Bad news for MBA graduates looking for work in South Africa
Recent data shows demand for senior management positions has declined while applications for business degrees have stagnated.
This is according to the Financial Times (FT), which surveyed alums three years after completing their MBA as part of its Global MBA index for 2024.
The FT noted that it received submissions from 132 business schools worldwide and was then narrowed down to the top 100 schools.
According to the responses, MBA alumni are finding times tougher after graduation.
“In line with recent job cutbacks, including in banking and technology at a time of broader uncertainty in the global economy, graduate employment within three months of MBA completion across the ranked schools dipped to an average of 89%, compared with 93% the previous year,” it said.
Although these findings are representative of the global demand for positions requiring an MBA, there are signs in South Africa that show similar trends.
For example, local recruitment firm CareerJunction analysed which job roles have grown in demand and which occupations have seen a decrease in job openings since 2019.
The report noted that while positions in business and management remain among the most in-demand, some jobs in the sector have experienced a drop in demand since 2019.
CarrerJunction noted that senior management – often positions requiring qualifications such as an MBA – are among the roles that have decreased in demand in recruitment activities.
In contrast, the report noted that other jobs in business and management, such as middle department management, team leader and supervisor, were still in very high demand in South Africa.
The FT also noted that demand for business degrees has stagnated.
“The latest survey by the Graduate Management Admission Council in 2023 shows a drop of 5% in applications for MBAs and a shift away from the full-time, in-person course and towards more flexible, part-time and online alternatives,” it said.
Despite some negatives, the FT also noted some positives for those who completed their MBA, with one being a notable increase in salaries.
Looking at salary increases of graduates from all top 100 schools, the value of an MBA is evident in the large jumps alums see.
Salaries can triple (200% increase) in places like China and India.
The highest salary increases – from when alumni began their MBA to three years after completing it – were reported at the Indian School of Business and two Chinese business schools: Fudan, followed by Shanghai University of Finance and Economics: College of Business.
However, when looking at the highest weighted income, nine of the ten highest-paying MBAs are also from US business schools, led by Stanford, with an average weighted alum salary of $250,650 or R4.76 million p.a., with a salary increase of around 117%.
Read: MBA graduates are tripling their salaries – these are the top business schools worldwide in 2024
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