MBA – More Bucks for Applicants
Compensation trends are changing, but the degree still brings rewards.
So, you shelled out some serious cash to get that MBA. Was it a good investment?
Apparently, the answer is yes—according to a new survey.
Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.
Recruiters report they are offering an average base salary of $75, 000 to individuals with MBAs. By comparison, recruiters say they’re offering about $50, 000 for holders of other postgraduate degrees, and $41, 000 for those with undergraduate degrees. In addition, 69% indicate they will offer signing bonuses to MBAs.
This said, the job market is now tipping in favor of the employer. Indeed, 68% of the respondents indicated the weak economy has created a “buyer’s market” for their companies.
Even so, recruiters still estimate that 30% of their 2002 hires will be MBAs, increasing to 35% in 2003.
Which fields do MBA graduates head for? The most popular one is finance: 52% of the recruiters say graduates are seeking MBAs for finance careers. Marketing is a distant second (31 %), followed by IT/MIS (25%) and consulting (24%).
And what are the most important criteria recruiters consider when hiring somebody with an MBA? Surprisingly, it’s not the school that the candidate attended.
Internship and related work experience were deemed the most important criteria, selected by 70% of the respondents. Other key criteria included the candidate’s history of increased job responsibility (66%); industry-related internship or work experience (61%) and MBA concentration of study (61%).
Recruiters deemed internship and related work experience the most important criteria when evaluating MBA students.
The reputation of the MBA school was only selected by 59% of the respondents, followed by history of leading teams (55%).
Altogether, 550 recruitment professionals, representing 423 companies, participated in the GMAC survey.
Other findings in the survey:
Most recruiters (65%) in the health care and pharmaceutical industries say they have not altered their hiring plans. The economy’s impact was felt most by recruiters for the consulting industry (86%), manufacturing (79%), energy and utilities (71%) and technology (69%).
Three-quarters of recruiters said they did not rescind offers, lay off new MBA hires, delay job starts or move MBA hires into different departments in 2001.
Just 4% of recruiters rescinded offers this year.
The number of recruiters for US companies making job offers to MBAs three months or more prior to graduation dropped 10% in 2002. The number offering jobs within weeks of graduation rose slightly.
A majority of respondents (76%) said the most important criteria in selecting schools at which to recruit are the school’s reputation and their existing relationships at the school.
Other school recruitment factors included the retention history of previous hires (50%) and a sufficiently large candidate pool (50%).
The Graduate Management Admission Council is a not-for-profit education organization of graduate business schools worldwide. The organization sponsors the Graduate Management Admission Test (GMAT) used as part of the admissions process by graduate management programs around the world.
Words and Expressions
- buck (n): a gymnastic horse without pommels and with one end elongated ⇒ “MBA – More Bucks For Applicants”
- applicant (n): a person who requests or seeks something such as assistance or employment or admission ⇒ “MBA – More Bucks For Applicants“
- compensation (n): something (such as money) given or received as payment or reparation (as for a service or loss or injury) ⇒ “Compensation trends are changing, but the degree still brings rewards.”
- trend (n): a general direction in which something tends to move ⇒ “Compensation trends are changing, but the degree still brings rewards.”
- shell out (v): administer or bestow, as in small portions ⇒ “So, you shelled out some serious cash to get that MBA.”
- current (adj): occurring in or belonging to the present time ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- lousy (adj): very bad ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- MBA-holder (n): a person who has a master’s degree in business ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- paycheck (n): a check issued in payment of wages or salary ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- work force (n): the force of workers available ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- corporate (adj): of or belonging to a corporation ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- recruiter (n): someone who supplies members or employees ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- survey (n): a detailed critical inspection ⇒ “Despite the current lousy economy, MBA-holders are soil getting bigger paychecks than others in the work force, according to the 2002 Graduate Management Admission Council (GMAC) Corporate Recruiters Survey.”
- post-graduate (adj): after having a degree of bachelor⇒ “By comparison, recruiters say they’re offering about $50, 000 for holders of other postgraduate degrees, and $41, 000 for those with undergraduate degrees.”
- undergraduate (adj): still studying at university without receiving a first degree ⇒ “By comparison, recruiters say they’re offering about $50, 000 for holders of other postgraduate degrees, and $41, 000 for those with undergraduate degrees.”
- bonus (n): anything that tends to arouse ⇒ ” In addition, 69% indicate they will offer signing bonuses to MBAs.”
- tip (v): remove the tip from ⇒ “This said, the job market is now tipping in favor of the employer.”
- respondent (n): someone who responds ⇒ “Indeed, 68% of the respondents indicated the weak economy has created a “buyer’s market” for their companies.”
- estimate (v): judge tentatively or form an estimate of (quantities or time) ⇒ “Even so, recruiters still estimate that 30% of their 2002 hires will be MBAs, increasing to 35% in 2003.”
