New MBA Grads Are Wealthier – and Less Happy
The good news: Recent MBA grads are making more than previous grads. The bad news: They are also more dissatisfied with their job offers.
Let’s start with the positive. 46% of newly minted MBA grads have had job offers for $125,000 or more, according to a new survey from Training the Street, a provider of educational courses.
The main reason behind the increase in salary? A strong competition for MBA talent, says Scott Rostan, founder and CEO of Training the Street.
“When you’re getting three, four offers from banks, and if you just do the math and think about that, that means a lot of firms are competing for the same people and the same talent,” Rostan tells CNBC. “If you’re a talented person, you’re going to be in high demand.”
It gets better. More MBA students, roughly 28%, report receiving three or more job offers. When compared to last year’s 22%, it seems newly-minted MBA grads are getting more options. And more than half of students surveyed this year are “very satisfied” with their offers.
Despite the pay and offers, there is signs for worry. When compared to last year’s 45% satisfaction rate, the number of MBA students who report being satisfied with their job offers fell to 32%. Worse still, students who reported being dissatisfied with their offers has doubled from last year to 14%.
Like last year, the number of grads who report not receiving any employment offers has remained roughly the same at 17%.
So, what could these numbers mean? Well, according to Rostan, the increase in job offers means MBAs are in high demand. But that also means more competition.
“The war for talent is as strong as ever, and top candidates are in high demand, leading to higher starting salaries and multiple job offers,” Rostan tells PR Newswire. “Demand for MBAs remains strong, but firms are being more discerning in an effort to recruit those who can step in and contribute right away.”
A large percentage of MBA grads reported a preference for working in consulting according to Training the Street. Roughly 31% of grads put working in consulting as their number one job choice. Last year, the number was 20%.
Part of the reason for consulting’s popularity may be the result of heavy recruitment efforts by consulting firms. 51% of respondents surveyed said consulting firms “actively recruited” them for employment. That’s up from 43% last year.
“We’ve seen a concerted effort on behalf of the big consulting firms to attract the strongest, young talent coming out of the nation’s business schools,” Rostan tells PR Newswire. “The results indicate that their efforts have paid off, as more MBAs see consulting firms as their top choice.”
Training the Street’s survey included a total of 262 students. 158 were full-time MBAs.