INSEAD MBA graduates rule the world of management - Know its placement statistics

The Business School of the world, INSEAD, is one of the world's leading and largest graduate business schools. Established in 1957, the term INSEAD means the European Institute of Business Administration. As one of the most sought-after B-schools of the world, insights into this institute’s placements is something every MBA aspirant would want to know! 

Placement and Pay at INSEAD (MBA)

Partly due to exchange rate fluctuations and wide variations in pay that are dependent on whether a graduate returns to his or her home country or not, tracking the actual pay of an INSEAD MBA is much more difficult than it is at many U.S. schools. With 89% of the graduates receiving at least one job offer three months after commencement, overall median base salaries came to $103,800, which when compared to other leading business schools, is considerably lower.

The median base salary after graduating from Harvard Business School and Wharton, stands at  $150,000 whereas it is $156,000 at Stanford's Graduate School of Business. But how can this wide disparity be explained? One of the major reasons is that a large chunk of this b-school grad takes jobs in countries where the pay is significantly lower than in the U.S., even if it is for the same jobs at global companies. 

Another factor that can play havoc with the reported numbers at the institute is the exchange rates that convert local currencies into dollars. Therefore, what becomes important is the context here.

Image Source: INSEAD Placement Report 2020

Why is Consulting the most preferred choice at INSEAD?

Unlike at INSEAD where grads who head into consulting bring home the bacon, in most U.S. business schools, the MBAs land jobs at private equity shops, venture capital firms, and hedge funds which typically make the most lucrative compensation in their first year out of business school. 

Needless to say, INSEAD Consulting is the number one career choice for the school's graduates. Apart from the reason that no other industry pays more overall to INSEAD MBAs than the consulting business, the other reason is pretty straightforward; numerous students at the institute are sponsored by the giant consulting firms which prefer the idea of losing their employees for a duration of ten months, rather than two whole years.

The so-called MBB, McKinsey, Bain and BCG, in 2020, hired 265 graduates straight out of the MBA program at INSEAD. But 41% of them, 109 grads in all, had been employed by the MBB before going to campus and went straight back to MBB once they graduated from INSEAD. 

Undoubtedly, INSEAD is the undisputed global leader in new post-MBA placements into MBB. No other MBA program has a larger network of alumni in the management consulting industry, and neither does any MBA program send a larger percentage of its student body into the consulting industry. 

Consulting is definitely one of the best-paying career routes out of INSEAD, but doesn't mean that all the highest paid graduates end up in that sector. As a matter of fact, the highest base salary in the year 2020, went to a graduate who took a job in sales and marketing in media, entertainment, and advertising, which is an incredibly novel high-paying job. 

The highest-paid MBAs at most U.S. business schools end up in private equity, hedge funds and investment management, or venture capital. The point is if you graduate from this institute, where you go to work will play a big role in how much money you'll make. 

In Brazil, starting base salaries for INSEAD MBAs who went to work in consulting firms were a mere $69,000 a year. That's nearly $100,000 less than those who got consulting jobs in the U.S. where the median base salary was a hefty $165,000.

Also Read: What kind of people INSEAD intakes for its MBA program?

Where do most INSEAD MBAs end up after graduation?

Other big global tech firms routinely hire MBAs out of INSEAD as well but in much smaller numbers than the ones aforementioned giant consulting firms. 

At the top for years now has been Amazon, whose hiring of INSEAD grads peaked in 2017 with 56 hires. Last year, Amazon employed 37 INSEAD graduates. Microsoft, Apple, and Google also are consistently active at INSEAD but in far smaller numbers. Last year, for example, Microsoft employed just 7 INSEAD MBAs, well off its peak hiring at the school in 2016.

INSEAD MBA graduates absorption

As discussed above, most of the INSEAD MBAs go into consulting than any other field. A very high percentage of them are recruited into leadership development programs by a wide range of companies from Adidas and Johnson & Johnson to Siemens and Kraft/Heinz. A surprising percentage of nearly 18% take on jobs in sales and marketing. Around 17% go into business development or corporate planning positions, and approximately 10% land up roles in the project management segment. 

Image Source: INSEAD Placement Report 2020

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