IESE: Capitalizing on a Hot Job Market

Alex Herrera became career services director at the University of Navarra IESE Business School in September, 2005. A telecom engineer and 1997 IESE MBA graduate, Herrera spent eight years with EuroPraxis, an international strategy and management consulting firm, before returning to IESE.

Herrera says this year's graduates will enter a hot European job market, which recruiters expect will be sustained. Herrera recently conducted an e-mail interview with BusinessWeek Online reporter Jeffrey Gangemi. An edited transcript of the exchange follows:

How has this recruiting season compared to last year?
To give you some background, 87% of our graduates had found a job at graduation, and 98% had found a job within three months of graduation. Average starting salary was $96,000, and the average bonus was $23,000. From what we can tell at this early stage, this year's recruitment looks likely to be at least as successful as last year's (see BW Online, 12/30/05, "A Heady Job Market for MBAs"). Banking and consulting companies, which make 60% of all job offers at IESE, are approaching us with even more intention to hire than last year. Also, industries like pharmaceuticals, high tech, and real estate are vying for more attention from students.

Do you see the strong market continuing into the future?
Predicting the future is always difficult. Nevertheless, when I have spoken with recruiters, the near future they describe is optimistic.

When do students start their career search at IESE?
Those in our two-year MBA program start working on their structured career management program from the first day they arrive on campus. Far more than a simple job search, this program challenges students to really think about where they want to be, considering the academic demands of the course and the experience gained from two years on campus in Barcelona.

These activities are aimed at helping students to develop the skills necessary to proactively manage their professional career. It is obviously of utmost importance that graduates find the right job after finishing their MBAs, but this is just the first step in their future professional development.

What are the highlights of career services at your school?
We structure our work based on two goals. We conduct activities aimed at helping students decide what career they are looking to pursue, and the rest of our activities are aimed at developing the skills necessary for career success. These are grouped into categories: general counseling, CV advisory, developing industry knowledge, developing company knowledge, and process advisory, which includes mock interviews, salary negotiation, and securing work permits.

We stay in close contact with companies to generate potential job opportunities. Throughout the year, more than 100 companies come to our campus to recruit our students.

We offer companies three event options, which they can use to present themselves: The Career Forum, at the end of October, is limited to 40 companies; Career Days, on the last Wednesday of January, February, and March, host 12 companies per day; and individual company presentations, which can be given at any time compatible with the students' schedules.

How do you teach students interviewing, networking, and the other skills necessary for the career search?
Our career development program is carried out over the two years. One of the directors of our department is responsible for coordinating the activities and for making sure the academic content is up to date.

To guarantee that all students have easy access to this service, we conduct three types of activities: focused workshops limited to an optimum number of participants in line with content; supplying information for students to consult; and one-to-one counseling with department directors. IESE is able to provide such personal service because of our select class size.

Where do your students tend to end up geographically?
Aggregate data from the last five graduating classes show that around 50% of graduates stay in Spain to work, 35% go to the rest of Europe (15% in Britain), 5% to the U.S., and the final 10% to the rest of the world.

How strong is the current European job market?
The market for MBAs in Europe is strong and becoming stronger. Companies are keen to hire MBAs from IESE's full-time program, which is considered to be one of the top ones in Europe. Multinationals are committed to incorporating this talent through structured MBA recruitment programs, which are becoming more common in Europe.

How does the European job market compare to the U.S. job market?
The U.S. has a much larger market with a deeply rooted tradition of hiring MBA talent. However, it is also true that competition between students at U.S. schools is greater. In the last few years, this has meant that the global results of the U.S. job market have been comparatively worse than for the top business schools in Europe.

What are the biggest mistakes students make in the job search?
There are two main mistakes. Some students start taking action before thinking enough about what they would like to do in the future. Students have limited resources that need to be applied efficiently and effectively. Also, students don't always have a Plan B. It might not be their top choice for the future, but it's the first step toward a safe career, in which they are more likely to be successful.

What is your best advice for graduates?
Results always come about through effort and professionalism.