Live Updates: Coronavirus Impact On Business Schools
What is the impact of coronavirus on business schools? We bring you the latest updates including campus closures, changes to MBA admission requirements, and more
MBA Salaries Bounce Back After Coronavirus Uncertainty
MBA students who graduated this year can expect to earn a salary of around $105,000, according to the Graduate Management Admission Council's (GMAC) latest Corporate Recruiters Survey.
GMAC gathered data from 712 employers in February 2020, and data from a further 232 employers in June, after the effects of the coronavirus pandemic took hold. These employers represented a range of industries and geographies, but the majority (80%) were based in the United States.
Back in May, the National Association of Colleges and Employers predicted a 30% drop in MBA salary prospects in 2020 compared with 2019. Over the past few months, however, this outlook has improved.
Salary by Program
MBA graduates continue to command the highest salaries of any graduate management program.
At the start of the year, employers expected to pay MBA hires a median salary of $115,000. Although this median has since dropped to $105,000, it still outstrips the average salaries of graduates from other business school programs.
In February 2020, employers reported that Master in Management and Master of Accounting graduates would be paid a median salary of $75,000. Graduates from Master of Data Analytics and Master of Finance programs can expect a higher salary, however—with medians of $85,000 and $80,000 respectively.
The marked difference between MBA and Masters salaries likely reflects the difference in average years’ experience.
Most MBA students join the program with several years experience behind them, while business master's students often come to programs earlier in their career.
Salary by industry
GMAC's survey also revealed which industries pay MBA graduates the highest salaries.
Consulting takes the lead, paying a median salary of $145,000, ranging as high as $165,000 for the top 25% of earners in the industry.
MBAs working in technology and finance can both expect an average starting salary of $115,000.
Confidence in MBA hires
Overall, employers continue to place a premium on graduate management education, and despite taking a dip, graduate salaries reflect this.
According to GMAC’s data, the vast majority of employers—86%—do not plan on reducing salaries, benefits, or bonuses for business school grads hired in 2020, emphasizing the value they perceive in business school qualifications.
The skills that business school helps foster may be especially important during periods of crisis.
Abilities like critical thinking, communication, and managing technological disruption are expected to be at the top of employers’ wish lists as the ongoing pandemic continues to push the pace of change in almost every industry.
MBA Hiring Set To Rebound In 2021 After COVID-19 Dip
Employers expressed optimism that MBA hiring will rebound in 2021 to pre-COVID-19 levels after a dip during the pandemic. That’s according to the 2020 Corporate Recruiters Survey published by the Graduate Management Admission Council (GMAC).
Before the pandemic, 92% of firms surveyed said they planned to hire MBA graduates in 2020. That figure then dropped to 77% among employers surveyed amid the global health crisis. But when GMAC asked employers about their hiring plans for 2021, nearly 90% responded by saying they plan to hire MBA graduates next year.
The optimism expressed by employers comes despite the uncertainty and economic retraction that has gripped the global economy since March 2020. The report was nearing conclusion in March, as the COVID-19 pandemic was unfolding.
GMAC initiated additional data collection that gives a clearer picture of the economic impacts the pandemic has had and will have across MBA hiring and salary trends.
The confidence employers have in the skills and abilities of graduate management talent indicates the roll business school graduates will play in the post-pandemic economic recovery.
MBA skills still attractive to employers
Before COVID-19, 90% of respondents indicated they were highly confident or confident about the ability of business schools to prepare students for success in their organization. That figure held steady at 87% in surveying performed this summer, highlighting the attractiveness of MBA degree holders and their ability to perform in times of transition and change.
Recruiters indicated strategic thinking, communication skills, and versatility as the skills they’re most confident in when it comes to a business school’s ability to prepare graduates for success in the workforce. These skills hold steady across the entire report.
One of the more noteworthy shifts when examining skills demand is the ability to navigate the challenges of technological disruption, which was identified by more than two-thirds of employers who responded as becoming more important as a result of COVID-19, followed by strong communication skills.
