NYU Stern Marks Five Years of Its Endless Frontier Labs

Prospective MBA and entrepreneur? Science and/or tech enthusiast? NYU Stern’s Endless Frontier Labs (EFL) might be of interest to you.

EFL is a dual stream program designed to bolster entrepreneurship in the science/tech space. The program includes an MBA course and an early-seed accelerator program for science and technology startups. Enrolled MBA students, with mentoring and coaching from EFL staff, are paired with a startup to develop a commercialization strategy. Students gain hands-on experience developing and implementing a business model, defining strategy, pulling together financing, and planning for scaling. The startups in the accelerator benefit from the MBA’s consultation on bringing the scientific development(s) to the marketplace, as well as from access to the resources available through the NYU, Stern, and broader NYC communities. 

The program has grown in popularity over its five years. As an accelerator, it now selects about 75 startups each year out of 1500 applications, making it among the most selective of early-seed accelerators. Students are also eager to take part, with about 120 students vying for 75 spots. The course founder and director, Deepak Hegde, stresses that he selects students who demonstrate intellectual curiosity and an ability to thrive in ambiguity, not just those with a background in science or tech. 

To date the program has yielded impressive results. EFL has led to 183 alumni startups, with 83 percent of those garnering at least one successful round of funding. This compares favorably to similar accelerators such as YCombinator and Techstars where 77 percent and 73 percent receive funding, respectively. Additionally, Hegde won the 2022 Innovation in Entrepreneurship Pedagogy Award from the Academy of Management Entrepreneurship Division. And a number of the MBA student participants have continued their work with their startup in a post-graduate position. 

Salary Increases Outpace Inflation for Most MBAs

Are post-MBA salaries living up to the degree’s promise? In most cases, the answer is yes. 

Using their rankings data, Bloomberg Businessweek analyzed MBA starting salaries from 2018 to 2022 compared to the inflation rate during the same period (17.6 percent). And they found growth that outpaced inflation in seven industries, including two of the most prominent for newly minted MBAs. These include Consulting (salary increased by 19.5 percent between 2018 and 2022), Technology (+18.8 percent), Defense and Aerospace (+20.9 percent), Government/Politics/Lobbying (+19.4 percent), Telecommunications (+27.3 percent), Education (+43.8 percent) and Construction (+20.8 percent). 

The median salary growth for MBA alumni also outpaced inflation. The reported median earnings for MBAs six years post-graduation grew 28.1 percent between 2018 and 2022. The growth rate compares favorably to both the inflation rate (17.6 percent), and the national median earnings for all full-time workers (18.7 percent). 

Poets & Quants created a similar analysis using their data to determine how the growth in median earnings between 2018 and 2022 compared to the inflation rate amongst top-ranked MBA programs. They found that at the top 27-ranked schools, the growth in starting base salary between 2018 and 2022 averaged 24 percent, well above the inflation rate, and at the top seven schools it averaged 26.7 percent. NYU Stern garnered the highest growth rate (36 percent), followed by Columbia, Chicago Booth, and Dartmouth Tuck. In fact, just three of the top-ranked schools posted median starting salary growth rates below the inflation rate: UCLA Anderson (16.8 percent), UNC Kenan-Flagler (8.3 percent), and Washington University in St. Louis (9.1 percent). 

NYU Professor Urges MBA Students to Think Beyond Consulting, Finance, and Tech

A recent WSJ op-ed by Suzy Welch, CNBC Contributor, Author, and Professor at NYU Stern provides career advice for MBAs: Although consulting, finance, and tech are the most commonly sought careers post-MBA, they are not the only routes to success. Welch advises MBAs to seek work, “at the intersection of their authentic values, their strongest skills and aptitudes, and the kind of work that interests and excites them intellectually and emotionally.” But, she points out, despite most students entering MBA programs feeling awash with career possibilities, most leave with jobs in just three industries. 

