Tag Archives: GMAC
February 23, 2016
The return on investment, or ROI, of a full-time two-year MBA fluctuates in accordance with prevailing economic conditions, yet it has remained positive three years after graduation in 19 of the past 20 years, according …
The return on investment, or ROI, of a full-time two-year MBA fluctuates in accordance with prevailing economic conditions, yet it has remained positive three years after graduation in 19 of the past 20 years, according to findings in the Graduate Management Admission Council‘s (GMAC) 2016 Alumni Perspectives Survey Report published today.
Of the more than 14,000 alumni surveyed, a vast majority said their education was personally (93 percent of respondents), professionally (89 percent), and financially (75 percent) rewarding. More than 4 in 5 alumni expressed satisfaction with their education.
“People make the decision to invest in a graduate management education to meet a variety of different aspirations and needs, and the vast majority are enthusiastic about their investment and inspired by their experience,” said Bob Alig, GMAC’s executive vice president for school products.
“Business schools enable students to develop the knowledge, skills and abilities needed for career success and to achieve personal and financial fulfillment,” he added.
GMAC’s survey shows the dollar value such a degree can bring. Business school alumni earn a median of US$2.5 million in cumulative base salary over 20 years following graduation.
This is a half-million dollars more in median cumulative base salary than they would earn if they did not go to business school and had consistently earned 5 percent annual salary increases, and a million dollars more than if they did not go to business school and had consistently earned 3 percent annual salary increases.
Alumni — on average — recoup their b-school investment within 4 years after graduation depending on the type of program attended.
Survey findings also reveal that women highly value their graduate management education with 96 percent rating their degree as a good to outstanding value. They tend to receive an initial boost in salary post-degree that is similar to men — US$20,000 on average.
Nevertheless, the gender pay gap persists among business school alumni; most likely a continuation of the trend of lower salaries women earned prior to entering business school.
Graduate business degrees unlock employment opportunities in a variety of industries and job functions. They also help elevate many alumni to higher job levels in their organizations. Approximately 3 in 4 alumni (73 percent) say their degree resulted in faster career advancement. Two-thirds (68 percent) of alumni are satisfied with their current job and employer.
Satisfaction and total hours worked weekly both tend to increase as alumni move up the corporate ladder. And, a majority of alumni say their graduate management education helped them to develop their leadership potential (80 percent) and grow their professional networks (70 percent).
Nine in 10 (93 percent) alumni say they would pursue their graduate management education again. In addition, alumni are extremely likely to recommend their program to peers. Overall, the net promoter score, or NPS — a widely used metric of customer loyalty — is strong among graduates of all types of business programs.
The NPS among all graduate business programs combined is plus 45 on the net promoter scale. (An NPS higher than 0 is considered good; an NPS of plus 50 is excellent.)
Business schools enable students to develop the knowledge, skills and abilities that in turn enhance their personal well-being. Two in 3 (65 percent) survey respondents noted improved job satisfaction and 50 percent believed business school prepared them for managing work-life balance.
“The findings of this survey are further evidence that a graduate management education delivers strong personal, professional and financial value to alumni,” said Alig. “The ROI numbers illustrate that a business degree is an efficient investment in terms of recouping costs and an effective asset for accelerating alumni careers.”
GMAC conducted the Alumni Perspectives Survey in October and November 2015. The 14,279 alumni who participated in this survey represent more than 275 graduate business programs at 70 universities in 20 locations worldwide that partnered with GMAC in this study.
January 12, 2016
The Graduate Management Admission Council (GMAC) has released the findings of its 2015 Year-End Poll of Employers, which reveal solid 2015 hiring numbers and robust 2016 hiring projections that reflect a continued healthy demand for …
The Graduate Management Admission Council (GMAC) has released the findings of its 2015 Year-End Poll of Employers, which reveal solid 2015 hiring numbers and robust 2016 hiring projections that reflect a continued healthy demand for recent graduates of master-level business programs — especially MBAs.
