MBA Applications Increased at Many U.S. Business Schools in 2014

After a big decline during and following the global economic crisis, applications have increased sharply to a number of top business schools in the United States.  The Wall Street Journal recently reported that many elite schools saw double digit growth in applications submitted to their MBA programs.

The biggest mover was Washington Foster School of Business, where applications increased by an incredible 74% from 2013 to 2014.  Foster’s more tailored marketing approach and strong connections with the thriving technology companies in the Pacific Northwest Region can likely account for this increase.  Another big winner was UNC Kenan-Flagler, where applications went from 1,493 in 2013 to 1,912 in 2014, a sizable 28% increase.  Georgetown McDonough School of Business credits its strategy to attract underrepresented minorities and international students by joining the Consortium for Graduate Study in Management, and holding monthly on-campus information sessions for its significant 23% increase in applications in 2014.  Applications to Georgetown MBA from U.S. students rose 27%, and international applications grew by 20% in 2014. 

Most admissions committee members cite the improving economy and job market, as well as the streamlined admissions process at many schools (i.e. fewer required essays) for such application increases.  However, those of us in the MBA admissions consulting industry can also recognize that these top business schools have been recruiting international applicants more aggressively, especially here in Asia, where admissions committee members typically travel around the region several times each year to connect with potential applicants.  Such marketing and recruiting efforts have definitely had an impact on application totals from the Asia Pacific Region.  

Other MBA programs which had large upticks in applications from 2013 to 2014 include Indiana Kelley (20.3%), Arizona State Carey (44%), Duke Fuqua (9.6%), Rice Jones (19.4%), UCLA Anderson (32%), USC Marshall (10%), UT Austin McCombs (10.2%) and Washington Olin (19%).  Not every school fared this well, however, as MBA applications declined at some high profile schools such as Michigan Ross (-7.7%), Yale SOM (-2.3%) and Boston University (-4.3%).

As many business schools continue to “streamline” their applications and market more aggressively, we expect that MBA applications will continue to increase in the short-term.  With this in mind, the 2014-2015 application cycle will no doubt be a particularly competitive one.  Although the total number of required essays and word limits has decreased at some MBA programs, we do not feel that this makes the MBA application process less onerous.  If anything, it makes it even more difficult for applicants to provide meaningful information that can allow the admissions committee to clearly see their core value, uniqueness and future potential.  And with fewer essays to write, it will be more important than ever for applicants to construct a powerful resume that clearly reflects their responsibilities, achievements and impact.  Finally, the interview process will likely become more critical and competitive than ever, as applicants must seize this one precious opportunity to convince the interviewer that they are a perfect fit for the program and truly need an MBA education. 

We hope this information was helpful for all of you aspiring MBA applicants out there.  And of course, if you have any questions about the application process, or how to create a winning application strategy, feel free to reach out to us with your questions at info@transcendadmissions.com.

GMAC reports robust business school hiring outlook in 2014

Ever-increasing business school tuition coupled with the opportunity cost of leaving one’s job for one to two years makes the decision to pursue a graduate business degree a difficult one for many potential MBA, MAcc, MFin and MiM applicants.  Potential applicants who are sitting on the fence might be persuaded to apply after learning that the projected 2014 job market is among the best ever (particularly the MBA job market), as major global corporations continue to see value in hiring highly-skilled business school graduates.

GMAC’s recently released 2014 Corporate Recruiter Survey indicates a very positive employment landscape for MBA and other master’s-level business students who will graduate in the following twelve months.  Some of the Survey’s key findings are as follows:

            MBA

§  An astounding 80% of all companies surveyed plan to hire MBA graduates, compared to 73% in 2013.

Ø  83% of responding companies in Asia Pacific plan to hire MBAs this year, up from 70% in 2013.

Ø  A whopping 86% of employers in the United States said they plan to hire MBAs in 2014, up from 81% last year.

Ø  84% of consulting employers plan to hire MBA grads, up 13 percentage points from last year.

Ø  Health care and pharmaceutical employers: 90% of the companies expect to hire MBAs this year, up 19% from 2013.

Master in Management (MiM)

§  50% of all companies surveyed plan to hire Master in Management graduates, compared to 45% in 2013.

Ø  68% of Asia Pacific employers expect to hire Masters in Management graduates, up from 52% in 2013.

