular to make informed strategic decisions:

~ Companies and agencies that recruit MBAs

• National and international recruiters will find the survey useful in managing human resource policies, such as whether to determine salaries globally or locally, and whether to benchmark their salaries against peer institutions.

~ Business school administrators and career services offices worldwide

• MBA program administrators and career services professionals will find the survey valuable for providing guidance to students and managing relationships with recruiters.

~ Current and future MBA graduates

• MBAs can use the research to determine which industries and geographies to pursue in their MBA job search, and to help negotiate an optimum compensation package.

Introduction

*

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About the Contributors

~ Editor - Nunzio Quacquarelli is founder and managing director of QS Quacquarelli Symonds Ltd, publishers of TopMBA.com and organizers of QS World MBA Tour. Nunzio has an MA from the University of Cambridge as well as an MBA from the Wharton School and has been responsible for publication of the QS TopMBA.com Jobs & Salary Trends Report since 1990.

~ Analyst – Susan Gatuguta Gitau is a research analyst and member of the QS Intelligence Unit. Susan has an MA in Corporate Strategy and Governance from the University of Nottingham.

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The QS TopMBA.com International Employer Survey, from the QS Intelligence Unit, collects primary data on the state of the recruitment market and predictions of future trends from recruiters in general industry, consulting, financial services and technology.

QS obtains information directly from the employers who hire MBA graduates, offering unique up-to-date insights into salary and MBA job trends around the world. Each respondent is designated as being responsible for MBA recruiting within his or her company, whether as a whole or in a division. They are asked to identify their geographical responsibilities, confirming whether they recruit locally, regionally or globally. The data includes specific analyses by sector, geography and year. Time trend analysis as well as sector and regional variations have been incorporated into this final report.

As the demand for MBAs grows around the world, it is increasingly important to differentiate between local MBA employers who seek MBAs purely from local institutions, versus employers with an international recruitment mandate seeking MBAs from a top-tier of up to 200 global business schools. In particular, throughout the report, we seek to distinguish salaries offered by local employers versus offers made by international employers.

QS produces a separate report – World Business Schools Rankings – Full-time MBA – that identifies the institutions most sought after by international MBA employers.

QS TopMBA.com also collects data directly from business schools which report average salaries achieved by graduating students; this data is included in section six for comparison with the data reported by employers.

QS further differentiates its research by the objectivity of its position as a third party, operating between recruiters and business schools. Our long established contacts with recruiters who share their information with QS, and the bank of data on MBA recruitment and remuneration built up by QS over the last 20 years, allow meaningful trends to be identified over time. QS operates the website www.global-workplace.com which provides career opportunities and networking facilities exclusively for member business schools. Over 100 business schools and 1,000 employers subscribe to QS Global-Workplace.

Methodology and Scope

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1. Summary of Key MBA Hiring Trends in 2014

Each year, QS continues to conduct the largest survey of employers worldwide, with 5,669 (4,318) MBA employer respondents contributing to this year’s report, including 1,631 brand new respondents, from a total of 35,000 (27,000) respondents globally to our Global Employer Surveys.

The QS TopMBA.com Jobs Index shows an overall 8% increase in MBA job opportunities in 2014, a drop from the 14% growth experienced in 2013, but still very favourable compared to OECD GDP growth.

With employers forecasting 12% growth in MBA demand in 2015, we are perhaps seeing the emergence of a mature qualification with a long-term growth rate likely to swing between 6-12%, rather than the phenomenal 15% average growth reported by QS TopMBA since 1990.

Since 1990, the MBA qualification has played a central role in the globalisation of business, with export oriented companies in Western and emerging markets fuelling worldwide demand growth for MBAs.

MBAs = Mobile, Bright, Ambitious

15% = Average Growth in MBA Demand Worldwide 1990 – 2012

10% = Average Growth in MBA Demand Worldwide 2013-15e

1.1. Summary of Key MBA Recruiting Trends

By Region:

~ NORTH AMERICA - The QS TopMBA.com report highlights that across North America MBA demand has jumped 10% in 2014, in line with our forecast from last year’s report. It seems that as confidence in economic recovery arrives in North America, we are seeing renewed demand for MBA graduates from globally oriented and local employers.

~ WESTERN EUROPE - The story in Western Europe is one of a lag in recovery of MBA demand, with 0% reported net growth in MBA demand in 2014. Growth in demand in Switzerland (15%), Germany (9%), Belgium (9%), France (6%) and the UK (5%) has buoyed the region. Northern European MBA demand has been offset by continued declines in Southern Europe, especially in Italy (-27%) and Spain (-1%). However there is some good news for Europe’s MBAs. Growth across Europe is forecast to accelerate in 2015, with Italian and Spanish employers leading the way with a projected 15% and 7% growth in demand in 2015 respectively.

~ CENTRAL EUROPE - Central European employers reported growth of 10% in 2014, not quite the dramatic increase we forecast in last year’s report, but but still a respectable figure. The growth figures are boosted by global companies expanding operations in Central Europe, with Russia and Kazakhstan reporting 19% and 18% growth in MBA demand respectively. There is a growing appetite for Western educated MBAs to return home after their MBA to local/regional employers.

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~ ASIA – After several boom years, demand for MBAs in Asia is settling at a sustainable rate of 11% per year. In recent years, the MBA qualification has been embraced by Asian employers, particularly in India and China, where demand is growing in consulting and professional services, manufacturing, IT/computer services, finance and micro-finance. Since 2011, India has been vying with the USA to be the largest MBA job market and there is no sign of this trend reversing with forecast growth of 8% in 2015.

~ MIDDLE EAST - From a small base, MBA demand has grown rapidly in recent years and it is not surprising that growth rates have settled down to just 2% in 2014. Growth has centered on the recovery in the United Arab Emirates and Saudi Arabia. Parts of Africa are reporting optimism for 2015 MBA demand in sectors like energy, mining, consulting and finance. Demand is forecast to jump by 12% in 2015.

~ LATIN AMERICA - MBA demand in Latin America has become much more plentiful in recent years amongst local employers and this trend is continuing, albeit at a more sustainable growth rate of 7% in 2014 after a year of 10% growth in 2013. Employers in the region are utilising MBAs as a key talent pool as companies battle to internationalize across the region. Brazil, Argentina and Mexico continue to be the engines of MBA growth in the region.

By Sector:

~ ENERGY – Although relatively small by volume, but very attractive to MBAs, the large energy companies have reported 18% growth in MBA demand in 2014, supplemented by many smaller companies operating in renewable energy fields.

~ TECHNOLOGY –The big story in 2014 is the spread of demand amongst global technology companies, which are now recruiting in almost every region of the world. Top technology firms such as Amazon and Apple feature prominently in rankings of popular MBA employers as multinationals spread their reach to recruit MBAs from a growing number of business schools all around the world, in large numbers. Miriam Park, who heads up Amazon’s MBA recruiting team, says, “We love MBAs because they’re strong analytical thinkers and problem solvers. They are a strong pipeline of leadership talent for the long-term.” Other technology companies are responding in kind with several expanding (or establishing for the first time) large global MBA recruitment programs. High tech/electronics companies report 11% growth in demand in 2014. IT/computer services report 8% growth whilst telecoms report 7% growth.

~ CONSULTING – Since 1990 there has been a six-fold increase in the number of MBAs recruited annually by the consulting sector. The global expansion of this industry and the demand for MBAs have gone hand in hand. Consulting and professional services report a 9% demand growth in 2014 continuing this long-standing pattern, albeit at a slower rate than previous years. Consulting is a bellwether of the health of the MBA and the sector is forecasting 8% growth in 2015.

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~ MEDIA – Media & Entertainment has traditionally been a small sector in terms of MBA demand but 2014 has been the best year for MBA hiring since the dotcom boom, with 11% growth reported. The spread of broadband is fuelling the demand amongst traditional media companies looking to digitise their products and also amongst many smaller companies seeking to become new media giants. Facebook and LinkedIn are the biggest brands embracing MBAs, but the list of hiring companies is extensive.

~ MANUFACTURING & FAST MOVING CONSUMER GOODS – Though not seen as typical MBA recruiters, there are a growing number of local and national players who seek MBAs (salaries tend to be below average). Consumer goods is reporting 12% growth in 2014, whilst manufacturing is reporting 10% growth and the numbers being hired are significant, especially in emerging markets.

~ PHARMACEUTICALS & HEALTHCARE – This industry is dominated by global players, many of which have run global MBA hiring schemes for many years. After a bit of a lull, their appetite for MBAs seems to be resuming with 9% growth in demand in 2014.

~ FINANCIAL SERVICES – Traditionally the financial services industry has accounted for about one third of MBA demand. Since the financial crisis this sector has undergone significant regulatory and structural change, which has slowed hiring patterns, especially in the USA and Western Europe. In 2014 we are seeing some recovery in demand growth for MBAs in financial services, especially in Latin America, but also in North America and parts of Europe. However, this has been offset by a slowdown in demand for MBAs in this sector in parts of the Middle East and Southern Europe. The result is an overall growth of just 7%, which perhaps hides an underlying recovery story. The forecast for 2015 is 5% growth but if the North American recovery carries on apace, there could be rapid re-evaluation of hiring needs.

By Employer Requirements:

The MBA recruitment market is probably the most globally flexible recruitment market of any profession, with employers willing to embrace career changers and targeting an incredible breadth of nationalities and skill sets. Our 2014 research reveals that employers continue to seek more experienced MBA candidates, preferably with international experience, combined with strong interpersonal and ‘soft’ skills. Employers also are increasingly willing to look internationally to find the right talent.

~ In 2014, we identify that more MBA employers are recruiting on a pan-regional or global basis, rather than on a purely domestic basis.

• Despite only 19% of respondents focusing on global recruiting compared to 32% last year, it is not that North American employers have withdrawn from global MBA hiring. Rather, we have seen a big increase in the numbers of domestic-only recruiters returning to MBA hiring in 2014, reflecting the growing strength and confidence in the US economy. Amongst North American recruiters 63% focus purely on national recruiting whilst 13% are localised in their search. Not surprisingly, Asia is the next biggest source region for these employers as the

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technology industry witnesses a revival.

• European recruiters are more globally minded than their North American counterparts with 36% recruiting globally, up 14% from 2013, and 20% recruiting across Europe, down from 29% last year. Nonetheless, close to 50% are recruiting Central Europeans in particular. Between 24% and 34% of European employers are also very actively looking for North Americans, Asians and Latin Americans.

• Amongst Middle Eastern employers, 95% are targeting local or domestic MBAs, while 41% are targeting European MBAs. Demand for MBAs across all regions has increased in comparison to last year.

