Executive MBA Blog

Executive MBA Graduate Survey Results 2010

How are they doing and was the MBA investment worthwhile?  By EMBA World

 

(May 2010) An individual must weigh the cost and job prospects of an MBA today with income possibilities and employment opportunities of tomorrow.  Articles written about the value of the MBA are always met with skepticism and more so these days than ever before. EMBA World, a New York City-based organization, has explore the value question of the EMBA. The survey used is the first of its kind with a focus on graduates of the Executive MBA. Now looking back five or more years on their career since graduation, what are EMBA graduates saying today about the education, economy, and overall outlook?  Are they satisfied, skeptical, or neutral on current employment conditions? And are they better prepared or worse off on their decision to pursue the degree?

 

In past recessions enrollment in graduate business education rose. Not the case in the current climate. From 2008 to 2010, there is a decline in test preparation, according to Kaplan Educational Testing, a decline in overall GMAT test administration, according to GMAC, a drop in business school applications according to a random selection of New York City business schools, and a double digit drop in attendance to MBA fairs last fall and spring 2009, according to QS Network, organizers of the TopMBA Fairs worldwide.

 

The high cost of the education and generally poor employment conditions are two primary reasons for the drop in enrollment. When times are tough employers and employees are both reluctant to make dramatic changes to their job habits and job expectations. Succinctly stated, “Asking for time off or financial assistance in this climate is asking a lot from your boss,” explains Samantha Carrol, a private employment counselor in New York City.

 

The cost of a graduate business degree can reach over $100,000 and the average is approximately $60,000 nationwide. The cost of a traditional MBA versus an Executive MBA are not too far off, both are expensive. Add on travel expenses, residential, and other incidentals commonly associated with an EMBA and the cost can be much higher. Factor in costs for GMAT test preparation, testing fees, and business school application fees and the cost continue climbing.

 

Purely as an academic exercise EMBA World issued a simple thirteen question survey to graduates asking about their EMBA experience. The survey was made available on the EMBA World website, promoted through Twitter and Facebook, linked with EMBA alumni groups across the United States, and through email blasts to the EMBA World graduate business database.

 

Here is a profile of the respondents.

 

• Average years out of school: 9.5 years working since graduating
• Range of years out of school: 3 to 23 years working since graduating
• Job titles: Manager to CEO
• Industries: Technology, Pharmaceutical, Marketing, Banking, Media, Non Profit, Other
• Average salary of study group at entry of business school: $92,000
• Average salary of study group today: $213,000

 

 

Salary averages over the ten year period is the most dramatic of this part of the survey. The number of work years since graduating was 9.5 years, almost a decade and yet in this time the salary has grown from a base of $92,000 to $213,000 or an increase of 131%. The survey strongly suggests positive returns from the investment over a ten year period. Of course the salaries are influence per person, per industry, and per time period. No matter how good you are, the starting salary during the 2001 recession is less than if you graduated even a year or two later.

 

Survey Results Continuation

• Still with same employer:  40% of respondents are still with same employer
• Worth the investment: 91% reported yes
• Recommend the education: 99% reported yes
• More or less optimistic of the future: 60% more optimistic; 25% much more optimistic; 15% no difference

 

Another consideration of the EMBA from an employer standpoint is employee loyalty. It seems that with 40% of respondents still with the same employer from when they entered the MBA suggests the following: job growth and job satisfaction is possible in the near future after graduation; a moral devotion to stick with the same employer is possibly influenced during those hectic times where the employer accommodated the needs of their employee-students, and the education was respected valued. Are EMBA graduates more loyal than traditional MBA graduates? This is difficult to measure given that many traditional MBA students start school immediately after undergraduate or drop out of the workforce to accommodate the degree.

 

Opened Ended Questions

• What were the highlights of the experience?
• What would you do differently with an MBA?
• How as the recent economy affected you?

 

Classmates, class projects, and certain professors stood out the highest and loudest for many respondents as highlights of the experience. “Great classmates and great professors,” were typical responses. “Classmates, networking, class bonding through major projects,” further describes the zeal and general passion of EMBA graduates.

 

In terms of doing anything differently, for those who responded the answer was much the same as they are doing today. In other words, they appear to feel confident in their career path and would not change their working condition. They responses were generally of satisfaction of their career direction.

 

For the question regarding the recent economic crisis, 7% were unemployed or in a job transition while the remaining were fully employed and reported no or little impact at all. Responses ranged from “having it only helps” to “no real job flexibility, job market stagnant.” Others stated that projects have been delayed and some reported “better job than before.” Clearly this section had the broadest range of responses from hot to cold and everything in between.

