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Applications Up
Number of MBA Candidates Grows as Confidence in Employment Opportunities Returns
MBA applications worldwide are expected to increase dramatically in 2007, as candidates gain more confidence in post-MBA employment opportunities. The 2005-6 admissions season saw a rise of more than a third at top schools such as Haas, Wharton, and Yale. The number of MBA candidates has been increasing steadily, following a significant decline in the early years of the millennium. QS TopMBA, which runs the World MBA Tour, the world’s largest programme of business school information fairs, reports over 59,000 MBA candidates attended their fairs in Fall 2005 and Spring 2006, an 8% increase on the previous year. Additionally, the number of GMAT test takers has grown by at least 3.9% worldwide, within the first five months of 2006, according to the Graduate Management Admissions Council.
According to the TopMBA.com research, the world’s largest poll of prospective MBA candidates, during the period 2003-4, potential MBA applicants feared a slowing job market, and subsequently, chose continued employment over studying for an MBA. This is no longer the case. A survey of 445 MBA recruiters, also conducted by TopMBA.com in Summer 2006, revealed that recruiters predict MBA demand will remarkably return to pre-recession levels by 2007. An overall 24% increase in demand for MBAs in 2006 has been observed, with a huge 38% increase in demand within the consulting sector, and 24% within the financial sector. Kim Keating of Tuck Business School, US, states, “by April 2006, over 90% of our class had at least one full-time offer. We expect all the class to have offers by graduation.”
Renewed confidence in MBA employment opportunities is the greatest factor driving the substantial growth in numbers of applicants. TopMBA.com’s recently completed 2006 survey of MBA applicants finds that improving career prospects, at 73%, remains the most important factor in deciding to take an MBA (see Table 1, below, based on a worldwide sample of over 5,400 MBA applicants - each could select multiple reasons for study).
‘Learning new skills’ maintains its second position, with 57% of respondents ranking this of crucial importance to studying for an MBA. Growing confidence is also indicated by a strong desire of MBA applicants to build professional networks, with 42% of respondents citing this as an influential driving force. Although respondents cite ‘improving education’ as a decisive factor to choosing an MBA, the overall data strongly reinforces the view that the MBA is a highly vocational course taken specifically to achieve career-related goals.
In addition, the proportion of respondents taking an MBA to boost salary remains 29%. Table 2 below shows the mean salary expectations of MBA applicants around the world. The overall mean target salary of MBA candidates is between US $95,001 and US$100,000.
15% of North American MBA candidates expect to earn over US$150,000 per annum after their MBA, compared to 11% in Western Europe, 9% in Central Europe, 5% in Asia, and 4.5% in Latin America. These notably high salary expectations, compared to previous years, confirm that confidence has returned to MBA graduates and applicants.
When asked which factors were most important when selecting a future employer, MBA applicants look to employers who can deliver job satisfaction and career progression, above all else (1 is not important and 5 is most important).
For the MBA class of 2007/8, consulting remains the most popular post-MBA career choice. Having said this, only 7 of the 20 most attractive MBA employers are in the financial services and consulting sectors. There are also significant country variations in responses. In Germany, in particular, 91% of respondents expressed an interest in working in the consulting sector, post-MBA. By contrast, in Vietnam the Non-Profit/ Government sector was most popular, attracting 53% of respondents.
MBA Research
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