• Fewer Asia-Pacific employers are targeting local or domestic MBAs down 7% from 2013. In spite of this decline, 83% of their recruitment activities are based in Asia-Pacific while 36% are targeting MBAs in North America and 28% are targeting MBAs in Western Europe. However, a greater proportion is targeting Central & Eastern European candidates (34%).

• Latin American employers are locally focused with 97% targeting their domestic and local MBAs. In 2014, 15% of Latin American recruiters expressed an interest in Western European MBAs, up from 10% last year.

~ Business school graduates are still not meeting expectations in terms of their soft skills including communication, interpersonal and strategic thinking skills, which are highly sought after. Soft skills are far and away the most important skills employers are looking for from new MBA recruits. Communications, interpersonal, strategic thinking and leadership skills make up four of the five most important skills for new hires to possess. Relevant work experience is the fifth criteria.

~ Employers are broadly satisfied with the technical skills acquired by MBA students, and this result seems to be independent of which business schools employers target. This refers to academic achievement, computer skills, languages and skills acquired in finance, marketing, e-business, and risk management.

~ International study experience is sought by 67% of MBA employers. Recruiters strongly agree that screening for language skills and inter-cultural communication skills is an important part of the hiring process for international MBAs. The type and duration of study experience is also important. They most significantly agree that candidates with international experience outperform those without.

~ There was a big increase in demand for MBAs with more than five years of work experience in 2014, with 29% of employers preferring this group compared to just 24% in 2013.

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~ In recent years there has been a steady drop in employer demand for MBAs with less than three years of experience and especially for MBAs with less than one year of work experience. This trend has continued in 2014 – 33.6 % in 2014 compared to 35% in 2013. Demand for young and pre-experienced MBAs is low in Western Europe and Latin America – in both these regions there is an above-average demand for MBAs with 5 to 8 years of work experience. By contrast, Asia-Pacific employers are much more willing to recruit younger MBAs with 0 to 3 years’ experience.

~ Some significant changes have appeared in the functions offered to MBAs in 2014. Business development and marketing are the two most popular functions on offer, overtaking general management, finance (other) and consulting.

~ The favorite MBA majors/study specializations amongst employers are strategy and leadership, whilst business innovation has been growing in popularity in recent years and has caught up with finance.

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2. Summary of Key MBA Salary Trends in 2014

Overall MBA salaries have increased 4% on average in the mature North American and Western European markets for the first time in several years, with an average salary of $94,200, whilst average MBA compensation in North America (including bonuses) is up a whopping 15% to $128,600. With evidence of MBA demand picking up steadily in North America as well as in several European markets, we continue to predict that MBA salaries are likely to increase again in 2015 in these regions. At the elite end of the MBA hiring market we see salaries between $110,000 and $150,000 as the norm in North America and Europe.

The QS TopMBA.com Jobs & Salary Trends Report provides the first view of MBA compensation trends in 2014 based on our survey of 5,669 actively hiring MBA recruiters, including 1,632 new respondents.

~ Average total compensation offered by MBA employers in North America increased by 15% to $128,600 ($112,200), with salaries of $97,700 and bonus of $30,900.

~ Total compensation offered by MBA employers in Western Europe grew by 3% to $112,600 ($109,100). By contrast, total compensation for MBAs in Central & Eastern Europe is $72,700, up 6%.

~ Total compensation offered by MBA employers in Asia-Pacific actually fell by 2% to $86,000 after several years of strong growth. MBA salaries in the region remained roughly flat at $68,000 with bonuses being cut back.

~ Total MBA compensation in Latin America, at $71,400, and Middle East, at $70,300, were both slightly down in 2014, compared to 2013. This can be explained by increases in the numbers of local employers in sectors like consumer goods and manufacturing, which typically offer below- average salaries. Salaries offered by international employers in these regions were flat.

When comparing salaries and compensation by country, QS looks only at responses from domestic employers: The top ten countries in terms of average domestic MBA compensation in 2014 are: Switzerland ($122,000), Australia ($115,600), Denmark ($112,000), UK ($98,000), USA ($93,200), France ($89,800), Germany ($89,800), Spain ($83,100), Japan ($83,000), and Canada ($87,500).

Ten years ago an MBA was effectively a passport into a career in strategy consulting and investment banking with salaries as much as 50% higher than those in other sectors. These sectors still pay well, but they are no longer the top-paying sectors as they were in the past.

~ Metals & Mining Among all employers in Europe and North America, the highest paying sector in 2014 remains metals & mining, offering an average MBA salary of $134,250 ($139,000).

~ Energy – This sector has seen a surge in employment demand in 2014, jumping into the No. 2 spot for average salaries on offer, at $107,000.

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~ Pharmaceuticals – Dominated by multinationals, pharmaceuticals have dropped from the top spot in 2012 to No. 3 in 2014, with an average MBA salary of $99,200 ($100,300).

~ Construction/ Property – Coming in at No. 4 is the construction/property sector, with average salaries of $98,350 ($97,200).

~ Financial Services – With an average salary of $95,050, financial services ranked No. 5 overall, although bonuses in this sector can often be quite large, with total compensation often exceeding $200,000.

~ High Tech/Electronics – The boom in demand in high tech and electronics companies raised the average salary to $94,950, with the sector placing sixth overall

~ Consulting – Global strategy consulting firms offer salaries between US$110,000 and $160,000 in Europe and the USA, but there are a large and growing number of small and niche consulting firms recruiting locally, resulting in an average reported salary of just $88,250 ($89,150) across the sector.

~ The lowest average MBA salaries are offered in retail, utilities, law, transportation, travel & hospitality and the public sector all below $80,000 per year.

As more employers compete in the global market for top MBA talent, we observe a longer-term trend toward equalization of MBA salaries across regions (this trend has been on-going for over a decade). Western European and North American salaries remain very similar overall and across most industries. The gap between the highest-paying region (North America) and the lowest (Latin America) narrowed to only 30% in 2013, compared to 50% a decade ago. However, with upward pressure on US salaries in 2014 this gap has widened once again to almost 40%.

Africa & Middle East

Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

19%13%

30%

6%18%

14%

2012

Less than 50 staff Between 50 and 250 staff Over 250 staff

2013

2014

22.1% 21.9% 56.0%

22.4% 23.1% 54.5%

17.6% 16.4% 66.0%

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3. Demographics & Sample of MBA Employer Respondents

The 28,759 employers responding to the QS Global Employer Surveys between 2012 and 2014 include 5,669 who were actively recruiting MBAs, whilst the remainder were recruiting only undergraduates or Masters students. All employers that responded to the survey are guaranteed confidentiality for the components of their individual responses, except for any open-ended feedback they have chosen to provide, on the value of an MBA or concerns with MBA hires.

Chart: Regional Breakdown of MBA Employer Respondents

Responses were received from employers across the globe, with 19% of employer respondents based in Western Europe, 14% in North America, 30% in Asia-Pacific, 6% in Eastern Europe, 13% in Middle East and Africa, 18% (of which the majority were hiring locally) in Latin America. Among respondents in Asia-Pacific, 12% were employers in Australia and New Zealand. This breadth of response provides detailed insights into MBA recruiting patterns across the globe.

Chart: Employer Response by Size 2014

Aerospace / Defence

Construction / Property

Consulting / Professional Services

Electronics / High Technology

Energy

Consumer Goods

Financial Services / Banking

IT / Computer Services

Law

Manufacturing / Engineering

Media / Entertainment & Arts

Metals / Minig

Pharmaceuticals / Biotech & Healthcare

Public Sector / Govt. / Non-profit

Recruitment / HR service

Retail

Telecoms

Transprtation / Distribution

Travel / Leisure / Hospitality

Utilities

Other

Eduction

400 600 800 1000200

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In 2014, a higher proportion of respondents worldwide was made up of large companies with over 250 employees. This points towards a potential shift in the MBA recruitment market from small consulting and financial services firms to larger industry players.

Chart: Employer Response by Industry 2014

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Consulting and professional services was the largest responding sector in 2013 and once again in 2014. Banking and financial services was the second largest responding sector, followed by manufacturing and engineering, which displaced HR/recruitment services from third place. IT, consumer goods and pharmaceuticals were also extremely well represented in the sample. Companies select their own industry definition and the other category is made up of respondents across all sectors who felt their companies did not quite fit the narrow industry definitions provided.

Table: Sample of Responding Employers by Region 2014

The following table gives a snapshot of some of the organizations that took part in the survey across the world all of which are recruiting 25 or more MBAs in 2014. A more comprehensive list can be found in the appendix at the end of this document.

Asia Europe US & Canada Latin America

Consulting Beijing Consulting Group AT Kearney Booz Allen Hamiliton Accenture

Grant Thornton LLP Bain & Company Deloitte Deloitte

Ernst & Young BCG Ernst & Young KPMG

IBM PwC Towers Watson PwC

Finance Commonwealth Bank AXA American Express Banco Santander

Citibank Bloomberg BlackRock Bancolombia

Nomura BNP Paribas Citibank BBVA Continental

OCBC Bank Deutsche Bank ING HSBC

Industry Air Liquide Abbott 3M Colgate Palmolive

Alstom Alstom Best Buy Daimler

Baxter Bayer ConAgra Foods Exxon

Bombardier Boehringer DHL Merk

Technology Hitachi Alcatel-Lucent Brightstar Corporation Hewlett-Packard

Microsoft Google Apple Atos

LG Electronics Avaya Oracle BlackBerry

Tata Microsoft Microsoft MercadoLibre

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Industry Consulting Finance Technology

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Since 1990, QS has conducted the largest survey of MBA employers worldwide – the only available long-term study of global MBA employment demand.

MBAs = Mobile, Bright, Ambitious

Average 15% Growth in Demand Worldwide 1990 – 2011 (see chart)

Average 10% Growth in Demand Worldwide 2012– 2015e (see chart)

The MBA qualification has proven to be probably the most recession-proof postgraduate degree since the financial crisis in 2008. Despite all the shocks to the financial system and despite contraction in financial services, MBA graduates have been successfully finding well-paid jobs in diverse sectors all around the world.

Since the financial crisis, MBA employer demand contracted only slightly in 2009 and 2010 but had a stellar year of over 25% growth in 2011, fuelled by a boom in demand in emerging markets. Since 2012, we have seen steadier growth, slightly below the long-term growth rate of 15%.

With the on-going economic recovery, North America and Europe will see renewed demand for MBA graduates. This, combined with steady demand growth in emerging markets, suggests that we are perhaps seeing the emergence of a mature qualification where the long-term growth rate is likely to swing between 6 and 12% per year, rather than the phenomenal 15% average growth reported by QS TopMBA since 1990, as shown in the chart below.

Chart: Index of MBA Recruitment 1990-2015e (Year 2000 = 1)

4. Long-term trends in MBA Jobs 1990-2014

Source: QS TopMBA.com Jobs & Salary Trends (www.topmba.com)

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From 1990 to 2012 worldwide demand for MBAs grew at an average compound annual growth rate of 15%. This growth was spread across all the major continents and focused on graduates from the world’s top 200 business schools, in particular.

