Are MBAs Still in Demand?
Ever since the creation of the MBA degree, critics have questioned the value of this management degree. Now that the economy has been hit by recession and MBA graduates are having trouble finding work, some critics have declared the MBA obsolete.
The truth is, graduates in virtually all fields are finding today's job market challenging, thus the dearth of MBA jobs is more a reflection of the poor economy than a sign that MBA degree holders are no longer needed. In fact, prospects for those with MBAs are improving, and MBA degree holders continue to earn hefty salaries compared to their colleagues without MBAs.
According to a recent survey by the Graduate Management Admission Council (GMAC), a nonprofit education organization, approximately 55 percent of hiring managers queried said they would be hiring new MBA graduates in 2010, up from 50 percent of respondents in 2009.
The Wall Street Journal reported that some business schools have seen growth in hiring of MBAs from companies abroad, especially those in Asia and South America, and that these firms are offering higher salaries than they have in the past. According to the same article, many schools indicated that internships for MBAs are now at or close to pre-recession levels and that there has been a resurgence in rotational positions—those that allow graduates to work across several functional areas in a company for months at a time before securing a management position.
Meanwhile, the GMAC survey indicated that the average starting salary recruiters plan to offer new MBAs this year is $80,508, nearly double the $41,860 average salary bachelor's degree holders can expect to receive.
If that doesn't prove MBAs are still in demand, what does?
