Code name: MBA for Master of Business Administration. This top-calibre education in management, steeped in a strong international culture, is very popular with candidates. But what’s in it for the company?
There are only two potential candidates left for the position of chief financial officer you are trying to fill. Both have a bachelor’s degree in finance, but Mr. X has 10 years’ experience while Mr. Y has just completed his studies—but he has an MBA. Impossible dilemma or obvious choice?
Let’s take the example of an MBA from the University of Ottawa. The courses cover ethics, management, leadership, accounting, strategy, marketing, human resources, and economic principles for multinationals, and aim to produce experienced managers. On paper, these MBAs come across as true management and business stars for high-responsibility positions. Independent, with a high degree of initiative and adaptability, they are perfect for multicultural environments abroad. In the field, however, opinions are mixed. Two specialists tell us what they think.
MBA + experience = a winning duo
Interview with Donna Keough, Associate Director, Recruitment and Retention, People Development and Culture, Bell
Do you hire MBA grads?
We hire 30 to 50 graduates a year and in 2007, some 15% had an MBA. The objective of our grad program is to hire the best candidates, whether they have a bachelor’s degree, MBA or another master’s degree. We really aim to find the talent that’s out there.
What kinds of profiles do you look for in MBAs?
Two kinds of profiles characterize MBAs. First, there are students who did an MBA right after their bachelor’s degree, and then there are those who have a bachelor’s degree and two to five years’ experience, which they decide to capitalize on with an MBA. We particularly value the latter, since they have a bit more business know-how.
Why should companies hire MBA grads?
Often, these candidates have the best general knowledge in finance, business administration and marketing. We hire them mainly for executive positions. However, it is important to state that having an MBA does not automatically mean a better salary. Compensation is based on a number of factors: level of education, of course, but mainly performance and experience.
What is your internal promotion policy as regards MBAs?
We support employees who want to continue developing themselves via an MBA. It’s an investment that we encourage. This doesn’t mean that the company undertakes to pay all or part of the costs, however. We have set up a program, and a committee is in charge of assessing each request on a case-by-case basis.
“Not a must-have but a nice-to-have!”
André Couillard, partner at Ray & Berndtson, executive recruiting firm
Do your clients look specifically for MBAs?
It is very rare for recruiters to ask us specifically for candidates with an MBA. If they have one, fine, but it isn’t a must-have—an MBA is really an extra. In terms of education, they generally look for a degree in something relevant to their line of business, usually a bachelor’s degree. In the public sector, on the other hand, candidates often have an MBA. Let’s just say that some recruiters think it’s better.
Isn’t it? What’s an MBA worth on the job market?
A degree doesn’t guarantee performance. We are currently looking to hire a director for a large company. Our client doesn’t care so much about the degree, whether the candidate has an MBA or not—what they want is experience. What candidates have to keep in mind is that an MBA does not guarantee either a job or a higher salary. The salary is based on experience and the position.
So why should companies hire MBAs, then?
I would say that having an MBA tells us something about the candidate’s personality. An executive who decides to do an MBA is showing that he or she is not afraid of commitment and is very motivated. And for senior management positions, MBA grads do have greater general management expertise. Experience is really the deciding factor, though. The ideal candidate is someone who already has a few years of experience under their belt and who decides to do an MBA.
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Good to know
– While the MBA name is internationally recognized, the designation is not protected. The AMBA (Association of MBAs), AACSB (Association to Advance Collegiate Schools of Business International) and Equis (European Quality Improvement System) labels may also serve as references in the piles of CVS received.
– Then there is the Executive MBA (EMBA), which differentiates itself from the regular MBA by the level of candidates’ professional experience. For example, the Executive MBA HEC Montréal – McGillis only for executives and managers with at least 10 years’ experience, including 5 in a management position.