One or Two Year MBA Programs: TopMBA Mentor

While outcomes may not differ, experience is key in determining the best program length for MBA candidates, writes Nunzio Quacquarelli.

Once upon a time – say, 20 or 30 years ago – we could safely say that programs at top-tier schools were two years in length. This, however, is no longer the case. Employers certainly do not feel this way. In terms of employment outcomes, a pretty solid indicator of program quality, there is no evidence of any difference between one and two year programs. The latest Global 200 schools reporting the highest average salaries three months after graduation are evenly split; nine are one year or shorter, nine are longer than 16 months, with the remaining two offering 16-month programs.

Interestingly, the highest average base-salary figures belonged to one year programs. Macquarie Graduate School of Management leads the way (US$143,500), followed by Vlerick Leuven Gent Management School (US$140,000), Warwick Business School (US$137,000) and IMD (US$129,500).

Of two-year schools, Stanford, whose 2011 cohort earned, on average, US$127,000, reports the highest average; a result of its proximity to the wealth of technology and consulting opportunities offered by Silicon Valley. To give a sense of perspective, the average base salary in Western Europe and North America across Global 200 business schools is US$92,000.

So, why would you opt for one over the other? Largely, the chief differentiator for a candidate is experience.  The one year format was developed by European schools looking to attract older, more experienced candidates. This is still the target demographic for these more concentrated programs, with the average age of students standing at 29 as compared to 26-7 in the US, where the two-year model is still very much predominant.

Learning is accelerated in these one year programs, and a greater level of efficiency is required. The focus is tighter, with integrated cross-functional courses and fewer electives. The more-experienced candidates at whom these programs are targeted – many one-year programs demand at least three years experience – are more likely to get to grips with the accelerated learning environment and enjoy the benefits that it offers. And, of course, the lower opportunity cost makes shorter programs ideal for older candidates likely to have higher salaries and more responsibilities. We tend to see a greater proportion of women on one-year programs too (Macquarie’s cohort is 41% female and Vlerick’s is 38% - the average is 32%) for obvious reasons. However, we can see where a two-year school has made a particular effort, this is less the case – Wharton, at which we see a 40% female cohort, is good example.