Finding purpose is an idea that she’s put a lot of thought into. After the loss of her husband, the legendary Jack Welch, she realized her need to find an “organizing principle” in her life. Welch then developed, pitched, and is now teaching a course at NYU Stern on the topic. Designed to guide MBAs on an introspective journey towards a fulfilling career path, the course is titled “Becoming You: Crafting the Authentic Career You Want and Need.” She describes it, according to Poets & Quants, as the class she wishes that she’d been able to take before graduating from Harvard Business School and entering into consulting. 

In her WSJ article, Welch identifies two key patterns emerging within MBA programs that are reducing opportunities for graduates. The first is internal: groupthink. She described this phenomenon In an interview with Poets & Quants. “You go to business school and you think about strategy and the digital economy, but what about thinking about what you want to do with your life? Most people go to business school to pivot into a new career... So you get there and you are looking around and the choices get narrower and narrower because of groupthink. You arrive big-eyed and you end up squinting. Investment banking and consulting are the two big funnels, or maybe tech,” she says. 

While she notes that some MBAs may also be seeking financial security and a way to repay loans, she purports that it runs deeper. That, for many, taking a job in one of the big three—consulting, finance, or tech—is fulfilling a “group instinct” and is good for “optics.” And as is so often the case with groupthink, MBA students who opt not to apply for these lucrative positions, or those who turn down such offers, can feel foolish or like risk-takers. But she warns that many who do follow that path as a means for safety and security often end up regretful. “A lot of very smart, very capable people, usually in their late 30s and early 40s, wake up miserable one day. Over my years as a journalist specializing in the workplace, I saw this phenomenon so often I came to dub it “The Velvet Coffin”—a state of cushy creature comfort encased in emotional or intellectual dissatisfaction” she writes.

Welch also observes a second pattern and it is external. Industry, she calls out, does a poor job showing up to recruit and sell itself among MBAs. Whereas, consulting, finance, and tech recruiters not only show up but have excelled in creating touchpoints and programming, and defining a consistent and compelling “narrative.” 

“I heard it repeatedly, because my students parroted it back to me: Even if you don’t stay long-term, with our credential on your résumé and professional development programs, we’ll set you up for your career! The big three are so persuasive and make it so convenient to get a job that it ends up feeling inevitable,” she writes. 

Welch concludes that MBA students, like never before, are seeking meaning and purpose from their careers and their lives. And she advises them to think carefully about their goals, listen, and dare to consider opportunities beyond the big three industries.

A ChatGPT3 Passed a Wharton Operations Exam. A Professor Reviews the Implications on the MBA Degree.

ChatGPT3 has been all over the news recently. In the past few weeks, researchers have announced that it performed within passing range on the three components of the U.S. Medical Licensing Exam, and a recently published paper claimed that it received a B/B- grade on a Wharton MBA-level operations exam. 

The fact that the bot passed the exam is not overly surprising, but some of the findings in Wharton Professor Christian Terwiesch’s paper titled, “Would Chat GPT Get a Wharton MBA? A Prediction Based on its Performance in the Operations Management Course,” are. While the bot handled basic operations management and process analysis questions extremely well, Terwiesch emphasized that the bot made some fairly simple calculation errors within the exam. 

“Chat GPT at times makes surprising mistakes in relatively simple calculations at the level of 6th grade Math,” he wrote. He continued on to note that these errors can become, “massive in magnitude.” Additionally, he noted that the current version of the ChatGPT3 could not handle more advanced process analysis questions, such as those that include multiple products or demand variability, and that having “a human in the loop” proved meaningful. When a human expert provided a hint, not only was the bot adept at correcting itself, but it was able to learn so that the hint was not necessary in later iterations. 

Professor Terwiesch also provided his view of the implications that the technology may have on the MBA degree itself. Rather than expressing concern, he thinks the bot could afford students and professors an additional learning resource, specifically in developing necessary leadership skills in critical evaluation and the assessment of alternatives. 

“MBA students are preparing for leadership positions, in which they will have to make managerial decisions based upon actions brought to them by ‘consultants, co-workers, and direct reports.’ Using the bot to generate plausible, well-presented (although possibly incorrect) alternatives in response to a scenario can provide students with meaningful experience in evaluating alternatives,” he said.  

