Slight Decline in Interest for MBA Programs
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A slight weakening in interest for MBA programs is occurring among prospective business school students, reported the Graduate Management Admission Council on March 13) Two-year, one-year full-time MBA and part-time MBA programs saw the largest declines, according to a the organization’s annual survey of prospective students. There were also slight declines in the percentage of respondents considering flexible MBA and executive MBA programs, while consideration of online/distance learning programs remained stable. Master-level programs in accounting and finance, on the other hand, experienced increased student interest.
The percentage of prospective students considering two-year, full-time MBA programs this past year fell to 42%, down five percentage points from 47% in 2009 and 46% in 2010, said GMAC. And the decline wasn’t made up by those interested in pursuing full-time one-year programs. Consideration of those shorter MBA fell to 38% this past year, down four percentage points from the 42% figure in both 2009 and 2010 (see table below). The waning interest in the MBA degree follows reports by many business schools last year of declines in application volume.
Program types considered by prospective students, by survey year
Source: Graduate Management Admission Council 2011 Prospective Student Survey
Yet, when it comes to deciding whether to pursue a business school degree, the most important motivation almost always has to do with getting and keeping a better paying job. The study found that three of the top four reasons why most people apply to business school is for increased job opportunities, higher salary potential, and to accelerate their career paths. The chance to develop business knowledge, skills and abilities came in third (in the table below, GMAC uses the acronym KSAs to describe it). Men and women equally shared the top four motivations shown below. More men, however, cited the development of leadership skills as their fifth highest motivator; while women cited the desire to remain marketable and competitive as their fifth highest motivational factor, GMAC said.
Top 12 motivations for pursuing a graduate business education
Source: Graduate Management Admission Council 2011 Prospective Student Survey
GMAC said that respondents of all ages shared the top three motivations shown above. Prospective students aged 30 and younger were more likely than older respondents to be motivated by a desire to accelerate their career path and develop leadership skills, whereas older respondents wished to remain marketable and competitive and obtain the credentials afforded by a graduate business education.
Prospective students varied more widely when citing motivating factors by undergraduate degree, however. Would-be students with science backgrounds were highly motivated by a desire to develop their skill base and increase their forward momentum in their careers. Business majors saw graduate business education as a means to compete more effectively in the job market. Humanities and social science majors were similar in that they desired to expand their potential career prospects.
Top five motivations by undergraduate major
Source: Graduate Management Admission Council 2011 Prospective Student Survey
The finding is among a vast amount of data released today by GMAC in its annual “prospective students survey.” More than 16,000 respondents students shared their opinions, preferences, and experiences as they navigated through the process of considering a graduate business education over the course of 2011. This GMAC report provides a portrait of these individuals in their endeavors to assess, prepare, and apply to graduate business school.
Interestingly, only 16% of prospective students reported having no reservations about pursuing a graduate business education. Among the majority that did have some doubts, most cited economic concerns, GMAC said. Nearly half (49%) indicated that earning a graduate business degree would require more money than they have available, which continues to be the most common reservation, followed by concerns that it would require large financial debts (47%). Yet, economic reservations have lessened slightly over the past three years.
Among other things, the study found that prospective business school students are showing increased interest in specialized master’s degree programs. The administrator of the GMAC exam said that 18% of its surveyed group of would-be graduate students last year were only considering non-MBA programs, up five full percentage points from 2009.
Nevertheless, GMAC added, a majority of prospective students–some 55%–were only interested in pursuing an MBA degree, a figure that has remained steady since 2009. Even so, 28 percent of prospects simultaneously consider both MBA and master’s (non-MBA) programs. Demand for master’s programs is greatest among the youngest cohort of prospects, where more than 50% of applicants to management, accounting, and finance programs are younger than 24 years of age.
Two out of five survey respondents (41%) reported that they consulted school rankings when choosing a program, GMAC found, and nearly one-third (31%) of these individuals generally considered published rankings extremely influential. School websites, however, were surprisingly considered about 50 percent more influential than the most highly regarded ranking publication specified, namely The Financial Times (the table below shows the percentage of prospective students who consider school websites and various ranking publications as extremely influential in their decision to apply to a particular school or program.
Influence of a school’s website compared with rankings
Source: Graduate Management Admission Council 2011 Prospective Student Survey
When asked to rank which sources of school information they deemed most influential in their decision-making overall, respondents ranked several sources equal to or higher than school websites (24%), namely: word-of-mouth resources, including current students and alumni (28%), friends and family (24%), and college professors (24%). They also rated employers (23%) nearly as influential as school websites.
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