Employment rates for the London Business School MBA Class of 2021 rose slightly compared to 2020 graduates, but is still not as high as in previous years, according to the LBS Class of 2021 employment report. The average overall salary, however, jumped 7% over last year while interest in the technology sector continued its upward trend.
The recently released report for the MBA class of 2021 showed that 93% of LBS grads received job offers and 92% accepted within three months of graduation. That’s 2% higher than the previous class in both metrics. (LBS expanded the timeframe to four months after graduation in its 2020 report in response to coronavirus disruptions on hiring and recruiting, so it’s not a pure apples-to-apples comparison.) Still, the 2021 acceptance rate is one point lower than the 93% rate for the class of 2017.
Zoe McLoughlin, head of the Career Centre at London Business School, says that LBS graduates accepted positions in 37 countries and are working in consulting, tech, financing, and other industries for top companies such as McKinsey & Company, Morgan Stanley, Amazon and Google. Such demand demonstrates the high calibre of LBS graduates.
“The last year has been one of the toughest on record for business school graduates and we are proud that, despite these challenges, our students shone across the board,” she says.
CONSULTING REMAINS POPULAR FOR GRADUATES, TECH FAVORED BY INTERNS
Employment for LBS grads was on pace with other European business schools including Spain’s IESE’ 94% offer rate (up from 87% in 2020). LBS’ MBA class of 2021 had 497 students from 66 countries; 92% were international students and 38% of them were women.
Consulting remains the most popular destination for LBS graduates with 38% of this year’s class entering the field, down slightly from 2020’s 40%. Still, consulting has led all other industry sectors for LBS graduates going back to at least 2017.
The second most popular field is a tie between finance and technology which each claimed 26% of LBS graduates. In 2020, technology (28% of LBS grads) overcame finance (21%) for the first time ever. It was a big change for a school known for placing its graduates into important financial jobs. While the number of LBS graduates going into finance surged to 26% in 2019, the sector’s 2020 number was the lowest rate in five years.
Based on internship data for the Class of 2021, tech will likely continue to grow as a preferred destination for LBS graduates. Technology internships jumped to 47% for the class of 2022, up from 44% in 2020 and 37% in 2019.
Meanwhile, 14% of LBS interns worked in consulting and 29% in finance – the same figures as in 2020.
AVERAGE SALARIES UP 7% IN USD
Average salaries for LBS MBAs rose 7.18% in American dollars compared to last year. The class of 2021 earned an average salary of $114,526 (£83,374), compared to $106,222 in 2020 which was a slight dip from 2019.
Of the 2021 graduates who accepted job offers, 86% reported getting a bonus or other compensation of an average of $49,314 bringing total compensation to $163,840. That’s a 7.7% jump from 2020’s average compensation of $152,034.
Graduates entering consulting jobs reported the highest average salary at $114,669 with an average $49,865 in bonuses and other compensation. That’s a total compensation of $164,534.
While average finance salaries were lower than in consulting, the total compensation was significantly propped by the large average bonus. The average finance salary was $123,231 with a $69,212 bonus bringing total compensation up to $192,443. Those entering technology reported the lowest average starting salary at $104,830, but that was up 7.2% from 2020’s average of $97,309. Total average compensation for technology was $139,001 including an average $34,171 in other compensation.
WHERE LBS GRADS GO TO WORK
While LBS grads took jobs around the world, slightly more than half (52%) work in the United Kingdom, that’s 10% more than in 2020. In all, graduates accepted jobs in 37 different countries.
After the UK, the most popular regional destinations for LBS grads included:
- Asia with 13% of 2021 grads, down from 16% in 2020
- Europe with 10%, down from 11% in 2020 and 14% in 2019
- North America with 9%, down from 13% in 2020
- Latin America with 9%, the same as in 2020
“About half our international graduates from the MBA Class of 2021 chose to remain in the UK, having taken advantage of the UK Government’s Student Visa to explore London’s exceptional opportunities,” McLoughlin says.
“I am confident that, having dealt with so much uncertainty over the last 12 months and overcoming every challenge with such collaborative spirit, our graduates are more than prepared to transform business practices globally.”
The MBB (McKinsey, Bain, and BCG) remain the top employers for LBS graduates, both for those going into consulting and in the overall classe. McKinsey & Company hired 56 2021 grads, up from 43 last year while Boston Consulting Group hired 39, down from 42 in 2020. Bain & Company hired 34 2021 grads compared to 26 last year.
In finance, Credit Suisse welcomed 5 LBS grads this year after not hiring a single one in 2020. Morgan Stanley also hired 5 2021 grads while Actis hired four and Citi hired 3.
Amazon led to the tech surge for LBS graduates, hiring 29 2021 grads and making Amazon the business school’s third largest employer overall. That is up from 28 last year and just 10 in 2019. American Express and Google hired another four 2021 grads a piece.
The entire LBS employment report can be found here.