To freshly-minted MBA graduates, the tech sector is looking like a smart investment. Increased numbers of MBA grads are joining tech companies, while fewer are taking positions in the finance industry.
The top 13 business schools report steady increases over the last three years in students going to work for tech companies, while students taking jobs in finance has decreased.
At Cornell University’s Johnson Graduate School of Management, for example, 19% of 2013 MBA grads are going to work in technology, up from 12% in 2012, according to data from the Wall Street Journal. At the same time, 30% of MBAs said they were heading to finance jobs, down from 30% the year before.
At other elite schools, including Harvard Business School and University of Chicago Booth School of Business, MBA grads were making similar choices, with tech on the risk and finance waning.
At several schools, technology is even winning out over traditional finance. At Stanford Graduate School of Business, 32% of 2013 grads opted for the tech sector, while 26% chose finance. Technology is also edging out finance among grads at the University of California, Berkeley, Haas School of Business, the University of California, Los Angeles, Anderson School of Management and MIT Sloan School of Management (MIT’s numbers aren’t final yet).
Finance has traditionally been an MBA’s first stop after graduation. But the industry is offering fewer starting positions and has reduced salaries, while continuing to demand long hours. These factors are encouraging MBAs to look for fresh options.
In contrast, the technology sector is on an upswing. Many tech companies boast a culture of innovation, flexibility and entrepreneurship. At technology companies, business often changes quickly and management structure is less defined, and employees often feel closer to the decision-making. However, salaries are often lower and there can be concerns about job stability. The statistics, however, show many MBA grads are willing to take the risks.
Technology companies are increasingly courting MBAs. The survey showed more technology companies have stepped up recruiting MBAs for internships and full-time employment.