“Talent in an organization is vital to growth and a firm’s ability to innovate, a reality in any environment,” said Jay Nibbe, GMAC board member and Global Vice Chair for Markets at EY.
“The skills highlighted in this report represent significant competitive differentiation when it comes to a company’s ability to compete and create value in the marketplace, and they become even more important amid turmoil and constant change.”
Rahul Choudaha, director of industry insights at GMAC, pointed out that the research in the report shows that as the pandemic resets the global economy and job market, corporate recruiter confidence in the skills and abilities of graduate management talent remains strong.
“This aligns with 2021’s robust MBA hiring projections as organizations plan for their recovery in a post-COVID world which demands meta-skills integral to managerial talents such as versatility and strategic thinking,” he said.
GMAC’s president and CEO, Sangeet Chowfla, added: “When thinking about the skills and experience required to help organizations and industries rebuild after an event like COVID-19, it makes sense that employers are expressing a desire to hire more MBA and business master’s graduates.
“The world was changing rapidly even before the current pandemic and while COVID-19 has brought with it perhaps unprecedented challenges across every sector, b-school classrooms have long been preparing MBA students for a dynamic and often uncertain environment. Employers place a premium on that kind of talent and perspective.”
MBA salaries remain strong despite economic uncertainty
Compensation for MBA graduates is a key pull of the degree, and the 2020 Corporate Recruiters Survey showed for the class of 2020 salaries will remain strong.
Most recruiters expressed intent to honor their organization’s compensation promises, with a minority of respondents saying they will reduce salaries, benefits, or bonuses.
The compensation premium commanded by business management graduates is also holding steady.
At $115,000, the median salary of MBA degree-holders is 75% more than those with a bachelor’s degree in pre-COVID sampling. That figure decreased slightly to $105,000 in post-COVID surveying.
The compensation premium is even more apparent for Fortune 100 companies and the big-three industries of hire for MBA graduates—consulting, finance, and technology. At $145,000, the median salary of MBA’s in the consulting industry is twice that of bachelor’s degree holders as indicated in data collected prior to March 17th.
With it looking less likely that MBA salaries will soften amid the COVID-19 environment and employers intending to hire MBA talent at the rate they did pre-pandemic in 2021, the value of graduate management talent will remain despite the economic uncertainty prevalent since March. In an uncertain world organizations need talent, and that’s a good sign for the business school class entering in 2020.
I Took The GMAT Online Exam And Got Into Imperial College Business School
Naomi O’Donnell has always wanted to study an advanced management degree to kick-start a career in consulting. She wants to work in the luxury and fashion department of a Big 3 consulting company like McKinsey, or as an internal consultant for historic luxury firms like LVMH and Richemont.
With previous experience in marketing and fashion, and a bachelor’s degree in management from the University of Lausanne, the Master in International Management program at Imperial College Business School seemed like the perfect fit.
To apply, Naomi took the GMAT—the world’s leading business school admission test—in a test center, but she wasn’t happy with her score. Then, her native Switzerland entered coronavirus lockdown. It was only by retaking the GMAT online that Naomi was able to land a place at her top choice business school.
BusinessBecause caught up with Naomi to find out more about her online test-taking experience.
Why did you decide to take the GMAT Online Exam?
By March 2020, everything was closed in Switzerland [due to COVID-19], including GMAT test centers. As the months passed, taking the exam online started to seem like my only option if I wanted to go to school in September.
Do you think your school prefers the test center GMAT vs the GMAT Online Exam?
No. Imperial informed me about the online version when it came out and suggested the idea.
Do you feel your GMAT score was reflective of your abilities?
I did as I would have expected on the mathematical segment, but I do not believe my English capabilities were reflected in my score.
I took the test in the middle of the day, thinking that it would be sunny all day so I did not have to turn on the lights. After the math half of my exam was done, it became completely dark and cloudy, resulting in me doing the English part in almost total darkness because I was not allowed to leave my desk to turn on the lights. Reading long texts on a computer screen in the dark was very tiring and I believe that I did not perform as well as I would have wanted due to that.