Read the whole paper, including the additional implications, here.

Related:

• STEM-Designated MBA Programs are on the Rise

• Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

Kellogg Waives Standardized Test Requirement for Laid-off Tech Employees

Greg Hanifee, Associate Dean of Degree Programs and Operations at the Kellogg School of Management at Northwestern University, announced earlier this week that Kellogg will waive the standardized test score requirement for any Round Two applicants impacted by the recent, wide-scale tech industry lay-offs. Noting the vast impact of the lay-offs as well as Kellogg’s “long heritage of acting with empathy and valuing collaboration,” Hanifee laid out the specifics of the program:

• This test waiver is geared for individuals recently laid off from the tech industry and only applies to Round Two applicants. 

• Those eligible can apply by providing their transcripts, resume, and a completed application (including a brief essay on their most recent role, as well as how Kellogg’s MBA program will advance their transformation). 

• The waiver extends to all Kellogg Full-Time Programs including their One-Year, Two-Year, MMM (a dual degree with the McCormick School of Engineering), and MBAi (a joint degree with the McCormick School of Engineering), as well as their Evening and Weekend Programs.  

Hanifee stipulates that Kellogg will not be able to accept everyone who applies using the waiver, as applicants will still have to meet the rigorous acceptance criteria.

Related: Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology 

MBA Programs Increasing Use of Virtual and Tech-Enabled Recruiting Processes

The MBA Career Services and Employer Alliance (CSEA) recently shared the results of its 2021 Fall Recruiting Trends Survey. The findings show that recruiting is bouncing back to pre-pandemic levels for full-time MBA students, particularly within the consulting, technology, healthcare, and financial services industries. But certain pandemic trends may be here to stay. The findings highlight the continued relevance of virtual engagement opportunities between students, career services, and employee recruiters. 

The survey includes responses from 77 CSEA member schools, who completed the survey in January of 2022. 

Among full-time MBA programs, just over two-thirds of schools (35 percent) report that on-campus recruiting opportunities for MBA students, which includes in-person or virtual interviews organized through the school, are up this academic year compared to last. Just 27 percent report that opportunities are down, a sharp decline from 47 percent in 2020. Similarly, the majority of schools (74 percent) report that off-campus recruiting and job postings have increased in 2021. 

Most schools report increases in recruiting activities for full-time post-MBA employment within the consulting (84 percent), technology (82 percent), and healthcare (69 percent) industries. Schools continued to see decreased recruiting activity within the hospitality sector (33 percent), although the number of schools that experienced these decreases was smaller in 2021 than in 2020 (61 percent). Most schools’ recruiting activity, 76 percent, increased among large firms (more than 500 employees), and 63 percent saw increases in recruiting by mid-size firms (100-500 employees). The survey results note that, in previous years, schools were most likely to indicate recruiting increases by firms not headquartered within the school’s geographic region, which in 2021 was the third-largest increase (63 percent). 

In the survey, schools were also asked how student engagement with various career support activities compared to the prior year. The biggest increases were with one-on-one coaching appointments (50 percent of schools), virtual career fair participation (48 percent), and group coaching sessions (47 percent). Conversely, student engagement decreased the most among in-person career fair participation (58 percent of schools), on-campus interviewing (49 percent), and information session attendance (42 percent). 

Fall 2021 also brought changes in students’ interactions with recruiting activities. Most schools report that employers’ use of virtual interview technologies increased (90 percent), as did the use of AI-powered pre-interview screening tools (75 percent). A large number of schools, 68 percent, indicate an increasing use of virtual multi-school events. Schools also note growth in alumni-initiated hiring (62 percent), and virtual career fairs (61 percent). Conversely, almost two-thirds of schools report a decrease in student engagement with in-person career fairs (64 percent). 