There have been dips in demand. The period 1990 to 1992 saw a brief global contraction that impacted MBA demand. Between 2001 and 2004 following the dotcom crash, slow growth in major economies as far apart as the US and Japan, took its toll and demand for MBAs fell sharply. By contrast the post-Lehman financial crisis of 2008-10 proved to be relatively benign for MBAs. Although there was retrenchment within financial services overall demand was flat and then recovered quickly.

So why has the MBA experienced this long-term growth of 15% annually? The answer lies, firstly, in its flexibility, allowing early career professionals to bring about significant career changes in either industry or function, and perhaps most importantly to relocate to a new part of the world.

Isabella Pinucci, career service coordinator at Italy’s SDA Bocconi School of Management, says changing one or more aspects of their careers motivates many MBAs. “Whether it’s sector, industry or function or country or region, [switching careers] seems to be driving a greater proportion of candidates.”

Secondly, an MBA is increasingly a recognized route for accelerated career progression for aspiring business leaders. For example, it has become common for engineers and technology managers to take an MBA to help progress from a technical to a managerial position, or if already managing a team, then to reach the next step in their career.

Thirdly, the MBA qualification fosters entrepreneurs who start businesses and then come back and recruit MBAs into their small, fast-growing companies. There will always be the Bill Gates and Michael Dells of this world who drop out of college only to become wildly successful. Yet ask a venture capitalist or an angel investor what they look for in aspiring entrepreneurs, and beyond the requisite experience in the chosen field, an MBA is usually mentioned.

Demand for MBAs in consulting has been growing consistently. The chart above reveals that the absolute number of MBAs hired into the consulting sector has more than tripled since 2000, and increased six-fold since 1990. As business becomes ever more global and complex, the demand for specialised consultancy skills is growing exponentially, and the MBA qualification is a key selection criteria for a sector that values generalist skills and deep intellect above all else. This enormous expansion in MBA demand in the consulting sector simply reflects the enormous growth in this industry since 1990 – consulting services generated over US$100 billion by 2007, up from US$10 billion in 1990.

The chart reveals that MBA demand in financial services has also increased, albeit less rapidly than consulting – doubling between 2000 and 2007 and, following a period of retrenchment, seemingly entering a new growth phase since 2012. Despite the drama of financial crises, MBA demand has remained remarkably resilient in this sector over the long term. However, demand in financial services is not recovering at the same pace as consulting within developed markets.

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Since the turn of the millennium, MBA demand in general industry (consumer goods, construction, energy, manufacturing, mining, retail, etc.) has really taken off as demand in emerging markets has accelerated. In 2014, there have been more MBA jobs reported in general industry than in financial services.

Demand for MBAs in the technology sectors has experienced an era of unprecedented growth, especially in Asia. As reported last year, more and more high technology and computer services companies are looking to MBAs to commercialise their products. Most of this growth is taking place in Asia with big US employers actively hiring in the region. In 2014, overall demand grew by 11% in high technology and by 7% in telecoms.

Paul Danos, dean of the Tuck School of Business at Dartmouth College, explains the enduring appeal of top international MBA programs. “Demand for graduates of top MBA programs by the great businesses of the world continues to be strong. As businesses grow in complexity and scope, companies need more and more skilled and well-educated leaders,” says Danos, who is stepping down as dean in 2015. Danos says he foresees “no end to the insatiable demand of top businesses to employ high-quality MBA talent.”

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5. Demand for MBAs around the World in 2014/15

It’s beginning to look as if 2014/15 will be the year in which employers in Western economies will gradually expand their hiring programs, rather than taking a wait-and-see attitude. The QS Survey suggests many HR managers, especially in North America, believe their companies were too cautious in 2013. They’ve increased MBA hiring in 2014 and are predicting a further increase in MBA demand in 2015.

By contrast MBA demand growth in emerging markets, which has outstripped Western markets in recent years, is beginning to settle down to more sustainable rates. All in all the qualification seems to be entering a more mature phase in terms of employer patterns of hiring.

The table below shows the year-over-year change in numbers of MBA job opportunities reported by employers in 2014, by region and their expectation for 2015. The business cycle plays a major part in the short-term trends in MBA hiring, with local demand patterns fluctuating quite rapidly.

Table: Percentage Increase in MBA Jobs by Region

World Region

Projected Change 2014/13

Projected Change 2015/14

Africa & Middle East 2% 12%

Asia-Pacific 11% 8%

Eastern Europe 10% 5%

Latin America 7% 8%

US & Canada 10% 9%

Western Europe 0% 3%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Employers in the US & Canada have ramped up MBA hiring by 10% this year and are looking to grow demand by a similar amount again next year – really impressive figures for such a large and mature MBA market.

European employers are also becoming more optimistic for 2015. Northern European economies are already back on track with strong demand in the UK, Germany and Scandinavia. Southern European countries are also showing signs of recovery in 2015.

Whereas Asia-Pacific reports the highest growth in 2014, employers in Africa and the Middle East project a 12% increase in MBA recruitment in 2015, by far the most impressive growth across all the regions.

The surge in employer demand in emerging markets has inevitably brought about a change in behaviour of international MBA students. A few years ago, an international MBA was a route to a new life in the USA, Canada or Western Europe. In 2013, an international MBA is as much about learning international business practices and creating a network - a powerful career advantage for MBAs seeking to exploit the rapid growth of China, Southeast Asia, Latin America, the Middle East and other emerging economies.

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MBA Job Market Rank 2014 Rank 2013

United States 1 2

India 2 1

China 3 3

Mexico 4 6

United Kingdom 5 4

South Korea 6 5

Argentina 7 7

Canada 8 12

Brazil 9 8

Singapore 10 11

Mauro Guillen, director of the Lauder Institute at Wharton, emphasizes that since 2008 “a higher percentage, perhaps as many as two out of every three international students, are returning to work in their home countries, or in emerging markets, rather than staying in the USA. This trend, however, could lose steam if emerging-market growth falters, as it has already in Brazil.”

The table below shows the top ten countries by volume of MBA hiring.

Table: Top 10 Countries for MBA Demand

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

The United States regains the lead as the largest market for MBA candidates, vying with India, which moves to second place.

China remains in third place, while Mexico has displaced the UK and South Korea from fourth and fifth place respectively. Singapore enters the top 10 by volume of MBA jobs, for the first time. The growing demand in both Mexico (a non-BRIC emerging economy) and Singapore (a member of the ASEAN network) signals a shift in global perceptions of MBAs. Research by Bank of America Merrill Lynch reveals that Mexico’s rising population and lower labour costs in comparison to China have made it a strategic market for the US. This has resulted in increased foreign direct investment in the manufacturing sector. A growing labour force goes hand-in-hand with demand for qualified managers, creating a ripe market for MBA recruitment. Singapore has experienced vibrant economic growth in recent years and employers in the region seem to be embracing the MBA qualification.

The UK leads the European contingent of MBA employers. Germany, France and Spain follow but do not make the top-10 list. The UK shows a continued commitment to MBA hiring, which reflects the dominance of the service sector in the UK economy and the sensitivity of MBA hiring to the performance of the service sector, with the banking and finance sector being a major employer. Germany is quite different from the UK in terms of the profile of companies hiring MBAs, with technology, engineering and software companies sitting alongside consulting firms as the major MBA employers. MBA opportunities in France and Spain are also more common in general industrial companies and consulting firms.

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Table: Top 10 Countries for Projected Growth in MBA Demand

Growth Rank 2014 Country Expected 2014 Growth

1 Russia 19%

2 Kazakhstan 18%

3 China 17%

4 Switzerland 15%

5 Mexico 14%

6 Colombia 13%

7 South Korea 13%

8 United Arab Emirates 12%

9 Saudi Arabia 12%

10 Canada 12%

Russia and Kazakhstan lead the table in terms of growth in demand for MBAs in 2014. Traditionally the volume of MBAs hired locally in each country has been relatively small, so in a sense this represents a catchup with other emerging MBA markets that have experienced rapid growth in recent years.

Saudi Arabia and UAE are also demonstrating very high growth levels. UAE is recovering from a severe recession and would seem to be back on track. Saudi Arabia is just entering the MBA hiring market and is in an early phase of development.

Latin American companies are now reaching out to American, Spanish and other European schools to pick up the talented nationals choosing to study overseas. Mexico and Colombia back this trend; both nations are well placed within the top-10 projected growth markets.

5.1.1. MBA Jobs Trends in USA & Canada

The QS TopMBA.com report highlights that across North America MBA demand has jumped 10% in 2014, very much in line with our forecast from last year’s report. It seems that as confidence in economic recovery arrives in North America, we are seeing renewed demand for MBA graduates from globally oriented and local employers.

Table: Projected Increases in MBA Recruitment Levels - US & Canada

The recovery of the US economy has previously been shaky and seemed to have held 2014/13 2015/14

US & Canada 10% 9%

The recovery of the US economy has previously been shaky and seemed to have held back confidence in increasing MBA hiring numbers, but this changed in the past year. The stabilization of the financial services, the recovery of some manufacturing industries and the return of new MBA employers, all look set to create strong demand in 2014.

Technology companies are underpinning the growth in demand in the USA, with the big brands like Google, Amazon and IBM at the forefront. Miriam Park, who heads up Amazon’s MBA recruiting team, says, “We love MBAs because they’re strong analytical thinkers and problem solvers. They are a strong pipeline of leadership talent for the long-term.” Endeca (Oracle) is very active as are international companies like Samsung.

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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Internship programs – still the favourite screening mechanism of MBA recruiters – have been a popular first step for companies testing the MBA recruitment market, and this year saw the birth of several. Look for a steady increase in the number of internship opportunities as firms continue the trend towards the ‘try before you buy’ approach.

The US job search continues to be a challenge for international students seeking the coveted H-1B visa. The HR manager at KIMC in the US told TopMBA.com “Visa issues can cause problems. However, in our case, the STEM (Science, Technology, Engineering and Mathematics) visa extension has helped.”

5.1.2. MBA Jobs Trends in Latin America

MBA demand in Latin America has become much more plentiful in recent years amongst local employers and this trend is continuing, albeit at more sustainable growth rate of 7% in 2014 after a year of 10% growth in 2013. Employers in the region are utilising MBAs as a key talent pool as companies battle to internationalise across the region. Brazil, Argentina and Mexico continue to be the engines of MBA growth in the region.

Table: Projected Increases in MBA Recruitment Levels – Latin America

2014/13 2015/14

Latin America +8% +7%

The QS TopMBA.com Employer Survey reveals a 14% increase in MBA demand in Mexico, 9% uplift in MBA jobs in Brazil, and a 13% increase in MBA jobs in Colombia.

