2016 MBA Applicant Survey. Program Consideration Reasons for Applying Test Prep/Admission Consultant Engagement Expectations
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1 2016 MBA Applicant Survey Program Consideration Reasons for Applying Test Prep/Admission Consultant Engagement Expectations
2 Background Information Findings reflect applicants who plan on enrolling in Jan 2017 or sooner, and who applied to at least one school (N=1,114) 65% male, 35% female 35% are U.S. citizens, 61% international 44% live in the U.S. 56% live in 83 other countries represented 19% already have a master s degree Survey open dates: February 15 through May 2, 2016 Total respondents: 3,586
3 Executive summary MBA applicants remain as optimistic as in past years about their post-mba employment prospects Confident that an MBA education would enable them to secure a significantly higher salary post-mba Continue to focus on Consulting, Finance/Accounting, & Technology While optimistic about the future, many MBA applicants are realistic about the competitiveness of the process Turn to multiple sources for support with application process Friends, admissions consultants, & family members top list of resources sought out Fewer than 20% of applicants go it alone
4 Executive summary Applicants are also mindful of program costs Declining interest in two-year programs reflects openness to options perceived as more cost-effective 41% of respondents indicated that school choice was partly influenced by affordability 21% of applicants report modifying list of target schools based on cost & access to financial aid Cost appears to loom larger in applicants minds than it did in the first AIGAC MBA Applicant Survey in 2009 Net cost of program attendance can be difficult to assess, skewing choices of where to apply
5 Executive summary Applicants have so far adapted well to newer application components Nearly half of applicants (49%) said the video essay represented them well or extremely well While not all applicants feel that video responses represent them well, the format doesn t seem to create undue stress Applicants appear fairly comfortable with group exercises; while they are still only employed by a handful of schools, so far, applicants indicate they are not overly challenging
6 The Life of an MBA Applicant Decide to apply Timing/Trigger Types of programs considered Factors in selecting schools Plan for career outcomes Desired industries and functions Predicted salary outcome and raises Entrepreneurship Apply and find fit Test taking Consultant services Video essays Letters of recommendation Connection with schools
7 MBA Applicants are optimistic about the future
8 Short-term career outcomes are core drivers of the decision to apply Which factors had most influence on decision to apply? Acquire new information/skills Advance my career Access job prospects Access to strong network 56.2% 55.6% 53.4% 51.1% Gain a sense of personal satisfaction 43.8% Deepen exisiting knowledge/skills Get professional credentials Experience new geographic region/city 33.9% 37.0% 36.0% Perceptions I could get admitted 14.5% Current economic climate Uncertainty in current industry Uncertainty in firm 8.0% 6.6% 6.4% 0% 10% 20% 30% 40% 50% 60% Source: 2016 MBA Applicant Survey, n=1143 (those intending to start by January 2017)
9 Applicants continue to desire traditional post-mba roles 60% 50% 53% What industry do you currently/hope to work in? 40% 33% 33% 30% 20% 21% 16% 24% 19% 10% 11% 11% 10% 11% 9% 8% 8% 8% 9% 5% 5% 0% Current Source: 2016 MBA Applicant Survey, n=1040 (those intending to start by January 2017) Intended
10 We need to manage applicants career expectations In 2007, consultants represented 26% of MBA graduating classes and by 2013, that grew to 29%* Little room left to grow; based on last downturn, total hires may fall Finance has faced greater long-term pressure 43% of graduates from top MBA programs went into finance in 2007 By 2013, 29% of graduates from top MBA programs went into finance Consistent with results at most top business schools Technology has grown consistently since % of graduates from top MBA programs went into technology in 2007, by 2013, 17% of graduates had entered technology Source: (*) The Economist ( Represents average data from Booth, Wharton, HBS, LBS and INSEAD.
