INSEAD's Latest Employment Report (2023): Key Takeaways

INSEAD recently released their 2023 Employment report, and I've noted down 8 key takeaways below. Hope this helps you get a glimpse of INSEAD's employment scene!

For context, 875 participants in the two classes completed the INSEAD MBA program in December 2022 and July 2023, 98% responded to the Employment Statistics survey and 88% reported having received at least one job offer three months after their graduation date.

(original/ complete article published here)

1. Overall Compensation Across Sectors and Regions in 2023

- The overall compensation for the INSEAD MBA Class of 2023 is strong, with a mean salary of EUR 113,400 and a median salary of EUR 109,600.
- The median sign-on bonus and performance bonus are also substantial, at EUR 28,500 and EUR 25,100, respectively.

2. Career Decision by Sector Group

- With 44% of new hires entering management consulting, it remains a highly sought-after sector among INSEAD graduates, emphasizing the program’s appeal for those aspiring to consulting careers. This is followed by Corporate Sectors (13%), Financial Services (10%) and TMT (8%).
- The returnee percentage is higher in Management Consulting (17%) compared to other sectors, indicating a significant number of former employees returning after graduation.

3. Salary by Key Industries

3.1 Management Consulting:

- Management Consulting offers a competitive mean salary of EUR 118,200 and a substantial median salary of EUR 113,200.
- The median sign-on bonus and performance bonus are both significant, standing at EUR 28,500 and EUR 26,800, respectively.

3.2 Financial Services:

- Financial Services offers a competitive mean salary of EUR 105,400 and a substantial median salary of EUR 98,400. The median sign-on bonus and performance bonus are both significant, standing at EUR 33,400 and EUR 25,100, respectively.
- Financial Services present a diverse range of sub-sectors i.e. Insurance, Investment Banking, PE/ VC, Investment Management and Other Financial Services, with varying salary ranges and bonus structures.
- Investment Banking stands out for its high mean and median salaries, as well as substantial sign-on and performance bonuses.

3.3 Corporate Sectors:

- Corporate Sectors overall offers a competitive mean salary of EUR 107,100 and a substantial median salary of EUR 100,300. The median sign-on bonus and performance bonus stand at EUR 19,500 and EUR 19,400, respectively.
- Corporate Sectors offer diverse opportunities, with Energy (EUR 142,800) showcasing the highest mean salary, and Manufacturing standing out for its significant median sign-on bonus (EUR 28,900).
- The absence of sign-on bonuses in Corporate Services indicates variations in compensation structures across sub-sectors.

3.4 Technology Media and Telecommunications (TMT):

- TMT overall offers a competitive mean salary of EUR 103,900 and a median salary of EUR 98,600. The median sign-on bonus and performance bonus stand at EUR 27,900 and EUR 26,600, respectively.
- TMT showcase a competitive landscape, with Information Technology / Telecommunications offering the highest mean salary and median performance bonus.
- Fintech stands out for its high median salary, and E-commerce / Internet displays a significant median sign-on bonus.

4. Stats & Salary by Location

The top 5 locations where grads found jobs are: Western Europe (199), Asia Pacific (110), Africa/ Middle East (102), South Europe (55), North America (50). The salary/ bonus ranges within regions are:

- Africa / Middle East: This region offers the highest mean salary (EUR 138,200) and median sign-on bonus (EUR 44,100), indicating lucrative opportunities for INSEAD MBA graduates. The median performance bonus is also substantial.
- Asia Pacific: Despite a broad salary range (EUR 21,000 - EUR 205,200), the mean and median salaries are relatively balanced. The sign-on and performance bonuses contribute positively (~25%) to the overall compensation.
- Eastern Europe: Limited data with a lower median salary suggests potentially fewer opportunities in this region. The absence of sign-on and performance bonuses indicates a different compensation structure.
- North America: Boasting the highest salary range (EUR 80,800 - EUR 427,700), North America offers the most lucrative opportunities. The median performance bonus is notably higher than other regions.
- Northern Europe: With a focused salary range (EUR 69,200 - EUR 123,800), Northern Europe offers competitive mean and median salaries. The sign-on and performance bonuses contribute to the overall compensation package.
- South America: While the mean salary (EUR 86,900) is moderate, the substantial median sign-on bonus (EUR 57,700) stands out. The median performance bonus (EUR 23,800) further enhances the overall compensation.
- Southern Europe: Offering a diverse range of opportunities, Southern Europe displays a balanced compensation structure with a moderate mean salary (EUR 83,000) and median bonuses (EUR 20,000).
- Western Europe: The region has the most extensive data set (199 graduates), showcasing a balanced salary range. The mean (EUR 110,000) and median (EUR 109,600) salaries are competitive, with a substantial median sign-on bonus (EUR 31,000).

5. Top Employers - INSEAD Class of 2023

- Consulting Dominance: McKinsey & Company, Boston Consulting Group, and Bain & Company lead the hiring, totaling to around 280 graduates recruited and 86 returning, reflecting the strong presence of consulting firms in the preferences of INSEAD graduates.
- Returnee Trends: A significant number of graduates returned to their former employers, with McKinsey & Company having the highest returnee rate.
- Diversity in Sectors: While consulting dominates, there is diversity with the presence of technology giants like Samsung and Amazon, as well as pharmaceutical companies like Eli Lilly and diverse industries represented.

6. Entrepreneurship

- Overall Statistic: 3% of the INSEAD Class of 2023 pursued entrepreneurship as a career path.
- Technology Dominance: Technology-related sectors, including Management Consulting, Technology Media and Telecommunications, and Fintech, collectively account for 39% of entrepreneurial ventures, indicating a strong focus on tech-driven innovation.
- Notable Financial Presence: Financial sectors, including Financial Services and Private Equity/Venture Capital, constitute 16% of entrepreneurial endeavors, highlighting the significance of finance in entrepreneurship.

7. Career changes

- 78% of graduates altered their sector, country, or function, reflecting the adaptability and global mindset fostered by the program. Notably, 25% embarked on a comprehensive transformation, changing all three dimensions.
- Graduates from various backgrounds, gravitated towards Management Consulting. 82% grads with management consulting background, 57% with corporate sectors background, 46% with TMT background and 43% with Financial Services background transitioned to management consulting post MBA. This is followed by Financial Services, Corporate Sectors and TMT.
- Russian, Lebanese, and Indian graduates exhibit high mobility, with the majority choosing to work abroad.
- Graduates from countries like British, Dutch, Japanese, and Singaporean show moderate to low mobility, with a preference for staying within their home countries. For instance, graduates in Western Europe predominantly chose to stay (82%) within their region.

8. How did INSEAD grads land their jobs?
- 44% grads found jobs through INSEAD CDC/ Alumni, 25% through their pre-employer, 14% through their own contacts, 13% through summer internship and 4% created their own company.

Regards,
Arvind
Founder, admitStreet
W: https://admitstreet.com | LinkedIn | E: consultingteam@admitstreet.com