MBA Grads are Highly Sought—And So Is the Degree

Job markets locally, regionally and nationally are improving for students earning master's of business administration degrees, according to Blair Sanford, director of MBA career services at the University of Wisconsin-Madison School of Business.

She cites UW-Madison employment data, along with a new survey of 57 business schools conducted by the MBA Career Services Council, the association for MBA career services professionals.

"Companies have increased their presence on campus and MBAs are getting more job offers," says Sanford. "The MBA Career Services Council survey identifies a clear trend of increased recruiting activity in the financial and consulting industries, in particular. At UW-Madison, product management, market research and corporate finance have been particularly strong areas."

The survey was developed by Randy Williams, director of career services at the University of California-Irvine's Graduate School of Management. "There is clear evidence that for the first time since 2001, the majority of MBA programs are seeing an increase in recruiting," says Williams, who is on the MBA Career Services Council board. "This is certainly good news for business school graduates and prospective MBA students."

Recruiting activity, such as job postings and on-campus interview schedules, increased last fall compared to fall 2003, according to 84 percent of the schools surveyed. Other findings included:

• 81 percent of the schools, including UW-Madison, reported that a higher percentage of 2004 graduates had at least one job offer within three months of graduating, compared to 2003.
• 93 percent of the schools predicted that the 2004-05 job market would be even better than the previous academic year.
• 61 percent of the schools predicted companies would expand their hiring this fall, in anticipation of improved business by next spring or summer.

In terms of salary, 2004 graduates received an average base salary of $71,096, according to the MBA Career Services Council. Base salary for UW-Madison 2004 MBA graduates, was $72,720.

There are 1,500 MBA programs in the United States, producing about 120,000 graduates each year. A recent study by two researchers at Stanford University’s Graduate School of Business questioned the value of an MBA. Jeffrey Pfeffer and Christina Fong found that by comparison, in 1956 only 3,200 MBAs were awarded. Might the recent explosion of interest in the degree have diluted its value?

No, according to Dave Wilson, president and chief executive of the Graduate Management Admission Council (GMAC) an association of business schools, Wilson called the MBA a “global currency” in a recent article in Forbes. “In an era when people don’t tend to stay with one company or job track for their entire career, the MBA allows them to take control of their careers and change course when they want or need to,” Wilson was quoted as saying. GMAC estimates that the average MBA graduate receives a 35 percent salary increase over his or her salary prior to earning an MBA.