Wall Street Job Market Improving for MBAs
This week, Training the Street (TTS) released its fourth annual employment survey of MBAs. The survey, which encompassed 200 MBA students and graduates from top institutions, shows that Wall Street firms are ramping up their hiring. And MBAs are benefiting with more interviews and offers.
TTS, a Wall Street training firm that tutored over 25,000 financial professionals in 2012, reports that 40 percent of survey respondents had received four to seven interviews, while another 31% participated in eight or more interviews. 80 percent of respondents had already received job offers, with 50% reporting multiple offers. In addition, 47% of respondents shared that they’ll earn base salaries between $100,000-$125,000, while another 21% will receive bases from $75,000-$99,999.
As a result, MBAs are upbeat, with 89 percent of respondents answering that they’re either “Very Optimistic” or “Somewhat Optimistic” about their job prospects. And why shouldn’t they be? According to Scott Rostan, Founder and CEO of TTS, disclosed to the International Business Times that “one major Wall Street bank, which Rostan declined to name, told him that the entire summer crop of investment banking interns received offers this summer, even though usually only 50 to 70 percent of interns receive offers.” Rostan adds that, “I think you’re probably going to see, the MBA hiring market, with hiring upwards of 5 to 10 percent, maybe even up 20 percent,”
In addition, respondents reported that large banks and consulting firms were the biggest recruiters, with 48% being recruited by the former and 35% by the latter. However, only 22% percent of respondents listed large banks as their top choice, while consulting firms were preferred by 19%.
And how are students getting jobs? TTS found that 48% of students received offers through interviews. However, another 40% landed jobs through references or independent efforts. Still, don’t expect a boom in MBA hiring, according to Rostan. “You aren’t seeing a market shift, but it is a steady interest over time. People are getting more offers, and people are more satisfied with their offers. As opposed to statistical data, this is more about mood and sentiment….We are not going back to the boom years. “But I think the bias is more positive leaning than negative leaning.”
Editor’s Note: Three quarters of survey respondents were males, with 78% of respondents between the ages of 26 and 34.
Sources: Digital Journal and International Business Times
At Harvard Business School, Lessons in Leadership From Literature
Truth may be stranger than fiction. Sometimes, fiction is more informative than fact.
That seems to be the opinion of Harvard MBA candidates who’ve taken Professor Joseph L. Badaracco’s literature and leadership course. Here, fiction is the case study. And the focus is on what drives characters to make decisions – and how those decisions ultimately impact those around them.
For example, Badaracco teaches A Man For All Seasons, where Sir Thomas More must balance his loyalty to King Henry VIII with his religious opposition to divorce. For More, following his conscience and maintaining the rule of law are paramount. However, he also realizes that the political winds have shifted – and publicly opposing the king could jeopardize his nation’s stability. As a result, he remains silent on the king’s divorce, but refuses to take a loyalty oath that’d supersede his loyalty to the Catholic Church. For that, More is executed as a traitor.
More’s dilemmas are similar to those that employees face every day. In Badaracco’s view, More “is trying to preserve the safety of his family and his conscience. You see that balancing may be more important than ‘doing the right thing,’ the simplest definition of ethics. What do you do when the world is complicated and there are several ‘right’ things?…Maybe the right thing with respect to one of your obligations is failing with regard to another of your obligations.”
And that’s why Badaracco’s course is so different: His readings take you inside people…and their constantly clashing and evolving contradictions, facades, fears, excuses, and convictions. According to Badaracco, “Literature gives students a much more realistic view of what’s involved in leading…Literature lets you see leaders and others from the inside. You share the sense of what they’re thinking and feeling. In real life, you’re usually at some distance and things are prepared, polished. With literature, you can see the whole messy collection of things that happen inside our heads.” In doing so, Badaracco believes students become aware of their own blind spots, opening themselves to other perspectives (and potential solutions).
Editor’s Note: For leadership lessons from Badaracco, along with his reading list, click on the links below.
