Tag Archives: GMAC
February 19, 2015
Business school alumni earn increased compensation, exercise enhanced purchasing power, consistently climb to the executive ranks, and give overall high marks to the value of their education in driving their professional success, according to new …
Business school alumni earn increased compensation, exercise enhanced purchasing power, consistently climb to the executive ranks, and give overall high marks to the value of their education in driving their professional success, according to new research findings from more than 12,000 graduate business school alumni surveyed by the Graduate Management Admission Council (GMAC).
The results of the 2015 Alumni Perspectives Survey Report offer a global snapshot of employment and career progression for graduate business school alumni representing the classes of 1959 through 2014. Graduates also gave positive reviews to their business school’s alumni association, with a majority saying their engagement with these associations has contributed to their success.
Conducted in October and November of 2014, the survey represents alumni from more than 230 graduate business programs at 71 universities in 16 locations across the globe. It is the latest in GMAC’s survey report series to provide data showing that an MBA or other graduate management degree, such as a Master in Management, Accounting or Finance, is a strong educational investment available to students in today’s highly competitive career marketplace.
In fact, in the survey, 95 percent of alumni rated their graduate management education as a good to outstanding value, and 93 percent would recommend their graduate business program to others.
Additional key findings include:
Ninety percent of alumni credit graduate management education with increasing their earning power.
In both developed and developing economies, graduate management alumni exercise enhanced purchasing power. For the first time, GMAC offers a comparison of earnings for graduate management alumni relative to others. A global analysis of alumni salaries by work location in relation to GDP and purchasing-power-parity per capita (GDP PPP) uncovers that business school alumni have purchasing power 1.6 to 6.8 times that of the average resident of the country where they work.
Business school alumni career trajectories show consistency in reaching higher levels of their organizations regardless of graduation year.The majority of alumni held mid-level positions one year after earning their degree.
Five years after graduation, the majority of business school alumni are in senior-level positions or higher, and at 10 years, one in four alumni are in executive-level positions and 5 percent are in the “c-suite” (e.g., CEO, CFO, COO). Graduates who have made it to the c-suite are most likely of all alumni to say they use the knowledge, skills and abilities learned in graduate business school on the job.
B-school alumni rise fast in the workplace and have high levels of job satisfaction.
The majority of graduate business school alumni, working across all occupational levels from entry-level positions to c-suite, credit their graduate management education for preparing them for leadership positions, as well as for accelerating the pace of their career advancement. In addition, they report high levels of job satisfaction.
Four in five alumni, or 84 percent, say their graduate management education offered opportunities for quicker career advancement.
For the first-time, this report measured entrepreneurial behavior in the workplace — defined through the traits of innovativeness, proactiveness and social risk taking — factors associated with alumni career success. Analysis shows c-suite and self-employed alumni describe themselves with these attributes to a greater extent than alumni at all other job levels.
Fifty-nine percent of alumni belong to their business school’s alumni association and tend to rate their level of career success higher than those who are not members.
The additional services alumni seek from their alma mater include courses and seminars, access to career services and more networking events.
“Graduate management degree-holders consistently tell GMAC their education is a solid investment and a spur to personal, professional and financial achievement, even in up-and-down economies,” says Sangeet Chowfla, president and CEO of GMAC. “A graduate management education isn’t just a degree, it’s a career catalyst.”
January 8, 2015
What turned out to be a strong job market for business school and management degree graduates in 2014 should continue into 2015, according to the Graduate Management Admission Council‘s (GMAC) Year-End Poll of Employers, released …
What turned out to be a strong job market for business school and management degree graduates in 2014 should continue into 2015, according to the Graduate Management Admission Council‘s (GMAC) Year-End Poll of Employers, released Wednesday.
This year’s hiring outlook holds steady for 2015 graduates as nine out of ten employers planning to hire business school graduates expect to maintain or increase the number of job openings for these hires compared with 2014.
“The solid job prospects for b-school talent seen over the past several years and again reflected in this poll, give prospective students good reason to consider pursuing these degrees as part of a strategy to drive their career goals,” says Rebecca Estrada Worthington, GMAC’s Survey Research Manager.
