If you feel that, it is speculation that 1-year MBA creates more disenchanted Alumni than raving fans; the 2016 Alumni Perspective survey published by GMAC offers a glimpse into the realities of the MBA market. While 51% of Full-time 2-year MBA and 43% 1-year MBA cited Change in Occupation, 46%, and 41% from the respective groups mentioned Switching industries as a goal for pursuing Management Education. The survey response is a reflection of pursuing MBA with unrealistic expectations or overvaluing the potential of a Business School.
As a mean to measure loyalty, Reichheld, Bain & Company, and Satmetrix introduced Net Promoter® (NPS) score, a scale from 0 to 10 that measures an Alumni’s likelihood of recommending the Management program. A score of 9 to 10 means highly likely, 0 to 6, least likely and 7-8 neutral. A 45+ score mean, the Alumni highly recommend the program.
Among the many Management and Master’s program on offer, Executive MBA, Master of Accounting, Online MBA, and Full-time two –year MBA was above the 45+ score required for raving fans. Our team didn’t expect Online MBA to feature in the top 4 list, but to a large extent, the expectations from each program define the satisfaction.
The professionals who value Online MBA, is not looking for an MBA as an opportunity to switch careers or get maximum value through networking. The idea often is to develop the domain expertise.
While the marketing team at Full-time two-year and one-year MBA program pitch the program as tools for personal development, access to a wide alumni network and a launch pad for new careers, the reality is that one-year MBA programs hardly moves you in that direction.
The expertise that you developed in 3-5 years in your current job function or industry cannot be replicated with a few experiential learning courses spread across a 10-month or 12-month academic calendar. The focus on the new job function has to start from the core courses itself. MBA programs that understood the challenge had introduced flexibility in core allowing you to start working on your new preferred job function or industry from the start itself.
Another reason for the low satisfaction score among Alumni of 1-year Full-time MBA program is due to the demand-supply imbalance in the market. The 2016 survey report of recruiters shows an interesting trend. Recruiters in Europe, where you find the largest number of 1-year full-time MBA programs, prefers Master in Management candidates over full-time MBAs.
But the sad part is that Master in Management(MIM) students have the lowest satisfaction rate. You are asking MIM students to do the clerical and research work for the consultants. The MBAs won’t last long in an organization that requires them to do the low-end job. Recruiters have strategically chosen to put interest in MIM students, most of who are on the lower scale in competitiveness when it comes to Employability in a highly competitive Management market.
If you are planning to work in the US, India or China, MBA still holds greater return on your investment that any Master’s program, although not by a big margin in China.
Another aspect is your position in the Management hierarchy. If you were a career switcher, the positions that you are offered would be entry level. So would be the salary post-MBA. If you have read the Chapter: How to use Net Present Value to calculate MBA Return on Investment, you might have realized that even with the top 5 MBA programs in the world, the expected ROI is only after 3 years.
So believing in a greater ROI before 3-years would be an insult to your intellect. Unless of course, you are self-funded.
With the change in job location and the new peers, the pressure to keep up with the Jones would be higher. So will be your expense. The 3-year ROI is often a culmination of the interest rate and the peer pressure to live the MBA life.
For career switchers, with 5-7 years of experience in a different domain, it is but natural to feel disillusioned to be bossed around by a 25-year-old consultant, when you are a 30-year-old Associate trying hard to break into the new domain. So swallow the ego, and move on, but MBAs seems to have spoken about the disillusionment in the latest survey.
As expected, C-Suite had the highest job satisfaction with an MBA, followed by Executive Level MBAs, Senior Level, and Self-Employed MBA professionals. Switching MBA job functions might be a reality for the majority of MBA candidates, but that does not bring satisfaction for the job function. The lion share of the mundane tasks was taken over by Entry Level and Mid-Level management professionals – two categories that attract the most MBA candidates with the least financially satisfying careers (58% and 72% respectively for entry and mid-level respectively)
The value of an MBA is apparent in the long-term due to the ROI and also due to the high expectations that MBA candidates have about short-term career growth. The growth is apparent but not to the level that MBA applicants wish for.
Reference: 2016 Alumni Survey, 2016 Employer Career Report
Download: MBA Research Guide
|Job Status (MBA)||Good to Outstanding||Outstanding Personally||Rewarding Professionally||Rewarding Financially||Rewarding NPS|
|Employed by company||96%||93%||90%||76%||46|
|Not employed/not seeking||91%||88%||83%||69%||38|
|Master of Accounting||53|
|Full-time two-year MBA||48|
|Full-time one-year MBA||41|
|Master of Finance||31|
|Master in Management||29|
|Preference||Master in Management||MBA|
|Preference||Master in Management||MBA|
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