MBA Recruiters Resurface in North America

MBA recruiters in North America have resurfaced with a resounding boom and the optimism among is palpable among both recruiters and schools. So is this recruiting boom any different from the last IT boom? Where are MBA graduates setting their career sights in 2007? 

In the last few years, MBA recruitment has been on a slow burn. "Employment of MBAs is an expensive proposition for corporations," says Richard E. Sorensen, chair of the board at AACSB International. "When the economy slows, MBA recruitment is an area where companies cut back. However, here in the United States, the number of recruiters on campus over the past two to three years has been increasing."

The market finally ignited last year. Ask business schools in the US and Canada about the prospects for MBA recruitment and the response is overwhelmingly positive. Most schools report increased recruiter activity on and off campus. "There has been a significant increase in recruiting activity at Fuqua this year," says Erin Gasch, associate director of marketing and employer services at Fuqua School of Business, Duke University, North Carolina. "Compared to last year at this time, the total number of companies recruiting on our campus is up 28 per cent, the number of company presentations is up seven per cent, the number of second-year interviews for full-time positions is up 13 per cent, and the number of first-year interviews for internships is up 20 per cent."

Many other US schools are reporting an increse in the quality and quantity of MBA job prospects, as well as base compensation and bonuses. It is the same in Canada. "We have definitely noticed an increase in activity from all sectors. More recruiters are looking for MBAs and recruiters have more roles to fill," says Karen Theriault, director of the Corporate Connections Centre at the Rotman School of Management, University of Toronto. "Rotman students have increasing confidence that not only will they get a job, they will get the job they want. Grad hiring to date is up ten per cent over last year."

"Accounting firms are back in full force, as are some of the consulting and financial services firms,"

New sector trends

After several years during which IT firms were the fashionable place to work, and then a recruitment lull, traditional career destinations are reasserting their popularity. "Accounting firms are back in full force, as are some of the consulting and financial services firms," says Darby Scism, director of the F. David Fowler Graduate Career Centre, at The George Washington University School of Business in Washington DC.

In Canada, at The Richard Ivey School of Business, University of Western Ontario, over 60 per cent of 2006 MBA graduates secured positions in investment banking, finance and consulting. Schools are also broadening their recruiter base. "We are putting an increased effort into seeking relationships with firms that will provide marketing and general management roles including FedEx, Coca-Cola, Kraft, Alcan, and P&G," says Rotman's Theriault.

Aside from the more traditional destinations, there are some interesting career trends developing. Social entrepreneurship is a growth area. We are seeing significant growth in student interest in the public sector and non-profit space," says Peter Giulioni, executive director of the MBA Career Resource Centre at USC Marshall, Los Angeles. "It is a nod to the sense of social responsibility that is a very real part of how these students view their post-graduate careers." At Columbia, a school noted  for its strength in finance the social entrepreneurship club has over 150 members.

Mary Weil at The Richard Ivey School of Business University of Western Ontario, Canada, suggests that there are also broader career trends in play. "There are new trends in how MBA students are choosing their post-graduate organisations," she says. "Students have increased the sophistication of their job search to take into account corporate culture, corporate social responsibility and the capability of an organisation to offer career development and upward mobility. Ivey students know it's not just about the first job after graduation, it's about a long term career plan.

" Healthcare is also attracting increasing MBA interest. "Healthcare is a growing sector at Rotman," says Theriault. "We launched a Health Sector Management major in the Rotman MBA program last year. Recruiters in this sector include Johnson & Johnson, Pfizer, government ministries and hospitals." Fuqua's Health Sector Management program is also proving popular, confirming student interest in the healthcare sector, including pharmaceutical and medical device companies. "Another new trend has been an influx of international companies or international divisions of domestic companies who are recruiting here for MBA talent," says Gasch at Fuqua. "Companies include Infosys Technologies, Intel China, Shinsei Bank and the Asian offices of major US investment banks and consulting firms.

Growth is widespread

On the tech side the news, although mixed, suggests the beginning of recovery. "IT and
Telecommunications firms are making a comeback with eight per cent of the 2005 graduates securing positions," says Weil at Ivey. Fuqua also reports an increased presence on campus from technology firms like Apple and Microsoft. As everyone who takes an interest in MBA recruitment knows, events can quickly take a turn for the worse. The dotcom boom and bust is a salutary reminder.

This time around, however, the upturn in recruiter interest appears less fragile. "This seems to be different from the dotcom boom of the mid to late 1990's, because it seems to be industry-neutral," says Giulioni. "The MBA job growth seems to be widespread and a bit less frenzied than in the 1990's." It is a sentiment echoed at other schools. "There is not the frenzy from recruiters as there was during the tech boom," says Theriault. "Recruiters are not afraid that students will be leaving to take up positions with start-ups".

The improving recruitment picture in North America is feeding through to applications, and some interesting trends are emerging. While many schools report increased applications, the breakdown shows that Asia and Africa are two regions developing as strong markets for potential MBA applicants.  In all this, the clearest winner is the MBA student. With the recruiters back, the decision to take time out and spend large sums of money on an MBA is more easily vindicated. "This has been a fantastic year for full-time consulting recruiting, with all the top firms and many niche firms actively recruiting on campus and in many cases making multiple offers," says Jill Darroch, a Rotman 2006 MBA graduate, who accepted a full-time position as a consultant with McKinsey & Company.

"In all this, the clearest winner is the MBA student. With the recruiters back, the decision to take time out and spend large sums of money on an MBA is more easily vindicated."