How does a Top Business School help shape an MBA career?

QS TopMBA.com Jobs & Salary Trends Report 2018 highlights the current strength of the MBA employment market based on the responses of 3,463 employers across the world

This year has seen a 13 per cent rise in global MBA hiring, and continues the steady annual increases we have seen over the last decade. To put things into perspective, MBA hiring levels are now three times higher than pre-2007 financial crisis levels. While the global outlook is pretty positive then, it’s worth looking at a regional breakdown to understand where in the world the MBA is deemed most valuable, and where your MBA can bring you the most financial reward.

U.S. and Canada

When we released the previous edition of the Jobs & Salary Trends Report, employers in the U.S. and Canada were very conservative in their prediction for increase in hiring levels, estimating just a 3 per cent rise in 2017. In reality, a 10 per cent increase in hiring levels across the region far exceeds this and has led to a more ambitious (if somewhat still on the conservative side) forecast of a 7 per cent increase for 2018.

In terms of salary, the U.S. and Canada is still very much the place to be for MBAs. After last year’s slight dip, compensation in the region has bounced back strongly and is now very close to 2015’s record-high MBA salary levels. While bonus packages are down, average total compensation packages for the U.S. ($120,900) and Canada ($111,100) can only be bettered by Switzerland ($140,900).

Asia-Pacific

Asia Pacific is the real success story to come out of this edition of the MBA Jobs & Salary Trends Report. While employers were confident that hiring levels would substantially increase in 2017 (a predicted 13 per cent) the figure easily outstripped even those lofty expectations (18 per cent). However, as this market reaches maturity, employers do expect the increase in hiring to slow down in 2018 (7 per cent) and in 2019 (2 per cent).

While MBAs might not be able to extract the same levels of salary available from U.S. employers, an average total compensation figure of ($85,900) shouldn’t be sniffed at – even if it is slightly down from the 2016 figure ($89,000), due to lower bonus payments. This is especially true when a lower cost of living in some of the region’s major countries is taken into account. Highlights in terms of total compensation packages include Australia ($116,200), Singapore ($105,300) and Japan ($80,000).

Africa and Middle East

While all other regions impressively outstripped their predicted hiring level increases in 2017, Africa and Middle East is the one disappointing story to come out of the 2018 report. The marginal 2 per cent predicted increase is in line with predictions; next year’s prediction is even less positive (-2 per cent). However, the region expects to recover in terms of hiring levels going into 2019 (10 per cent), so it may just be a case of weathering the storm whipped up by fluctuating oil prices.

In terms of salaries in the region basic salaries are up 16 per cent year-on-year. However, the fluctuation of bonus packages means that overall compensation has remained pretty static in 2017 ($90,700) in comparison to 2016 ($89,400). With a lower cost of living in the region, these figures are still very impressive, though they must be read in the light of a smaller employer base.

Latin America

Hiring in Latin America grew 11 per cent in 2017 against a predicted increase of 5 per cent. As the market continues to grow in the region, employers are confident that they will see similar increases in the next couple of years; 9 per cent next year and 10 per cent in 2019.

Both basic salary (6 per cent) and total compensation (5 per cent) levels have steadily increased over the last year with the total compensation figure in the region now at a very healthy $75,900. For top packages in the region, MBAs should head to Chile ($94,900), Argentina ($84,300), Mexico ($78,800), or Colombia ($74,600).

Eastern Europe and Central Asia

Eastern Europe and Central Asia (EECA) saw strong hiring increases (12 per cent) in 2017 compared to predicted growth (10 per cent). Employers in EECA expect growth in MBA hiring to slow down in 2018 (3 per cent) and even contract in 2019 (-3 per cent). With the soccer World Cup taking place in Russia in 2018, it is hoped that the boost to the region’s economy will result in these predictions being improved upon.

While basic salaries have increased by 15 per cent in the region, with the average MBA commanding a salary of $57,000, total compensation in the region has actually decreased 6 per cent ($69,100) due to tumultuous bonus levels. This now puts the region bottom on the list in terms of total compensation, but as previously mentioned, when cost of living is factored into the equation, the advantage of an MBA to salary levels are clear.

Western Europe

Finally, we take a look at Western Europe, where the (2 per cent predicted) rise in hiring levels was blown out of the water (10 per cent actual) in 2017, despite ongoing political upheaval in the region. This uncertainty is likely to be the reason why predictions for 2018 (7 per cent) and 2019 (5 per cent) remain relatively conservative – though improved on previous years’ predictions.

Western Europe is also home to the country with the highest salary. For those that are after the really big numbers Switzerland can’t be beaten, where the average total compensation is a whopping $140,900. As expected, countries in Western Europe feature prominently in our non-exhaustive list of top 10 countries by total compensation with the U.K. ($122,900), France ($116,200) and Italy ($111,800) all joining Switzerland on the list, with Germany ($94,100) just missing out on the 11th spot.

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