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Part I of our interview with Sherrie Gong Taguchi,
author of Hiring the Best and the Brightest œ A Roadmap to MBA Recruiting
(AMACOM 2002) focused on the state of the MBA degree in American
business today. (Click here to read Part I). Now, in Part II, Ms.
Taguchi gives practical, up-to-the-minute advice to HR managers
on the special requirements and best practices of MBA recruiting:
Shari Lifland: How is MBA recruitment unique? Sherrie Gong
Taguchi: MBA recruitment differs from other types of recruitment
in 6 main ways:
- Phasing and length of the interviews.
You will typically conduct preliminary interviews on campus, with
second rounds on site in your office.
- Experience and expectations of the
candidates. MBAs usually have more years of experience than
undergraduates, but fewer years than executive search candidates
in your specific industry.
- Level of intensity. Although effective
MBA recruiting requires year-round effort, for the most part,
MBA recruiting has a season in which activities are intense and
focused. When the season starts, you need to get your strategy
and plan in motion quickly, with exceptional execution.
- Highly relationship-based, not transactional.
For many companies, it can take several years to produce desired
results.
- Extensive legwork. You usually
do the majority of the work for MBA recruiting on behalf of your
company and are involved throughout. In contrast, when working
with an executive recruiter, the recruiter will work on your behalf
to do the legwork from start to close: the research for sourcing
candidates, preliminary screening and evaluation, even the reference
checks.
- Compensation.
The base median salary for MBAs at top schools is around $90 œ
$100,000. Add in some of the common compensation components such
as signing bonuses, year-end bonuses, stock options œ and the
total compensation package can easily top $150,000.
SL: Whatÿs your thinking on MBA recruitment in house, vs.
via an executive search firm?
SGT: I have utilized executive search firms, especially world
class ones like Korn Ferry and Spencer Stuart, but never for MBA
recruiting. I donÿt think a company can really do an excellent job
if they use contract recruiters, either, because MBA recruiting
is so relationship based, not transactional.
Search firms are best for specific hard-to-fill openings that typically
have compensation upwards of $120,000. Examples might be: a VP of
Sales or Marketing; a Director of Operations, Facilities, or Corporate
Communications; a head of Manufacturing or HR; CEO, CFO, or COO;
or a general manager of a division. A top firm will charge one third
of the total first year compensation for a hire.
SL: What are some of the key indicators a recruiter should
look for to determine which schools warrant being included in their
recruitment program?
SGT: For researching the schools and programs, youÿll want
to do some digging above and beyond whatÿs readily available on
the schoolsÿ Web sites and in their brochures. Due diligence is
crucial so you can decide which schools are best for your needs,
short- and longer-term.
Iÿd recommend 15 key evaluation dimensions during your upfront
research and more in-depth campus visit(s):
- Program description, B schoolÿs mission,
structure, etc.
- What is the program known for? What
is its reputation among students, peers, recruiters, media? What
kinds of courses are offered? Do they all sound like the latest
business jargon, or do research, depth, and continual innovation
go into them?
- Who are the faculty? Ask for a faculty
directory.
- Selectivity. How many applicants apply
each year? How many are accepted? Whatÿs the class size?
- Review a course catalogue for the academic
year. Does the MBA program offer a general management focus or
concentrations? If concentrations, in what areas?
- Find out about the deanÿs background,
management style, vision and priorities for the school.
- Student demographics and profiles: mix
of gender, average years of work experience, range and median
ages, international and U.S. breakout, top industries and functions
the students come from, their undergraduate colleges and majors;
studentsÿ preferences.
- View the recruiter guide, placement report,
school Web site, academic and recruiting calendar for the year,
resume book information, interview request forms, etc.
- Get a list of student clubs and officers.
- What events are planned for the year?
- Who are the �go to” people who can make
things happen? What do they offer recruiters œ special programs
such as recruiter briefings, one-on-one help for advising on your
strategy and plans?