Master in Accounting (MAcc)

§  Demand is increasing for Master in Accounting graduates (45% in 2014, up from 36% in 2013).

Ø  53% of responding companies in Asia Pacific plan to hire MAcc graduates this year, up from 39% in 2013.

Ø  64% of finance/accounting employers plan to hire MAcc grads, up 10 percentage points from last year.

Master in Finance (MFin)

               

§  More employers are seeking Master in Finance graduates (44% in 2014, up from 39% in 2013)

Ø  57% of Asia Pacific employers expect to hire MFin graduates, up from 40% in 2013

Ø  62% of finance/accounting industry employers who were surveyed said that they plan to hire MFin grads, compared to 55% last year.

  

As one can see, the hiring outlook among responding companies is strong overall, particularly in the Asia Pacific region, providing assurance for future job-seekers in this region.  We hope this information is helpful for you as you make your graduate school decision.  You can click here to access the full GMAC 2014 Corporate Recruiter Survey.

The Number of Master's Programs in the United States has Increased Rapidly

In this recent article, the Washington Post reports that from 2000-2012 the number of people receiving master's degrees from colleges and universities in the United States increased by 63%.  Many universities, such as Georgetown, award far more master's than bachelor's degrees (Georgetown awarded 2,838 master's compared to 1,871 bachelor's degrees in 2012).

Master's degree programs are not only big money makers for the schools, but have proven to be a crucial investment for workers aiming for high-skill jobs.  Census data in Virginia shows that the average salary for people who hold a master's degree in electrical or electronics engineering is $75,000 compared to $56,000 for those who only hold bachelor's degrees.  

Many universities seem to expand their master's degree offerings each year, and launch programs that allow students to gain very specialized knowledge for an increasingly competitive and complex knowledge economy.  We believe this trend is especially beneficial for international students, as new programs offer more and more opportunities for them to come to the United States and get a great education in a multitude of disciplines.

Reports Suggest Positive MBA Hiring Trends

2012 reports published by the MBA Career Services Council (MBA CSC) and the Graduate Management Admissions Council (GMAC) indicate that the outlook for MBA hiring is very positive and expected to increase in 2012 and beyond.  

The MBA CSC (an association composed of MBA career services and recruiting offices and companies that recruit MBA students) recently released their Spring 2012 Recruiting Trends Survey Results which indicates that a majority of business schools reported an increase in on-campus recruiting activity for full-time positions compared to 2011.  Specifically, the survey notes that 51% of responding business school career offices reported an increase in on-campus recruiting and 69% reported increases in full-time job postings.  Recruiting activity in the consulting and technology sectors showed the largest increases, while recruiting in financial services decreased.  72% of the responding schools also expect internship opportunities to increase this year as well.    

Information reported from the GMAC in their 2012 Corporate Recruiters Survey seems to support these positive recruiting trends.  79% of the corporate recruiters responding to the GMAC survey stated that they planned to hire MBA graduates in 2012 (up from 72% in 2011), and on average they plan to hire 17 MBA graduates per firm (compared to 13 in 2011).  The largest increases in recruiting seem to have come from companies in the United States and the Asia-Pacific region.    

Darden Now Offering Feedback Sessions

If you applied to the University of Virginia, Darden School of Business MBA program in the 2011-2012 application cycle and were rejected, you can now schedule a feedback session with a Darden admissions committee member.  15 minute feedback sessions will be available until the end of June and are limited to those people who plan to reapply this year.  Instructions on how you can schedule a feedback appointment can be found here. 

The feedback session is a valuable opportunity for a reapplicant to assess the situation and understand some of the reasons why they were not selected for admission, thus allowing them to strengthen their candidacy going forward.  It also offers a chance to establish a stronger relationship with the school.   It is important to make a positive impression on the admissions committee member as they will likely add remarks about the feedback session in your admissions file. 

To prepare for the feedback session, make a list of important questions you want to ask and think about any other statements you want to make about actions you plan to take to improve yourself or your commitment to the MBA program.  Maintain a positive tone during the conversation and listen closely to what they tell you.  Being fully prepared and having positive interactions with the admission comittee member will ensure you maximize these 15 minutes and shape their opinion of you before the next application season begins.  After the feedback session, consider occasionally corresponding with the admission committee member giving them updates of your progress and restating your interest to the program.