Sources: Harvard Gazette, Bloomberg Businessweek
7 Negotiation Tips Given to Harvard Business School Students
“Take it over leave it.”
That seems to be the mantra for many recruiters these days. And why not? It is an employer’s market, with more supply than demand. According to CareerBuilder.com, only half of hires attempt to negotiate, anyway.
That said, hundreds of companies visit business school campuses every year. And they’re not just there to watch the trees change colors. They’ve come to hire the best-and-brightest. After spending two years and six figures earning your degree, you’ll want the best possible package.
Recently, Harvard professor Deepak Malhotra conducted a session covering 15 negotiation tips for MBA candidates. Here is some of his advice:
1) Justify Your Demands: You may think that three weeks of PTO is fair, but your prospective employer may disagree. Explain why this is important to you. For example, you may need two free weeks to cover trips to see your family (or your significant other’s family) and another week for a real vacation. In other words, “It has to be believable and justifiable to them,” according to Malhotra. Keep in mind, you’re probably not the only person this company is hiring – and they’ll want to keep packages consistent to avoid hard feelings. Look for alternatives that will give you what you want…without bending their rules too far.
2) Be Serious about Working for the Employer: Recruiters are seeking people who want to work there. When you start negotiating, you’re signaling that this company has a good shot of landing you. Don’t waste their time unless you’re committed. Similarly, set your terms early on. There is nothing more frustrating than a candidate who’s constantly amending the original parameters of the negotiation. Creating a moving target is a quick way to turn the recruiter from an advocate to an adversary. Always focus on keeping the relationship positive to get results, In Malhotra’s words, “They need to be able to want to do it for you.”
3) Understand The Other Party’s Position: “Why are they interested in me?” That’s the first question you need to ask yourself so you can understand your value. After that, probe to determine their constraints and expectations. Conversely, Malhotra cautions candidates not to “get stuck on what they’re asking you. Figure out why they’re asking you.” For example, Malhotra notes that a question like “Where else are you interviewing” could really be gauging how quickly they’d need to act in order to hire you. By recognizing the real question behind each question, you can better determine your fit with an organization.
(Editor’s Note: For additional negotiation tips from Professor Malhotra, check out our Video of the Week, “How to Negotiate Your Job Offer.”)
Source: Business Insider
The Graying of Harvard Business School
“You’re never too old to go back to school.”
It’s a noble sentiment, but we know the truth. Business school is for the young, for those brimming wunderkinds with a manifest destiny to someday run business, academia, and even politics. Once you hit thirty, the conventional wisdom goes, why waste your time applying? Your time has passed. You’re forever conscripted to the ranks of middle management.
Well, maybe not.
According to statistics from The Harvard Business School, the percentage of “older” students has climbed for the second consecutive years. Bloomberg Businessweek reports that the “percentage of incoming students who received their undergrad degrees at least six years ago increased from 20.8 percent in 2011 to 22.9 percent in 2012, and to 23.3 percent this year.”
Although Harvard’s numbers contradict the norm, older students are showing increased interest in business school. Bloomberg Businessweek cites recent statistics from The Graduate Management Admission Council (GMAT), which oversees the GMAT entrance exam. According to GMAT, the 24-30 age group, which “includes some B-school applicants with six or more years of postgraduate experience, increased 6.5 percent in 2011-12, when applicants would likely be taking the test for 2013 admission. The 31 to 39 age group was up 5.2 percent in 2011-12, while the 40-plus category was basically unchanged.”
Although these numbers could reflect the overall increase in students taking the GMAT, there is little doubt that b-school is not just a young person’s game. At the University of Chicago’s Booth School, students who have been out of school for six or more years now comprise a quarter of the student body. And schools are welcoming older students as well. In the words of Stacey Kole, deputy dean at Booth, “If you have eight-plus years of experience and you think the MBA has passed you by, it hasn’t. If you’re a good fit for the school, you can get in.”
Sources: Bloomberg Businessweek and The Harvard Business School
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