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Employers Look at Experience More than Grades For New MBAs

BOSTON, November 5, 2007—Employers looking to hire newly minted MBAs are more likely to consider applicants’ prior work experience and graduate school than grades, according to a new Pearl Meyer & Partners (PM&P) survey of 81 organizations that reported information on more than 10,000 college hires. The 2007 CHiPS New College Graduate Survey also found starting base salaries for MBA graduates were up 5% on average from a year earlier.

“For the past three years, over 60% of employers cited prior work experience as a consideration when hiring and setting salary levels for new MBA hires,” said Ken Cardinal, Managing Director, PM&P. “In contrast, over that same period, just one-quarter to one-third of employers surveyed considered an applicant’s GPA in their hiring decisions.“

The particular graduate school granting a candidate’s MBA was the second most frequently considered factor in hiring, cited by 52% of employers in the 2007 survey. In contrast, two years earlier, 42% of employers said the graduate school attended made a difference, according to the CHiPS New College Graduate Survey, conducted annually since 1995.

On a national basis, the 2007 survey found starting base salaries for MBA graduates were up 5% to $87,068, although growth was not consistent across the country. Salaries fell 2% in Silicon Valley and 4% in the Northeast to $85,011 and $79,742 respectively. Starting salaries in the South Central region, which historically have lagged the rest of the country, were up 5% to $75,261.

The Pearl Meyer & Partners’ 2007 CHiPs New College Graduate Survey provides comprehensive compensation data and practices for both new college hires and interns with degree types including BS, MS, PhD, MBA and JD. To receive a complimentary copy of a summary of the survey, go to www.pearlmeyer.com/college or for more information about PM&P compensation surveys go to www.pearlmeyer.com/services/surveys/index.shtml.

Since 1989, Pearl Meyer & Partners (www.pearlmeyer.com) has served as a trusted independent advisor to Boards and their senior management in the areas of compensation governance, strategy and program design. PM&P provides comprehensive solutions to complex compensation challenges for companies ranging from the Fortune 500 to not-for-profits as well as emerging high-growth companies. These organizations rely on PM&P to develop programs that align rewards with long-term business goals to create value for all stakeholders: shareholders, executives, and employees. Pearl Meyer & Partners has offices in New York, Atlanta, Boston, Charlotte, Chicago, Houston and Los Angeles.

About CHiPS Surveys
The Pearl Meyer & Partners’ CHiPS family of surveys is composed of six compensation surveys covering the unique segments of an organization's employee population. Separately, each survey provides the most comprehensive perspective on total compensation for the broadest groups of positions available. Combined, the compensation surveys paint a complete picture of total compensation, providing a single information resource for establishing and managing compensation strategies.

CHiPS Surveys
CHiPS Professional and Managerial Total Compensation Survey
CHiPS Executive and Senior Management Total Compensation Survey
CHiPS SalesPlus Survey of Customer Focused Positions
CHiPS New College Graduate Compensation Survey
CHiPSPulse Quarterly Survey of Human Resource Trends
CHiPS Long Term Incentive Report

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