Wednesday, January 24, 2018

How INSEAD Grads Are Faring With Jobs & Pay - Poets&Quants

The Financial Times ranks INSEAD’s full-time program first for two straight years

There was a time when consulting firms didn’t scoop up the majority of INSEAD graduates. Only four years ago, one in three MBA grads at INSEAD went into consulting. Now consulting firms are recruiting and hiring INSEAD grads in heaps. According to INSEAD’s most recent jobs report, nearly half (49%) of 2017 graduates went into consulting — three percentage points higher than last year’s record-setting year.

Leading the hiring again this year was McKinsey & Company, which hired 130 INSEAD graduates, up from 125 last year. However, the uptick in consulting was buoyed by Bain & Company, which hired 38 more INSEAD grads than it did last year, bringing aboard 86 grads in total. The Boston Consulting Group finished off the consulting trifecta, hiring 71 INSEAD grads — up four grads from last year. All told, the three consulting giants wooed about a third of the graduating class that reported job stats. Amazon broke up the consulting party, hiring 56 INSEAD grads, a massive leap from the 21 hires it made from INSEAD from last year. Accenture rounded out the top five hiring companies, snagging 36 recent grads, also a big increase from the 16 hired from the Class of 2016.

Of course, consulting firms love INSEAD and often sponsor many of these hires who return to their firms. The school’s accelerated 10-month MBA program makes it more likely that McKinsey or Bain won’t lose a former employee. Out of the 130 McKinsey hires, for example, 52 are returning McKinsey staffers. For Bain, 21 out of the 86 hires were working at Bain before going for their INSEAD MBA. Twenty-six of the 71 BCG hires returned. Meanwhile, all but 1 of Amazon’s 56 hires were new hires.

Normally a lucrative choice for MBAs, the increase in percentage of MBAs going into consulting only raised INSEAD’s median salary slightly. This year, MBAs reported a median salary of $103,100 when converted to U.S. dollars, which is a bit higher than last year’s $102,500. Some 67% of the class reported median signing bonuses of $25,000 and three-quarters reported a $22,200 median performance bonus. Taking into account the percentages, the median total compensation package is $136,500 — again, an uptick from last year’s median total compensation of $134,268.

According to the published report, grads went to work in 64 different countries around the globe. In terms of regions, MBAs had the highest median salary in Africa and the Middle East, where MBAs earned a median of $130,000, and where 10% of the class went to work. Median total compensation for the region was $161,825, assuming 67% received the region’s median signing bonus of $25,000 and 75% received the median performance bonus of $20,100. Most MBAs (38%) went to work in Western Europe, which had a median total compensation of $136,410, again assuming 67% had signing bonuses of $25,500 and 75% took performance bonuses of $20,300. In Asia Pacific — the second most popular region for INSEAD grads at 26% — total median compensation was $134,309. For the 9% of graduates that ended up in North America, the median total compensation was $160,900.

While certainly not a direct comparison considering the amount of currency calculations involved, Stanford’s Graduate School of Business reported a median total compensation package of $180,284 for its Class of 2017, fueled largely by the number of MBAs taking jobs in venture capital and private equity. Some 15% of Stanford GSB’s class entered private equity and 7% went into venture capital. At Harvard Business School, the Class of 2017 reported making $174,600 for a median total pay package. New York University’s Stern School of Business reported $154,147 for total median pay. INSEAD’s overall median of $134,268 is close to Indiana University’s Kelley School of Business’s median of $134,113, which was 13th out of 16 schools we reported on in December of last year. Of those 16 schools, all had higher percentages of graduates reporting at least one offer within three months of graduation, than INSEAD’s 90% reported this year. Schools like Chicago Booth, Wharton, and Michigan Ross all posted marks of 97%, for example.


Last year’s report was the first time INSEAD began reporting graduates in December and May. So, this year’s report reflects graduates from December 2016 and May 2017. It was also the first time average exchange rates were used to convert all currency to U.S. dollars. INSEAD releases one of the most detailed and transparent reports to come out of elite B-schools. For instance, the one change this year was adding financial technology (fintech) as a subcategory within Technology, Media, and Telecommunications (TMT). Out of the 20% of the class entering the TMT field, 11% took positions at fintech companies.

“The shift occurs and more INSEAD MBAs move into companies that embody the INSEAD value of business as a force for good,” INSEAD’s Global Director for the Career Development Center, Katy Montgomery said of the decision to include fintech in this year’s report. “These companies are improving people’s lives by fostering fairness and increasing transparency in the market.”

Of the 1029 graduates, 98% responded in some way to the career survey, while 85% gave details about their career decisions, and 75% provided full salary data. At the top of this year’s reported salary was a graduate entering “Corporate Services” in the United Kingdom, who reported a base salary of $285,100. A general manager also entering corporate services in the Africa/Middle East region reported a salary of $221,500. And a vice president/director in “Other Financial Services” reported earning $215,200 in Singapore. At the other end was a manager/consultant entering investment banking, sales, and trading in the Asia Pacific region earning base pay of just $22,900. At the bottom was a management consultant also in the Asia Pacific region, who reported a starting base salary of $22,000.

INSEAD has also tracked how specific countries have performed, salary-wise, over the past five years. When not converting to the same currency, no other country has seen an increase on the market value of the INSEAD MBA than Brazil, which increased by R$62,500 since 2013. Singapore saw the second largest five-year increase at S$24,000. Meanwhile, France and Germany saw the smallest increases with €2,200 and €4,000, respectively.

(See below for charts showing five-year country trends, industry-specific salaries, and top employers.)

DON’T MISS: EARLY JOBS DATA SHOW ROBUST MBA MARKET or MEET BAIN & CO’s NEWEST MBA HIRES

The post How INSEAD Grads Are Faring With Jobs & Pay appeared first on Poets&Quants.



from Poets&Quants
via IFTTT

No comments: