Decrease font Decrease font
Decrease font Decrease font
Enlarge font Enlarge font
Enlarge font Enlarge font

Down economy creates ‘buyers market’ for employersDown economy creates 'buyers market' for employers

A business school survey released today shows a significant drop in corporate recruiting activity worldwide, which has created an opening for small and midsize companies looking for talent at top-ranked MBA programs.

“For some companies, there is some good news in that they now can attract students from top tier schools that they may not have been able to afford in prior years,” said Thunderbird executive Kip Harrell, president of MBA Career Services Council, an association of business school career management offices that compiled the 2008-09 Winter Survey. “It’s a buyers market for employers.”

Harrell, who directs the Career Management Center at Thunderbird School of Global Management in Glendale, Ariz., said employers who understand long-term market trends have continued working to attract graduates at the top MBA programs.

“Obviously, employers don’t want to miss out on any chance to keep their hat in the ring and keep their brand and its reputation on the minds of MBA students,” Harrell said. “If stats are accompanied by any kind of business intelligence data — student provided or competitor provided — they will take note.”

Harrell said MBA students preparing to enter the tight job market need honest information about the economy and recruiting trends.

“I think the biggest disservice we as career officers can do is not fairly and accurately present the realities of the situation,” Harrell said. “If we take some heat for presenting the truth, then that is OK — no one can accuse us of not warning them about the situation.”

Almost 75 percent of schools that responded to the survey report significant decreased activity in financial services, venture capital/private equity, commercial banking, investment banking and real estate company recruiting activity. They say companies don’t know their needs now, but may know more after this quarter.

Business schools report an increase in internship opportunities for MBA students as full-time positions become scarce. But the future remains uncertain. About 51 percent of career management offices predict investment banking internships will drop significantly, and 62 percent predict other industry internships will decrease.

Harrell said business schools around the world have taken several steps to help MBA students in their job searches. He said the Thunderbird Career Management Center has put together a list for companies of what they should do to maintain relationships even in a suffering economy. Thunderbird also has increased training sessions for students with emphasis on the difficult job market.

Despite these efforts, career management officers around the world report that many MBA students seem to be passive rather than proactive in their job searches.

“Every student needs to realize that they need to be perfect in every aspect of their search,” Harrell said. “Failure to perform any career search step flawlessly will knock you out as a contender.”

When Harrell received the appointment as president of the MBA Career Services Council on June 26, he said employers were battling for talent. He said the tables are now turned, and students must battle for jobs.

“Everything has changed,” he said. “We see companies taking all steps necessary to survive and still try and maintain their brand and image amongst students.”

The MBA Career Services Council includes more than 500 career services professionals at more than 200 business schools worldwide. The 2008-09 Winter Survey was open Jan. 13-27 and drew responses from 77 business schools in the United States, Canada and Europe.