Take for example, Columbia's 2017 Employment Report. I heard CBS is a finance powerhouse... but the top 5 recruiters in 2017 were McKinsey, BCG, Bain, Amazon, and Deloitte! In fact, 55 students went to McKinsey and only 8 went to Goldman Sachs.
In addition, why is the % of MBAs going to IB decreasing, while that going to consulting increasing?
Any insight is appreciated, meanwhile, these are some of my guesses (TL;DR). Since I'm not working in neither IB nor MC and I'm not from the US, please go easy on me.
- MBB recruit more new hires than BB IBs at the post-MBA level. However, I find it hard to believe that this is the case
- There are not many consulting firms (MBB + a couple of others) but there are many BB/MM/EB banks, so the recruitment for banks is more "spread out". That still doesn't answer the question why only 5-10% of MBAs in most top 15 bschools joined banks while 20-30% joined strategy consulting in 2017
- Perhaps Bschools group a lot of jobs into "consulting?" (while only a small % of them are actually strategy/management consulting)
- Most ex-BB IB analysts don't want to return to IB. They'd rather go to the buy side. This makes sense because the % of MBAs joining PE/HF/AM/VC is still high especially at Booth/Wharton
- IB analysts who know they want to stick with banking don't get MBAs... grind 2-3 years and get promoted to the Associate level (is that a thing?)
- Many ex-MBB BAs have their MBAs sponsored -> a lot of them get into M7 and then go back to MBB
- Bschools admit more consultants than bankers
- Bankers have more incentives to switch to consulting than vice versa
- Many MBAs start thinking about settling down so they value more spare time with the family -> banking is not an option
- Just a hip trend thing. After the financial crisis, bankers are seen as evil/greedy, while consultants are praised as "smart" and "problem solvers"
- Bschools admit a lot of engineers, liberal arts students and whatnot. Without finance experience I'm willing to bet they are more interested in consulting than banking
- Recruitment at MBB is easier, so of course more people get offers from there -> I don't think it's true, however
- The pay gap between consulting & banking is closing -> most employment reports show higher median income (but lower median bonus) for students heading into consulting vs banking
- The banking industry is shrinking so most students are jumping ship