Similar to the full-time employment recruiting trends, both off and on-campus opportunities for internship recruiting were more positive in 2021 than in 2020. Almost two-thirds of schools, 65 percent, report an increase in off-campus internship opportunities for full-time MBAs. And, over one-third, 36 percent, report that on-campus activities have increased, which compares favorably to the 16 percent of schools that reported increases in 2020. Again, similar to the full-time recruiting trends, most increases in internship recruiting were within the consulting (73 percent of schools) and technology (71 percent) industries. Financial services (60 percent) came in third. 

A large proportion of summer internships in 2021 remained in a virtual format. More than half of schools (56 percent) report that over 60 percent of their students’ 2021 summer internships were virtual, whereas in 2020, over 83 percent of schools reported predominantly virtual internships.   

Find the full survey results here, including data on full-time and internship recruiting for part-time MBA and specialized masters programs. 

Post-Pandemic, Prospective MBA Students Express Greater Interest in Hybrid Learning and One-Year Full-Time MBA Programs

The Graduate Management Admissions Council (GMAC) recently released the 2022 results summary from its Prospective Students Survey. The survey, which was issued in 2021, garnered over 6,500 responses from prospective MBA students around the world. The resulting summary examines the shifting preferences of prospective students as a result of the COVID-19 pandemic and its impact on the delivery models of graduate management education. 

Below we provide a high-level summary of the findings. The full GMAC results summary is available here. 

While respondents do not feel that online and in-person formats provide the same value, there is growing interest in hybrid models. 

• Globally, respondents are still more likely to disagree that an online and an in-person graduate management degree offers the same level of opportunity in terms of networking (79 percent), value (73 percent), and career prospects (66 percent). But respondents are slightly less negative in 2021 than they were in 2020.   

• Globally, 20 percent of respondents in 2021 prefer a hybrid delivery model, an uptick from 14 percent in 2019. 

• Hybrid programs are particularly attractive to prospective students interested in an Executive MBA, Part-time MBA, or Flexible MBA, although interest in hybrid models increased significantly for all program types between 2019 and 2021.  

Consulting continues to top prospective students’ industry and job function preference lists, though interest in the technology industry continues to grow. 

• While both men and women express interest in consulting, men are more likely than women to select consulting as their industry (+8 percentage points) and job function (+9 percentage points) of choice. 

• Women are more likely than men to express interest in the marketing (+12 percentage points), media and communication (+9 percentage points), media/entertainment (+7 percentage points), and non-profit (+6 percentage points) industries.  

• Globally, interest in the technology industry increased three percentage points from 2019 to 39 percent in 2021. Among non-business undergraduate majors, technology is the most sought-after industry (49 percent). In 2021, a growing number of women expressed interest in technology compared to 2019 (+5 percentage points). 

• Prospective students most frequently list their post-degree career goals as: obtain a senior level position, get a raise/salary increase, obtain an executive level position, manage people, manage projects, and work for a company where they can travel internationally. 

• “Become the CEO of a company” provides a notable gender disparity within career goals. Globally, 31 percent of males list this as a career goal, while just 24 percent of females do. In general, U.S.-based respondents are less likely to name this as a goal (21 percent). 

• In 2021, the number of prospective students interested in changing industries or job functions (32 percent) returned to pre-pandemic levels after an uptick in 2020 (36 percent). Among U.S. respondents, a higher percentage are looking to make a career change (42 percent) which is, again, consistent with pre-pandemic levels (41 percent in 2019). 

International prospective students are more favorable on the use of standardized admissions tests.  

• Similar to pre-pandemic levels, about ten percent of prospective students say that having to take a standardized admissions test may deter them from applying. 

• About 60 percent of international students agree that standardized admissions tests improve fairness and reliability in evaluating applicants, and that they allow candidates to demonstrate academic readiness. Among U.S.-based prospective students, the number agreeing with those statements hovers closer to 50 percent. Similarly, while 63 percent of international respondents feel that standardized admissions tests increase transparency, just 55 percent of domestic respondents do. 

• While about half of respondents (52 percent) agree that test waivers make it easier to apply to a program, fewer agree that test waivers make it easier for applicants to gain admission (44 percent). 