Professional service companies like Ernst & Young, Deloitte, KPMG, Accenture and IBM all report big jumps in MBA hiring throughout Latin America, with the biggest increases in Argentina. The attractions of Buenos Aires seem to be a factor for these professional service companies.

Mining and industrial companies are adding to the demand for MBAs. Companies like Senac Mines in Brazil and Grupo Elektra in Mexico are very active.

Many European banks now own the major Latin American banks and they actively recruit MBAs, as do consultancies and major industrial companies. The biggest such recruiters are BBVA and Banco Santander, which have emerged as regional banking leaders in Latin America, though HSBC is not far behind.

5.1.3. MBA Jobs Trends in Western Europe

The story in Western Europe is one of a lag in recovery in MBA demand, with 0% reported net growth in MBA demand in 2014. Growth in demand in Switzerland (15%), Germany (9%), Belgium (9%), France (6%) and the UK (5%) has buoyed the region. Northern European MBA demand has been offset by continued declines in Southern Europe, especially in Greece, Italy and Spain. However there is some good news for Europe’s MBAs. Growth across Europe is forecast to accelerate in 2015, with Italian and Spanish employers leading the way with 15% and 7% projected growth in demand in 2015. The vibrancy of the consulting sector within the region underpins this better growth forecast for 2015.

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Table: Projected Increases in MBA Recruitment Levels – Western Europe

2014/13 2015/14

Western Europe +0% +3%

MBA hiring in financial services has seen some improvement in 2014. The financial centres of London and Frankfurt are recovering and bank profits have begun to pick up once again, but MBA hiring is still restrained. Many European banks have strengthened their capital/asset ratios and are now highly liquid and looking for talented traders to make good use of all the cheap government money available in the system. BNL in Italy, Paribas and Santander are amongst the European banks with optimistic projections for 2015 MBA recruitment.

The German economy is usually the engine of MBA demand in Western Europe. Siemens, BMW and Daimler Benz are examples of German companies with longstanding MBA recruitment programs. Strong demand for German goods in Asia in particular, has fuelled a demand for Asian MBAs to join German companies. Likewise, many service companies are desperate to recruit German MBAs to serve their successful German clients.

Another source of growth in Europe is bi-lingual Chinese-European language speakers. Europe gradually has to acclimatize to Chinese investment in European business and China is also becoming a major market for European exports. As a result, future business leaders with experience of both China and Europe are rapidly increasing in demand amongst recruiters.

“We do see increased interest in hiring Chinese MBAs and international MBAs who speak the major Chinese languages,” reports Vinika D. Rao, executive director of the Emerging Markets Institute at INSEAD, which has campuses in France and Singapore where MBA students study. “Currently, the focus continues to be primarily on China, Hong Kong and other Asia-based positions. However, as Chinese investment in Europe grows, we anticipate increased interest in hiring bilingual MBAs who can communicate effectively and adapt comfortably to both the site office in Europe and the HQ in China.”

5.1.4. MBA Jobs Trends in Eastern Europe

Eastern and Central European employers reported growth of 10% in 2014, not quite the dramatic increase we forecast in last year’s report, but still significant either. The growth figures are boosted by global companies expanding operations in Central Europe, with Russia and Kazakhstan reporting 19% and 18% growth in MBA demand respectively. There is a growing appetite for Western-educated MBAs to return home after their MBA to local/regional employers.

Table: Projected Increases in MBA Recruitment Levels – Eastern and Central

Europe

2014/13 2015/14

Eastern and Central Europe 10% 5%

Russia has sustained strong growth in MBA demand throughout the recent world financial crisis and is projected to have a further surge in MBA hiring in 2014, fuelled by the energy boom and expansion of the financial services sector. PricewaterhouseCoopers is typical of Western consultancies hiring significant numbers of MBAs within Russia.

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Elizaveta Komolova, an HR consultant with Morgan Hunt in Moscow, told TopMBA.com that Russian companies “are looking to hire more and more MBAs compared to recent years. An MBA is becoming a default attribute of a successful manager.”

Komolova adds “MBAs in Russia are expected to be more practice-oriented, have more structured knowledge and a broad business network. MBAs are known for their ability to think long-term and use their business contacts for the best.”

Kazakhstan and Azerbaijan are oil economies that are encouraging their local young professionals to study for an MBA. Strong demand in energy and finance has resulted in a strong uplift in MBA demand in both ecomomies since 2010. Central governments are also encouraging state-backed companies to recruit more MBAs, both locally and internationally.

Good Czech or Hungarian candidates are highly sought after, but mainly outside their home countries. Romania has a growing domestic demand for MBAs, and increasingly EU recruiters are hiring these nationals who now hold EU citizenship.

5.1.5. MBA Jobs Trends in Asia-Pacific

After several boom years, demand for MBAs in Asia is settling at a sustainable rate of 11% per year. In recent years, the MBA qualification has been embraced by Asian employers, particularly in India and China, and especially in consulting and professional services, manufacturing, IT/computer services, finance and micro-finance. Since 2011, India has been vying with the USA to be the largest MBA job market and there is little sign of this trend reversing with 8% growth forecast in 2015.

The QS TopMBA.com report highlights that across Asia employers are continuing to embrace MBAs as they pursue global expansion. The MBA is becoming more in vogue. Asian candidates are amongst the highest GMAT scorers in the world, and are focused on developing excellent technical skills often at the expense of integrating fully in the social aspects of the MBA.

Projected Increases in MBA Recruitment Levels - Asia Pacific

2014/13 2015/14

Asia-Pacific 11% 8%

Without a doubt, the TopMBA.com International Employer Survey is reflecting the emergence of more and more Asian companies seeking MBAs – they represent over a quarter of total respondents. Some employers are willing to hire from local business schools at relatively low salary levels, whilst other Asian employers remain fully committed to hiring from top North American, European and Australian business schools and are often willing to pay the higher salaries expected by graduates of those schools, with a slight ‘cost of living’ adjustment. The rise of an elite cadre of Asian business schools is underway, but will probably take another ten years to be fully established.

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For the last few years, the most dynamic MBA market has been India, which has experienced an explosion in employer demand for MBAs, at least those from top-tier programs. India reports similar levels to the USA in terms of volume of reported MBA jobs for fresh graduates. But among the many Indian companies that responded to the QS Employer Survey, there are several distinct groupings. Whilst multinational employers still have a strong preference to recruit MBA graduates from international business schools, local companies concentrate on locally educated MBAs. The majority of Indian employers are actively looking to recruit from local business schools like the IIMs, the Indian School of Business as well as many others. Other local Indian companies that are looking for MBAs without work experience, almost as an alternative to a fresh undergraduate, are offering salaries below US$30,000. These employers have been excluded from the results of the survey.

Demand for MBAs in China is also strong and getting stronger. It is ranked as the third largest MBA market in the world. Banks in China are recruiting large numbers of MBAs. China seems to be maturing as an MBA hiring market with a good number of opportunities in the professional services and consulting sectors, although these numbers are now growing more slowly than some other sectors. The projected demand levels from IT / computer services surpassed consulting for the first time in 2014.

As reported last year, demand is so strong that the Municipality of Shanghai has funded the launch of its own local business school – Shanghai Advanced Centre for Finance - to compete with other local schools like CEIBS and Cheung Kong Business School. Employers in China could not find enough Chinese MBAs returning from US and European business schools, spurring the local government into action.

South Korea is joining the MBA party in Asia. Fuelled by big multinationals like Samsung, LG and Hyundai, South Korea is reporting 13% growth in MBA demand in 2014. South Korean employers told TopMBA.com they valued MBAs for their “passion and attitude,” “strategic thinking” and leadership skills.

Japan is a mature MBA market, with a long tradition of companies sponsoring students to study at Western business schools. Yet here too we see vibrancy with 10% growth in 2014.

5.1.6. MBA Jobs Trends in Middle East & Africa

From a small base, MBA demand in this region has grown rapidly in recent years and it is not surprising that growth rates have settled down to just 2% in 2014. Growth has centered on the recovery in the United Arab Emirates and Saudi Arabia, but parts of Africa have also reported increased demand, albeit from a relatively low base, in sectors like energy, mining, consulting and finance. Demand is forecast to jump again by 12% in 2015.

Ameera Al Kaabi of UAE University in the United Arab Emirates, says the biggest constraint on more MBAs coming to the Middle East is pay: “The salary package is not attractive to them.”.

Projected Increases in MBA Recruitment Levels – Africa & Middle East

2014/13 2015/14

Africa & Middle East 2% 12%

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Even so, the UAE seems to be on the path to recovery, also showing a 12% increase in MBA demand led by banking, energy and IT companies with offices in the UAE. Banks like Standard Chartered are basing much of their back office operations globally in Dubai.

5.2. MBA Jobs by Sector in 2014 and Forecast for 2015

Two of the biggest MBA job markets by volume of job opportunities have traditionally been financial services and consulting (with 22% and 12% of total MBA demand respectively) which require the technical skills and high levels of motivation that MBAs are so well-suited to provide. However, the volume of job opportunities from financial services declined by 2% in 2014 from 24% in 2013.

The second largest sector for MBA demand is IT/Computer Services at 13% of the total share of MBA jobs, a 4% incline in comparison to its 2013 volume. Recruitment/HR is gaining ground as a top destination for MBA graduates and accounts for the fourth highest job share. Increasing demands on human resources departments have driven the need for skilled HR managers.

In addition to showing these shares of the MBA job market, the table below also shows the growth in reported jobs by sector in both 2014 and forecast for 2015.

Table: Growth in MBA Demand by Industry Worldwide - 2014 and 2015e

Sectors Worldwide

Share (%) MBA Jobs 2014

Growth 2014/13

Growth 2015/14

Aerospace / Defence 1% -12% 0%

Construction / Property 2% 12% 10%

Consulting / Professional Services 12% 9% 8%

Electronics / High Technology 7% 11% 8%

Energy 4% 18% 5%

Consumer Goods 1% 12% 5%

Financial Services / Banking 22% 7% 5%

IT / Computer Services 13% 8% 12%

Law 1% 37% 21%

Manufacturing / Engineering 5% 10% 13%

Media / Entertainment & Arts 0% 11% 2%

Metals / Mining 2% 10% 1%

Pharmaceuticals / Biotech & Healthcare 4% 9% 0%

Public Sector / Govt. / Non-profit 2% 8% 8%

Recruitment / HR services 9% 9% 9%

Retail 2% 0% 4%

Telecoms 5% 7% 11%

Transportation / Distribution 1% -2% -3%

Travel / Leisure / Hospitality 1% 8% 1%

Utilities 0% 10% 1%

Other 7% 8% 8%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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5.2.1. MBA Jobs in Consulting

Since 1990, the number of MBAs recruited annually by the consulting sector has increased six-fold. The global expansion of this industry and the demand for MBAs has gone hand-in-hand. Consulting and professional services reports 9% demand growth in 2014 continuing this longstanding pattern, albeit at a slower rate than previous years. Consulting is a bellwether for the health of the MBA and the sector is forecasting 8% growth in 2015.

