How are they doing and was the MBA investment worthwhile? By EMBA World
(May 2010) An individual must weigh the cost and job prospects of an MBA today with income possibilities and employment opportunities of tomorrow. Articles written about the value of the MBA are always met with skepticism and more so these days than ever before. EMBA World, a New York City-based organization, has explore the value question of the EMBA. The survey used is the first of its kind with a focus on graduates of the Executive MBA. Now looking back five or more years on their career since graduation, what are EMBA graduates saying today about the education, economy, and overall outlook? Are they satisfied, skeptical, or neutral on current employment conditions? And are they better prepared or worse off on their decision to pursue the degree?
In past recessions enrollment in graduate business education rose. Not the case in the current climate. From 2008 to 2010, there is a decline in test preparation, according to Kaplan Educational Testing, a decline in overall GMAT test administration, according to GMAC, a drop in business school applications according to a random selection of New York City business schools, and a double digit drop in attendance to MBA fairs last fall and spring 2009, according to QS Network, organizers of the TopMBA Fairs worldwide.
The high cost of the education and generally poor employment conditions are two primary reasons for the drop in enrollment. When times are tough employers and employees are both reluctant to make dramatic changes to their job habits and job expectations. Succinctly stated, “Asking for time off or financial assistance in this climate is asking a lot from your boss,” explains Samantha Carrol, a private employment counselor in New York City.
The cost of a graduate business degree can reach over $100,000 and the average is approximately $60,000 nationwide. The cost of a traditional MBA versus an Executive MBA are not too far off, both are expensive. Add on travel expenses, residential, and other incidentals commonly associated with an EMBA and the cost can be much higher. Factor in costs for GMAT test preparation, testing fees, and business school application fees and the cost continue climbing.
Purely as an academic exercise EMBA World issued a simple thirteen question survey to graduates asking about their EMBA experience. The survey was made available on the EMBA World website, promoted through Twitter and Facebook, linked with EMBA alumni groups across the United States, and through email blasts to the EMBA World graduate business database.
Here is a profile of the respondents.
- Average years out of school: 9.5 years working since graduating
- Range of years out of school: 3 to 23 years working since graduating
- Job titles: Manager to CEO
- Industries: Technology, Pharmaceutical, Marketing, Banking, Media, Non Profit, Other
- Average salary of study group at entry of business school: $92,000
- Average salary of study group today: $213,000
Salary averages over the ten year period is the most dramatic of this part of the survey. The number of work years since graduating was 9.5 years, almost a decade and yet in this time the salary has grown from a base of $92,000 to $213,000 or an increase of 131%. The survey strongly suggests positive returns from the investment over a ten year period. Of course the salaries are influence per person, per industry, and per time period. No matter how good you are, the starting salary during the 2001 recession is less than if you graduated even a year or two later.
Survey Results Continuation
- Still with same employer: 40% of respondents are still with same employer
- Worth the investment: 91% reported yes
- Recommend the education: 99% reported yes
- More or less optimistic of the future: 60% more optimistic; 25% much more optimistic; 15% no difference
Another consideration of the EMBA from an employer standpoint is employee loyalty. It seems that with 40% of respondents still with the same employer from when they entered the MBA suggests the following: job growth and job satisfaction is possible in the near future after graduation; a moral devotion to stick with the same employer is possibly influenced during those hectic times where the employer accommodated the needs of their employee-students, and the education was respected valued. Are EMBA graduates more loyal than traditional MBA graduates? This is difficult to measure given that many traditional MBA students start school immediately after undergraduate or drop out of the workforce to accommodate the degree.
Opened Ended Questions
- What were the highlights of the experience?
- What would you do differently with an MBA?
- How as the recent economy affected you?
Classmates, class projects, and certain professors stood out the highest and loudest for many respondents as highlights of the experience. “Great classmates and great professors,” were typical responses. “Classmates, networking, class bonding through major projects,” further describes the zeal and general passion of EMBA graduates.
In terms of doing anything differently, for those who responded the answer was much the same as they are doing today. In other words, they appear to feel confident in their career path and would not change their working condition. They responses were generally of satisfaction of their career direction.
For the question regarding the recent economic crisis, 7% were unemployed or in a job transition while the remaining were fully employed and reported no or little impact at all. Responses ranged from “having it only helps” to “no real job flexibility, job market stagnant.” Others stated that projects have been delayed and some reported “better job than before.” Clearly this section had the broadest range of responses from hot to cold and everything in between.
Even with an MBA people are not immune the realities of the workplace and global economy. The open-ended results did allow people to express themselves including some that described the current economic conditions as stifling for job options and job growth. The economy has prevented people from achieving what they desire and these conditions are beyond the scope of any education to fix.
EMBA World is a New York City-based organization dedicated to helping employees and employers understand options regarding graduate level business education and in particular the Executive MBA. Jason A. Price, MS, MBA, is Director of EMBA World and author of The Executive MBA: An Insider’s Guide for Working Professionals in Pursuit of Graduate Business Education. Jason is a frequent speaker to media on graduate business education issues and publishes industry articles periodically on the subject. The Insider’s Guide can be found at online bookstores or at EMBA World www.EmbaWorld.com. You can reach Jason A. Price at Jason@embaworld.com.