08/04/2009 | Careers Advice, MBA Recruiters

Talent shuffle impacts positively in non-profit, NGO and government positions

By: Caroline Parry

The so-called ‘talent shuffle’ for MBA graduates, created by considerable recruiting caution in the finance and consultancy worlds due to the credit crunch, has seen an increase in applications by MBAs to positions considered unfashionable in the past. Is this purely as the result of the recession or is it a reflection of the interests and ethical codes of Generation Y.

With gloomy headlines about government aid packages, job cuts and companies collapsing into administration now a daily occurrence, the outlook for MBA graduates could be considered bleak.

The retrenchment in financial services and consulting has reduced the number of the traditionally sought-after MBA roles. While some graduates will be fighting harder for fewer positions, others are using it as an opportunity to explore ways of using their MBA to make a positive contribution to social and environmental causes.

This ‘talent shuffle’ was highlighted last month by McCombs School of Business in Austin, Texas when a careers workshop called ‘MBA Jobs You’ve Never Considered’, which focused on non-profit and government roles, was the best attended of the workshops held by the Texas school in spring.

According to research published in March by Net Impact, a global organization of more than 10,000 students and professionals that aims to “use business to improve the world”, 15% of the MBA population surveyed indicated that the current economic climate has increased their interest in non-profit roles.

Jeff Muzzerall, director of the Corporate Communications Centre at the Joseph L. Rotman School of Management in Toronto, agrees the credit crunch has boosted interest in non-profit roles: “Many of our students have commented that ‘if I’m not making big money, I might as well be making a contribution to society and getting meaningful experience at the same time.’”

Muzzerall continues that there has been a slow but steady growth in interest in not-for-profits and NGOs over the past five years regardless of the recession, which is “in line with Generation Y demographics and social awareness.” But, he counters, for some graduates the allure of high pay and big bonuses will remain tempting because of student debts and the desire for financial security.

While there is some scepticism in some quarters about the sincerity of MBAs considering non-profit roles by a difficult economy, Tal Dehtiar, co-founder of MBAs Without Borders, an organization that matches local entrepreneurs in developing countries with MBA graduates, is dismissive.

“So what if the credit crunch is what gives MBAs the kick in the pants they need.” he says. “Some will go back to the corporate world and three piece suits, but some will decide to stay in the field.”

Either way, he adds, today’s chief executives believe that future business leaders should have experience of working or studying in a developing company. “It doesn’t have to just be selfless, it can also be good for your career as it will help you understand the social and environmental issues.”

He adds that the organization works with local partners across Asia, Africa and Latin America to find suitable candidates, who have to apply like a regular job process. MWB arranges the logistics such as visas and flights but then rest is up to the MBA. “We arrange the projects but I can guarantee that most change once the MBA has arrived. It will test how they can adapt. If it changes from a finance project to a marketing one, do they sink or swim?”

Perhaps the key benefit for MBAs considering roles at non-profits, either short or long term, is the opportunity they will get to make an immediate impact on the organization and, as Rotman’s Muzzerall points out, see the impact of “making a difference, addressing material necessity and actualizing beyond rational self interest. From greed is good to good for good.”

Krista van Tassel, marketing and communications director at Net Impact, says: “Many non-profits present interesting challenges to MBAs to rethink their traditional job functions and develop new skills like fundraising and marketing on a small budget.”

She adds that MBA graduates bring solid business skills and expertise in marketing, finance and operations to non-profits.

Valerie Fitton-Kane, a graduate from Judge Business School in Cambridge, joined Oxfam’s trading division four months ago as Innovation Manager. While she started her career as an IT auditor and consultant in the US, she became interested in non-profit work in 2002. After completing a series of non-profit management courses she decided to embark on an MBA to round out her skills.

She says she has been given responsibility at Oxfam from day one because charities have to “make the most out of everyone there”. While she openly admits that she makes “about half” the salary a majority of her peers will be on, she believes she is developing her skills much faster than those in bigger corporations and in more defined roles.

Xuzhi Mao, who is currently at Judge studying for her MBA, was previously a journalist for China Central Television before deciding to come to the UK to do an MBA. Having already won awards for her journalism raising awareness of HIV in China, she is now keen to apply her MBA to working with non-profit organizations that bridge the gap between the business world and people living below the poverty line.

However, both Fitton-Kane and Mao agree despite the growing interest in non-profit work among MBAs, they are still in the minority. Despite starting her MBA with a specific goal of working for Oxfam, Fitton-Kane says: “People think that this wasn’t my first choice of role but that I couldn’t get a job elsewhere.”

While the economic climate has been the catalyst for interest in non-profits, there is a feeling that the sector and business schools should act now to build better links. Alison Collins, head associate/internship co-ordinator at Amnesty International USA, says that she has received more enquiries from MBAs over the past four months but only one local New York school has been in touch with her.

She says, “my eyes have become open to the potential of what MBAs could do to help Amnesty with strategies to help grow its membership base,” and adds that she would be interested in working with schools to help shape the content of MBA programs.

While more MBAs are seeking non-profit roles, they remain in the minority because students are often not aware of the diverse range of roles the sector can offer. There are increasing number of schools, including Rotman and Judge, that have candidates from non-profit backgrounds and links to the sector, but both recruiters and schools should use this new interest to broaden the appeal of doing an MBA to those interested in non-profit, and to encourage talented graduates to look past established career paths.