The table below looks at growth in consultancy demand by region. As we enter a likely period of economic growth, consultancies tend to acquire a different type of project compared to recessionary environments. Big recession projects like business restructuring and process re-engineering tend to dry up, to be replaced by M&A and strategic growth projects. This adjustment can take a year or so to work through from pipeline to live assignments and this particularly seems to be the case in Africa & Middle East where economies are recovering but this has not yet been reflected in consulting growth, resulting in a decline in MBA demand in 2014. By contrast consulting firms in other regions have worked through this phase and are experiencing something of a boom. In Latin America, Western Europe and the US and Canada consulting firms are hiring accordingly, creating lots of opportunities for internationally flexible MBAs.

Table: Growth in MBA Demand in Consulting

Region 2014/13

Africa & Middle East -4%

Asia-Pacific 8%

Eastern Europe 8%

Latin America 15%

US & Canada 11%

Western Europe 8%

Worldwide 9%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Almost all major investment banks actively recruit MBAs. The credit crunch caused huge cutbacks in MBA hiring amongst some banks – especially Citigroup and Bank of America, which received the largest US government bailouts. Despite redundancies amongst experienced bankers however, entry-level recruitment remained steady in most other banks throughout the credit crisis.

Demand for MBAs collapsed during 2001-2003. Goldman Sachs, Morgan Stanley and others cut MBA hiring by up to 80% in some offices, but 2009 was completely different with many banks hiring actively. Today, investment banking isn’t the only destination sought by many finance-minded MBAs. “MBA students with relevant financial or strategy experience can find more opportunities at some of the ‘boutique’ corporate advisory firms or in private equity, but this requires more proactive networking,” says Mark Davies, employer relations manager at Imperial College Business School. “At Imperial, we have also seen MBA graduates hired into compliance, wealth and risk management roles, where demand for talent at all levels has been growing recently.”

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So, what turns a bright new business school graduate into a successful banker? Nebal Fahed, head of graduate recruitment – Americas for Deutsche Bank, says personality is a big piece of the puzzle. “While numerical ability is certainly essential, the sheer scale of our business means that we need MBA students from a wide range of disciplines and backgrounds,” Fahed says. “We look for high achievers with the intellectual curiosity and the determination to deliver innovative solutions for our global clients.”

Most people associate investment banking with mergers and acquisitions, but most of the top banks look to recruit MBAs into global markets (sales and trading securities, fixed income and derivatives), managing assets, structured finance, corporate finance and increasingly on-and-off balance sheet hedge funds. There are also many back office positions in risk, financial control and technology.

Changes in regulations are creating more MBA opportunities. Market risk and compliance departments are seeing increased MBA hiring as banks seek greater security and control of risky investment classes. In fact, an overall emphasis on compliance experience may be spreading throughout the financial services industry.

Another new feature in recent years has been the entrance of hedge funds, private equity and venture capital houses into MBA recruiting in significant numbers. In the past they have focused on more experienced MBA alumni recruited through a network. Today, they are recognising the need to recruit younger MBA graduates to meet the growing market opportunities. Jairaj Singh, a recruitment consultant specializing in investment banking and global markets at Michael Page Hong Kong, states that roles available to MBAs have shifted. “Risk and compliance have been key areas of growth, while corporate finance and M&A teams have become leaner due to cost cutting pressures,” he says. “There has been relatively strong activity on the buy side, with client attention focused on China; multiple hedge funds, to which much risk has been deleveraged, and asset management firms have made their presence felt.”

It is not just banks, hedge funds, and private equity shops that recruit MBAs into financial services. GE Capital is now one of the biggest recruiters of MBAs worldwide. American Express is also emerging as a major player. Insurance steadily hires MBAs. In the US there are a number of insurance companies that recruit ten or more MBAs each year such as AIG, Travellers, CIGNA and Liberty Mutual.

5.2.3. MBA Jobs in Technology & Telecoms

The big story in 2014 is the growing demand for MBA talent amongst global technology companies, which are now recruiting in almost every region of the world. Top technology firms such as Google, Amazon and Apple feature prominently in rankings of popular MBA employers as multinationals spread their reach to recruit MBAs from a growing number of business schools around the world, in large numbers. Other technology companies are responding in kind with several expanding (or establishing for the first time) large global MBA recruitment programs. High tech/electronics companies report 11% growth in demand in 2014. IT/computer services 8% growth while telecoms report 7% growth.

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Table: Growth in MBA Demand in Technology & Telecommunications

Region 2014/13

Africa & Middle East -14%

Asia-Pacific 9%

Eastern Europe 14%

Latin America 0%

US & Canada 21%

Western Europe 2%

Worldwide 8%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Apple is now the most successful high tech company in the world and, along with Microsoft and Oracle, is undertaking an MBA hiring drive, recruiting into finance, sales, marketing and product management. Chloe Chometon of Oracle Ireland looks for MBAs with “International exposure [and] structured thinking.” Tom Kozicki, executive director of the MBA Career Center at UC Irvine says “the high tech corridor on the west coast has been an important source of jobs for our MBAs and remains strong.”

The web is attracting MBAs, with household names like Google and eBay snapping up entrepreneurially minded graduates. “MBAs at Google find plenty of opportunities to do cool things that matter, whether in product management, sales and finance, marketing, people operations and everything in between,” says Kyle Ewing, head of the tech giant’s global staffing programs. “While we value all levels and types of education, we look for MBA candidates with creativity, passion, and a healthy disregard for the impossible.”

Telecommunications companies such as Samsung, Apple, British Telecom and Vodafone are very active. Asian technology recruiters are hiring actively in China, Taiwan and Korea. Although we still lack many Chinese recruiter respondents in the research, Korea is an example of the dynamism of technology in Asia.

5.2.4. MBA Jobs in general industry

MBA demand in general industry (consumer goods, construction, energy, manufacturing, mining, retail etc.) is strong as many local employers in emerging markets expand the overall demand for MBAs. Though not seen as typical MBA recruiters, there are a growing number of local and national players who seek MBAs (salaries tend to be below average). The consumer goods sector is reporting 12% growth in 2014, whilst manufacturing is reporting 10% growth, with large numbers of MBAs being hired, especially in emerging markets.

Media & entertainment has traditionally been a small sector in terms of MBA demand but 2014 has been the best year for MBA hiring since the dotcom boom, with 11% growth. The spread of broadband is fuelling the demand amongst traditional media companies looking to digitise their products and also amongst many smaller companies seeking to become new media giants. Facebook and LinkedIn are the biggest brands and are embracing MBAs, but the list of hiring companies is extensive.

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Table: Growth in MBA Demand in General Industry

Region 2014/13

Africa & Middle East 18%

Asia-Pacific 16%

Eastern Europe 5%

Latin America 5%

US & Canada 12%

Western Europe 11%

Worldwide 12%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Manufacturing and general industry were among the success stories of the North American market, with many companies repatriating operations from overseas back home, creating demand for general managers. But Asia will not give up the fight easily and still outstripped the USA in terms of demand growth. Our “General Industry” category is a broad grouping of industries covering aerospace, automotives, chemicals, logistics, manufacturing and steel. Each industry reveals individual trends, but a common theme is the continued recovery in MBA hiring.

More and more industrial companies are fully embracing globalization and understand that MBAs represent an essential pool of international managers who are capable of working in diverse cultures and business situations. In particular, multinational supply chains and procurement require internationally minded, multilingual managers, making MBAs a natural talent pool.

A sizeable number of MBAs who do find roles in the industrial sector will do so with multinational companies such as General Electric, Samsung, Toyota and Motorola, where specific MBA training programs have been the norm for over a decade. Internationally minded European companies like Siemens have established MBA entry programs as well.

The energy sector continues to report strong MBA recruiting with an 18% increase in MBA jobs in 2014. There seem to be three drivers of this trend. First of all the search for alternative energy sources is attracting many MBAs into smaller, entrepreneurial organizations. Secondly, many of the big oil companies will need to replace their senior management over the next ten years as they come up for retirement. Finally, the growth of renewable energy sources is creating demand for new talent. “Today’s ever-changing energy landscape with increasing focus on renewables, energy security and energy efficiency creates exciting career opportunities,” says Zeynep Flouret, assistant director of the INSEAD Career Development Centre. “According to INSEAD’s 2013 Employment Statistics, energy giants remain solid recruiting partners of INSEAD but career opportunities in energy come from a wide range of sources including entrepreneurial firms.” Exxon Mobil and BP are among the largest MBA employers in the energy sector, though the impact of the 2010 Gulf of Mexico oil spill cast a shadow over the prospects of all big players in the oil sector as governments increase regulations to limit drilling.

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Consumer goods companies have been committed to MBA hiring in the US for many years, but MBA careers in this sector have grown slowly in Europe and Asia, with worldwide growth at a very respectable 12% in 2014. Johnson & Johnson Consumer Products traditionally hires many MBAs in the US and around the world; this program has remained unchanged in recent years. By contrast Procter & Gamble has traditionally hired small numbers of MBAs as have many other consumer goods companies. But the situation is changing and it is now common for both local operations and head offices of consumer goods companies like Diageo, BAT and Coca Cola to hire significant numbers of MBAs.

The increasing globalization of international trade, growing interdependence of common markets and increased international competition, have fuelled interest in MBAs across the sector, but also made it vulnerable to a global recession.

Inflated MBA salaries remain a problem for MBA recruiters in the industrial sectors. A consistent message from recruiters in the industry is that they have to look outside the top-tier business schools to find the talent they need. However, they are almost all reporting success in their search.

5.2.5. MBA Jobs in Pharmaceuticals & Healthcare

This industry is dominated by global players, many of which have run global MBA hiring schemes for many years. After a bit of a lull, their appetite for MBAs seems to be resuming with 9% growth in demand in 2014.

Table: Growth in MBA Demand in Pharmaceuticals & Healthcare

Region 2014/13

Africa & Middle East 0%

Asia-Pacific 2%

Eastern Europe 4%

Latin America -4%

US & Canada 20%

Western Europe 8%

Worldwide 9%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

The major pharmaceutical companies have always been very active MBA recruiters and pay the best salaries after consulting and investment banking. They also offer attractive benefits and international mobility. They have remained committed to MBAs throughout the last decade and growth in recruitment numbers is steady rather than spectacular. There are also many smaller pharmaceutical and healthcare companies that are aggressively pursuing MBA hiring to help them meet their growth potential.

