Soft skills in demand, say MBA recruiters

The latest QS recruitment survey, the TopMBA Jobs and Salary Trends Report from late 2010, shows that demand for ‘soft’ skills has drastically increased in importance for MBA recruiters worldwide.

The survey of just over 5,000 MBA recruiters in 36 countries, shows that MBA recruiters already have very high expectations of rigorous finance, marketing and e-business or IT skills from business school graduates. MBA recruiters are now looking for another set of abilities to complement their businesses in today’s competitive economic climate.

The report, which predicts an improvement in MBA recruitment for 2011 in several industries, shows that the big four soft skills demanded by MBAs recruiters are: Interpersonal skills, Communication skills, Strategic Thinking and Leadership. And around 50% of the recruiters that responded are based in Asia; this is notable as MBA students from this region have traditionally been strong in the hard skills associated with business school and weaker in soft skills.

MBA recruitment

This news is unsurprising, however, as TopMBA.com has noted the rise in soft skills for several years. MBA programs globally have taken this demand on board and many top business schools are attempting what can be a tricky balancing act, shoring up MBAs soft skills while, simultaneously, trying to firm up the traditional knowledge that MBAs will need. After all, a great communicator with little idea of financial models is going to severely limit their job opportunities when leaving business school. 

Additionally, many MBA candidates I have spoken to on the QS World MBA Tour, in Asia particularly, fail to appreciate the value of such learning, even seeing it as a waste of time. Especially when compared with more classroom hours with a noted finance professor, for example.

For those MBA candidates, the need to look at the Jobs and Salary Trends Report is greater than ever before. According to recruiters, too many business school graduates hit the job market lacking the demanded skills that go beyond the qualification.

Mitch O’Brien of Emissary Pharmaceuticals in Australia says, “MBAs represent an interesting pool of potential business leaders with broad business skills, however they often come with an arrogant expectation of career progression. I would like to see more emotional intelligence taught and realistic career counselling provided.”

Sean Hewitt, a careers advisor, highlights the following nine areas as a general guide: “Keep a winning attitude; be a team player; communicate effectively; exude confidence; hone your creative skills; accept and learn from criticism; motivate yourself & lead others; multitask and prioritize your to-do list; see the big picture.”

Easier said than done perhaps? Wendy Lyons, Managing Consultant at London’s Human Assets, and an expert in the field, says: “For employers, getting the right people means identifying people with the right skills and qualities to fulfil the role and contribute to the organization’s success and it’s really important to be aware that different roles have different requirements.

"You might need to be an amazing communicator for one role but not necessarily for another so it’s important to recognize what is needed by the role in question.”

Whatever role the MBA graduate is aiming for, improving all areas of their leadership personality, including their soft skills, will greatly benefit their career progress, if the opinions of recruiters are important. And, as the TopMBA Jobs and Salary Trends Report clearly says, MBA recruiters’ opinions are the most important of all.

Basic soft skill development techniques

Despite this, I am often asked about what exactly soft skills are and how to develop them. The simplest answer is to work to your strengths, but work on your weaknesses even harder. It’s clear that the MBA is a complex program, and takes up a lot of time, so doing this while poring over complex case studies may not be everyone’s idea of a good time, but it’s evidently worth it.

The following is a list of suggestions on how to adapt successfully to a role and to learn a better approach to communication, man-management and leadership:

1)      Get specific feedback from colleagues and peers (and clients if you can) on the qualities that are important for the roles you want or may be applying for. Consider ways of capitalizing on your strengths as well as focusing on areas that need development. And prepare to take negative criticism on board as well as positive.

2)      Identify somebody who you think is particularly successful at demonstrating the skills you want to develop. Talk to them/sit in meeting with them and gain an insight into their approach.

3)      Think back to a recent time when you weren’t very successful at influencing or convincing an individual. Ask the individual how you came across and what you might have done differently to be more successful. Prepare for bad news, and accept it.

4)      Develop the habit of critically reviewing the impact you have had after any meeting. Consider ways to increase your impact and put this into practice. A top tip here? Record your thoughts and refer to them before the next meeting.

5)      Take opportunities to regularly network, within your organization and externally. Don’t just approach people when you need their help.
      Spend more time with people who you find difficult to deal with. Don’t just think about your feelings about them, but think about how they might view you. Try out different approaches with them to see if you can develop a more effective relationship with them.

