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7.5 STRATEGIES FOR MBA SALARY ANALYSIS

The downside to such high salaries is that some employers become disaffected with MBAs, or have excessive performance expectations relative to non-MBA staff on lower salaries. Andre Sieger of Hilti has found this "highly competitive market drives compensation insane".
John Sikking of Gartner Group describes the current recruitment scene as "a cattle call and it is difficult to discern who is interested in the firm and who is simply interviewing. Often times it seems as if all the firms are competing for the same 5-20 candidates". Even the big hitters like Goldman Sachs have concerns. Janet Raiffa, a Recruitment Manager at Goldman is concerned with the current "high level of expectation versus undergrads". The message for newly graduating MBAs is not always to chase the highest short-term salary offer, but to look for an organisation which will lay the foundations for a successful long-term career - otherwise recruiters will start looking elsewhere.

MBA graduates are known for their analytical ability. In negotiating salary offers or deciding on target geographies for a job search, it is important to take a step back from the numbers and think of the bigger picture. Job applicants should consider the cost of living when comparing salary packages across regions - the real, versus the nominal wage a company and country offers.

The OECD publishes annual research comparing purchasing power between countries (a good proxy for the cost of living). According to the OECD, the purchasing power in Mexico is 24% more than in the US. So, even though the survey reveals that MBA graduates are paid 34% less in Latin America than in the US, graduates working in Mexico will enjoy a standard of living comparative with that of their US counterparts. By contrast, purchasing power in Japanis 36% lower than in the US, so, the higher cost of living will result in a lower standard of living if the same salary is paid as elsewhere. Lastly, Hungary's purchasing power is 55% higher than that of the US, which means that an MBA earning 44% less in Hungary will still enjoy a higher standard of living than a US graduate.

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Back to Index International MBA Recruitment & Salary Report 2006

Source: -
QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2006
© QS Quacquarelli Symonds Ltd. 2006
Website: www.topmba.com