 

Even with an MBA people are not immune the realities of the workplace and global economy. The open-ended results did allow people to express themselves including some that described the current economic conditions as stifling for job options and job growth. The economy has prevented people from achieving what they desire and these conditions are beyond the scope of any education to fix. 

 

EMBA World is a New York City-based organization dedicated to helping employees and employers understand options regarding graduate level business education and in particular the Executive MBA. Jason A. Price, MS, MBA, is Director of EMBA World and author of The Executive MBA: An Insider’s Guide for Working Professionals in Pursuit of Graduate Business Education. Jason is a frequent speaker to media on graduate business education issues and publishes industry articles periodically on the subject. The Insider’s Guide can be found at online bookstores or at EMBA World www.EmbaWorld.com. You can reach Jason A. Price at Jason@embaworld.com.

 

Who is the Boss of the MBA in 2010?

Entrepreneurs, home-preneurs, and eco-preneurs are leading the way

(November 2009) President Obama describes recent signs of economic recovery as "Guarded Optimism" but for many unemployed people with MBAs these are just hopeful words. Business school enrollment has not seen a considerable jump as in past recessions and participants at MBA fairs are down, including the major TopMBA Tour this past September in New York City, a 15% decline in prospects than in years past. On a positive note, while job offers these days come slowly fewer are being delayed or rescinded, as was typical in 2008. Will the job market continue to thaw for MBAs in 2010?

Professor Robert Salomon of NYU blogged that due to timing, the 2008 graduates fared far better than if they had graduated after the Lehman and Bear Stearns debacles. He feared for the worse for 2009 graduates and Business Week devoted an entire article on graduating into a recession.

I believe, 2009 will be known as the year in "stablize- ation." Indeed, The Federal Reserves most recent economic survey published in October reports that most states see stabilization in housing and jobs but most report a hold on hiring’s until the new year. The unemployed MBA has few options. So who is outsmarting the economy? Where are most innovators coming from? Many are armed with an MBA, some even have years of experience under their belt. Let's take a look at a few.

It'll take small businesses to jump start new job growth and many entrepreneurs, home-preneurs, and eco-preneurs are leading the way. Growth industries like green and medical are some leading examples where individuals have reinvented themselves. Take Columbia MBA Melissa Stevens and her innovative pizza box design that cuts down on cardboard and paper consumption. How about Mark Cantor, MBA, and former VP of Lehman Brothers who saw his retirement crumble and now supplies cheesecakes to over 40 restaurants in the Big Apple. Alissa Topel, an executive placement specialist says, "Many MBA graduates hold on to the dream job that was expected in a normal world. Those days are over, for now, and use the time and opportunities elsewhere to redefine your career and what it means to have an MBA."

Such stories are common these days. Social capital is critical during these rough times and may be the only capital available for entrepreneurs. Hard times remain for small businesses relying on starter loans, particularly from private banks. But the dream can be real. Certainly main street is lined with family founded businesses. While many successful entrepreneurs have no degree or even an MBA, having the coveted degree enables you to take a company beyond just start up mode but to actual growth.

Jason Price is Director and Founder of EMBA World in New York City. EMBA World is an organization dedicated to helping people understand thier business school options and the role of the executive MBA.

Career Changers Must Find the Career That Fits Their Personality to be Successful

 

(March 2008 by www.EMBAWorld.com) For many professionals, advanced education is a tantalizing answer to a career change. New, challenging projects or more responsibility may be the answer because a career change really is a big decision and has to be done for the right reasons.             

People who genuinely feel little or no passion about their work and simply go through the motions are candidates for career change. People who believe in the importance of making a meaningful contribution in ways that provide personal, internal pride and satisfaction are the people who should explore career alternatives.

            

• However, career changers frequently make common mistakes.
• They assume they must reinvent themselves rather than seek understanding of who they are.
• They take a very broad approach to “what is out there” rather than establish a clear focus.
• They put too much emphasis on finding security, rather than learning, challenge and growth.
• They focus on less cosmetic matters such as title or staff size, rather than satisfaction and enrichment.

            

It is important to also think about those qualities that go beyond quantifiable skills. Leadership, dealing with pressure, listening skills, and cross-cultural sensitivities are a few examples of abilities or soft skills that can contribute to success in new careers. Understanding those skills and experiences and the values that accompany them form a baseline that provides a direction and focus for that new endeavor.

            

Non-essential considerations, such as job title, organizational hierarchy, staff size and others pale in comparison to the essential need to find a career path that provides personal fulfillment.

            

Finally, with the insights that an advanced business degree delivers, there is a reasonable expectation of growing security and confidence because as the individual grows in the new career the toolbox of expertise through learning and experience can grow.