• About 40 percent agree that the criteria to obtain a test waiver does not apply to a large proportion of applicants (43 percent) and the criteria to obtain a waiver is complex (40 percent). About one in five feel that schools should not offer test waivers for the 2021 admissions cycle. 

Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

Technology is changing. And so are the demands of the leaders and professionals in the field. Recently, zdnet, a technology-focused news and research site, published an article describing the changing demands of leaders and employees in technology. No longer, the article states, is technical proficiency enough. Technology can no longer exist as a stand-alone function, but must be thoroughly integrated into the business. And tech practitioners must be able to take a broader perspective that includes a thorough understanding of other business functions and how technology fits in amongst them to drive the organization’s mission. “It's important to start to learn about finance, business processes, and other strategies that make up how your product or solution comes full-cycle for your organization," said Nag Vaidyanathan, Chief Technology Officer at Duck Creek Technologies. "How you collaborate with other functions is critical to the results you can achieve." 

Haluk Saker, a Senior Vice President at Booz Allen Hamilton, notes that the speed of technological change is such that professionals and managers need, "…problem-solving skills versus language-specific skills. IT professionals should focus on learning, disrupting the status quo, and continuing to gain skills across different domains that interest them. This type of professional, with an innate curiosity and an aptitude to grow as a leader and influencer, is the one that will be able to face tomorrow's toughest challenges head-on," he said.

MBA programs are at the forefront of understanding transformation in the technology industry and a number of leading schools (noted below) now offer shorter, and more focused Tech MBA programs. They include core requirements in technology, in addition to typical MBA requirements in general management and leadership. 

• Johnson Cornell Tech MBA: This is a one-year MBA conferred by the Johnson Graduate School of Management. Graduates will have a full understanding of the startup and tech ecosystems, and will be prepared to manage product teams, and lead tech companies.

• NYU Stern Andre Koo Tech MBA: This is a one-year STEM-designated MBA program conferred by NYU Stern. Graduates will be qualified to join startups and mature tech companies at the forefront of innovation and technology, and will be prepared to accelerate their careers in technology or start their own businesses. 

• Northwestern Kellogg MBAi: This is a joint degree between Kellogg and the McCormick School of Engineering. Graduates will be prepared for careers in tech operations, analytics, and innovation leadership. 

• Foster School of Business Technology Management MBA: This is an 18-month work-compatible MBA conferred by the Foster School of Business, and is designed to prepare graduates to accelerate or re-direct their careers, or to start their own businesses.

• IE Business School Tech MBA: This is a one-year MBA conferred by the IE Business School. It is designed for students who want to develop their career in the technology sector or in tech-centric job roles, and who seek to become fluent in the language of business and technology. 

In addition to the Tech MBA program options, many schools are integrating technology tracks into their full-time, two-year MBA programs. Fordham University’s Gabelli School of Business has created a secondary concentration in blockchain, and Georgetown’s McDonough School of Business now offers a handful of classes in fintech and crypto. And this trend is just getting started. Recently, several elite schools have announced incoming investments earmarked for building out technology initiatives. The USC Marshall School of Business received a $5 million gift to establish the Digital Assets Initiative, which will establish new curriculums and research opportunities in cryptocurrency, NFTs, and blockchain. Similarly, Harvard Business School is establishing the “D3” Institute to promote collaboration and research in digital and technology, data science, artificial intelligence and machine learning, and design thinking. And University of Pennsylvania’s Wharton School recently received an anonymous $5 million donation (in bitcoin) that will support the Stevens Center for Innovation in Finance, which focuses on fintech research and education.

Harvard Business School Sets a New Agenda Focused on Positioning Business to Solve Society’s Biggest Challenges

Srikant Datar took over the leadership of Harvard Business School in January 2021, mid-way through the academic year, and in the midst of the covid pandemic. Rather than derailing his vision, the pandemic, with its emphasis on technology and hybrid learning formats, has actually expedited it. “COVID is the passage to the school’s future. Without any doubt, it has been an extremely exciting and rewarding year,” he said.  

