No 2016 Recession For MBA Hiring

2015 HIRING OUTCOMES 7 2016 HIRING PLANS BY COMPANIES 

Source: GMAC 2015 year-end poll of employers

Source: GMAC 2015 year-end poll of employers

If you’re beginning to worry about a recession in 2016 that could impact MBA hiring, forget about it.

A new survey of employers by the Graduate Management Admission Council (GMAC) out today (Jan. 12) found that three out of four employers plan to hire more MBA graduates in 2016 in what will likely be the sixth consecutive year of growth after hitting lows in the Great Recession of 2009-2010. Some 75% of the responding companies have MBA hiring plans, up from 71% a year earlier.

Given GMAC’s advocacy position on graduate management education, its reports often have an upbeat tone, even when there are some less-than-positive signs on the horizon. But in this report, there was little, if anything, that could be interpreted with any real concern.

GMAC said its survey found that more than half (56%) of employers globally plan to increase starting annual base salaries in 2016 at or above the rate of inflation for new MBA hires and 41% will maintain 2015 salary levels (see chart below). In addition, 73% of responding employers plan to offer internships to MBA candidates in 2016 — GMAC surveys have indicated that internships remain one of the most successful ways for master’s-level business school graduates to receive job offers. Nine in 10 (92%) employers who provide internships for MBA students expect either to increase (26%) or maintain (66%) the number of internship openings next year compared with 2015.

‘EMPLOYER DEMAND FOR GRADAUTE MANAGEMENT TALENT TO REMAIN STRONG IN 2016’

The findings come from GMAC’s 2015 year-end poll of employers, with responses from 179 recruiters from across 159 companies of varying sizes and industry sectors located in 31 countries or regions worldwide. Companies responded between Oct. 27 and Nov. 16, 2015. As good as the news was for MBA hiring, it was just as good or better for several other graduate business programs. GMAC said that a greater share of employers intend to hire graduates of Master of Accounting and Master in Management programs in 2016 than did so last year.

The survey found that 75% of employers report that they met or exceeded their hiring goals for recent MBA graduates in 2015. In 2016, 85% of employers that plan to hire MBA graduates expect to hire as many or more of these candidates than they did in 2015. Regional analysis reveals that employers located in the United States are more likely to hire MBA graduates (82% of companies) compared with employers located in Europe (63% of companies.)

EXPECTED CHANGE IN AVERAGE ANNUAL BASE SALARIES FOR B-SCHOOL GRADS

Source: GMAC 2015 year-end poll of employers

Source: GMAC 2015 year-end poll of employers