2022 GMAC Corporate Recruiter’s Survey: Strong Job Market Expected to Continue for Business School Talent

The Graduate Management Admissions Council (GMAC) has released the results for the 2022 Corporate Recruiters Survey. The nearly 1,000 global respondents, which included both staffing firms and corporate recruiters, described a highly favorable hiring outlook for business school graduates. 

Below we’ve highlighted key findings. You can find the full results summary here. 

Hiring Outlook Is Strongly Favorable 

• Most respondents said they expect to hire MBAs this year—92 percent of corporate recruiters and 95 percent of staffing firms. In comparison with past surveys, this represents a highly favorable environment for graduates. 

• 63 percent of respondents expect international demand for business school graduates to increase over the next five years, with just about two percent expecting a decrease in demand. In the U.S. the outlook was slightly less optimistic, but still positive with 46 percent of corporate recruiters expecting demand to increase in the next five years. Just over half, 51 percent, expect demand to remain stable, while about three percent expect a decrease. 

Rebound in International Mobility

• A larger number of recruiters are open to making international hires this year. 56 percent of respondents said they are planning to or willing to make an international hire, compared to just 48 percent in 2021. Just under one-third, 35 percent, said that they currently have plans to make an international hire, compared with 24 percent last year. 

Recruiters Believe Business School Prepares Hires for Success

• Just under 90 percent of respondents reported confidence that business schools prepare students for success within their organization. When asked about the reasoning behind their confidence, most noted that graduates have: strong communication skills (73 percent), versatile skill sets (68 percent), and strategic thinking skills (66 percent). 

• U.S. recruiters ranked as the most confident in business school graduates globally with 50 percent noting highly confident and 42 percent noting confident.

• Recruiters from large, public companies reported higher confidence in business school graduates than those from smaller organizations. Among the Global Fortune 100 companies, 47 percent reported high confidence, compared with 24 percent from recruiters located within smaller organizations (<100 employees). 

• Industry recruiters in consulting and technology were the most likely to report high confidence in business school graduates, whereas nonprofit and government recruiters were the least likely to report high confidence. 

Salaries Remain Steady for MBAs and Increase Amongst Specialized Business Degrees

• While median starting salaries for MBAs are higher than for other new hires, the median planned offers remained consistent between 2021 and 2022. 

• Within the US, recruiters said that they plan to offer higher median starting salaries this year when compared to last year for some business masters degrees: Master of Accounting (median increased 25K compared to 2021), Master of Finance (increased 15K), Master of Data Analytics (increased 10K). Median salaries for Master of Management and Master of Business Analytics remained consistent with 2021. 

• Recruiters also noted that their companies are updating benefits packages to appeal to younger employees; 32 percent of recruiters said that they offer loan repayment assistance, and 40 percent called out the addition of corporate volunteering to their benefits package. 

U.S. Remains Least Likely World Region to View Online and In-Person Degrees Equally

• Globally, respondents in 2022 were more likely to view graduates of online business programs as equivalent to graduates of in-person programs (60 percent) when compared to last year. In 2021 just 34 percent agreed that they view graduates equally. 

• The U.S. lags in this assessment with just 29 percent of respondents agreeing that they view graduates equally (a decrease from 33 percent in 2021). 

• Those who viewed online programs as equal to in-person were slightly more likely to emphasize the importance of specific knowledge/skill areas. Those who did not view the programs equally were more likely to emphasize the importance of interpersonal/soft skills. 

More MBAs Seek Investors to Fund their Search, Acquisition, and Management of an Existing Small Business

Last week, the Wall Street Journal highlighted a small but growing career trend among MBA graduates: seeking investors who will fund their search, acquisition and management of an existing small business. 

A Wharton Magazine article described this niche career path, “The model, at its core, involves working with a group of investors to locate, acquire, manage, and grow a privately held business. The “searcher” starts by raising funds from a group of investors and then spends two to three years looking for one special business to acquire and grow. After finding the right business, the searcher is expected to take on a management role at the company and relocate to the business’s headquarters. One of the key differences between the search fund model and traditional venture capital and private equity fund models is that the search fund model is focused on the business owner and is designed to provide a unique transition plan to take the business to the next level.”

Although search funds are not new to MBA graduates, according to the WSJ, they have grown during the pandemic as investors with access to capital are seeking more investment opportunities. In 2019, Stanford’s Graduate School of Business counted 51 new search funds. In 2020, preliminary numbers showed 70 funds. And estimates suggest that more were launched in 2021.  

Initially most searchers came from Harvard or Stanford, though today, a growing number of MBA programs are developing search related offerings and bringing in experienced professors from the industry. “Search is really taking off. It doesn’t get better than the search fund model. The average person who does this is 32 years old, a very young CEO,” said Jan Simon, an MBA professor teaching a search fund course at UC Berkeley  Haas,  In addition to Haas, courses on search funds are now available at IESE, Duke, Dartmouth, and Columbia to prepare students to raise money from investors, as well as to understand the many complexities of the location and acquisitions process. Additionally, MIT, Northwestern, and other universities regularly host clubs and networking events for search, which have garnered the interest and participation of hundreds of students. 

While searchers can accelerate their careers and avoid some of the startup pitfalls by acquiring an established business, this career path necessitates a high-risk tolerance. They forego the support of an MBA program’s career center, as well as the stability of a position within a larger company. And the WSJ notes that about a third of searches end without an acquisition. Prospective MBA students wishing to pursue search should ensure that they select a program that has a support infrastructure with professors, coursework, and a network to best set them up for success. 

Access the Stanford Graduate School of Business Search Fund Primer to learn more.