What advice do you have for anyone taking the GMAT Online Exam?
Turn on the lights before the exam! Jokes aside, first of all you need to do a few checks regarding your internet speed, sound, and video quality. On the day of the exam, they ask you to take pictures of your desk from every angle and also of your surroundings. They told me to unplug my printer for some reason as well.
The one thing that really surprised me was that there is an actual person looking at you live during your exam. I thought it was going to be a recorded video and someone would review it afterwards but this was not the case. It was bizarre to think that a person was staring at me for the whole time!
My tip would be to really know all of your GMAT strategies by heart and don’t rely on the whiteboard.
Note: The GMAT Online Exam now allows a physical whiteboard option.
Why did you decide to pursue the Master in International Management at Imperial?
The key factor for me was that the program incorporates two-to-three consultancy experiences in global settings. This is such a crucial element for me as I do not have any experience in consulting. The program gives me the opportunity to develop both my academic skills and practical professional skills, and aligns well with my future career plans.
7 Myths About Applying To Business School During COVID-19
The impact of COVID-19 on the business school application process affects us all differently. To get a sense of the implications, you need to work out how they impact your application. Sweeping generalizations won’t help you to weigh up the value proposition of business school.
In our BusinessBecause MBA Application Guide 2020-21, we explain how COVID-19 could make applying for business school more competitive this cycle. We also list the latest MBA application deadlines to help you plan your business school application for a 2021 start.
With coronavirus, applying to business school is a little different. If you’re considering an MBA or master’s program, you should be aware of some of the most common misconceptions candidates have about applying to business school right now:
Applying to business school during COVID-19 | 7 Myths
Myth 1: The process is less competitive
While there are probably fewer international students applying right now, due in part to issues with visas, business school applications tend to be counter-cyclical to the economy. When people are losing their jobs, or need to upskill to be more competitive, business school applications rise.
The competitiveness of your application may be affected by different factors based on your specific circumstances, so there is no blanket rule when it comes to how competitive you will be compared to your peers.
Myth 2: The value proposition of the MBA has changed
The value of your MBA plays out over your whole career. It is an investment in the long-term. While graduating into a recession can certainly affect your first job after graduation, the return on investment is about more than your first job.
An MBA could still be a boon to your longer-term career trajectory. Business school can still create opportunities that you would not otherwise have access to. Think about whether this is the right time for you, and what goals you wanted to achieve in the first place.
Myth 3: Video interviews are fundamentally different
The qualities admissions officers are looking for in candidates have not changed. There are obviously some extra aspects you’ll need to think about (such as the technology, background and lighting), but you should prepare for video interviews in the same way you’d prepare for in-person interviews. You should make sure you that you have done your research, practiced the interview with someone you trust, and thought through different questions.
Myth 4: Scholarships are off the table
Scholarships may be more competitive now as applicants’ finances take a hit. Companies may also be more reluctant to sponsor an applicant’s studies. But scholarships are not off the table. There are still funds available for competitive candidates.
Myth 5: Taking the online GMAT is better or worse than taking the GMAT at a test center
You should take the GMAT when you are ready—whether that means taking the GMAT Online Exam or the in-person test. A test-taker’s readiness is a bigger factor than the small differences between the test-taking experiences.
Myth 6: There is no point getting an MBA in this jobs market
There’s no doubt the MBA jobs market is tougher, but an MBA might be even more valuable in setting yourself apart from your peers and figuring out how to navigate the new world of work.
If your industry is hard-hit or if you have lost your job, it might make sense to sit out the recession in business school. You’ll get the connections, skills and ability to pivot that could make all the difference to help you retool, reposition and reset.
Myth 7: It’s impossible to choose a business school without campus visits
As many international students will know, visiting a business school is not the only way to understand its culture. In fact, a lack of opportunities to visit campus has leveled the playing field. You’ll need to engage more online and do more online networking with students and alumni to do your research, and to determine if a school is the right fit.