Have an MBA and Switching Career?

Considering a career change? If you have an MBA, there are functional and sector opportunities available, as TopMBA.com finds out.

Traditional recruitment is founded on employers seeking prior relevant work experience and identifying competencies that match a given role. An MBA is often the only way someone can bring about a mid-career switch, but it is never easy. 

TopMBA.com's research shows that roughly 50% of MBA applicants are considering switching from one function or industry to another, through their MBA. Approximately 23% wish to start their own business (typically 5-10% actually do so straight after their MBA) and 65% seek career progression. David Wilson, President of GMAC™, believes that many of the career progressors opt for part-time MBAs and executive MBAs. As a result, an even higher proportion of candidates taking full-time MBAs are considering switching careers.

"Many companies see an MBA as an essential management entry-level qualification. Without an MBA, it is difficult to change career paths to become an Associate at a top Investment Bank or a Senior Consultant at a top consulting firm."

Global-Workplace.com & TopMBA.com/Careers, the leading web-based career services for MBAs, jointly run conferences with career service directors looking at best practice. Much of the discussion revolves around teaching MBA switchers to be proactive in their job search. A mix of web-based research, networking and career service support is required for a successful job search. The following data, drawn from TopMBA.com Recruiter research, sheds some light on functional and sector opportunities available to MBAs.

Functional Roles Offered to MBAs

In terms of roles offered to MBAs in 2005, marketing, finance, consulting and sales & development were the most plentiful. Consulting roles have risen from fifth place to third place in the last twelve months and early evidence suggests that it will top the list in 2006.

Many companies see an MBA as an essential management entry-level qualification. Without an MBA, it is difficult to change career paths to become an Associate at a top Investment Bank or a Senior Consultant at a top consulting firm. As firms in these sectors start hiring again, the numbers of opportunities for career switchers who wish to enter these functions will also increase. It remains true, however, that candidates seeking to progress within the same industry will have the easier job search and are likely to negotiate the best packages. Andy Chow is working as a VP in investment banking at Wells Fargo in San Francisco. He took an ExecMBA at Wharton in San Francisco. He comments "Wharton's MBA was a natural fit for my career in investment banking.

The majority of vice president-level bankers have MBA degrees already, and the MBA is a must-have credential in my profession. I would like to continue with investment banking or eventually transition over to the "buy-side" in venture capital or public equity. Either way, the Wharton name adds credibility to whatever I end up doing."

Diversity MBA Hiring

The upturn is being used by many companies to change the profile of their hires and this can be to the benefit of career switchers. The traditional MBA profile - young local male, aged 26-35 - may still be the majority choice, but women and ethnic minorities are increasingly being targeted as part of diversity drives. Ellen Miller, Recruitment Manager at Lehman Brothers says "Lehman Brothers is very committed to the concept of diversity-our success is dependent on being able to recruit and retain very high caliber people - individuals who can demonstrate communication and problem solving skills, creativity, initiative, personal presence and the ability to work well in a team. People like this aren't easy to find and they certainly aren't the monopoly of any particular gender, culture or colour." Minorities and women are in a very favourable position. Graham Hastie, Careers Director at London Business School, confirms "almost every company that comes on campus at LBS is eager to hire women." Although the number of women taking MBAs is on the increase, Hastie feels there is a shortage. As a result, there is greater opportunity for women to achieve a career change. Dr Isabella Erb-Herrmann, a Principal at Booz Allen Hamilton agrees "Booz Allen is completely committed to increasing the percentages of both women and minorities in its client staff-the belief is that the more diverse our teams are, the more creative and effective they will be."

Which sectors are willing to recruit career switching MBAS?

TopMBA.com Recruiter Research reveals that a very broad base of companies have regular openings for MBAs. Finance and consulting make up the largest sources of respondents and job opportunities, followed by healthcare, technology and consumer goods. Some sectors are more willing to look at switchers than others. Ironically investment banks are probably the most picky about prior relevant experience in a recession, but the most flexible in an up-turn. During the recession from 2002-4, when there was a glut of candidates, most investment banks would look only at candidates, who had worked in the industry and had proven abilities. Today, as Ellen Miller from Lehman Brothers says "we want people who have been successful in their former careers, no matter what their background." Consulting shows a similar propensity to recruit irrespective of background, but sticks with this philosophy, even in a down-turn. Graham Hastie used to be a Recruitment manager at McKinsey. He observes "many consulting firms look for intellect and interpersonal skills. They are willing to provide training and to develop the consulting skills." As Sali Hallsworth, Director of Professional Development for AT Kearney in Europe puts it, "There is no such thing as an AT Kearney "type". We pride ourselves on recruiting and retaining a diverse and varied spectrum of people - I can remember working in a project team, for example, in which the client commented that he couldn't believe we all came from the same firm!" This is why consulting remains such a popular career opportunity for MBAs. No one is ruled out, what ever his or her background.

"As demand for MBAs grows around the world, we continue to see many non-traditional industrial recruiters enter the MBA arena"

Marketing and industrial recruiters tend to look for prior relevance either by function or by industry. Graham Hastie observes that "threedimension career switchers will have a hard time." He explains "changing either function, or industry or geography is feasible for most MBA candidates. Changing two out of three is usually feasible. Changing three out of three is very difficult." A sizeable number of MBAs, who do find roles in the industrial sector, will do so with companies such as General Electric, Eli Lilly, Pfizer, Ford and General Motors where specific MBA induction programmes have been the norm for more than twenty years.

Each of these firms hire over 50 MBAs per annum and they are among the most experienced and flexible. But as demand for MBAs grows around the world, we continue to see many non-traditional industrial recruiters enter the MBA arena, often looking for just one or two high potential managers; this is particularly so in Asia, Latin America and Europe. These companies are used to hiring by skill profile and they look for a much closer match between candidate profile and job specification.

Hardware companies like Hewlett-Packard, Intel and Dell are among the most active recruiters at present, all hiring over 50 MBAs per year. Telecommunications companies such as British Telecom and Vodafone remain active. Some software companies, Microsoft for example, have increased their intake. Though these firms recruit MBAs into a number of different functions, the majority of hires will have a technical background.