6)               
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-          Ross Geraghty

The Africa leg of the QS MBA World Tour takes place 24 March to 31 March and touches down in Accra, Lagos, Johannesburg and Nairobi. For more information and free online registration visit our website: http://www.topmba.com/mba-tour/?partnerid=4370

MBAs Salaries – expectations and reality

Nunzio Quacquarelli, editor of topmba.com, compares the latest reported salary data, with expectations of MBA applicants.

In an era of financial uncertainty and intense global competition, the MBA qualification is becoming a safe haven for young professionals seeking career advancement and salary progression.

First degree graduates and young professionals around the world have been hard hit by the credit crunch. Unemployment rates amongst new graduates has reached 10% in the USA, and as high as 20% in some EU and Asian countries.

By contrast business schools continued to report good post-MBA placement figures. Last year 279 business schools reported that over 90% of their class had job offers three months after graduation and 123 schools reported average salaries in excess of $75,000, according to the latest TopMBA.com/Scorecard.

The 2009 edition of TopMBA.com/Scorecard – the personalised business school ranking tool - reveals the average salaries self-reported by 350 of the world’s leading business schools.  IMD, IESE, London Business School, Stanford and INSEAD reported the highest average salaries in this latest edition based on students graduating in Summer/Fall of 2008.

Table 1: Averages by region for the 50 business schools reporting the highest salaries

Schools In	Average base starting salary US$	Range: Min. Salary	Range: Max. Salary	% Accepted employment 3 months after graduation	Average years work experience	Number of schools in top 50
North America	102094	93000	117000	91	5	19
Europe	106595	94000	129000	90	6	27
AustralAsia	101010	97000	105000	93	7	4

Source; QS TopMBA.com/Scorecard 2009

Table 1 reveals that of the 50 business schools yielding the highest salaries, 19 are in North America, 27 in Europe and 4 are in Australia and Asia. Employment rates are similar across all these schools with between 90-93% of students having accepted employment within three months of graduation and the profile of candidates is similar, with an average of five to seven years of work experience. In the 1990s, salaries for graduates of top US schools like Harvard, Wharton and Stanford were consistently higher than their European counterparts. In 2008/9 it is European schools which take the honours with an average reported starting salary of $105,248. It’s important to note though that the above salary figures do not include the guaranteed bonuses received by many MBAs and which are more common amongst graduates of US business schools.

IMD in Switzerland reports the highest average salary among European schools at $129,000 (up from $121,000 in the previous year). Janet Shaner of IMD says, “IMD looks for high-achievers and their general management MBA results in many of their graduating MBAs entering industrial and commercial management functions within Europe, a segment where demand is continuing to grow.”

But it’s not just the established business schools producing impressive salaries on graduation. Ashridge Business School reports an average starting salary of US$115,000 for their 50 MBA students. Amy Armstrong of Ashridge says, “our students have an average of over 10 years of work experience and they remain in strong demand with employers, even during an economic downturn.” Small class sizes, slightly more years of work experience and the strong Euro go, some way to explain why European schools are outperforming their international counterparts.

Comparing MBA Salaries with Expectations

MBA salaries have stood up well during the recession, but it is important for MBA applicants to remain realistic about what is achievable. QS TopMBA has also recently surveyed applicants to measure these expectations with some surprising results.

Table 2 shows the expected salaries amongst MBA applicants from countries around the world, the percentage uplift compared to current salary and the proportion intending to study outside their home country. Candidates from Japan, the USA, UK, Germany and Canada have high current salary levels and realistic salary expectations in the range of $90-116,000, representing salary uplifts of between 58-85%. U.S. candidates primarily are looking to stay in their own country to study and benefit from the high local salary levels. Although the 12% looking to study overseas represents an increase on previous years, as they seek to differentiate themselves form the large numbers of locally educated MBAs by gaining international experience.

Table 2: Comparison of current verse expected salaries for MBA applicants

	Current Salary $	Target Salary $	Expected % Salary Increase	% Looking To Study Overseas
Japan	69,852	111,000	58%	80%
United States	62,892	116,198	85%	12%
Germany	57,053	90,384	58%	75%
United Kingdom	52,812	91,250	84%	18%
Canada	51,034	100,378	73%	34%
Brazil	49,054	109,539	123%	96%
France	48,467	93,269	92%	55%
Italy	42,500	99,230	133%	65%
Israel	41,851	141,500	258%	85%
Singapore	40,795	86,617	112%	54%
Turkey	40,416	77,065	91%	89%
Russia	40,020	105,827	164%	88%
Spain	39,852	81,617	105%	65%
India	35,339	96,145	172%	75%
China	34,417	81,504	137%	85%
Mexico	34,414	69,342	101%	87%
Venezuela	30,135	64,609	114%	90%
Peru	29,594	87,714	196%	93%
Taiwan	28,750	80,000	178%	85%

Source: TopMBA.com Applicant Research 2009

Table 2 also reveals that applicants from some countries might have unrealistic expectations. Israeli applicants expect a salary uplift of 258%, with target salary level of $141,000 per annum. This is achievable for those who join top investment banks and consulting firms. However, in the current economic climate it is unrealistic for all Israeli candidates to receive job offers from these elite firms.

