Three-quarters of top-tier MBA students say corporate reputation will play a

critical role in deciding where to work

NEW YORK and LONDON, Jan. 15 /PRNewswire/ -- A global study of MBA students at top European, US and Asian schools(1) today reveals the winners and losers in the global war for talent. Hill & Knowlton's eighth annual Corporate Reputation Watch study shows that certain industries and locations are losing the reputational battle in the global war for talent.

In examining MBA students' career aspirations, the study shows that the reputations of key emerging markets (Russia, Eastern Europe, Middle East and South Asia) discourage the best talent from working there. The same applies for multi-billion dollar industries such as alcohol, chemicals and tobacco with more than double the number of MBA students not interested in working in them than those who are: alcohol (51 percent versus 20 percent); chemicals (48 percent versus 19 percent); and tobacco (67 percent versus 13 percent).

Paul Taaffe, Chairman and CEO, Hill & Knowlton said, "MBAs graduating in a post-Enron, post-WorldCom world have a strong preference for the companies with the best reputations. It is clear that recruiters of top talent will need to offer more than just generous compensation and ample opportunity. The leaders of tomorrow are overwhelmingly seeking to associate themselves with industries, and specifically companies, with great reputations. Those with inferior reputations will find it very difficult to attract and retain the best and the brightest."

The study further reveals that in terms of company ownership, MBA students are dramatically swayed towards publicly listed companies or venture-funded institutions. The following table shows those sectors, locations and companies whose reputations attract or deter the best talent:

Attracts Deters

Industry Banking and finance Alcohol

sector IT Chemicals

Energy utilities Tobacco

Location Western Europe South Asia

North America Russia

North Asia Middle East

Australia & New Zealand Eastern Europe

Africa

Company Publicly listed Family owned

type VC or PE owned Government owned

Companies know that in the war for talent, they must do all they can to win and their external perception is possibly the most vital weapon in their armoury. The study confirms the importance of reputation with almost three- quarters (73 percent) of MBA students stating that corporate reputation plays an extremely or very important role when considering where to work after completing their MBA, with only one-fifth (20 percent) saying it is fairly important. In fact, only four percent said that reputation was not important.

The results also show significant international mobility among business' most sought-after talent with over three-quarters (76 percent) of those surveyed stating they are looking to change either industries or firms following graduation. Only one-fifth (19 percent) said they are intending to return to the firm that they worked for prior to their MBA. A fifth (20 percent) of students surveyed want to move to another country from that which they are studying, while one quarter (25 percent) are studying outside of their home country and plan on staying there.

Given this mobility, the study provides invaluable insight on the regions that are attracting talent. While the emerging markets of the world have got their economic pitch right, they are in many cases failing to communicate effectively with the very talent that can help those markets move to the next level. The following table shows the interest in working in various regions among the MBA students surveyed:

Regional preferences Net interest scores(2)

Western Europe +80 %

North America +76 %

North Asia +30 %

Australia and New Zealand +23 %

South East Asia +1 %

Latin America -8 %

South Asia -19 %

Middle East -37 %

Russia -41 %

Eastern Europe -36 %

Africa -49 %

The ownership type of company matters as well. By far the most attractive companies for MBA graduates are those which are publicly traded with almost two-thirds (61 percent) citing interest and only six percent saying they are not interested. Companies which are owned by venture capital or private equity funds have just over half of MBA students (52 percent) expressing an interest in working for them, versus 12 percent with a lack of interest. The situation for family-owned companies and government-owned companies -- found more commonly in emerging markets -- is less positive with both having more students not interested in joining them after graduating than those who are. For family-owned companies, a quarter (24 percent) expressed interest in joining one, versus 32 percent with a lack of interest. The survey painted a similar picture for government-owned companies with just under a quarter (23 percent) of students citing interest, versus 46 percent who are not interested.

So how can companies promote reputations that make them more attractive to MBA students? The key factors that drive reputation are perhaps unsurprising:

Factors that drive reputation % that rate as

extremely or

very important

Quality of management 89

Quality of products and services 88

Employee talent 83

Financial performance and investment value 71

Innovation 68

Global reach 58

Social responsibility 58

Use of corporate assets 40

However, when asked what factors drive career choice, MBA students told a slightly different story. The factors listed split broadly into three tiers. The top tier is all about people and the position: employment career opportunities; corporate culture and working environment; employee compensation and benefits package; and employee satisfaction. In the second tier are some of the basic issues about performance. The third tier covers the messages that the company communicates about its ethics and social and environmental responsibility -- its broader brand and values agenda:

Important factors in choosing job % that rate as

extremely or

very important

Career opportunities 95

Corporate culture and working environment 86

Compensation and benefits package 85

Employee satisfaction 84

Quality of products and services 75

Financial performance and growth potential 73

Corporate governance and ethics 58

Social responsibility and community involvement 49

Brand and marketing message 48

Environmental / green policy 34

Paul Taaffe, Chairman and CEO, Hill & Knowlton, concluded, "The best talent, like the most attractive real estate, will always be in scarce supply. The future winners in the corporate world will be the ones who are the quickest to recognize this and take action to enhance and protect reputation. These top MBAs see career risk on reputationally challenged companies."

Corporate Reputation Watch -- Reputation and the War for Talent is available from www.hillandknowlton.com/crw

For further information please contact:

Michelle Tsai

Hill & Knowlton, New York

212-885-0366

About Hill and Knowlton, Inc.

Hill and Knowlton, Inc. is a leading international communications consultancy, providing services to local, multinational and global clients. The firm is based in New York, with 72 offices in 42 countries, as well as an extensive associate network. The agency is part of WPP (NASDAQ: WPPGY), one of the world's largest communications services group.

Notes to editors:

(1) The survey was conducted by Penn, Schoen & Berland Associates for Hill

& Knowlton. Interviews were carried out in May and from October to

November 2007 with 527 current MBA students at 12 top ranked

international business schools in the US, Europe and Asia -- Columbia

Business School, Harvard Business School, New York University: Stern,

MIT: Sloan, London Business School, IESE Business School, HEC Paris,

University of Oxford: Said, SDA Bocconi, TIAS, Chinese University of

Hong Kong and Tsinghua University. Students of 57 different

nationalities took part in the study.

(2) The number of people interested minus the number of people not

interested SOURCE Hill and Knowlton, Inc.

-0- 01/15/2008