Before Round 1, it has become customary for me to write about the advantages of applying for each round. The pandemic and the economic fallout have brought in an additional challenge for MBA applicants.
Round 1 vs Round 2 - IMPACT of deferments
Around 20-30% of the previous year’s admitted students have deferred their joining date by a year. They are not resting on their laurels. Many of them have approached me to target schools they were dinged last year. Like the spike in application volume during Round 3 and the extended deadline, Round 1 will witness an increase in application volume. The round is still for the accomplished, the disciplined, the eager planners who have taken care of the GMAT (730 at least), and the re-applicants.
Extra-Curricular - Competition during the times of COVID
The pandemic has provided several opportunities for applicants to demonstrate their superior communication, leadership, and coordination skills. With the impact of your work closely tied to life and death of a person, there is no better example than working directly in the frontline, coordinating the supply chain, manufacturing, and distributing PPE or spearheading the testing in your region.
The short nature of the engagement is justified – an exception that will work this year for applicants who had weak extra-curricular until 2019.
Suddenly, the diligent planners who had put in regular volunteering work will be competing to get the attention away from the person who saved 1000 lives. That doesn’t mean that your regular contribution won’t work. You must logically connect the motivation for a COVID volunteering project with your previous experience. Create a narrative around it.
Economy – Layoffs in Sep/October
I never expected a friend – a person who was in the workforce continuously for 16 years to be let go. He is in the top 1%. The experience has broken my assumption that layoff is targeted for the bottom 20%. Unfortunately for him, the project was in the Aerospace industry. Fortunately, and because he is the top 1%, he received a better offer with an internet giant. The 3-month gap is not a big bloat in his career.
Regardless of the industry you are in, the layoffs would peak in Sep/Oct 2020, when companies begin to see the numbers and not make assumptions based on projections. This means many would be on the job market and find the protective warmth of an MBA appealing instead of the harsh realities of submitting the resume on an infinite loop and liking ‘HR influencers’ posts on LinkedIn. The transitionary stint in a start-up would be a means to an end until Round 2 results arrive.
Beware of this development if you are unsure of applying for Round 1. Help here if you want my assistance in career planning or application review.
Expect Round 2 volume to increase when the real economy spirals down. We saw this play out in 2008-09 when I applied and eventually decided to start F1GMAT instead of joining an ‘entrepreneurial’ school. (Reasons here - why MBA not necessary for entrepreneurship)
Round 3: If you are reading this, you are unlikely to be a Round 3 applicant. Applicants who see a sudden shift in their career profile – promotion, responsibility, or circumstances apply during Round 3. Many retake the GMAT more than 4 times and finally receive a 730+ score. They are ready now and would like to save a year and give a last shot at redemption.
Treatment: The only trend that will drastically shift interest in Round 3 and extended deadlines like it did this year would be an effective treatment in addition to vaccination, which will limit the mortality of COVID-19 for patients of all comorbidity. With most schools playing it safe with online classes this fall and in-class engagements only for critical experiential learning programs, 2021 will put pressure on schools to deliver value for a $150k-$200k degree. The stabilizing of the cases by winter and conclusive data on the most effective treatment will encourage schools to open classes, and so will value-conscious students turn to the last opportunity to apply.
Side Note (Value of an MBA): For all the people arguing about the MBA program and how even an online course can offer the same value at 1/1000 the cost, don’t forget that an MBA program’s biggest USP is its network.
My friend was able to receive a better offer during a pandemic in a highly competitive Technology Marketing function, only because he leveraged a network from his previous job, and he is an MBA. Most of his other colleagues are still looking for opportunities.