Healthcare employers say MBAs’ communication, multitasking and teamwork abilities make them valuable. But a lack of international experience, high expectations for responsibility and promotions, and unreasonable salary demands make recruiting MBA talent difficult.

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5.3. Functional Roles on Offer to MBAs

MBAs come from very diverse backgrounds and industries, with as many as 50% looking to make a career change after their MBA. This is refl ected not just in the wide variety of companies seeking to employ MBAs, but also the variety of functions they enter after completing their course. Many companies recruit MBAs into more than one function. At 3M, for example, MBAs are generally found in one of three functions: HR, fi nance or marketing/strategy.

Chart: Functional Roles Offered to MBAs

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

The chart above shows some signifi cant changes in the functions offered to MBAs in 2014. Sales/ business development, consulting, fi nance – other, and management continue to account for the largest proportion of roles offered. However, IT/technology (+5%), marketing (+2%) and E-commerce roles (+2%) surpassed their 2013 levels.

The heat map table below highlights the shifts in roles offered to MBAs over a four-year period. The higher the proportion of roles offered, and the darker colour, means more interest in the particular function in comparison to the previous year.

6%

5%

6%

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5.4. Preferred MBA Experience Levels

MBAs with three to five years’ experience remain most in demand and, together with MBAs of five to eight years of work experience, account for 57% of MBA employer demand.

The least popular experience range is 0-1 years of experience. This contradicts the policy of several top-tier US business schools which are actively recruiting these “pre-experience” candidates in the pursuit of ever-higher average GMAT scores, a policy with which employers do not agree.

As a general rule, employers seek out MBAs with both the academic knowledge an MBA imparts and highly developed leadership and teamwork skills. Randall Lewis, executive director of the Professional Development Center at Purdue University’s Krannert School of Management, says “Employers want candidates that are problem solvers, great communicators and work well with others.” Adds Susan Shald, director of talent scouting for Gallup: “We’re looking for people that have this technical expertise that they can get down to the nuts and bolts of what they need to deliver, but also talk to someone at a high level if they need to.”

James Prazak, operations manager at Tricon Energy in the USA, argues strongly against pre-experience MBAs. “They lack maturity, and feel they can command more money and prestige than undergrad counterparts when they really have a minimal advantage,” Prazak says. “Too many simply get an MBA because they couldn’t get a job after undergrad – [they’ve spent] too long in school so they don’t understand the real world, plus they have no business experience.”

Table: Functional Roles Offered to MBAs 2011-2014

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com) 5.4.

2011 2012 2013 2014

Consultant 39% 37% 37% 34%

E-commerce 10% 8% 9% 10%

Finance - Advisory 29% 26% 28% 22%

Finance - Other 39% 33% 44% 36%

General Management 43% 41% 44% 36%

IT / Technology 26% 24% 21% 25%

Marketing 44% 41% 36% 38%

Operations / Manufacturing 23% 24% 24% 23%

Other Roles 11% 10% 34% 30%

Sales / Business Development 40% 42% 46% 44%

Strategic Planning 42% 40% 19% 17%

Supply Chain / Logistics 23% 25% 9% 7%

0-1 Years

2014

2013

2012

2011

1-3 Years 3-5 Years 5-8 Years 8+ Years

6% 27% 37% 20% 9%

5% 30% 40% 19% 5%

6% 28% 39% 20% 7%

7% 28% 37% 19% 8%

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Of particular note is the increased demand for graduates with more than 8 years of work experience. However, this experienced group typically falls outside the needs of mainstream on-campus MBA recruiters and the true demand for this group is unlikely to be reflected fully in this research. They are more likely to find a post-graduate career through means other than campus recruiting.

Demand for young and pre-experienced MBAs is almost zero in Western Europe and Latin America – in both these regions there is an above-average demand for MBAs with 5 to 8 years of work experience. By contrast, Asia-Pacific employers are much more willing to recruit younger MBAs with 0 to 3 years’ experience.

5.5. Key MBA Skills

The QS TopMBA.com Jobs & Salary Trends Report has for many years reported on the importance and satisfaction of key skills attained by MBA students during their studies.

Employers are, broadly, satisfied with the technical skills acquired by MBA students, and this result seems to be independent of the business schools from which the employers recruit. Whether it’s academic achievement, computer skills, languages or skills acquired in finance, marketing, e-business, and risk management, employers seem to have few qualms about the quality of MBA graduates.

However, business school graduates are still not meeting expectations in terms of their soft skills such as communication, interpersonal skills and strategic thinking, which are at a premium. Soft skills are far and away the most important skills employers are looking for from new MBA recruits. Communications, interpersonal, strategic thinking and leadership skills make up four of the five most important skills for new hires to possess. Relevant work experience is the fifth criteria.

There has been a long-standing shortfall in terms of leadership and interpersonal skills, which is apparent year after year in this research.

Muhammad Asim of Monsanto Pakistan confirms that his firm selects MBAs based primarily on “communication skills, leadership skills, and interpersonal skills.”

Chart: Preferred Years of Work Experience Amongst Employers 2011-2014

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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Importance Satisfaction

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Chart: Importance and Satisfaction with MBA Skills amongst Employers in

2014

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

5.6. The Global MBA Recruitment Market – a profi le of employer recruiting

patterns and target nationalities (by region)

The MBA recruitment market is probably the most globally fl exible recruitment market of any profession. The MBA qualifi cation is geographically mobile and this section looks at what proportion of MBA employers recruit globally, regionally or locally and which nationalities they are targeting.

It is not that North American employers have withdrawn from global MBA hiring despite only 19% of respondents focused on global recruiting compared to 32% last year. Rather, we have seen a big increase in the number of domestic-only recruiters returning to MBA hiring in 2014, refl ecting the growing strength and confi dence in the US economy. Among North American recruiters, 63% focus purely on national recruiting whilst 13% are localised in their search. Not surprisingly, Asia is the next biggest source region for these employers as the technology industry witnesses a revival. Stalled immigration reforms in the US have had an impact on internationally sourced talent. Canada’s more lax visa rules have resulted in a new wave of tech companies from Silicon Valley descending upon Vancouver. Facebook opened a temporary offi ce in Vancouver in 2013 as a stopgap solution for international recruits waiting for American work visas. 1

1 Vancouver, the New Tech Hub http://www.businessweek.com/articles/2014-05-22/vancouver-welcomes-tech-companies-hampered-by-u-dot-s-dot-work-visa-caps

Western Europe 2013

10% 20% 30% 40% 50% 60% 70% 80%

Western Europe 2014

US & Canada 2013

US & Canada 2014

Global Regional Domestic

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European recruiters are more globally minded than their North American counterparts, with 36% recruiting internationally, up from 22% in 2013, and 20% recruiting across Europe, down from 29% last year. Nonetheless, close to 50% are recruiting Central Europeans in particular. Between 24% and 34% of European employers are also very actively looking for North American, Asian and Latin American candidates.

Chart: Domestic, Regional and International Recruiting, North America and

Western Europe

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

These international recruiting mandates are refl ected in the broad range of nationalities targeted by MBA employers. The table below identifi es the regional nationalities targeted for MBA hiring, by the location of the employer (in the left hand column).

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Table: Regional Nationalities Targeted for MBA Hiring by Location of

Employer

Location of Employer

US & Canada

Latin America

Western &

Northern Europe

Central & Eastern Europe

Middle East & Africa

Asia, Australia

& New Zealand

Africa & Middle East 39% 29% 41% 34% 95% 45%

Asia-Pacific 36% 19% 28% 34% 24% 83%

Eastern Europe 17% 13% 28% 93% 12% 12%

Latin America 20% 97% 15% 10% 8% 9%

US & Canada 99% 10% 13% 10% 7% 15%

Western Europe 32% 24% 87% 49% 26% 28%

Overall 41% 33% 36% 33% 28% 40%

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Amongst Middle Eastern employers, 95% are targeting the local or domestic MBAs, whilst 41% are targeting European MBAs. Demand for MBAs across all regions has increased in comparison to last year.

Fewer Asia-Pacific employers are targeting local or domestic MBAs; that figure is down 7% from 2013. In spite of this decline, 83% of their recruitment activities are based in Asia-Pacific, 36% are targeting MBAs in North America and 28% are targeting MBAs in Western Europe. However, a greater proportion is targeting Central and Eastern European candidates (34%).

Latin American employers are locally focused with 97% targeting their domestic and local MBAs. In 2014, 15% of Latin American recruiters expressed an interest in Western European MBAs, up from 10% in 2013.

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6. MBA Salaries and Compensation

What is happening to MBA compensation in 2014? The QS TopMBA.com Jobs & Salary Trends Report provides the first and best review of 2014 trends in MBA salary and total compensation (salary and bonus) based on our survey of 1,632 brand new MBA respondents and 5,669 actively hiring MBA recruiters contributing salary data between 2011 and 2014. We also compare our survey results with average salaries self-reported to TopMBA.com by top schools in each major country and region around the world in 2013. (Business Schools will not self-report their results for their graduating classes of 2014 until the end of 2014.)

In order to ease comparison, the MBA salaries listed in this section are rounded to the nearest 100 and displayed in US dollars.

6.1. Overview of Regional MBA Compensation in 2014

Overall MBA salaries have increased 4% on average in the mature North American and Western European markets for the first time in several years, with an average salary of $94,100 , whilst average MBA compensation in North America (including bonuses) is up a whopping 14% to $128,566. With evidence of MBA demand picking up steadily in North America as well as in several European markets, we continue to predict that MBA salaries are likely to increase again in 2015 in these regions. At the elite end of the MBA hiring market we see salaries between $110,000 and $150,000 as the norm in North America and Europe.

From the table below, we see that total compensation offered by MBA employers for MBA hires increased in three of the six regions listed in 2014. The largest increase was by 15% in the US & Canada from $112,200 to $128,600. MBA compensation increased by 6% in Central & Eastern Europe to $72,700 and by 3% in Western Europe to $112,600. Total MBA compensation in Africa and the Middle East suffered the greatest decline of 2014, down 13% to $70,300, whilst Latin American salaries dropped 6% and Asia-Pacific experienced a marginal loss of 2% from $87,900 to $86,000.

For the purpose of comparison, we look at MBA salaries and bonuses reported by global, regional and national employers (excluding local employers or employers reporting figures less than $25,000 per year).