Having a productive conversation with the admissions committee member and taking action based on their advice should go a long way to turning that rejection into an admission in 2012-2013!    

GMAT Test Takers Increasing in China, Decreasing in Taiwan

The GMAC 2007-2011 Asian Geographic Trend Report shows a large increase in overall GMAT test takers from Asian countries during this period.  The number of GMAT exams taken by Asian citizens reached an all-time high in 2011, as 85,551 people sat for the exam; an increase of 47% since 2007.  In 2011, a total of 289,388 GMAT score reports were sent by Asian citizens to business schools across the world compared to 207,430 reports sent in 2007.  Asian citizens sent 69% of their GMAT score reports to business schools in the United States in 2011, compared to 74% in 2007.

Driving this growth were Chinese GMAT test takers who have skyrocketed from 13,048 in 2007 to 40,069 in 2011.  This large increase has been driven by female Chinese test takers and younger applicants under the age of 25 who are applying to MBA programs as well as specialized master's programs.

Taiwanese citizens sat for a total of 3,449 GMAT exams in 2011, down from 5,218 in 2007.  The number of score reports sent by Taiwanese citizens to global business schools has decreased by 43% during this period.  The percentage of female GMAT test takers in Taiwan continues to be high, at 57% of all test takers.  There has also been a shift in the type of management programs that Taiwanese applicants apply to.  In 2007, 73% of Taiwanese GMAT test takers applied to MBA programs; while in 2011 only 63% applied to MBA programs and 32% applied to specialized master's programs in finance, marketing, accounting and management.

Kellogg to Restructure and Reduce Size of Two-Year MBA

New Kellogg Dean Sally Blount has announced an aggressive restructuring plan that will reduce the size of the two-year MBA program, expand their one-year programs and reshape the curriculum.

Due to falling demand for two-year MBA programs by American applicants, Kellogg will shift its emphasis from the traditional two-year American MBA model and reduce intake for its two-year MBA from about 650 to 530 annually.  In Kellogg's view, people these days want to spend less time on their education and thus Kellogg will expand the size in the one-year MBA, EMBA and specialized master's programs.

Kellogg also plans to overhaul its curriculum and change its reputation as a marketing-oriented business school.  Over the next two years Kellogg will eliminate individual academic specializations like marketing and finance, and focus on broad concepts that cut across disciplines such as innovation and entrepreneurship, markets, customers and growth, how business interacts with government and architects of collaboration which focuses on the new ways companies are organized and operated.  Dean Blount sees these changes as a necessary reaction to the job market and what employers want, and that the new curriculum will add value by giving students a more balanced approach to management.  

Solid Job Prospects for 2011 Business School Graduates

The Graduate Management Admissions Councel (GMAC), which surveyed a large number of 2011 business school graduates for their 2012 Alumni Perspectives Survey, has reported that hiring remained at a robust 84% for management degree graduates three months after graduation.  2010 management graduates had a 96% employment rate 15 months after graduation. 

GMAC's research shows a clear disparity between hiring and salary levels between less- and more-experienced management graduates; as 19% of graduates with less than one year of experience were unemployed three months after graduation with starting salaries ranging from US$40,000-50,000, compared to a 14-15% unemployment rate and starting salares of US$70,000-90,000 for graduates with one to six years of prior work experience.  GMAC's 2011 Corporate Recruiters Survey supported this data as 41% of the worldwide recruiters stated that they planned to hire MBA graduates with three to four years of experience, while only 27% planned to hire MBAs with less than 3 years of experience.  "Proven ability to perform" was the number one quality that global corporate recruiters where looking for in new hires.

More on Plagiarism

Like we wrote last year, many universities and business schools in particular have started using plagiarism detection software to ensure that application essays are the applicants' original work and not copied from other sources.

In January 2012, the Los Angles Times reported that UCLA's Anderson School of Management, Stanford University as well as at least 100 other colleges in the United States are also using Turnitin, an anti-plagiarism software company that helps admissions committees verify the authenticity of application materials by comparing them to a large archive of writings.  UCLA Anderson has reported that Turnitin software already helped them detect twelve applications that contained plagiarised work in the 2011-2012 application cycle.  In internal testing of the database, Turnitin reported that between 3-20% of applicants had used plagiarised work in their application essays. 