The poll of 169 employers in 33 countries, conducted in late 2014, serves as an early view into the 2015 job market for MBA, master of management, accounting, finance, and other specialized business master degree-holders.
The greatest hiring demand for b-school talent remains recent MBA graduates, while the largest increase in hiring demand is projected to be for Master in Management talent, as reflected in the eleven percentage point increase in firms who hired this category of graduates in 2014.
“Our data show that even in the depths of the recession, business and management degrees can provide a measure of job protection and opportunity. Today, in a recovering global economy, management degrees can be a powerful driver of confidence and provide fuel for an individual’s career growth,” Estrada Worthington says.
The annual Year-End Poll of Employers provides an early look at hiring plans. For a copy of the poll report, go to gmac.com/employerpoll.
November 14, 2014
Segregation in education sounds like a relic of the distant past, but according to a recent story in the Wall Street Journal, Asian and Indian applicants to U.S. MBA programs trounce American applicants so badly …
Segregation in education sounds like a relic of the distant past, but according to a recent story in the Wall Street Journal, Asian and Indian applicants to U.S. MBA programs trounce American applicants so badly on the quantitative portion of the GMAT that business schools will now sort candidates based on the country and region of the world they hail from.
Over the last ten years, the score gap between Asia-Pacific and U.S. applicants in the math portion has only widened, with the former group scoring an average of 45—seven points above the worldwide average of 38, and 12 points higher than the American applicant’s average of 33.
The disparity in scores is likely rooted in the problems with math instruction in this country, but the situation isn’t helped by the vast difference in test preparation. According to GMAC, students in Asia spend an average of 151 hours in test prep, while U.S. students average just 64 hours.
Sangeet Chowfla, GMAC’s chief executive officer, told the WSJ schools have complained that the test’s global rankings were becoming more difficult to interpret, and asked for new ways to assess both U.S. and foreign test-takers separately. In response, GMAC has introduced a tool that allows schools to apply filters to benchmark scores by country of citizenship, gender, and college GPA.
Sara Neher, assistant dean of MBA admissions at the University of Virginia’s Darden School of Business, was among those who reached out to GMAC for help. “I need to be able to show my scholarship committee, which includes faculty, that this person is in the top 5% of test takers in his region,” even though that individual might not rank highly against test takers world-wide, she told the WSJ.
It sounds like in the future, business schools will increasingly need to deny seats to the top scorers if they want to stay true to their mission of creating a dynamic learning environment through a cohort with diverse backgrounds and perspectives.
September 2, 2014
At the Association of MBAs (AMBA) annual Employers Forum in August, two topics dominated the event: the need for MBAs with well-developed ‘soft’ skills, and the increased demand for graduate hires with specialist MBAs. The …
At the Association of MBAs (AMBA) annual Employers Forum in August, two topics dominated the event: the need for MBAs with well-developed ‘soft’ skills, and the increased demand for graduate hires with specialist MBAs.
The forum attracted 24 leading multi-nationals, including KPMG, Goldman Sachs, Bloomberg and BP, as well as recruitment and career managers from 22 AMBA-accredited business schools.
Due to a changing landscape for employers, graduates and business schools, employers do not necessarily want their staff to possess a financial services MBA, but now seek graduate hires with sector-specific specialist MBAs in a variety of fields.
This trend is reinforced by data from the Graduate Management Admission Council, which indicates roughly 64% of business school deans expect MBA programs to increasingly specialize.
As the 2014 GMAC Employer Survey also demonstrates, the days when the ‘hard’ skills of analytical and strategic thinking dominated are over, and it’s oral and written communication, presentation, adaptability and the ability to negotiate that companies are asking the schools to teach their students. Accenture, for example, introduced a ‘soft’ skills measurement technique which combines “defined critical characteristics for success, which are assessed by behavioral questions.”
The event included a discussion of the future of management education, which will likely move toward a blended model of MBAs, and how experiential learning will replace classroom-based learning, and that both of these shifts can be of benefit to employers.
However at this time, recruiters still do not consider job seekers from online business programs to be of the same caliber as those that have graduated from a face-to-face MBA program.