Among the survey’s other findings: 96% of responding employers agree that hiring business school graduates creates value for their companies and 68% agree that recruiting graduates of MBA and business master’s programs is a priority in their company’s hiring plans.
“Employer demand for graduate management talent is projected to remain strong in 2016 for MBAs and other master’s-level business candidates,” says Bob Alig, GMAC’s executive vice president for school products. “Recent graduates from business and management programs should see high demand for their skills because employers understand that they are valuable assets to their organizations.”
Findings in this report represent survey responses from 179 recruiters from across 159 companies of varying sizes and industry sectors located in 31 countries or regions worldwide. A majority of the employers participating in this year’s survey indicate that they will be striving towards improving performance and productivity, expanding their customer base, and launching new products and services and less focused on overcoming economic challenges and cutting costs than in recent years.
In addition, 73% of responding employers plan to offer internships to MBA candidates in 2016 — GMAC surveys have indicated that internships remain one of the most successful ways for master’s-level business school graduates to receive job offers. Ninety-two percent of the responding employers that offered MBA internships in 2015 plan to increase (26%) or maintain (66%) the number of MBA internship openings in 2016.
These positive developments echo what recent business school graduates say about the value of their degrees. In a September 2015 GMAC poll of recent graduates, a vast majority of alumni from the class of 2015 said their graduate management degree helped prepare them for the job market.
In fact, three to four months after graduation, full-time two-year MBA alumni in the class of 2015 reported an employment rate of 91%– five percentage points greater than the class of 2014 reported in September 2014.
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September 23, 2015
The Graduate Management Admission Council (GMAC) has released the findings of its 2015 Application Trends Survey, which show the majority of full-time MBA programs — in both two-year and one-year formats — report increases in …
The Graduate Management Admission Council (GMAC) has released the findings of its 2015 Application Trends Survey, which show the majority of full-time MBA programs — in both two-year and one-year formats — report increases in application volume compared with last year and 10 years ago.
Among full-time two-year MBA programs, 57% report increased application volume this year. For full-time one-year programs, 2015 marks a notable improvement: 51% of programs report application volume increases, compared with just 37% that reported growth last year.
Both program formats are performing better compared with 10 years ago — 60% of full-time two-year and 53% of full-time one-year MBA programs indicate they received more applications this year than in 2005.
“This is positive news and reflects a strong full-time MBA market,” says Bob Alig, GMAC’s executive vice president for school products.
“The full-time MBA continues to be a sought after credential because graduates consistently see a high return on their investment — not only in terms of earnings, but also in job satisfaction and personal fulfillment.”
The findings from GMAC’s 16th annual Application Trends Survey show a positive turnaround in the domestic market for U.S.-based, full-time two-year MBA programs, as a majority (59%) report year-on-year domestic application growth — a level not attained since 2009. Domestic candidates still account for less than half of the applicant pool for these U.S. MBA programs — 45% in 2015.
This year’s report also reveals that the representation of women in program applicant pools has increased 3 to 8 percentage points over the last five years for all program types analyzed in the report, with the lone exception of Master of Accounting, which continues to maintain its majority level of female representation (57%).
More than half of the following program formats report growing application volume for women in 2015: full-time two-year MBA (51% of programs), full-time one-year MBA (50%), executive MBA (50%), online MBA (55%), Master in Management (55%), Master of Finance (56%), and Master of Marketing and Communications (60%).
“GMAC is pleased to see that business schools’ efforts to increase the number of applications from women seem to be succeeding,” says Alig. The report shows that targeted outreach for women candidates is conducted by 67% of full-time two-year MBA programs, 41% of part-time MBA programs, and 51% of executive MBA programs.
Data for the 2015 Application Trends Survey were collected from a total of 641 graduate business programs located at 306 universities worldwide.
To download the full survey report, please visit www.gmac.com/applicationtrends.
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.