11 Nearly half of applicants expect a salary increase of >50% within 6 months of graduation 30% 25% What effect do you expect completing an MBA to have on your earnings potential within the first six months of graduating? 24% 27.0% 20% 17% 15% 10% 8% 7.0% 7.0% 6% 14% 11% 12.0% 12.0% 11.0% 11.0% 10% 9% 14.0% % 1% 1.0% 0% Decrease Stay about the same Increase 1-10% Increase 11-20% Increase 21-30% Increase 31-40% Increase 41-50% Increase % Increase more than 100% (more than double) Source: 2016 MBA Applicant Survey, n=1040 (those intending to start by January 2017)
12 2016 MBA applicants are realistic about the competitiveness of the process
13 Many applicants seek out multiple sources of support, ~20% go it alone Who helped you with the application process? (select all) Friend(s) 44% Admissions Consultant 39% Family member 30% School alum Coworker(s) 24% 25% No one Test prep instructor/tutor 17% 17% Mentor(s) not listed 13% Professor(s) 9% Other 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: 2016 MBA Applicant Survey, n=1141 (those intending to start by January 2017)
14 Admissions consultants helped applicants to evaluate choices How did your admissions consultant influence school choice? Try to earn a higher GMAT score before applying 32% Apply to a school that I had not previously considered Apply to more schools than I had planned 27% 29% Apply to higher-ranked schools than I had planned Apply to lower-ranked schools than I had planned 16% 15% Apply to fewer schools than I had planned 9% Get more work experience before applying 2% Take post-graduate coursework before applying Other 4% 5% Source: 2016 MBA Applicant Survey, n=434 (those intending to start by January 2017)
15 Applicants are also mindful of program costs
16 30% of applicants consider net cost when selecting programs Which factors had the most influence on specific school choice? (select all) Reputation (ranking) Impact on Career City/geographic location School Culture Career Placement Statistics Alumni network Global program Program cost/availability of scholarships Quality of Faculty Academic Focus Likelihood of Acceptance Language of Instruction Admissions Consultant's Advice 6% 6% 22% 38% 36% 35% 32% 30% 28% 27% 46% 48% 74% Source: 2016 MBA Applicant Survey, n=1144 (those intending to start by January 2017)
17 Affordability is a significant factor in school selection When did you consider how to finance your degree? (Select all that apply) Before I started 41% During the process 21% After I was accepted 32% None 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: 2016 MBA Applicant Survey, n=1143 (those intending to start by January 2017)
18 A result is that respondents are increasingly open to programs other than traditional two-year MBAs 100% 90% 80% 70% 69% What types of MBA programs have you considered? (select all) 89% 60% 50% 40% 30% 40% 33% % 10% 0% Full-time MBA, two years or more Full-time MBA, less than two years 15% 12% Part-time MBA 7% Flexible MBA (full-time and part-time options) 11% 7% 8% Executive MBA 12% 7% 8% 3% Online/DL MBA Joint-degree program 3% 0% Other MBA Source: 2016 MBA Applicant Survey, n=1144 (those intending to start by January 2017)
19 Applicants highlighted importance of financial aid in decision making The school's ability to give financial aid and merit fellowships helped make an MBA more affordable and therefore my decision making easier Applicant
20 Applicants seem to be adapting well to newer application components
21 Applicants still find tests and essays to be the most challenging Which application components did you find to be especially challenging? (Select all) 70% 60% 61% 50% 46% 40% 30% 20% 20% 18% 16% 10% 3% 2% 0% Standardized Tests (GMAT, GRE, TOEFL, etc.) Written Essays Interview (in person or online) Letters of Recommendation Recorded video response Group exercise Other Source: 2016 MBA Applicant Survey, n=1088 (those intending to start by January 2017)
22 Applicants rated video responses as less challenging than tests and essays 70% 60% 50% Which application components Chart did you Title find to be especially challenging? (Select all) 58% 51% 52% 51% 45% 45% 40% 30% 35% 36% 31% 20% 10% 0% Kellogg Yale McCombs GMAT / GRE Essays Video Responses Source: 2016 MBA Applicant Survey, n=198 (Kellogg), n=120 (Yale), n=89 (McCombs)
23 A tipping point in the percentage of applicants completing video responses 100% 90% 80% 70% 60% 50% 40% Did you complete one or more applications with a video essay component? Yes No Not sure 63% Many applicants liked video interviews I think the video components are a good way for schools to get a preliminary view into the applicant before inviting them to interview Applicant It's a great addition to the application process. A video can tell something beyond the essays, which is very beneficial to the adcom. It is the logical utilization of the latest technology Applicant 30% 20% 10% 0% 35% Source: 2016 MBA Applicant Survey, n=1071 (those intending to start by January 2017) Although it is a bit nerve wrecking, the video essays are a great way for candidates to show admissions committees their communication skills and to put a personal touch to the application. It was a very interesting exercise for me Applicant
24 Videos don t generate a lot of stress for applicants, but still room for improvement with this new medium % 60% 60% 50% 50% 40% 40% 30% 20% 53% 42% 30% 20% 38% 44% 10% 0% 12% 3% Women Men 10% 0% 9% 9% Women Men Extremely Well Very Well Extremely Well Very Well Source: 2016 MBA Applicant Survey, n=361 (those intending to start by January 2017)
25 Top 10 Schools Who Got to Know Applicants Well How well did each of the schools get to know you through the admissions process?* Dartmouth (Tuck) IE Northwestern (Kellogg) Duke (Fuqua) Cornell (Johnson) University of Chicago (Booth) IESE Carnegie Mellon (Tepper) University of Toronto (Rotman) INSEAD Oxford (Said) University of Texas - Austin (McCombs) *Means (weighted to equalize admissions rates) on a scale from 1 ( Not at all ) to 4 ( Extremely well ) Source: 2016 MBA Applicant Survey, n=1114(those intending to start by January 2017)
26 Candidates expect the schools to be interested in them The accessibility of Admission Officers was key to my decision. Additionally, schools that were very responsive with returning s and linking me with current students were generally higher on my list than others. Georgia Tech took the time to reach out to me during the whole admissions process. The individual attention from the beginning showed a commitment to me others schools lacked. Source: 2016 MBA Applicant Survey, n=1114(those intending to start by January 2017)
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