For candidates from emerging markets, a high proportion intend studying overseas, in the USA, Canada, Australia or the European Union and their salary expectations are based on securing employment in the country in which they choose to study. Visa restrictions on working in the country of study vary. At present, the USA has limited the number of work visas available to graduating MBAs. By contrast the European Union, Australia and Canada have very favourable work visa environments.

Despite the global recession, MBA employers have continued to recruit international MBA candidates. Lord Michael Hastings, Global Head of Diversity at KPMG International, says “KPMG is constantly working with global clients who are not just saying ‘here is a tax issue we’d like you to advise us with.’ They are asking us how we shall function to best develop our business. MBAs provide this richness of perspective that is not easy to pick up by standard study. There is huge value to MBAs.” With the prospect of economic recovery in 2010, the likelihood is that the current crop of MBA applicants will achieve their salary objectives when they graduate in 2011.

How to make the most of the QS MBA World Fair

Teamwork – strengthening the chain

There are numerous idioms in English that refer to the importance of teamwork: ‘A chain is only as strong as its weakest link’ - the phrase that spawned an international TV quiz sensation. How about ‘a whole is the sum of its parts,’ and another famous one: ‘there is no I in team’.

Yet teamwork is one of the most elusive topics in business, and theory divides opinion, ironically, more than any other. It might seem like such an obvious point: surely it’s easy to get a great group of people, get them all to work together, give them all defined roles, make sure they’re well rewarded and then reap the results as the project comes to fruition?

However, like many things, it’s not that simple and there are hundreds of books and countless opinions available on how to get the most from the team; How to create the best team? How to motivate them? How to provide direction? This manifests itself across the spectrum of human experience, not just in business: sport and theatre are two areas that spring to mind.

What is generally agreed is the importance of teamwork to progress business. It seems blindingly obvious to anyone who has ever been involved with sports or even amateur dramatics that successful teams will improve any number of different facets of the task in hand, such as creativity, efficiency and morale. In business terms this translates into increased commercial success; happier staff, happier clients or customers and, ultimately, increased profitability.

This is not to suggest that individual leadership or efforts are not relevant or important, but that even more can be achieved when several individuals are working towards the same goal. Andrea Maietta works in the insurance industry in Milan, Italy: “A good team can be much more than the sum of the individuals forming it; it has a better creative potential and can better tolerate efforts, it is highly motivating for the team members and allows them to achieve results that individuals cannot reach by themselves.”

Russell Boren, a plant manager in Alabama, USA, agrees: "True teamwork means no team member is more or less important than the other; they just have different jobs. It may be an absence, training, illness or lack of understanding of a problem. If any one member of a team is affected, the others will pick up the slack and continue the process.  In my opinion, without teamwork no company will ever reach its potential.”

But what exactly is teamwork? Susan Heathfield in “Trust rules! The most important secret” (available at http://humanresources.about.com/library/weekly/aa041401a.htm), provides five helpful teamwork tips and puts the onus firmly on the manager and not on the team:

1: Form teams to solve real work issues and improve real work processes

2: Hold departmental meetings to review projects and progress

3: Build fun and shared experiences into the organisation's agenda

4: Use icebreakers and time-limited fun team-building exercises

5: Celebrate group successes publicly

The key figure in all of Susan Heathfield’s tips above appears time and again in speaking with executives about teamwork: The leader. In almost all examples, and this will resound very strongly with MBA graduates: the leader of the team is ultimately responsible for that team’s success. The leader must be part of the team; driving it and providing direction, yet retaining a distance from the team in order to evaluate it, identify its problems and steer it towards its goal if it strays off target.

This ambiguous role, as so many have learned, can be extremely difficult and most MBAs spend a great deal of their time picking up those skills. Steven Hall, a senior Supply Chain Manager with a background in the US military, supports this: “It all boils down to executive vision and leadership. The boss who wants to hire people to run the show, but doesn't allow them to make decisions and second guesses every decision when they do allow you to make them, doesn't really want to let go of the reins.  The company will never grow beyond what it is today and it will never get more efficient.  If you hire the right people, give them direction, the tools to do the job and let them go do it [then] you will be amazed at how far they will take you.”

