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Recruitment firms also report high average bonuses, reflecting their role in feeding candidates into investment banks, placing more experienced MBAs and the growing number of executive MBAs. Damir Latte of Global-Workplace Recruitment reports that many companies
are very actively engaging head-hunters and agencies with a focus on more experienced MBA talent.

The energy, IT & technology and the manufacturing sectors all report average bonus figures in excess of $ 30,000. Of all sectors covered in the research, only government agencies reported average bonuses of less than $ 10,000 per annum.

It is important for candidates to understand the fiscal status of their bonus. Maximizing after-tax bonus value should be prioritised: in some US States, they are taxed at nearly 50%. In the UK, relocation expenses and tuition reimbursements can be claimed tax-free. In such cases, the cost is the same for the recruiter, but the benefit far greater for the candidate.

Furthermore, an up-front start bonus carries greater value than a year-end or performance bonus. Candidates can compare their offers with their peers to ensure they are getting a competitive offer and communicate this benchmarking to the recruiter. In at least one case, a top-tier consulting firm has increased its offer for the entire entering MBA class in order to match competitors. No MBA graduate can count on the promise of a performance bonus, making financial planning, including meeting minimum loan repayments, more difficult. Performance bonuses, whether tied to individual, team or company performance, are a means for an employer to introduce variable compensation and to ensure they do not make financial promises they may not be able to keep.

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Back to Index TopMBA.com International MBA Recruitment Report 2007

Source: -
QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2007
© QS Quacquarelli Symonds Ltd. 2007
Website: www.topmba.com