Datar spent a considerable amount of time seeking input from the HBS community when building his agenda. He spoke with every faculty member and facilitated individual and small group meetings with alumni, students, staff, and others to understand their goals and perspectives. Datar then defined three “aspirations” for the school, “...stretching HBS and its learners beyond notions of merely personal success toward becoming, collectively and individually, driving forces in redefining the role of business in society around the world—addressing inequality, exclusion, climate change, and other intractable problems. Second, directing HBS’s research to action, ensuring that the leaders it trains or influences change practices and engage human differences to enhance the constructive role of capitalism. And, finally, the school must transform learning, extend its reach, and work with its students throughout their careers.”

Datar also named the “engines” that would make these aspirations possible: recruiting a diverse array of talent and enabling their success, undergoing a digital transformation for education delivery and the HBS “research infrastructure”, and “expanding and deepening ties” to the greater University, particularly into the humanities. 

To activate the aspirations, Datar announced that Harvard Business School will be creating two institutes, one focused on business and society, and the other on digital and technology. These institutes will provide a structure that facilitates faculty interactions, student engagement with research efforts and new technologies, and space for alumni and businesses to access, train and collaborate using the latest research.  

The Institute for the Study of Business in Global Society, which will be led by Debora L. Spar, will house the following activities:

• HBS’s academic partnership with OneTen, an organization dedicated to advocating for black individuals who do not have an undergraduate degree, but wish to use skills and knowledge to obtain “family-sustaining careers”

• Climate change research and the promotion of carbon neutral goals by considering alternative accounting metrics

• Economic development within mid-American cities harmed most by de-industrialization; researching promising engines to spur business and economic growth

• Social Enterprise research and the development of new models to enhance impact

The second institute, currently labeled “D3,” will be led by Karim R. Lakhani and focus on digital and technology, data science, artificial intelligence and machine learning, and design thinking. Clustering the topics together will optimize research efforts and maximize the impact for HBS and business overall. 

While the HBS priorities are centered on two key pillars, business and society, and data and technology, Datar says he considers these components two parts of a whole. “When I think about the challenges we’re talking about,” Datar said, alluding to both the school and society writ large, “every time we have talked about technology on one side of the coin, on the other side is humanities and people. Any time you let those two get out of synch, the opportunity for division arises, and with it, economic harm. Leadership at the core means always thinking about impact on people, and on what you are trying to achieve through an organization.” 

Read the full interview between Srikant Datar and the Harvard Magazine here.  

Trends in Medical Education: Online Learning

During the Harvard Medical School Office for External Education’s 2021 IMPACT Symposium, Adrienne Torda, the Associate Dean of Education and Innovation at the University of New South Wales, stated that “Digital teaching and learning are here to stay,” And most attendees, leaders in medical education agreed. The covid-19 pandemic has accelerated a movement towards online learning and technology that they expect will only grow in significance. 

Suzanne Rose, MD, MSEd, and Senior Vice Dean for Medical Education at Penn Medicine, called out technology’s impact on the delivery of medical education and patient care as one of the top five trends in medical education, noting that it can provide more interactive experiences for students that will aid in content delivery and retention. One area she is exploring is the use of shortened lectures on key topics followed by team-based learning experiences and/or small group discussions. Medhub also describes a shift to a more proactive engagement between students and technology that is “... aimed at more effectively engaging students, assessing them against measurable outcomes, and responding to individual learner needs.” 

In addition to collaborative learning, the role of Virtual Reality (VR), as well as augmented reality (AR), mixed reality (MR), and artificial intelligence (AI) are expected to grow. These tools can enhance training experiences for students as they develop an array of necessary, but difficult skills. Medhub says, “Case studies with online simulations, designed to build skills as diverse as having difficult patient conversations to making complex diagnoses, are becoming increasingly sophisticated. They are effective tools in medical education and we can expect enhancements to keep learners engaged, offer real-time feedback, identify areas of weakness, and even foster some healthy competition with performance comparisons to colleagues and leaderboards.” 