London’s Imperial Business School hosted the event, and its dean, Professor G. Anandalingham, brought home the point that an MBA is “the premium, flagship program – hence schools should partner with corporates to produce the kind of graduate they are looking for.”
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July 14, 2014
The Graduate Management Admission Council, in partnership with Wiley, is making studying for the GMAT exam easier and more convenient. The best-selling Official Guide for GMAT Review series is adding online content, videos and a …
The Graduate Management Admission Council, in partnership with Wiley, is making studying for the GMAT exam easier and more convenient. The best-selling Official Guide for GMAT Review series is adding online content, videos and a study tool, allowing b-school applicants to access hundreds of real, retired GMAT questions both in book form and online to customize their own question sets.
“The Official Guide for GMAT Review has been a consistently popular trade publication since the first edition was published in 1978,”says Ashok Sarathy, GMAC vice president, product management. “Now, we are making studying for the GMAT exam easier and more flexible, as people can both annotate the book and customize question sets with the new, online component.”
Joan O’Neil, VP and managing director at Wiley, calls the partnership with GMAC ideal, adding “We are excited to see how the new online aspects and tools evolve so we can continue to bring the best content and value to our customers.”
The 2015 series will contain the same content as the Official Guide for GMAT Review, 13th Edition, and the Official Guide for Quantitative Review, Second Edition, and the Official Guide for Verbal Review, Second Edition, along with access to exclusive online content including videos and a study tool that allows users to customize practice sets by question format and difficulty level.
“We see our role as giving candidates the best opportunity to perform to the best of their ability on the GMAT exam. Publishing the Official Guide is part of that mission as the series offers more retired practice questions than any other product on the market. The online enhancements made to the 2015 edition are the first of many improvements, and we plan to update the Guides on an annual basis,” Sarathy says.
The 2015 series is available at bookstores worldwide and at the mba.com/store.
May 23, 2014
More companies plan to hire MBAs and other business school graduates in 2014, according to a recently published global survey of employers. Some 80% of business school recruiters plan to hire MBAs in 2014, up …
More companies plan to hire MBAs and other business school graduates in 2014, according to a recently published global survey of employers. Some 80% of business school recruiters plan to hire MBAs in 2014, up seven percentage points from last year and 30% points higher than 2009, in the heart of the economic crisis, when just half of employers hired MBAs.
For the 13th annual Corporate Recruiters Survey, the Graduate Management Admission Council polled 565 employers from 44 countries during February and March. GMAC partnered with EFMD and the MBA Career Services and Employer Alliance to conduct the survey, which included 32 of the top 100 companies in the FT 500 and 36 of the Fortune 100.
The optimistic hiring outlook for MBAs and other master’s-level business graduates comes as companies shift focus away from overcoming economic challenges and look toward growth and expansion.
The percentage of companies reporting a focus on overcoming economic challenges dropped from 58% in 2009 to 25% this year, as well as reducing costs, from 66% in 2009 to 45% this year. At the same time, the percentage of employers planning to hire new bachelor’s degree graduates is holding steady, down one percentage point from the 75% that hired bachelor’s graduates in 2012 and 2013.
“More companies in all sectors and across the world plan to hire business school graduates, with projected hiring rates the highest for all degree types since the Great Recession started in 2009,” says Sangeet Chowfla, GMAC CEO and president. “MBAs have always been valued by employers, but this survey shows that as the economy improves, employers see MBAs as a good investment into their future.”
Here are some of the survey’s key findings:
- Some 83% of employers in Asia-Pacific, 61 percent of European employers, and 86% of US employers plan to hire MBAs this year, all increases from 2013.
- When considering communication, managerial, teamwork, leadership and technical skills, employers say communication skills are the most important ones they seek in new hires, on average twice as important as managerial skills.
- Median base salaries employers expect to offer MBAs are $95,000 in the US and $69,000 in Europe. Projected median MBA base salary in Asia-Pacific is $21,340, reflecting much lower per-capita income in the region.
Professor Eric Cornuel, CEO & director general of EFMD, says,”This year’s survey paints a very positive picture for the business education sector and clearly shows how companies and recruiters value the whole portfolio of business degrees. Despite all of the doom and gloom, the clear message from the market is that business schools are providing the talented, bright individuals that companies need.”