Post-Crisis MBA Career and Business School Trends in Greece

With the Eurozone crisis continuing to make headlines across the world, thoughts must turn to the consequent MBA trends. Arguably, no one country has been affected by the downturn more than Greece. What effect then has the Eurozone crisis had on studying an MBA in Greece and what trends can be seen amongst its MBA applicants and prospective employers?

Greece has suffered terribly over the past four years. Since 2009 its economy has contracted by some 25% and far-reaching austerity measures have been introduced by the government.

Most recently, there are fears that Greece may need a third program of aid in 2014 and a second debt-cut has yet to be definitively ruled out. The main problem being that Greece’s economy is still shrinking, meaning that it has been impossible to reduce its debt.

Eurozone crisis has had a damaging effect on MBA trends in Greece

In light of Greece’s economic woes, it is hardly surprising that MBA trends have been affected. According to the 2012/13 QS TopMBA.com Jobs and Salary Trends Report, austerity measures have had a particularly damaging effect on local employers in Greece leading to a substantial fall-off in MBA demand over the last year.

This has also had a downward effect on MBA salaries. The 2012/13 QS Global 200 Business Schools Report indicates that MBA salaries in Greece are lower than elsewhere in Europe. For example, students embarking on an MBA in Greece at either the Athens University of Economics & Business (Athens UEB) or ALBA Graduate Business School – both of which rank in the QS European top 50 – stand to earn less than many comparable institutes within Europe. However, with expected salaries of roughly US$40,000, the solid reputations of these schools sees them compare much more favorably with similarly regarded schools outside of Europe.

In addition, government measures in Greece have also had a knock-on effect on MBA trends for major trading partners of Greece such as Ukraine, Hungary and, in particular, Bulgaria. In all these cases there has been a fall in MBA demand in the past year. Indeed, coupled with cutbacks in Germany, it has been a difficult year for many Central European economies with worries remaining over the impact of any further negative events.

However, it is not all doom and gloom in Europe. In spite of the Eurozone crisis, Western and Eastern Europe still reported a net growth in MBA demand of 5% and 7% respectively in 2012 and are cautiously forecasting a 2% rise in the coming year. These figures suggest the possibility that Greece might yet be able to witness an upturn in the near future. 

Furthermore, Italy and Ireland – which have also seen a fall in MBA demand this year due to ongoing economic concerns – both display potential for future growth from an increasing number of financial companies regularly recruiting MBAs, as well as from expanding consulting industries.

Optimism can also be taken from the case of Russia which has recovered rapidly from the financial crisis to show a renewed appetite for MBAs as well as offering competitive salaries. In fact, the Eastern European country has posted an enormous 70% increase in MBA demand for 2012, led by the energy and consultancy sectors.

Hope of improvement for the MBA in Greece is in evidence, but uncertainty remains

Tentative signs for improving MBA trends are there for Greece too. According to a report for the first half of 2013 conducted by ALBA Graduate Business School (ALBA GSB), stagnancy amongst recruiters persists but has greatly improved from the previous six months, suggesting that a recovery may be on the horizon. It also claims that employer confidence is now approaching 2009 levels (i.e. before the repercussions of the Eurozone crisis were felt. Of the 2,000 Greek employers surveyed, 65% felt optimistic for the future and 22% said they would proceed with recruiting new employees. 

However, the IMF said in August 2013 that it overestimated the prospects for growth in Greece, placing some of the blame on a succession of Greek governments for failing to efficiently implement reforms faster, noting that political upheaval and social unrest also undermined hoped-for results. Therefore, it seems uncertainty will linger a while longer for those considering an MBA in Greece.

Greek business schools aim to attract MBA applicants through international program focus

For this reason, it is worth noting that Greece’s two leading business schools both emphasize the international focus of its MBA programs. Athens UEB aim to expand its students’ and alumni’s career opportunities beyond the Mediterranean Basin and the Balkans because they recognize both the large number of international MBA applicants they attract and the desire of locals to pursue global careers. According to the program’s statistics, 95% of graduates get a job offer within three months of graduation. Implicit in this is the understanding that an MBA in Greece will certainly not limit you to a career there.

ALBA GSB also highlights its global focus in trying times for the MBA in Greece. It boasts a growing network of partners around the world, including partnerships with EMLYON Business School amongst others. ALBA GSB also holds its own career forum where MBA graduates are granted face-to-face interviews with employers in attendance.

Of course, as with business students across the world, many MBA applicants in Greece will also be looking at programs abroad. Strong applicants will of course look for the same qualities in a top business school as their Western European, and indeed global, peers. Still, one school has been known to stand out. A Guardian article from a number of years ago looked into what they termed ‘hotspots’ for MBA students from a particular country. For Greek MBAs this was Cass Business School at City University London, drawn by the large quantity of high-profile Greek faculty members there. This still seems to be the case, as the school currently has 18 Greek-speaking experts at its disposal.      

So, whilst the current economic climate in Greece looks set to be shrouded in uncertainty for a little while longer yet, this does not mean that MBA trends are bound to continue declining. Employer confidence within Greece is beginning to rise again and its leading schools are harnessing the power of a truly international approach in seeking to provide its MBAs with every available opportunity upon graduation.

The QS World MBA Tour comes to Greece in spring and fall.