The most popular industries for MBA graduates are consulting, finance, and tech. In this article, we explore the reasons behind the power of the “Big Three” and some up-and-coming industries MBA graduates shouldn’t ignore.
According to the Association of MBAs and Business Graduates Association’s (BGA) International MBA Survey 2020, the most popular industries in which MBA graduates work are:
MBA graduates also work in a wide range of functions, from operations to sales to management. The top three skills recruiters value in them are strategic thinking, communication skills, and versatility.
While we can see a diversity of career paths among MBA graduates, consulting, finance, and tech continue to top the market for MBA graduates. Over a quarter of MBA graduates end up in one of these three industries. Let’s explore why.
As the leader of the top three industries, consulting offers several benefits for fresh MBA graduates. With an annual starting salary between US$115,000 and $165,000 and the opportunity to work on various projects with top-notch colleagues, consulting offers broad appeal for MBA graduates seeking a lucrative, challenging experience.
Justin Sheehan, Executive Coach at Vrije Universiteit Amsterdam (VU), elaborates, “[Consulting] is always going to be very interesting for MBAs because it offers so many benefits. It feels often like a continuation of their studies – they get to experiment and be exposed to lots of different industries [and] so many different stakeholders, so there’s rapid development in consulting.” (09:55)
Recruiters from the consulting industry typically look for universal skills in MBA graduates, such as interpersonal skills, motivation, and leadership skills. As Justin adds, “It’s also a good thing for people who are not sure where they really want to go further down the line, or if they don’t want to narrow themselves to a particular industry and they want to explore…Consulting gives them that broad spectrum so that they can really truly see what’s out there.” (10:12)
Most MBA graduates set their sights on the MBB consulting firms – McKinsey & Company, Boston Consulting Group, and Bain & Company – the top three most prestigious firms in the industry. In 2020, INSEAD placed the highest number of MBA graduates in MBB consulting, followed by Harvard Business School, Northwestern University’s Kellogg School of Management, the Wharton School, and the University of Chicago Booth School of Business.
Also, a lucrative career path, with an annual starting salary between US$105,000 and $145,000, finance is an attractive option for MBA graduates because it allows them to build skills and expertise in communication, decision-making, and analysis. Examples of jobs in this industry include Financial Analyst, Financial Manager, Financial Advisor, Investment Banker, and Budget Analyst.
Since these skills are highly transferable and applicable in other industries, working in finance and banking can also serve as a stepping stone to corporate or entrepreneurial careers.
Justin notes the consistency of a career in finance: “Finance has always been a domain where a lot of MBAs are already in before they start their studies, and a lot of them stay in afterwards. I don’t know anybody who had a finance background who made a shift after the MBA. All the finance people tend to stay in finance.” (09:35)
Some top finance firms that recruit MBA graduates globally are Goldman Sachs, Morgan Stanley, Barclays, and J.P. Morgan.
The last of the top three, the technology industry, is one of the most popular industries for MBA graduates. In 2020, 86% of tech companies hired MBA graduates with an annual starting salary between US$105,000 and $135,000.
The tech sector will only grow, with the most sought-after skills being strategy and innovation, leadership and interpersonal skills, and systems management skills. The tech companies that hire the most MBA graduates include Microsoft, Amazon, Google, Meta, IBM, Apple, Adobe, and Samsung. Justin also points out that tech increasingly includes more novel fields like health tech, agritech, and fintech and that “there’s more of an urgency on digital transformation for companies that haven’t taken that step as well.” (10:48)
Lastly, tech appeals to MBA graduates because they tend to rise up the ladder faster than in other industries, as tech recruiters report that the leaders in their organizations increasingly have a graduate business school education.
While consulting, finance, and tech will likely continue to be the most popular industries for MBA graduates, other sectors deserve an honorable mention.
Healthcare, for example, is a growing field. “I think more and more MBAs…are becoming conscious of the fact of global health challenges that are going on,” Justin shares. “They’re becoming more holistically and broadminded in their thinking…So, that’s been an interesting shift that I’ve seen over the years.” (11:02) Some schools even offer a specialized MBA in Healthcare Management, with postgraduate job titles including Hospital Administrator, Health Services Manager, Healthcare Manager, and Healthcare Consultant.
This speaks to the rise of social impact careers across fields – from the public sector to nonprofit organizations to social enterprises. MBA graduates worldwide have landed jobs at impact organizations such as the United Nations, the Bill & Melinda Gates Foundation, the World Economic Forum, and the African Leadership Network. Graduates can also discover more impact-minded companies with resources like Fast Company’s annual list of the most innovative social good companies.
On the rise of impact, Justin says, “It’s hard not to be impacted upon the pressing needs and challenges of the times, and I think a lot of people…feel that they need to contribute in some way. They can’t be just bystanders or get involved in something that has no meaning for them. So, I think the word ‘impact’ then has to be unpacked for each of the individuals to really understand what actually impact means for them because it’ll mean different things to different people.” (11:42)
Whether you’re interested in working in consulting, finance, tech, or another dynamic industry, get in touch with MBA students and graduates to get a better idea of the career opportunities that await you post-graduation.
