Help Wanted…at Last

Early indications for the M.B.A. class of 2011 suggest that the job drought may be ending

From the Wall Street Journal | Sept 30, 2010 By DIANA MIDDLETON

Just days after wrapping up her internship at Procter & Gamble Co. in Cincinnati, Beth Stone, 28, received an offer to work as a brand manager for the company's Pepto-Bismol line.

And dozens of her M.B.A. classmates from Northwestern University's Kellogg Graduate School of Management had similar news from a wide number of companies when they returned to campus.

The experience of newly minted M.B.A.s is a stark departure from what many workers are enduring in the current gloomy job market. Career-services directors at many business schools say that the robust intern hiring this summer and early placement data for the class of 2011 suggest that the job drought for M.B.A.s could be ending.

They also say companies are relaxing their hiring freezes, and the number of companies already committed to interview students on campus this fall is up at most schools.

Finance and consulting companies are traditionally top hirers of M.B.A.s, and both are showing signs of a rebound. Bank of America Corp., for example, has doubled the interns it employed in 2009. Consulting companies have boosted their internship classes since the summer of last year.

More Selective

But even as hiring appears to be turning a corner, employers say they are becoming more selective with regard to the skills of students they accept as interns as well as those they choose to hire full time. Specialized skills and practical experience are key, which can make a significant career change more difficult for some.

In Dow Chemical Co.'s environmental-health-and-safety group, for example, more hires in the past were from traditional fields, such as consulting, says Neil Hawkins, group vice president. But these days "we are being very specific and selective with the formal interviewing process. I'm looking for real-life experience in dimensions we care about," Mr. Hawkins says.

In the company's sustainability group as well, recent interns were hired—or not—according to their interest and experience in hybrid batteries or solar-power roof shingles.

After falling off in 2008 and 2009, summer internships this year were almost back to prerecession levels at many schools. Some 74% of business schools saw an increase in internship opportunities in 2010; in 2009, 69% of schools reported a decline, according to the MBA Career Services Council, an industry group that monitors global M.B.A. employment.

The numbers are important because internships typically serve as a precursor to full-time job offers, says Nicole Hall, president of the Tampa-based MBA Career Services Council and executive director of career services at Pepperdine University's Graziadio School of Business and Management.

"A few months ago, we really had no clarity about the future for jobs, but in the past few months we've really turned a corner," Ms. Hall says. "Companies are hiring to fill in the leadership gaps left behind after the recession."

Julie Morton, associate dean for career services at the University of Chicago's Booth School of Business, says that while students returned to campus only last week, they are already reporting robust numbers of job offers, particularly in investment banking and consulting. From the class of 2010, 92% have found jobs so far. Ms. Morton says the school's aggressive use of nontraditional means of recruiting—such as interviews on Skype—has helped.

"What's surprised me is how many companies tried these varied approaches to recruiting for internships," Ms. Morton says.

Olin Along

A number of schools say alternative recruiting tactics have kept their students on the radar. Pepperdine relied heavily on its alumni network to promote résumé books at desirable companies. Washington University's Olin Business School paid for hotel rooms to get cash-strapped recruiters to make a stop at the suburban St. Louis campus.

The latter effort helped 98% of the Olin class land internships this summer, says Mark Brostoff, associate dean and director of Olin's career center. So far, 25% to 30% of second-year Olin M.B.A.s report having a job offer, an uptick over last year, though still short of the 40% the school had before the recession. And there are still weak spots. Recruiting for finance jobs at the school is still slow, and grads are still smarting from the numerous offers that were rescinded during the fall of 2009.

"In 2009, the lake was completely dry," Mr. Brostoff says. "Now, we've got some water, but I wouldn't suggest diving off a high board."

Fields for Interns

Career Services Council data show that most 2010 M.B.A. interns were in the consulting, health-care, nonprofit, pharmaceutical and technology fields. International Business Machines Corp. doubled the number of interns in its developer relations group to 10, says Jim Corgel, general manager of IBM Academic Initiative. "We've kept increasing the number of interns, including interns we'll have in the fall and winter," Mr. Corgel says. "We're also willing to pay more for talent since we have such specific needs."

The company expects to offer jobs to several of its interns. Mr. Corgel says IBM will be aggressive this fall when hiring.

But, he adds, like other companies, IBM is also scrutinizing potential hires more closely. He's particularly looking for students with practical experience and a background in finance or engineering who can make sense of financial chaos.

"Going back even 10 years, we used to try and find someone who had the right attitude or personality," Mr. Corgel says. "Now, it's how fast you can hit the ground running."

Ms. Middleton is a staff reporter for The Wall Street Journal in New York. She can be reached at diana.middleton@wsj.com.