An MBA from a top business school was a sure thing to boost your credentials for a more senior role. Not any more. The cyclical nature of markets is magnified in the MBA world, a cold planet where feelings of self entitlement and superiority go to die, nowadays.
Not too long ago, with a Top 5-10 MBA in tow, you could write your own ticket. Guys and gals going through the MBA pipeline in the late 90′s/early 00′s had six-figure offers in the multiples by the end of their first-year summer.
But now, according to Business Week , 16.5% of Top 30 MBA program grads in 2009 did not get a single offer by the time their schools published placement statistics 3 months post-graduation. More and more schools are listing “N/A” in the “% hired” column of their program catalogs. Many recent grads are joining support groups . Heads up to all you GMAT 99-percenters.
In Harvard, 11% moved to private equity (compared to 18% in 2008) and a measly 6% looked towards investment banking as a career path. At Insead, just 2.3% entered private equity, while 36% of LBS’s MBA grads entered finance this year – the lowest level since 2003.
As applications decrease across the board, Executive MBA programs are thriving, recording a 59% increase in apps. This may be a telling tale of the future value (at least in the near term) of the MBA diploma.
As to what the future holds for this often debated degree, it is likely to be strongly correlated with the overall economy. Meanwhile, with job scarcity and higher demand for specific areas of expertise, bespoke suits such as Masters of Finance and Masters of Management programs (up 24% and 20% in recent applications, respectively) are worn far more than ever before. We may even see a return to the double-breasted suit and belt buckle loafer.
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True. The value system works now. MBA becomes added advantage now. After their dream degree most of them end in wall street for money. USA produce approximately 200k MBA grads a year. Top 10 production!! Is around 20000 a year. Are these these many corporations around here to hire them?. At this level top executives of all corporations in this world should quit after a year to give way to others, would it happen?!!.
If an MBA adds 25 grands value a year getting 100k then why not hire a 4year degree holder for 50k. In few years anyone who deal with people will have MBA degree, that includes realtors, travel agents,all store managers, fast food restaurant managers etc etc. Business administration is an art work to which special skills are not required. An engineering degree is more valuable if outsourcing is not here.