            

As reported by Marie Field of QS Networks, an international media agency that focuses on MBA and Executive MBA programs, suggests the EMBA is a highly desired program for the over thirty group, as it equips the experienced manager with a sophisticated set of diverse skills and strategic thinking that can be immediately applied on the job . While full-time traditional MBA programs are theoretically focused, the EMBA offers a broader understanding of the business world with attention to confidence, leadership and communication skills required to reach the C-suite. Further, the executive programs are tailored to the professional with a tight schedule – weekend classes or modular weeks of study are the norm.

            

Another appealing factor of the EMBA is the networking and the opportunity to learn about business methods practiced in other industries and countries. “With the diversity of companies, functional areas, and geographical representations, students gain insight and unique perspective from their classmates. It’s like having potentially 87 free consultants looking at a problem – not to mention expert professors!” explains Arnold Longboy, Director of Recruitment and Corporate Relations at Chicago GSB

            

Find the career that fits your personality. Take steps to find the right career and a leap over the challenges you may currently face as the economy and career stagnates.

            

EMBA World is a New York City-based organization dedicated to helping employees and employers understand options regarding graduate level business education and in particular the Executive MBA. Jason A. Price, MS, MBA, is Director of EMBA World and author of The Executive MBA: An Insider’s Guide for Working Professionals in Pursuit of Graduate Business Education. Jason is a frequent speaker to media on graduate business education issues and publishes industry articles periodically on the subject. The Insider’s Guide can be found at online bookstores or at EMBA World www.EmbaWorld.com. You can reach Jason A. Price at Jason@embaworld.com.

Executives Head Back to the Classroom

Executives head back to the classroom – Further education may be your best investment yet.

By Marie Field, Dec 2007

If you’ve told yourself that changing careers or going back to school simply are not options for established professionals, you may miss out on the one thing that will bring back the enthusiasm of a fresh graduate.

Executive education may be what you need to surpass that career plateau. Whether it’s enrolling in an Executive MBA (EMBA) course or simply taking a 15-day course in management skills, business education can only brighten your career outlook, even if this just means meeting people outside of your regular network. The realm of executive education encompasses a huge range of options. You may want to improve your negotiation skills or take a class on leadership, or focus on personal development. If you’re looking to pick up new skills - whether in finance, marketing, or information technology - there is sure to be a business school that can help.

The Executive MBA As Business schools continue to respond to strong demand for their EMBA programs, the results of a recent survey confirmed the return on investment for those who have made the commitment to an Executive MBA. The percentage of students who received promotions increased from 34% three years ago to 43% last year, according to last year’s Executive MBA Council Survey of their member schools. The EMBA is a popular program amongst the over thirty group, as it equips the experienced manager with a sophisticated set of diverse skills and strategic thinking that can be immediately applied on the job. In comparison to full-time MBA programs, the EMBA is focused on gaining a broader understanding of the business as a whole, with the confidence, leadership and communication skills required to reach the C-suite. Further, the executive programs are tailored to the professional with a tight schedule – weekend classes or modular weeks of study are the norm.

The other attraction of the EMBA is the networking and the opportunity to learn about business methods practiced in other industries and countries. “With the diversity of companies, functional areas, and geographical representations, students gain insight and unique perspective from their classmates. It’s like having potentially 87 free consultants looking at a problem – not to mention expert professors!” explains Arnold Longboy, Director of Recruitment and Corporate Relations at Chicago GSB Most EMBA programs are open only to those with comprehensive experience in the professional world. Many courses exist, from 18-month programs to 24-month programs, to programs with specific focuses like global business.

The Global Executive MBA at Duke, for example, focuses simply on this area through sending its students to “Asia, South America, Europe and the United States with Internet-enabled distance learning allowing students to live and work from anywhere in the world,” in addition to offering conventional classes.

Jason Price, Director of EMBA World (www.EMBAWorld.com), and an EMBA graduate from Fordham University, explains how the EMBA is much more than just “an MBA for older people”: “The beauty of the EMBA is that you will not only study a company facing real challenges but the chances are that you will also have classmates who have worked in that company and were involved in senior-level decision-making.” For Jason, the reward of the EMBA was phenomenal. “I feel the EMBA classes and projects are what helped me win the 2001 Microsoft Global Technology Award and build a solid and fast growing consulting firm.”

The Executive MBA may just give you that extra push. Take, for example, a 43 year-old IT manager who wants to make it to Director status but doesn’t yet have the organizational or analytical skills to pull it off. This is exactly what the EMBA is for. “The Executive MBA gives you the extra push you need to make it to boardroom prominence.”, says Nunzio Quacquarelli, Director of QS, the educational and career specialist network that organizes ExecMBA Villages in many US locations as part of the World MBA Tour, “After gaining a number of years work experience, the EMBA is maybe the only thing that will give you what you need to reach your professional goals. Entering an EMBA program after being in the professional world for a number of years presents you with a unique advantage over a 27 year-old with a lack of experience of business dilemmas and undeveloped management skills.”

