Exclusive Survey: Competition Intensifies for Top MBAs

And setting the tone for perhaps an even more competitive 2012 recruiting season, Consulting 's survey found that almost half (46 percent) of first-year MBAs reported interviewing at least four firms for their summer internship.

The B-school's "career centers are driving home the message that they need to take the internship process seriously," says Kristen Clemmer Meeks, Booz & Company's director of North America campus recruiting. "They are coaching students on just how brutal the job market is."

While there is a severe supply/demand challenge, the quality of applicants has improved this year, Meeks says. "During the downturn, MBAs had fewer employment choices. When you sat down and talked with someone, you'd learn that they really didn't want to travel. But they were willing to consider starting their career at a consulting firm because they knew their options were limited. This year, those that are talking with us are actually interested in consulting careers."
Well, at least for a few years.

Even before they start their first day on the job, the majority (58 percent) of this year's recruits plan to leave within four years, according to Consulting 's survey. Among the class of 2012, retention could be even more difficult—more than two-thirds (69 percent) say they anticipate leaving their first consulting firm within four years and 1 in 5 (19 percent) say they plan to defect within two years.

Only time will tell if the class of 2012 is really less loyal than 2011. It's possible that they are just not yet as sold on a consulting career, having not yet experienced their summer internship. But the numbers do indicate that firms have an uphill battle to retain their junior-most talent.

Travel and other work/life balance issues are cited by MBAs as the biggest obstacles to considering longer-term careers in consulting. While few firms can avoid travel, firm recruiters would be wise to improve their messaging so as not to turn off would-be consultants before they have a chance to consider the profession.

One change for 2012 being considered by Booz & Co. is to increase their hiring of undergraduates. Their salaries tend to be lower than MBAs and travel isn't perceived as a burden. "They have far fewer travel issues. They aren't burned out by anything and have an infectious enthusiasm." Meeks says. "I could tell them that they're being reassigned to Latin America tomorrow and the reaction I'd most likely get is 'that's awesome.'"

While significant attrition at the bottom of a firm's pyramid may be inevitable, the costs are staggering. The average MBA compensation package includes a starting salary of about $120,000, a signing bonus of another $20,000 and an annual performance bonus that could add another $20,000. Add in tuition remission, as some firms offer in select cases, and each MBA could cost in excess of $200,000.

The so-called elite strategy firms are best positioned for next year's recruiting season. They ranked highest among MBA's "Awareness" and "Employment Interest" in a question that asked for their perception of 50 leading consultancies. After the top 5-10 firms, however, the ratings fall precipitously. In fact, MBAs have no better than "average" interest in working for any firm below the top 10.