MBA Research: Forget Culture It's about Salary & Jobs

We are not designed to notice gradual changes. Each of us has an attention threshold, and small changes go unnoticed. Only when a change is considerable does our brain signals that the stimulus is worth noticing. When Business Schools makes small changes in the number of scholarships or report changes in the percentage placement within 3-months of graduation, the change is negligible.

Have you noticed that the 90+ post-MBA placement percentage that was common, pre-2008 financial meltdown is nonexistent now? The acceptable range among top Business Schools is in the mid-80 percentage. Several changes have happened over the past 5 years. For a comprehensive analysis, download our Research Guide. It will help you pick the right MBA program.

In 1998, Simons and Levin demonstrated how majority of the subjects missed important cues including change in appearance, clothes, and voice when the experimenter asked for the way to a building. As the subject responded, two other experimenters carrying a door rudely pass between the subject and the experimenter. With the interruption, the experimenter asking for direction swaps position with another experimenter, who has a different personality and attire. 50% of the subjects missed the change.

If we can miss something that obvious when the evidence is close to our face, how can MBA aspirants successfully navigate through hundreds of research data, and figure out the school that would fulfill their short-term goals?

Ranking - Don’t Get Carried Away

Ranking Data influences the most when it comes to shortlisting schools for our initial list. As we had written in our article Business School ranking and Irrationality, response from Alumni is as low as 20%. How can 20% of Alumni influence your future? It should not. So when you see Business Schools aggressively promoting their ranking, ask them this question – what percentage of the Alumni responded to the survey?

Profile Fit – It goes Both Ways

Business Schools are looking to diversify the profiles that are accepted to an MBA program but as an MBA aspirant, you should research whether an MBA student with a similar background as yours has successfully navigated from an MBA to a higher paid post-MBA job, and switched job function, industry or both. If there is no evidence, the risk of joining an MBA program is much higher for you than it is for the school to accept you. For the school, you add to the diversity but for you - accepting a high paid job while neglecting the goals of Switching Job Functions or Industry becomes a reality in a competitive environment, especially in an economy where cost of funding is high.

Shortlist Factors – That are Important to You

When you think about MBA – the first question that comes to your mind is “how much salary increase” can I expect. Is it worth the cost – both in time and money? Then you research about MBA programs and Business Schools start injecting factors into your mind that are relevant for the school to rank but does not contribute towards your short-term goals. Be wary of the subtle messaging, and brutally shortlist factors that are important to you.

Four Factors worth Considering

No matter how much spin you put to your goals, you are researching about MBA to achieve more than one of the four goals:

1) Increase in Salary
2) Change in Job Location
3) Change in Job Function
4) Change in Job Industry

Brand Value matters. But for short-term goals - the four factors take higher precedence.

Action Steps

1) Open an excel sheet

2) Define your goals

a) Target Salary Increase: 110%
b) Job Location: UK/France/Germany
c) Job Function: Technology Management
d) Job Industry: Insurance

3) Add the Four Factors as columns

4) Include % increase in Salary

5) Include % of the previous class that has job location in UK/France or Germany

6) Include % of the previous class that has post-MBA job in Technology Management function

7) Include % of the previous class that has moved to Insurance Industry

Note: For Demonstration Purpose Only (Not Real Data)

                          < -------------------      Change  ------------------------------------->
                                     
Business School   Salary Increase       Job Location    Job Function   Job Industry

Harvard                  110%                       10%                 15%                   28%
Stanford                 125%                        5%                   18%                  12%
MIT                         107%                      25%                  20%                  14%

As you can see - the Salary Increase is achievable through premier schools but end of the day, if the change in job – by location, function, and industry does not meet your short-term goals, an MBA is not worth the investment. For detailed ROI calculation, read how to use Net Present Value for calculating MBA return on investment. We have used 5 years of our research data and interviews with MBA Admissions Officers for our EBook - MBA Research Guide. If you like this article, you will love our EBook. You should buy it from here.