Marie Field of QS Network and TopMBA can be reached at marie@qsnetwork.com and www.TopMBA.com. This article is brought to you in partnership with EMBA World which can be reach at info@embaworld.com and www.EmbaWorld.com.

The Middle Manager Squeeze

The Middle Manager Squeeze

How the Executive MBA can create career options

Much has been written about the disparity in income growth between the top 1% and the rest of the working population.  Wages, adjusted for inflation, have remained generally flat for all but highest paid over the past 35 years.  The growing economic burden in the form of a “middle class squeeze” is described by the media and debated by politicians with little in the form of policies to address the issue. Breaking out of this squeeze is not easy as after-tax dollars as a percentage of net income must cover the increasing cost of health care, housing, college and other essentials.  For example, during a recent typical period in which health care insurance premiums rose 64% and college tuition rose 23%, wages held steady with only a 2 percent increase adjusted for inflation.

This squeeze of the middle class is also a squeeze of the middle manager. The class of workers referred to as “middle management” represents a broad group of approximately 24 million workers, as defined by the United States Bureau of labor Statistics, with about half in white-collar occupations such as technology, finance, healthcare, media and other areas.  As a class, these professionals are working harder, faster and smarter for a relatively flat financial reward.

While demand for competent middle managers continues to grow, salaries and bonuses are generally not commensurate with the workload, hours demanded and increased responsibilities. High salaries and mega-bonuses for a relatively few tends to obscure the very real problem most managers have in maintaining consistent growth in compensation and benefits.  This is even a problem at the executive level.  In fact, ExecutNet, an executive networking firm found in a poll that 77% of executives were increasingly concerned about their careers or job security.

Executives reported:

• 22% are afraid their employers will merge with another company or downsize

• 17% are concerned about limited advancement opportunities
• 16 said their companies are not doing well
• 14% said the company’s culture is not good
• 10% said their industry is having problems
• 9% said their boss is not a good match

“Despite recent economic growth job security remains a luxury that neither companies nor executives can afford,” says David Opton, chief executive of ExecuNet.

Consequently, if the guy who signs your paycheck and approves your bonus has job anxieties what does this mean for you?

One proven solution is professional development. It is generally axiomatic that greater education commands greater salaries and facilitates career growth.  Certainly a degree from Wharton or Kellogg or any of the world-class business schools can add an entirely new dimension to career and compensation. However, not everyone, especially those professionals who are already in the work force, can attend these schools.  As an alternative, an increasing number of working professionals are turning to the executive MBA.

The growth of the Executive MBA began to accelerate in the last decade with more middle managers applying and more business schools launching EMBA programs. This highly sought after training offers working professionals – middle managers – the option of returning to school while maintaining full time employment.  It is designed for the middle manager or other professional with work experience and is structured to accommodate the full time employee, and for many, full time parent.

Forgoing a paycheck for two years or attending business school day programs part time is not an appealing option for many. The alternative, an Executive MBA program, is designed specifically to accommodate their needs. These working managers and other professionals, even working mothers, who seek to maintain their current level of activity, can earn this excellent business degree. Here are a few considerations:

• The hallmark of an executive MBA is the unique learning experience shared by highly motivated working students combined with a competent, seasoned faculty. Executive MBA students garner a rich learning experience while remaining employed and can often apply complex business concepts at work and make an immediate impact on the job raising the value of the employee.

• Network opportunities with a group of high-achievers. Classmates are known for hiring or recommending each other for job openings. Furthermore, with years of work experience, EMBA grads are better positioned to launch businesses as potential funding, business contacts, and willing customers are already in place.

• EMBA training enables the student to keep job skills current and applicable at work. They are exposed to new technologies, business practices, and business environments encompassing both domestic and international projects.  Many programs provide the benefits of a global academic campus.

• The degree possesses inherent value in the job market, enhancing personal standing and professional positioning for promotion, salary increase or new opportunities. An MBA is a degree that is respected.  Top MBA’s recruiter survey, graduates commanded a 27 percent jump in pay in 2004.

Education is an option that more white-collar workers are pursuing to increase their career marketability and mobility offering a genuine, vigorous MBA program tailored to the work life of a professional. This program offers a resource for those who crave greater professional development as well as those who view themselves in a middle manager squeeze.

Jason A. Price, MS, MBA, is Director of EMBA World, a New York City-based organization dedicated to helping employees and employers understand options concerning graduate level business education and in particular the executive MBA. He is author of The Executive MBA: An Insider’s Guide for Working Professionals in Pursuit of Graduate Business Education. He can be reached at Jason@embaworld.com or visit www.EmbaWorld.com.