Table: Comparison of Total MBA Compensation by Region 2012-2014

(Global, Regional and National employer respondents only – excludes local)

Region

2014

2013

2012

% Change ('14/'13)

% Change ('13/'12)

Africa & Middle East $70,300 $80,700 $71,900 -13% 12%

Asia-Pacific $86,000 $87,900 $79,300 -2% 11%

Central & Eastern Europe $72,700 $68,800 $71,600 6% -4%

Latin America $71,400 $76,200 $75,400 -6% 1%

US & Canada $128,600 $112,200 $107,500 15% 4%

Western Europe $112,600 $109,100 $103,100 3% 6%

*Excludes local employers and any employers offering salaries less than $25,000 and employers in USA paying salaries of more than $250,000

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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Within these compensation figures we include bonuses reported by employers and in most regions the MBA bonus figures have increased in 2014 compared to 2013 (except Asia-Pacific and Latin America). A big attraction of an MBA qualification is not just the salary uplift, but also the likely bonuses. Bonuses continue to ensure that the MBA qualification offers superb returns on investment for almost all MBA candidates, with an average payback period of between two and five years. Many MBAs receive a sign-on bonus, to help repay tuition loans, as well as a performance-related end-of-year bonus. The bonuses reported throughout this report are the year-end performance bonuses for which new MBA hires are eligible; sign-on bonuses are not reported.

At the elite end of the MBA hiring market we continue to see slight increases in salaries offered by mainstream global MBA employers. Among strategy consulting firms, for example, offers between US$110,000 and $160,000 have become commonplace in Europe and the USA. Amongst investment banks, the offers are between $90,000 and $200,000 – a larger range than in the past.

Table: Comparison of MBA Salaries by Region 2012-2014(Global, Regional and National employer respondents only – excludes local)

Region

2014

2013

2012

% Change ('14/'13)

% Change ('13/'12)

Africa & Middle East $57,700 $65,300 $62,600 -12% 4%

Asia-Pacific $68,000 $68,300 $63,700 0% 7%

Central & Eastern Europe $54,900 $61,700 $61,300 -11% 1%

Latin America $55,500 $59,000 $58,900 -6% 0%

US & Canada $97,700 $90,000 $89,400 9% 1%

Western Europe $90,600 $88,800 $85,200 2% 4%

*Excludes local employers and any employers offering salaries less than $25,000 and employers in USA paying salaries of more than $250,000

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

In summary, as more employers compete in the global market for top MBA talent, we observe an equalization of MBA salaries across regions – a trend that has been on-going for over a decade.

~ Western Europe and North American salaries have risen across most industries.

~ The gap between the highest international MBA salary region, North America, and the lowest, Central & Eastern Europe, is now only about 40%, compared to 50% a decade ago.

~ MBA salaries in Asia-Pacific vary widely between countries. Australia offers amongst the highest MBA salaries in the world, five times the level of MBA salaries in Thailand, where employers offer amongst the lowest MBA salaries in the world.

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MBA salary differentials across regions have been steadily narrowing over the last ten years. This gradual equalisation in MBA salaries has been driven by several factors:

~ There are more multinationals looking to hire MBAs on standard packages irrespective of the country in which they work (except for perhaps small cost of living adjustments).

~ An overall rise in job opportunities for MBAs, relative to supply. As this report indicates, we have seen a doubling or tripling in demand for MBAs just since 2000, yet the number of graduating MBAs has grown at a much slower rate (and the number of MBAs graduating from the top 200 business schools most highly sought after by employers has remained virtually the same).

~ An expansion of global trade, hence the growth in numbers of companies in each country looking to recruit MBAs.

~ An increase in the number of MBA alumni in senior management or in roles responsible for hiring, who are better informed of the value of MBAs compared to traditional HR managers.

~ Increased availability of information on average MBA salaries online and in social networks, enabling candidates to demonstrate their true value when negotiating with local employers.

It is inevitable that differentials between regions will remain, not least due to:

~ The big variations in cost of living between countries.

~ The tendency for MBA students to be much younger in some regions (especially Asia) compared to others.

~ Variations in the extent to which MBAs are accepted as a generally required qualification for senior managers in a country. The USA still remains the most MBA-centric job market for managers, although Canada, the UK, Mexico, Australia, India, China, Korea and Japan are following suit.

~ As mentioned previously, the growing number of local companies seeking MBAs at salary costs benchmarked against lower local managerial salary levels, especially in India, Southeast Asia and Latin America.

~ Availability of locally educated MBAs from less prestigious business schools willing to accept significantly lower salaries

1999 2000

$73,

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$78,

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665

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379

$90,

930

$94,

135

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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6.2. Comparing MBA Salaries in North America and Western Europe 1999-

2014

The financial crisis and subsequent recession in the West certainly had a downward impact on MBA salaries from 2009 to 2013, but the impact was not severe and from last year there is evidence of resumed upward pressure on MBA salaries.

Chart: Long Term Trend in MBA Salaries across North America and Western

Europe

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Looking at the longer term trend in average MBA salaries across Western Europe and North America, the QS TopMBA.com Jobs & Salary Trends Report reveals that they are roughly 10% higher than they were a decade ago, but are still below their peak in 2008.

An average salary of US$94,100 across Western Europe and North America is roughly three times the salary being achieved by fresh undergraduates entering the job market for the first time – not bad for MBA candidates who on average have just three years of work experience post first degree.

What is happening at the top end of business schools? There are a small number of business schools that report average salaries significantly above the TopMBA.com average.

6.3. MBA Salaries and Bonuses by Industry Sector in 2014

Ten years ago an MBA was effectively a passport into a career in strategy consulting or investment banking with salaries as much as 50% higher than other sectors. These sectors still pay well, but they are no longer the top-paying sectors as other companies with global ambitions seek to compete for top talent.

Amongst all employers in Europe and North America, the highest paying sector in 2014 remains metals and mining, offering an average MBA salary of $134,250 ($139,000). Pharmaceuticals, dominated by multinationals, dropped from the top spot in 2012 to third in 2014, with an average MBA salary of $99,200 ($100,300). Construction/ property placed fourth this year, with average salaries of $98,350 ($97,200). Financial services are in fifth place with an average salary of $95,050.

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In 2014 average salaries reported by consulting and professional services came in at $88,250, which reflects the growth in the number of smaller niche consulting firms around the world offering salaries lower than the established strategy leaders that are still reporting annual MBA pay in the $110,000 to $130,000 range.

The lowest average MBA salaries are offered in utilities, law, travel & hospitality, retail and the public sector, all paying average annual salaries AT OR below ABOUT $80,000.

Table: Average Salaries and Bonuses by Sector - North America and Western

Europe 2014 (US$)

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

North America & Western Europe Average 2014

Industry Sector Avg. Salary Avg. Bonus Total

Industry Sector Avg. Salary Avg. Bonus Total

Aerospace / Defence $75,500 $5,000 $80,500

Construction / Property $98,350 $16,650 $115,000

Consulting / Professional Services $88,250 $18,900 $107,150

Electronics / High Technology $94,950 $17,250 $112,200

Energy $107,000 $19,950 $126,950

Fast Moving Consumer Goods $94,450 $15,600 $110,050

Financial Services / Banking $95,050 $20,550 $115,600

IT / Computer Services $89,600 $29,200 $118,800

Law $67,500 $17,500 $67,500

Manufacturing / Engineering $81,550 $20,650 $102,200

Media / Entertainment & Arts $88,350 $20,850 $109,200

Metals / Mining $134,250 $33,450 $167,700

Pharmaceuticals / Biotech & Healthcare $99,200 $27,350 $126,550

Public Sector / Govt. / Non-profit $80,150 $15,700 $95,850

Recruitment / HR services $88,700 $17,600 $106,300

Retail $74,350 $20,300 $94,650

Telecoms $92,750 $13,950 $106,700

Transportation / Distribution $85,850 $10,950 $96,800

Travel / Leisure / Hospitality $76,450 $8,450 $84,900

Utilities $79,350 $11,500 $90,850

Other $86,150 $15,650 $101,800

Education $72,050 $10,000 $82,050

Salary is not the only aspect of MBA compensation. Employers recognise the investment MBA candidates have to make in paying for their qualification and the vast majority of MBA employers who completed the salary section of our survey – over 70% in North America and Western Europe - will pay a bonus in addition to base salary to their MBA hires.

The table above also shows average compensation for key industry sectors.

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~ Amongst all employers in Europe and North America, the highest paying sector in 2014 remains metals and mining, offering an average MBA salary of $134,250 ($139,000).

~ Energy, which has seen a surge in employment demand in 2014, jumps into second place for average salaries on offer, at $107,000.

~ Pharmaceuticals, dominated by multinationals, have dropped from the top spot in 2012 to third place in 2014, with an average MBA salary of $99,200 ($100,300).

~ Construction/ property placed fourth this year, with average salaries offered of $98,350 ($97,200). And financial services placed fifth, with an average salary of $95,050.

~ The boom in demand for MBA talent among high tech and electronics companies has triggered a jump in the average salary to $94,950.

~ Although financial services companies, on average, are not offering the top basic salary the total compensation in this sector can often exceed $200,000 with bonuses making up a much higher proportion of the package.

~ Strategy consulting firms offer salaries between US$110,000 and $130,000 in Europe and the USA, but there are a growing number of small and niche consulting firms in the market for MBA talent, resulting in an average salary of just $88,250 ($89,150) across the sector.

6.4. Regional Review of MBA Salaries & Bonuses in 2014

In the tables below we provide average MBA salaries in selected countries. These figures are for employers based in each country and recruiting MBAs in that country only. We have excluded international employers because of the wide variations in responses and to provide more comparable data year-on-year. These country figures should be used as an approximate guide only, whereas the regional figures are based on large response samples and are much more robust.

Table: Top Ten Countries for Average 2014 MBA Salaries*

*Based on national domestic employer responses only. Excludes international and local employers.

2014 Rank

Country

Average Salary (US$)

1 Switzerland $122,000

2 Australia $115,600

3 Denmark $112,000

4 UK $98,000

5 USA $93,200

6 France $89,800

7 Germany $89,800

8 Spain $83,100

9 Japan $83,000

10 Canada $87,500

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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6.4.1. USA & Canada

North American companies have a long tradition for MBA hiring and although MBA salaries have fluctuated downwards slightly over the last five years, today MBA salaries are ahead of where they were in 2007.

The USA still has the largest number of MBA employers in the world and has by far the greatest range of MBA salaries. This report does not include any salaries above US$250,000 (prevalent in the USA among private equity and venture capital companies and within selected departments of investment banks and only offered to candidates with highly relevant work experience). Including such salaries would distort results year on year depending on the number of respondents.

MBA salaries in North America grew by 9% in 2014 and overall compensation grew even more as bonus growth outstripped salary growth. The recovery in the US market is stronger than recruiters were anticipating last year and as a consequence MBA hiring companies are becoming more optimistic once again, which is likely to lead to further compensation growth in 2015.

Table: Average MBA Salaries by Country 2014

Country Average Salary (US$)

United States 93,200

Canada 87,500

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Some of the best known US business schools, listed below, pay average salaries of 10 to 30% above the average. These business schools typically have between 30 to 40% international students in their class. There is significant variation in salaries paid in different states across the USA, with schools close to major cities of New York, Boston, San Francisco and Chicago yielding the highest salaries.