Based on our experience, this rate is higher among international applicants.  Part of the problem are the admissions consultants in Asia, whose "core value" to applicants' is providing them with access to a large cache of application essays that they can "copy and paste" from.  We often stress to our clients that originality and authenticity are the keys to a successful application essay, and that following the format that worked for other successful applicants is not a winning strategy because everyone is unique and has a different story to tell.  Transcend Admissions Consultants is happy to hear that more and more universities will be using plagiarism detection software going forward so that unethical applicants will be eliminated thus opening up more spaces at the top schools for honest people who create original work.               

Harvard Admits More Experienced Applicants in 2011

HBS's incoming Fall 2011 MBA class may have a few more grey hairs, as the average age has jumped a full year from 2010 to 27 years old.  The number of candidates that have six or more years experience has increased from 113 in 2010, to 191 in 2011, a 69% increase.  Harvard's preference toward more experienced applicants comes as the first cohort of its 2+2 program will begin this fall, which gave deferred admission to 60 undergraduate applicants.

Statistics released by the director of Harvard's MBA admissions shows an effort to enroll a somewhat older class as admitted applicants who graduated three years ago fell from 242 in 2010 to only 172 in 2011.      

The Return of Investment on Your Education

As we have often said at Transcend Admissions Consultants, education is an investment in your future, and can lead to amazing personal and professional growth opportunities. But with the sometimes staggering cost of tuition for undergraduate and graduate programs, how can you determine whether the Return of Investment (ROI) on your education will be worth it?   

Recent studies have shed some light on this issue and released statistics on potential earnings for those with various levels of education. A recent report by the Pew Research Center tells us that college graduates will earn about $650,000 more than high school graduates over a 40-year career; and that workers with Master’s degrees will earn about $1.6 million over their work life compared to $1.4 million for those with a Bachelor’s degree only.  This study goes on to show that workers with Master’s or Doctoral degrees can expect mean earnings of $100,000 – $120,000 by the time they reach 45 years of age, compared to $40,000 for those with only a high school education.     

The Georgetown University Center on Education and the Workforce has also visited this issue in 2011, and enthusiastically concludes that higher education is a sound investment that will net graduates 84% more earnings over a lifetime than those without higher education. This report states that the most popular course of study is business, accounting for 25% of all students, and that median earnings of those with graduate degrees in business are $80,000. People holding graduate degrees in engineering fields command the highest median annual income, at $99,000.   

In the end, pursing higher education is a very personal decision and many factors must be taken into consideration. But while tuition can be very expensive ($100,000+ for top MBA programs), these studies seem to indicate that investing in education at all levels will lead to a solid ROI over the course of a career.    

MBA Hiring has Diversified in Recent Years

The economic crisis hit MBA recruitment particularly hard as major players Lehman Brothers and Bear Sterns collapsed, financial giants Goldman Sachs, Morgan Stanley, Citibank and Bank of America slashed hiring, and big employers of MBA grads like Johnson & Johnson and Kraft cut back as well. 

However, despite all of the doom and gloom MBA placement statistics have remained relatively strong, largely because firms that had not traditionally recruited on MBA campuses like Apple, Inc., Amazon.com and IBM sensed the opportunity and starting hire more MBA graduates.  This has resulted in a more diversified job market, where mid-sized companies, government institutions and educational groups can pluck prized MBA talent.

In the meantime, hiring by major financial firms has been surprisingly stable - but there has been a shift in hiring across various departments and geographic regions.  There has also been increased MBA hiring by hedge funds, boutique and mid-sized financial services firms.           

Consulting Industry Hiring Increases in 2011

The consulting industry, a major recruiter of MBA graduates, has bounced back in 2011 from the dismal days after the economic crisis in 2009 when the global consulting industry contracted by 9.1%.  The research firm Kennedy Information reported that 2009 was the worst year for the consulting industry since 1982. 

The projects that consultants are working on this year are more profit-oriented as well.  In 2009, 87% of projects were aimed at cutting costs, while in 2011, 53% of project spending for consultants will be focused on business growth plans. 

Not all consulting sectors are expected to grow at the same rate though.  Growth for spending on strategy consulting is forecasted to expand by only 1.1% a year between 2011 and 2014, while consulting on operations management will grow by an annual average of 5.1% and IT consulting by 3.9% a year to 2014.   

