56% of Students Prioritize Job Security over Salary
NEW YORK, June 9, 2020 /PRNewswire/ -- MBA students at top business schools report feeling far more pessimistic about job prospects than they were a year ago, reflecting the sharp downturn in the economy following the onset of the Covid-19 pandemic.
Over half (57%) of MBA students say they feel either "very pessimistic" or "somewhat pessimistic" about their employment opportunities compared to a year ago, according to the 12th annual Training The Street (TTS) MBA Employment Survey, which is conducted nationwide at the nation's top business schools. That's in stark contrast to 2019 when only 12.3% of respondents felt "very" or "somewhat" pessimistic about their job prospects.
In another sign of the sober business outlook, the survey found that job security is a key priority for students entering the job market, with 56.4% of students agreeing that the changed economic environment has either "very much" or "somewhat" led them to prioritize job security over salary or other considerations. Only 20.1% said the economic crisis had no effect on emphasizing job security over other considerations.
The results did show some positive takeaways as well. 58.3% of respondents with an internship or full-time offer expect to make an annualized salary of over $125,000, and 80.7% of MBA students expect to make at least $100,000 this year. Despite the current economic uncertainty resulting from Covid-19, most MBA students are well-positioned to earn a substantial salary. Additionally, only 21.2% of MBA students said they had not received a job or internship offer yet.
"The Covid-19 pandemic, and the resulting economic downturn, have had a dramatic effect on how MBA students view their job prospects, and caused them to prioritize job security," said Scott Rostan, founder and CEO of Training The Street, the leading corporate training provider for Wall Street firms and top-tier business schools. "But MBAs should be heartened that annual salaries remain strong and Wall Street remains committed to recruiting and investing in talent and training."
While job security is top of mind, those pursuing an MBA are also focused on long-term career goals. In evaluating the most important factors when selecting an employer, 69.8% of respondents cited career growth opportunities as their number one priority. Second highest in consideration was institutional reputation/strength of mentorship program at 56.7%, followed by salary as the third most important at 52.8%. In deciding on potential employers, culture/diversity of workforce came in fourth after growth opportunities, reputation, and salary, with nearly half (49.6%) of current students listing it as a priority.
Interestingly, 20.1% of MBA students stated that the ability to pay back student debt does not impact the kind of job they plan to accept. Another 18% said the ability to pay back student loans "very much" affects their future employment choices.
"There's no doubt that the current crop of MBA students face a unique set of challenges – some of them unprecedented," said Mr. Rostan. "But, in contrast to the 2008 financial crisis, Wall Street today is much better capitalized and well-positioned to continue to hire and offer MBAs robust opportunities to build successful careers."
The survey was conducted via SurveyMonkey in Q2 2020 between April 22nd and May 19th. To collect the data used in this release, 386 students currently enrolled in a business school and pursuing an MBA were surveyed.
About Training The Street
Training The Street (TTS) is the world's leading provider of courses in accounting, asset management, capital markets, financial modeling and corporate valuation training to investment banks, financial institutions, consulting firms, federal government agencies, law firms, business schools, and top colleges. With offices in the financial hubs across the U.S., as well as London, India and Hong Kong, TTS boasts a deep field of expert instructors and extensive practical experience. Currently, TTS is offering live and virtual training programs to interns and full-time hires at nearly 200 banks and corporate businesses, including Wall Street's 10 largest banks. Additionally, TTS leads workshops at more than 100 academic clients, including the top business schools globally. For more information, please visit www.trainingthestreet.com.
SOURCE Training The Street