The Graduate Management Admission Council (GMAC), the owner of GMAT exam, has released its 17th annual survey, the GMAC 2018 Corporate Recruiters Survey, and the findings indicate that MBA hiring remains strong. “Overall, 81% of responding companies plan to hire MBA graduates in 2018,” the survey found.
Among all respondents globally, 52% companies plan to increase MBA starting base salaries this year. Around the world, MBA graduates continue to command a salary premium relative to direct-from-industry hires and bachelor’s degree hires. The projected median base starting salary for new MBA graduates in the US in 2018 is $105,000, compared with $85,000 for direct-from-industry new hires and $65,000 for bachelor’s degree new hires.
The data, the survey found, reflect a slight decline in projected hiring among US and European employers compared to 2017’s hiring plans: 85% of responding US companies and 64% of European companies plan to hire recent MBA graduates in 2018. The demand for MBA talent is strongest in Asia-Pacific, where 90% of responding employers plan to make MBA hires in 2018—the same share as last year.
“Over the years, we have tracked positive trends in hiring of MBA and business master’s graduates,” said Sangeet Chowfla, GMAC president and CEO. “Graduates are commanding compensation premiums and companies are increasing starting salaries. The softening in the intent to hire numbers for the US and Europe reflects the global economic growth numbers, and the prevailing political and student mobility issues. In the Asia-Pacific region, hiring projections have remained strong. Overall, we see that MBA hiring is strong, but we are seeing the mix shift geographically.”