- What are the placement statistics? Top
industries, functions, locations, company size breakouts?
- What other companies recruit at the school?
Which especially in your industry? Which are most successful and
why?
- How do you recruit alumni from the school
if you decide to do that?
SL: What do top MBAs look for in a hiring package? Is money
the #1 lure, or are intangibles important as well?
SGT: Top MBAs consistently note that money is important,
but surprisingly to some, it is not always the #1 reason for accepting
an offer.
Many intangibles are within their top three or five reasons for
accepting an offer:
- Liking the people theyÿd be working with
and for
- Intellectual stimulation
- Being given responsibility as quickly
as they can handle it (vs. lock- step progression)
- Opportunities for career broadening
- Comfort with the companyÿs culture
- Commitment to employeesÿ continuous learning
- Excitement about the companyÿs products
or services.
For structuring an offer, itÿs important to incorporate external
considerations, i.e., what your competitors are paying; internal
considerations like your compensation philosophy, including how
you handle internal equity, and elements of your negotiation, especially
closing the ¬dealÿ and helping to avoid �buyerÿs remorse.”
SL: What are the worst MBA recruiting mistakes?
SGT: Here are the �donÿts”: Donÿt recruit MBAs like you would
undergraduates Donÿt decentralize your efforts too much leading
to inconsistent messages and lack of coordination Never play dirty
Donÿt over expect Donÿt turn your recruiting activity on and off
like a faucet Donÿt fail to market the program internally Donÿt
appear arrogant
SL: Obviously the Internet has brought about permanent change
in how people recruit for and find jobs. How has the Net specifically
affected MBA recruitment?
SGT: The Internet is an amazing and cost-effective tool for
MBA recruitment and recruiting overall. It does not take the place
of people, however. MBA recruiting is a high touch, rather than
high tech process.
Companies, can, however, leverage the Internet in three vital ways:
They can create a winning web site that differentiates the company
vis-õ-vis competitors and attracts the kind of candidates it wants.
They can tap into some of the best of the 2500 career-related Web
sites currently available to post job openings. The Internet is
a cost-effective channel for sourcing œ for reaching a broad and
even global candidate pool. Smart, visionary companies also use
web-based tools for practical applications like sharing resumes
across groups in multiple locations, resume/candidate screening,
applicant tracking, management reporting (cost per hire, etc.).
For job seekers, the Internet can be a great resource for researching
industries, companies, competitors, and job openings. For example,
many MBAs and alumni look first at a companyÿs Web site before deciding
to accept or decline its interview.
SL: The idea of �unemployment for life” with one company
no longer exists. Once an organization succeeds in hiring the �best
and the brightest,” what should it do to make sure those best and
brightest stick around long enough to be of value?
SGT: After spending all the time and resources to recruit
great talent, itÿs important to develop, inspire, and keep that
talent. This is for pragmatic reasons like: getting your ROI and
heeding your real cost per hire but also keeping great employees
builds morale and ensures a robust, productive organization.
There are 7 Cs for keeping your talent in good times and in bad:
1. Core values and culture 2. Connect people to people and to the
organizationÿs aspirations 3. Communicate like they mean it 4. Create
continuous learning opportunities for their employees 5. Care about
career development 6. Commit managers to people and make sure thereÿs
accountability for people being a priority 7. Compensate with tangibles
and intangibles.
If you would like to purchase �Hiring the Best and the Brightest”
or learn more about AMACOMÿs comprehensive list of business titles,
go to www.amanet.org
Sherrie Gong Taguchi is an HR professional, educator, and author
based in London. She was VP of University Relations for Bank of
America and Director of Corporate HR for Dole Packaged Foods and
most recently, for the past 7 years, Assistant Dean and Director
of the Stanford Graduate School of Business MBA Career Management
Center, where she also headed the Schoolÿs Management Communication
Program. Ms. Taguchi earned her Stanford MBA in 1989. She is working
on a second book for individuals aspiring to bold, dynamic, meaningful
careers.
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