- head for (v): deal with something ⇒ “Which fields do MBA graduates head for?”
- career (n): the general progression of your working or professional life ⇒ “The most popular one is finance: 52% of the recruiters say graduates are seeking MBAs for finance careers.”
- marketing (n): the exchange of goods for an agreed sum of money ⇒ “Marketing is a distant second (31 %), followed by IT/MIS (25%) and consulting (24%).”
- consult (v): seek information from ⇒ “Marketing is a distant second (31 %), followed by IT/MIS (25%) and consulting (24%).”
- criteria (n): aspects of something ⇒ “And what are the most important criteria recruiters consider when hiring somebody with an MBA?”
- candidate (n): someone who is considered for something (for an office or prize or honor) ⇒ “Surprisingly, it’s not the school that the candidate attended.”
- internship (n): the position of working for experiences ⇒ “Internship and related work experience were deemed the most important criteria, selected by 70% of the respondents.”
- deem (v): keep in mind or convey as a conviction or view ⇒ “Internship and related work experience were deemed the most important criteria, selected by 70% of the respondents.”
- reputation (n): the state of being held in high esteem and honor ⇒ “The reputation of the MBA school was only selected by 59% of the respondents, followed by history of leading teams (55%).”
- professional (n): of or relating to or suitable as a profession ⇒ “Altogether, 550 recruitment professionals, representing 423 companies, participated in the GMAC survey.”
- represent (v): express indirectly by an image, form or model ⇒ “Altogether, 550 recruitment professionals, representing 423 companies, participated in the GMAC survey.”
- participate in (v): be involved in ⇒ “Altogether, 550 recruitment professionals, representing 423 companies, participated in the GMAC survey.”
- finding (n): the act of determining the properties of something, usually by research or calculation ⇒ “Other findings in the survey: Most recruiters (65%) in the health care and pharmaceutical industries say they have not altered their hiring plans.”
- pharmaceutical (adj): of or relating to drugs used in medical treatment ⇒ “Other findings in the survey: Most recruiters (65%) in the health care and pharmaceutical industries say they have not altered their hiring plans.”
- alter (v): cause to change ⇒ “Other findings in the survey: Most recruiters (65%) in the health care and pharmaceutical industries say they have not altered their hiring plans.”
- impact (n): influencing strongly ⇒ “The economy’s impact was felt most by recruiters for the consulting industry (86%), manufacturing (79%), energy and utilities (71%) and technology (69%).”
- utilities (n): the quality of being of practical use ⇒ “The economy’s impact was felt most by recruiters for the consulting industry (86%), manufacturing (79%), energy and utilities (71%) and technology (69%).”
- rescind (v): cancel officially ⇒ “Three-quarters of recruiters said they did not rescind offers, lay off new MBA hires, delay job starts or move MBA hires into different departments in 2001.”
- lay off (v): put an end to a state or an activity ⇒ “Three-quarters of recruiters said they did not rescind offers, lay off new MBA hires, delay job starts or move MBA hires into different departments in 2001.”
- prior to (v): earlier in time ⇒ “The number of recruiters for US companies making job offers to MBAs three months or more prior to graduation dropped 10% in 2002.”
- slightly (adv): to a small degree or extent ⇒ “The number offering jobs within weeks of graduation rose slightly.”
- retention (n): the act of retaining something ⇒ “Other school recruitment factors included the retention history of previous hires (50%) and a sufficiently large candidate pool (50%).”
- sufficient (adj): of a quantity that can fulfill a need or requirement but without being abundant ⇒ “Other school recruitment factors included the retention history of previous hires (50%) and a sufficiently large candidate pool (50%).”
- pool (n): an organization of people or resources that can be shared ⇒ “Other school recruitment factors included the retention history of previous hires (50%) and a sufficiently large candidate pool (50%).”
- profit (n): the excess of revenues over outlays in a given period of time (including depreciation and other non – cash expenses) ⇒ “The Graduate Management Admission Council is a not-for-profit education organization of graduate business schools worldwide.”
- sponsor (v): assume sponsorship of ⇒ “The organization sponsors the Graduate Management Admission Test (GMAT) used as part of the admissions process by graduate management programs around the world.”
Exercises
Fill in each blank with the appropriate word, making changes where necessary
compensation, corporate, criterion, survey, bonus, candidate, reputation, deem, trend, current
1. He was paid a sum of money as a ………………… for his loss in the fire.
2. The …………………. towards accelerated government expenditure has got out of hand.
3. John is the ………………….. leader of the game.
4. All directors want to reorganize the ………………….. structure.
5. The house is still under ……………………
6. He got a vacation ……………………
7. A debater’s highest ……………………. is reasoning.
8. There were three ………………….. for the vacancy.
9. The government …………………… the country’s future power needs more important.
10. The school has a good ……………………… for exam results.