Hall goes on to specify four key areas that business leaders are regularly missing:

1: Lack of clear communication of a business plan to the organisation

2: Lack of understanding of what a good employee is

3: Lack of ability to set an expectation and hold people to it

4: Lack of understanding of where cost is

For MBA graduates who spend so much of their courses in teams and learning to be leaders, this advice is essential. The balance is extremely delicate, yet spending as much time as possible learning how to maintain it could be the most important quality of all.

- Ross Geraghty

Now is the time to take that MBA

 

The author Mark Twain, noticing his own obituary in an 1897 newspaper, famously wired to the editor, “The report of my death was an exaggeration”, and went on to live for another 13 fairly productive years. The anxious glances by professionals considering an MBA or Executive MBA (EMBA) are similarly exaggerated. Despite the gloomy front-page stories a mere 12 months ago, the economic downturn will not be the death of MBA recruitment or business school applications.

 

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In fact, the opposite is true - the MBA culture is countercyclical. This means that many professionals who have lost their jobs and received a payoff, or perhaps are simply feeling insecure in their positions, are sensibly viewing the downturn as the perfect time for business school. They rightly feel they can ace the MBA and hit the ground running when the upturn happens.

Nunzio Quacquarelli, Managing Director of the QS World MBA Tour, which visits Johannesburg in March, says: “We feel we have the best place to start researching those business school options, meeting the world’s most influential admissions officers face to face.”

 

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For Quacquarelli, the spike in interest and applications to business school is happening for a number of reasons. “Some young professionals are choosing to try and sit out the downturn in business school while for others it’s a more calculated decision. Either way, during tough economic times, getting an education will put you in a fantastic place to get ahead into a strong management position during the upswing.”

Although now may be the perfect time to embark on an MBA, how do prospective candidates go about choosing the right business school and the right MBA program for them? One good strategy is to adopt the following five steps in making a decision. These steps encourage candidates to take their time, assess their own personal strengths and objectives, and do their research to ensure they make the right choice.

Step 1: Career goals and feasibility

Try to narrow down the types of career you might like to pursue. Understanding what employers want and where opportunities will be plentiful should figure in your thinking. Are you geographically mobile? Do you have a strong first degree and two or more years of successful work experience? Do you have a vision of how you can progress in your current industry or function, or are you just hoping an MBA will help you to do something new without any real plan (risky in current markets)? Talk to HR managers at target companies to gain their input.

Step 2: Self-assessment

Why do you want to take an MBA? A realistic self-assessment of your abilities and skills base will help you to make a more focused selection of schools. Analyse your motivations. Do not take an MBA just because you have recently graduated and cannot find a job. Most applicants opt for an MBA to improve career prospects, learn new skills and create a personal network. Other motivators are bringing about a career change, increasing salary and starting a business. If you have lost your job in the downturn, you may choose an MBA to ride out the economic storm. But for most, it is a more strategic decision. Perhaps you see that in a year or two a recovering economy is going to need more business leaders of your profile, and an MBA will equip you to take advantage.

Step 3: Study mode

The full-time MBA is still by far the most popular program. Executive MBAs, which require a minimum of five years prior work experience and allow modular study periods while you carry on working, are growing in popularity. Part-time and distance learning MBAs are also options.

Step 4: Research and selection criteria

With so many schools to pick from, you need a rational selection approach. Decide what criteria matter to you and aim to identify five schools that match up and for which you believe you can meet the entry criteria. Many candidates pick a school because of a specialisation. For example, someone seeking to start their own business should look for a school with a strong entrepreneurship faculty, incubator facilities and access to venture capital.

Step 5: Meet schools face-to-face

It is important to meet school representatives and alumni to make sure there is a personal fit and to confirm your research findings. Ideally, visit the school campus. If this is not possible, the QS World MBA Tour is an alternative.

For thousands of young professionals, now is the time to get moving, get that necessary MBA education and advance your career in time for the rebounding economy. It is one sure way to show that career atrophy is an exaggeration. Mark Twain would have been proud.

QS World MBA Tour – www.topmba.com           

The QS World MBA Tour has, since 1990, been the world’s leading careers and education expert, bringing together hundreds of business schools from around the world to 35 countries each year and was visited by 65,000 MBA candidates in 2009.

The Africa Leg of the MBA Tour - 2011 Calender  

Thursday 24 March Ghana - Get free tickets here

Saturday 26 March Nigeria - Get free tickets here

Tuesday 29 March Johannesburg - Get free tickets here

Thursday 31 March Kenya - Get free tickets here