Of the elite strategy consultancies, BCG had the best 2010 with 12% growth.  But the major players are getting more and more competition by the Big Four audit firms that continue to aggressively expand and mid-sized firms that offer experienced independent consultants at lower rates.  

International Applications Decrease in Some Major U.S. Business Schools

The Wall Street Journal recently reported that there was a 4% decrease in Fall 2011 international student applications to the 25 United States business schools that normally award the largest number of degrees to international students.  The reason for this trend is thought to be increased competition from business schools in Europe and Asia that have invested significant resources in business programs in recent years.  While international applications increased by 4% overall to all U.S. business schools, this is significantly less than the 12% growth in international applicants in engineering and science programs, and the 8-9% growth in education, arts and humanities and life sciences programs.

Kellogg EMBA Program - GMAT Not Required!

Going forward the Northwestern University Kellogg School of Business Executive MBA program will not require a GMAT score to be submitted as part of the application.  The program is geared towards working professionals with little time to prepare for the GMAT exam (the EMBA requires a minimum of 8 years of work experience, and the average student has 12-15 years of work experience), and therefore Kellogg has decided that they will primarily evaluate candidates based on their career progress.

Harvard Professor Becomes Dean at Georgetown McDonough School of Business

David A. Thomas, professor and former associate dean at Harvard Business School will become the new dean of Georgetown University McDonough School of Business as of August 1st, 2011.  Thomas is a professor of Business Administration and directs Harvard's Organizational Behavior Unit; he was also a former professor at the Wharton School of Finance at the University of Pennsylvania.  Thomas holds undergraduate and graduate degrees from Yale and Columbia Universities, respectively.

Thomas is now the third high profile HBS professor to take over the top position at prominent business schools over the last several months, as professor John Quelch became the vice president and dean at China Europe International Business School (CEIBS) in Dec. 2010, and long-time HBS finance professor and social entrepreneur Peter Tufano became the dean at the University of Oxford, Said Business School in Nov. 2010.   

MBA Internship Hiring Has Increased in 2011

This article reports that many of the top business schools in the United States, including Northwestern (Kellogg), Cornell (Johnson), Carnegie Mellon (Tepper) and the University of Minnesota (Carlson) have showed a significant increase in hiring for MBA students who had internships in the summer of 2010.  Employers in the consulting, banking, consumer packaged goods and energy industries are driving this growth as they look to fill their talent needs.

Many MBA career services directors are cautiously optimistic about these positive figures, and note that many employers are waiting longer to extend offers and hiring interns year-round, instead of in the fall as was more common in the past.  MBA career services offices have also shifted their focus to instruct candidates how to best leverage their network to aggressively find internships, instead of waiting for employers to recruit on campus.    

Positive Hiring Trends for 2011 MBA Graduates

The Graduate Management Admissions Council (GMAC) (the company that brought you the GMAT) has recently reported that the job market for the class of 2011 MBA graduates has significantly improved from 2010. 

In a GMAC survey from March 2011, 54% of MBA class of 2011 respondents indicated that they have already received at least one offer of employment, up from 32% just one year ago as many employers seek to expand operations.  Average salaries for MBA graduates are also on the rise, as annual salaries for job-seekers in the United States and Europe are now over USD91,000.

This is very positive news for current MBA students and future applicants, and is strong evidence that the global economic situation is steadily improving. 

In Many Asian Countries, Women GMAT Testtakers Outnumber Men

This recent Bloomberg/Businessweek article notes that the number of women taking the GMAT exam from China, Taiwan, Vietnam and Thailand is now greater than men.  Last year, 57% of all examinees from Taiwan were women.  These Asian female applicants to MBA programs are likely the reason female enrollment in many programs has increased in recent years.  Ten years ago MBA programs generally had about 25% female enrollment, but now in many programs female enrollment accounts for over 30% of all students.   

NYU in Shanghai

NYU has opened facilities in Shanghai, on the campus of East China Normal University.  Currently the program is limited to current NYU students from New York that want to study abroad in China.  Courses are offered in NYU Shanghai by the Stern School of Business, the College of Arts and Sciences, and the Steinhardt School of Culture, Education and Human Development.  Future plans are to expand NYU Shanghai to 3,000 undergraduate, graduate and professional students.