Individuals who have their Masters of Business Administration degree would do well to begin sending out their applications to finance and technology firms. A recent report suggests that both hiring rates and average pay for MBA graduates will increase throughout the new year.
The latest Graduate Management Admission Council report noted that 85 percent of employers that plan to hire business school graduates in 2014 expect to hire as many or more of those graduates than they did during 2013. Additionally, more than 40 percent of employers are planning to increase base salaries for MBA graduates at or above the rate of inflation.
"Actual hiring for 2013 and projected hiring for 2014 are much improved from a few years ago, despite persistent uncertainty in the global economy," said Rebecca Estrada, GMAC survey manager, in a statement quoted by Poets & Quants. "In addition, between 45 percent and 58 percent of employers plan to increase annual base salaries at or above the rate of inflation, another indicator that demand for talent remains strong."
MBA graduates are currently the most sought-after candidate type among all business school graduates, according to the report, with more than 70 percent of all responding employers planning to hire such individuals.
Those who hold such degrees in accounting, and are looking for high-paying accounting jobs, are also in luck, according to the GMAC report: 36 percent of all employers are planning to hire Master of Accounting graduates at some point in the year 2014, up slightly from the 35 percent who reported planning to do so in 2012. More than half of all employers plan to increase salaries for those graduates at or above the rate of inflation, as well.
More than 40 percent of employers, additionally, plan to hire Master in Management candidates, and 35 percent plan to hire Master of Finance candidates. MBA graduates and students can even count on increased chances to earn internships: 88 percent of employers told the GMAC council that they plan to offer internship opportunities for graduate business students, with 61 percent specifying that they will extend their internship opportunities specifically to MBA students.
Another take on MBA hiring trends
However, another recent 2014 hiring report, issued by researchers at the University of Michigan, presented conflicting results. It noted that MBA holders would be "hit hard" in the coming year, with only 35 percent of employers planning to increase the amount of MBA graduates they will hire. More than 40 percent of respondents to the University of Michigan poll noted that they plan to decrease the number of MBA holders they hire in the coming year.
However, Estrada's poll – which includes one-fifth of the Fortune 100 and almost 50 Fortune 500 employers – suggests otherwise. Therefore, MBA grads, and any other individuals hoping to earn themselves a career in finance sometime during the new year, would likely do well to send off a number of their resumes during the last week of 2013. They may be able to become the first of many MBA hires made during 2014.