U.S. Employers Expect To Hire Dramatically Fewer International B-School Grads: Report

Are you an international business student looking for work outside your home country? Research from the Graduate Management Admission Council has some good news for you.

Unless, that is, you’re looking to work in the United States.

Just 16% of U.S. employers had definite plans to hire internationally in 2024 compared to 40% of U.S. firms that hired such candidates in 2023, according to GMAC’s 2024 Corporate Recruiters Survey. Another 35% of 2024 U.S. respondents were willing to hire internationally, even if they didn’t have plans to do so, while 48% said they would definitely not hire such candidates.

THE GOOD NEWS FOR INTERNATIONAL GRADS: HIRING IS UP IN WESTERN EUROPE

GMAC’s 2024 survey included responses from 931 company recruiters from 38 different countries, 51% of which are from the Global Fortune 500. Companies represent a range of sectors including manufacturing, technology, finance, consulting, and more. The survey, now in its 20th year, helps business schools and students understand employers’ skills demands and hiring cycles. You can find the full report here.

In terms of international recruitment, U.S. firms posted the lowest rate in the world. Alternatively, 47% of Western European firms planned to hire internationally in 2024, higher than the global average of 39%.

Globally, 57% of companies hired graduates who required additional legal documentation in 2023. This figure represents a significant increase from pre-pandemic levels, particularly in Asia and Western Europe. Demand for GME graduates with international experience and the ability to navigate complex legal and regulatory environments is likely to remain strong, according to the report.

A ROSY OVERALL RECRUITMENT OUTLOOK

Overall, the GMAC report paints a promising hiring season for candidates with advanced business degrees, including MBA and business related masters.

Most employers plan to at least maintain their hiring efforts, despite lingering concerns over inflation, recession, and politics. More than a quarter of employers are expected to increase their hiring of GME graduates, with particular demand for MBA and industry-experienced candidates. Some 79% of companies overall hired as many or more MBAs as expected in 2023 and plan to hire at least that many in 2024.

For business master’s graduates, the strongest demand is for those with management, data analytics, and business analytics degrees. Nearly a third of employers project expanding their hiring of data and business analytics talent in 2024.

Regionally, Asian employers were the most optimistic in hiring plans, reporting the highest demand for GME talent across degree types. In contrast, companies in the U.S. and the technology sector were more conservative, but still reported growth.

MBA AND GME SALARY TRENDS

Another bright spot in the report: Demand for U.S. MBA graduates remain strong even as employers face inflation, possible recession, and other economic uncertainties. The median starting salary for U.S. MBAs is $120,000, 42% higher than those with bachelor degrees and 33% higher than those with a business master’s.

Starting salaries are just one component of the financial ROI for GME graduates, of course. Georgetown University’s Center on Education and the Workforce finds that higher degrees consistently lead to greater lifetime earnings, particularly in business. As such, employers increasingly recognize the value of ongoing professional development, with many offering this as a key benefit to new hires, GMAC’s research found.

This growing trend presents an opportunity for business schools to collaborate with organizations in providing continuous education and training.

HAS INFLATION AFFECTED HIRING?

Researchers also asked companies about the macroeconomic factors influencing their hiring decisions and inflation as well as fears of recession are the top concerns. Other factors include their current financial health, geopolitical tensions, public health issues, and national policies.

“Geopolitical tensions, increased adoption of new technologies, and of course, the COVID pandemic have all had a dramatic impact on global economic conditions in recent years,” says Nalisha Patel, Regional Director for Europe at GMAC.

“Inflation has been one result of the ever-increasing volatile environment we live and work in and has also contributed to that volatility itself. Though we are seeing inflation impact global hiring, we are also seeing positive signs for business school graduates’ future careers, with inflation slightly decreasing and job hiring likely to increase in 2024.”

The study found that in Western Europe, 30% of companies reported inflation as a major influence on their hiring plans, matching the global average. Developing regions, such as Africa (57%) and East and Southeast Asia (42%), saw higher impacts from inflation. Meanwhile, in the United States, only 18% of companies cited inflation as a significant factor in hiring decisions.

The influence of inflation is particularly strong in the tech and manufacturing sectors, where it is a major factor for employers. Among Fortune 100 companies, 41% report that inflation significantly affects their hiring strategies. In contrast, the finance and accounting sectors are seeing a slight easing of inflation concerns, with more employers reporting moderate rather than major influence on their hiring choices.

DO GRADUATE BUSINESS CANDIDATES NEED AI SKILLS?

The 2024 survey was conducted shortly after the launch of OpenAI’s ChatGPT. The sheer capabilities of the large language model sparked an intense debate about AI’s potential to replace or supplement knowledge workers. Even so, only 26% of global employers viewed AI as a critical skill for GME business graduates at the time of the survey. AI, in fact, ranked near the bottom of a list of 22 essential skills most valued by recruiters – at least for those with graduate business degrees who are often recruited for more senior management and strategic roles.

Recruiters’ emphasis on AI skills varies significantly by industry and region, as you would expect.

In Central and South Asia, 49% of employers identify AI as a crucial skill for GME graduates, compared to just 13% of employers in the United States. In tech, 36% of responding employers say AI skills are crucial compared to 17% for consulting. Meanwhile, 34% of Fortune 100 companies say AI skills are important.

AI IN THE WORKPLACE ‘AN IMMINENT REALITY’

Despite the AI’s lukewarm reception at the management ranks today, recruiters expect the need for AI skills to only grow. For example, while AI was ranked as the 21st most important skill by Western European employers in this survey, it is expected to become the most critical skill within five years. In the U.S., employers, who currently rank AI last in importance, project it to jump 16 spots in the coming years. This indicates a need for business programs to integrate AI education more deeply into their curricula.

According to the survey, employers are looking for candidates who can leverage AI strategically for knowledge and decision-making. In the tech sector, 74% of employers expect GME graduates to use AI to develop business strategies, not just for operational tasks.

“These results indicate integration of artificial intelligence into the workplace is not just a topic of future speculation — it is an imminent reality that will shape the careers of business school graduates,” the report reads. “While current employer demand for AI skills among GME graduates is moderate, the rapid advancements in AI technologies and the increasing public awareness signal a significant shift on the horizon, which GME programs can leverage to ensure their graduates are ready to thrive through this and future developments in technology.”

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