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 [email protected] or visit www.EmbaWorld.com.

Comments

[Patrick James]

So true these past years the economy seems incredibly resilient and the Dow hit 13,000 today yet I don't feel any further ahead than previous years.