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School

State

Average MBA Salary 2013 Class

(US$)

Stanford Graduate School of Business California 129,652

Harvard Business School Massachusetts 124,085

U. of Pennsylvania (Wharton) Pennsylvania 120,702

Northwestern U. (Kellogg) Illinois 119,394

MIT (Sloan) Massachusetts 118,406

U.C., Berkeley (Haas) California 117,738

U. of Chicago (Booth) Illinois 115,079

Dartmouth College (Tuck) New Hampshire 115,031

Duke U. (Fuqua) North Carolina 112,751

Columbia Business School New York 112,728

U. of Michigan (Ross) Michigan 111,417

U. of Virginia (Darden) Virginia 111,171

Carnegie Mellon U. (Tepper) Pennsylvania 110,405

Cornell U. (Johnson) New York 109,000

NYU (Stern) New York 107,450

U. of Texas, Austin (McCombs) Texas 106,277

U. of North Carolina (Kenan-Flagler) North Carolina 105,397

UCLA (Anderson) California 104,728

Yale School of Management Connecticut 104,147

Emory U. (Goizueta) Georgia 103,453

Georgetown U. (McDonough) Washington 102,177

Indiana U. (Kelley) Indiana 101,656

Vanderbilt U. (Owen) Tennessee 101,308

Rice U. (Jones) Texas 101,229

Table: Best MBA Salaries Reported By US B-Schools (above $100,000)

Source: TopMBA.com/Scorecard 2014– Data supplied by schools according to MBA Career Services & Employer Alliance standards

Table: Best MBA Salaries Reported By Canadian B-Schools (above $80,000)

School

Average MBA Salary 2013 Class (US$)

Athabasca U. 98,000

U. of Calgary (Haskayne) 94,264

Western Ontario U. (Ivey) 88,520

York U. (Schulich) 87,000

McGill U. (Desautels) 86,550

Ryerson U. 85,327

U. of Toronto (Rotman) 84,802

U. of Ottowa 83,501

Queen's U. 81,590

Source: TopMBA.com/Scorecard 2014– Data supplied by schools according to MBA Career Services & Employer Alliance standards

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6.4.2. Latin America

In Latin America there remains quite a large disparity between multinational MBA salaries compared to local company MBA salaries. Multinationals are offering between US$60,000 and $80,000 for new MBA hires returning to the region. However, local companies are offering between US$30,000 and $60,000.

Even including local and regional employers, an average MBA salary of US$59,300 in Latin America represents a significant gap with non-MBA salaries, reflecting the increasing relevance of MBAs to multinationals in the region. It remains a fact, however, that MBA employers still primarily target international business schools, with a gap remaining in the supply of internationally recognized MBAs within the region.

The table below shows average salaries by country from companies supplying salary data in Latin America. Mexico reports the highest average salary, amongst multinationals, at US$68,700. Mexico has the largest number of MBA employers, with over 50 taking part in this survey.

Table: Average MBA Salaries by Country 2014

Country

Average Salary (US$)

Year on Year Trend

Argentina 49,600 Decrease

Brazil 62,900 Decrease

Chile 59,500 Increase

Mexico 68,700 Decrease

Peru 58,800 Increase

Venezuela 36,700 Decrease

School

Country

Average MBA Salary 2013 Class

(US$)

Business School Sao Paulo Brazil 69,000

IPADE Business School Universidad Panamericana Mexico 46,958

INCAE Business School Costa Rica 41,528

Source: QS TopMBA.com Jobs & Salary Trends Report 2011/2012 (www.topmba.com)

Table: Best MBA Salaries Reported By Schools in Latin America (above

$40,000)

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

6.4.3. Western Europe

MBA compensation in Western Europe grew by 4% in 2014. There is a sense of renewed optimism with recovery in sight.

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Switzerland reports the highest average MBA salaries in Europe of $122,000, and the second highest average MBA compensation in the world in 2014. Denmark reports consistently high MBA salaries amongst responding employers, reporting an average salary of $112,000 in 2014. The United Kingdom reports the third-highest average MBA salary in Europe at $98,000. MBA salaries in France, Germany and Spain were all above $80,000.

The strength of Swiss MBA salaries in 2014 can partly be explained by the predominance of financial services companies in Switzerland, which actively recruit MBAs. The strengthening of the Swiss currency, and the relocation of many multinationals and hedge funds to Switzerland from London and Frankfurt to reduce their tax bills, also created additional demand for MBA talent.

Average German MBA salaries – at $89,800 – are significantly lower than those in Switzerland. This does not reflect a lack of demand, but quite the contrary. More MBA employers in Germany are recruiting international MBAs from Asia and the Indian sub-continent at lower salaries than those paid to native German candidates.

Table: Average MBA Salaries by Country 2014

Country

Average Salary (US$)

Year on Year

Trend

Denmark 112,000 Decrease

France 89,800 Increase

Germany 89,800 Increase

Italy 73,200 Decrease

Spain 83,100 Decrease

Switzerland 122,000 Increase

United Kingdom 98,000 Increase

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

The highest average salaries reported by European business schools in each country tend to exceed these country averages for several reasons. As mentioned, several schools target much more experienced executives for senior management positions and these schools will typically report salaries above those of their competitors in each country. Schools that target candidates for the consulting and banking industry (such as INSEAD in France, IE and IESE in Spain and IMD in Switzerland) also tend to exceed these averages.

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Table: Best MBA Salaries Reported By European B-Schools in 2014 (above

$100,000)

School

Country

Average MBA Salary 2013 Class

(US$)

IMD Switzerland 131,566

St Gallen Switzerland 130,000

IESE Spain 117,260

Vlerick Leuven Gent Management School Belgium 116,475

HEC Paris France 115,079

INSEAD France 114,418

Mannheim Business School Germany 114,000

London Business School UK 113,737

U. of Cambridge (Judge) UK 109,647

Copenhagen Business School Denmark 109,194

ESMT Germany 108,750

IE Business School Spain 105,200

SDA Bocconi Italy 100,030

Cranfield School of Management UK 100,000

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

6.4.4. Central Europe

The experience of MBAs in Central Europe in 2014 has been a repeat of 2013. Central European economies have experienced a difficult year, with several, including Ukraine, Hungary and Bulgaria, battling to maintain financial solvency, and hit hard by austerity in major trading partners like Greece and Germany. Not surprisingly, MBA salaries have experienced downward pressure in the region.

The table below shows average salaries by country from companies supplying data in Central Europe. Russia reports the highest average salary at US$73,300.

Table: Average MBA Salaries by Country 2014

Country

Average Salary (US$)

Year on Year

Trend

Russia 73,300 Increase

Greece 35,500 Decrease

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

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Table: Best MBA Salaries Reported By Schools in Central European Countries

(above $40,000)

School

Country

Average MBA Salary 2013 (US$)

Moscow U. (Touro) Russia 70,000

CEU Business School Hungary 63,500

CMC Graduate School of Business Czech Republic 50,000

Warsaw U. of Technology Business School Poland 46,000

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

6.4.5. Asia-Pacific

Within Asia-Pacific, Australia remains the salary leader in 2014, with an average salary of $115,600. Japan reports the next highest compensation in the region, $83,000, followed by South Korea at $67,500. China reported strongly increasing MBA salaries in 2014.

Asia-Pacific is a large territory and MBA salaries vary significantly between countries. Southeast Asia, India and China have typically reported much lower MBA salaries than more mature markets like Japan, Korea or Australia.

This differential is really emphasized if we look at salaries offered by the many local MBA employers entering the marketplace. They offer salaries as low at $25,000 and are targeting MBAs from local business schools, especially within India and China, many of whom are happy to accept these lower salaries – a sharp contrast with the graduates of established international business schools.

The table below shows average salaries by country from over 500 international MBA employers supplying data in the Asia-Pacific region.

Table: Average Asia-Pacific International MBA Salaries by Country 2014

(US$)*

Country

Average Salary ($)

Year on Year

Trend

Australia 115,600 Decrease

China 62,300 Increase

India 53,200 Decrease

Japan 83,000 Increase

South Korea 67,500 Increase

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

*Employers that are recruiting locally and do not require work experience have been excluded. This included significant numbers of employers in India and China offering salaries less than US$25,000.

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Asian multinational employers targeting top international business schools are becoming more competitive and offering salaries that compare directly with their Western counterparts. In addition, salaries at local business schools are catching up with Western schools as they increasingly attract international candidates to meet the needs of local employers.

Table: Best MBA Salaries Reported By Schools in Asia in 2014 (above $50,000)

School

Country

Average MBA Salary 2013 Class

(US$)

Vlerick Business School China China 116,475

Hitotsubashi GSICS Japan 108,462

CEIBS China 81,000

IIM Amedhabad India 66,888

HKUST Hong Kong 64,000

U. of Hong Kong Hong Kong 55,000

Nanyang Business School, Singapore Singapore 53,016

Seoul National U. South Korea 53,000

International U. of Japan Japan 50,200

School

Average MBA Salary 2013 Class

(US$)

U. of Queensland 145,280

Melbourne Business School 120,310

La Trobe Business School 110,000

U. of New South Wales, AGSM 99,771

Queensland U. of Technology 99,300

Monash U. 85,000

Sydney Business School 70,476

Australian National U. 63,000

Bond U. 58,000

U. of Western Australia 50,000

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

The high salaries reported by Australian business schools are partly a function of the strengthening of the Australian dollar, but even adjusting for this effect reveals an increase in MBA salaries in Australia, driven by the strong demand for MBAs amongst multinational employers across Asia and the strength of Australian business schools in recruiting and placing Asian candidates throughout the region.

Table: Best MBA Salaries Reported By Schools in Australia in 2014 (above

$50,000

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

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6.4.6. MBA Salaries in Africa and Middle East

The table shows average salaries by country from companies supplying data in Africa and the Middle East, of which the majority were in UAE. UAE reports the highest average salary at US$72,100, significantly above Saudi Arabia which reports $51,600.

Table: Average MBA Salaries by Country 2014

Country

Average Salary ($)

Year on Year

Trend

Saudi Arabia 51,600 Decrease

United Arab Emirates 72,100 Increase

Source: QS TopMBA.com Jobs & Salary Trends Report 2014/15 (www.topmba.com)

Table: Best MBA Salaries Reported By Schools in Africa & Middle East in 2014

(above $50,000)

School

Country

Average MBA Salary 2013 Class

(US$)

Regenesys Business School South Africa 72,115

U. of The Witwatersrand South Africa 55,148

Stellenbosch U. Business School South Africa 54,240

United Arab Emirates U. UAE 52,000

U. of Cape Town South Africa 50,000

Source: TopMBA.com/Scorecard 2014 – Data supplied by schools

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QS Quacquarelli Symonds Ltd

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