arlos Ocampo, a second-year MBA student at Columbia University, hasn’t cemented
the details of his compensation package, although he committed to working for McKinsey
& Co. in Copenhagen, Denmark, after graduation in May. "I’m
not worried," Ocampo says. "I know I’m going to get a salary that is fair."
Lucrative compensation packages are the minimum MBAs have
come to expect from employers in today’s competitive recruiting environment. However,
what motivates Ocampo—and many other MBAs—to join companies like McKinsey goes beyond
financial rewards. It boils down to corporate reputation.
McKinsey is widely regarded as a company that offers strong
career development opportunities and a challenging work environment.
"Money is important, no doubt about it," Ocampo says. "But
it is the intangibles that are going to make me want to go work for a company."
Ocampo is not alone in putting a premium on corporate reputation,
according to a Hill & Knowlton report titled "Corporate Reputation Watch," which
was released January 16. Almost 75 percent of respondents said reputation plays
an extremely important or a very important role when considering where to work after
graduating with an MBA. The survey was administered to 530 MBA candidates from top-tier
programs throughout the United States, Europe and Asia, according to Ruth Pestana,
U.S. director of strategic services for Hill & Knowlton.
There are several dynamics that go into creating a strong
corporate reputation, Pestana explains. Survey results indicate the quality of a
company’s management, its products and services, and the employee talent within
an organization are vital. Eighty-three percent of participants said these factors
were extremely important or very important in driving corporate reputation. By contrast,
70 percent of survey participants said a company’s financial performance and investment
value was an extremely important or a very important driver of corporate reputation.
The survey also shows that MBAs value corporate social responsibility.
Employers that produce alcohol, tobacco or chemicals will probably face difficulties
in attracting top MBA talent, even if they are financially successful, because their
reputations are not green enough. "Corporate social responsibility is emerging as
an important magnet, not just for MBAs, but for all types of talent," Pestana explains.
As such, employers should take a critical look at how their CSR reputation is perceived
from the outside.
The survey examined not just what drives corporate reputation
but also what MBAs take into account when weighing a job prospect. Having strong
career opportunities took priority over any factor that goes into choosing a job,
with 95 percent of survey respondents saying it is extremely important or very important.
By comparison, 85 percent of participants said compensation and benefits packages
were extremely important or very important when considering a job.
Companies offering unique perks should note their efforts
externally to boost their reputation, Pestana advises. What is going to make an
employer stand out in the minds of an MBA with multiple job offers are factors like
a cool corporate culture or strong work/life balance initiatives.
Pestana says building a strong corporate brand is going to
mean reaching out to MBAs in an intimate setting. She recommends hosting events
where talent and company representatives can mingle.
But Pestana warns against overwhelming candidates with too
much business speak. Rather, it is important to highlight the company’s depth and
character. This may require introducing MBA recruits to an array of company representatives,
not just high-ranking executives.
She says connecting them with recent MBA hires can be a powerful
tool because there is a level of comfort and familiarity with these individuals.
"These experiences will resonate with them perhaps more than
talking with a senior VP," Pestana notes.
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