MBA Return on investment depends a lot on the return on the brand. Business School reputation among recruiters, student’s previous work experience, and the practical learning experience gained during the program are three primary contributors towards an increase in salary. Business Schools in United States had dominated the best ROI list in early 2000, primarily driven by the IT boom, but recent data from FT charts shows an interesting trend.
The 30-40% International students that have been consistently maintained by Business Schools in United States is not an anomaly or due to restrictions in visa provision. It is primarily due to a learned experience that International Alumni are the lowest contributing group for endowment funds. International Alumni tend to lose contact with their peers and their Alma matter within 3 to 5 years, and it has become increasing tough to raise funds from this group when communication has been limited.
European Business Schools on the other hand have adopted a different approach. They have increased the International student intake to 80%-90% of the class. One reason for such a trend is the low demand for MBA programs among local graduates, who prefer masters program to a General MBA. Although the cost of the program are much lower, most International students apply for loans through their native country or through school assisted financial institutions in the host country. Schools in Europe cannot be blamed entirely as leading Business Schools in Europe – London Business School, INSEAD, and IMD do not offer any undergraduate course, therefore limiting their cash endowment to amounts in the range of $20-25 million, a paltry sum compared to Harvard’s cash endowment of $2.8 billion.
Although the investment costs are much higher for a 2-Year MBA program in US, with the right mix of GMAT Score, GPA and Recommendations, the potential to earn a scholarship increases, especially in top Business Schools where the endowment fund is sufficient. For International students, the 30-40% intake restriction increases the competition for such scholarships, and those who do not have GMAT Score, 20-30 points above the class median are forced to take loans at 6% per annum without a co-signer and 5.5% with one.
Funds are readily available but the risk on return increases in an economic downturn when government are forced to change visa rules to protect jobs, thus deterring International MBAs from staying back for job search. Several International MBAs have to make a compromise on the industry, or consider previous employer, thus failing to reach their post-MBA short-term goals. This often leads to resentment and less active involvement with the Alumni network. With an Economic Boom, US MBA markets become attractive with less restrictive policy and more jobs available in the market. But if we analyze the trends in US Markets, the gap between Boom and Bust have reduced, and the recovery after 2008 Financial Crisis has been a slow.
The scenario is not entirely gloom and doom for International MBAs. Although the Salary growth in US have been in the 1-5% range over the past 5 years for MBAs, leading European MBAs have shown greater increase in salary with 2005 to 2012 data showing 5-31% increase in Salary. In spite of a low endowment fund, European MBAs are catching up with US Schools on post-MBA Salary, and the one-year program offers a distinct advantage when you calculate the cost and return on investment.
2019 MBA Research Guide - Choose your MBA
F1GMAT's Comprehensive MBA Research Guide will teach you how to select MBA programs through a bottom-up approach.
Articulating your Post-MBA Goals and Career Path is the FIRST step. Which program will give you that hike in Salary, Switch in Career, Change in Location or Job Satisfaction?
We cover them all through our extensive analysis.
+ How to Choose the Best MBA Program: Factors to Consider
Define Post-MBA Goals
Pick your Path: Generalize or Specialize
Use Moral Algebra Method
Use Multi-Attribute Utility Theory
Understand the Top 5 Risks
Measure MBA Career Service Team's Effectiveness
Use Bookending to Calculate MBA Admission Chance
Use Net Present Value to Calculate MBA Return on Investment
Don't Fall for the Mere Exposure Effect
Best Practices to find the truth in MBA Information Session or MBA Tour
Comprehensive MBA Research Guide: Includes Top MBA Programs by 19 Specializations:
+ General Management
+ Operations Management
+ Supply Chain Management
+ Luxury Management
+ Information Systems
+ Hospitality Management
+ Leadership Development
+ Military &
+ Top MBA Program Ranking
Top 20 MBA Programs - Tuition Fee (2018)
Top 31 MBA Programs in United States – Total Cost & Salary (2017)
Top 60 MBA – GMAT and GPA (Average & Median)
Top 20 European MBA Programs - Tuition Fee, Total Cost & Salary
Top 20 European MBA Programs (Based on Actual Salary Increase)
Top 20 European MBA Programs (Short-term return on investment)
Top 20 Affordable European MBA Programs
Top 10 MBA in UK – Salary & Fee (2018)
Top MBA Destinations Based on Happiness Index
Top MBA Destinations based on Innovation Index
Top 10 MBA Job Markets based on Cost of living and Purchasing Power
Top MBA Destination: By Economy
+Comparisons - Top MBA Programs
Wharton vs. Columbia MBA (2018)
MIT vs. Stanford MBA (2017)
Haas vs. Ross MBA (2018)
Kellogg vs Ross MBA
Booth vs Wharton MBA
MIT Sloan vs Tuck MBA
IMD vs. INSEAD MBA (2017)
IIMA vs. ISB (2017)
+ MBA in France (2018)
Top Industries in France
Top MBA Programs in France
+ MBA in the UK (2018)
Top Industries in the UK
Top MBA Programs in the UK
Scholarships in the UK