Many schools are already implementing these measures. University of Miami’s Miller School of Medicine, for example, takes advantage of AR, VR, and MR to train students on treating trauma patients. At the Gordon Center for Simulation and Innovation, students get the experience of working with stroke, heart attack, or gunshot victims, in addition to practicing cardiac procedures on Harvey, a mannequin who can simulate nearly any cardiac event. Students can wear VR headsets to get a visual of Harvey’s underlying anatomy.

While there is no doubt that many aspects of medical education must still be experienced using in-person training and experiences, technology will only grow in importance within medical education. 

Technology Growth Expected to Drive MBA Hiring

The 2022 hiring outlook for MBA graduates is strong. After the early stages of the pandemic caused demand to falter for 2020 graduates, both hiring and salaries have rebounded to pre-pandemic levels. The QS Global Employer Survey 2022, which included over 5,000 MBA employers from 40 countries, found that 70 percent of US employers expect to hire more graduates within their organization in the next year.

Technology firms, which have shown consistent growth throughout the pandemic, are expected to drive demand for MBA graduates. Technology recruiters' interest in hiring MBAs has grown over time according to the 2021 GMAC Corporate Recruiters Survey, with the number of technology recruiters planning to hire MBAs climbing from 80 percent in 2019 to 96 percent in 2021. Similarly, the QS Global Employer Survey found that just over 50 percent of US companies offered MBA graduates roles in IT and technology, in both 2020 and 2021, compared to 27 percent receiving those functional roles globally (2021). 

Amazon reported that in 2021 they increased MBA hires by 20 percent due to growth in demand for their products and services. Speaking to BusinessBecause, an Amazon spokesperson explained that the company hires were based on demand and that, “We work with business teams across Amazon to determine their need for student talent each hiring season.” The spokesperson also noted that they expect hiring to continue to increase in 2022. Other large employers of MBAs in technology include Google, Microsoft, and Apple. 

Consulting will also continue to play a large role in MBA hires. With the US management consulting market size projected to grow by 4.1 percent in 2022, demand for MBAs from consulting firms is expected to remain high. GMAC’s Corporate Recruiters Survey found that 95 percent of consulting recruiters plan to hire MBAs. And, In 2021, 46 percent of those recruiters said that they expected to increase their MBA hires, compared to just 21 percent in 2020. McKinsey, BCG, and Bain have historically employed the largest number of MBA graduates and will likely continue to do so. 

As companies throughout the US struggle with hiring and retaining the skilled workforce that they need, MBA graduates are well positioned to thrive. Economists are speculating that omicron could continue to impact the overall employment rate, pointing out that, across industries, quit rates have remained high, but hiring rates remain even higher. “Workers being able to quit their jobs to take better ones is a very good thing and signals an economy with healthy dynamism,” said Economic Policy Institute President, Heidi Shierholz. “A high quit rate combined with strong job growth is absolutely something to celebrate.”  

Related blogs:

Amazon to Include Larger Swath of Schools in MBA Recruiting Using Virtual Meetings

Our Ways of Working are Changing. How should MBAs Prepare?

Doctors Seek Additional Training as Technology and Big Data Converge with Patient Care

Classes in data analytics, artificial intelligence, and technology may sound like the course load of an MBA student, but a recently released report shows the immense value of this subject matter for medical students as well. The Stanford Medicine Trends in Health 2020 report entitled “The Rise of the Data Driven Physician” describes a future for physicians where data and technology are increasingly intermingled with effective patient care.

The report, which includes a survey of physicians (n=523), residents (n=133), and current medical students (n=77), analyzes how trends in medicine impact those on the front lines of patient care.  The health care sector, the report claims, is undergoing “seismic shifts, fueled by a maturing digital health market, new health laws that accelerate data sharing, and regulatory traction for artificial intelligence in medicine.”  And the report’s findings show that while there is acceptance and even enthusiasm around the benefits of data and technology among providers, there is also a real gap that exists between the training that physicians, residents, and students receive, and the demands of the evolving profession. Lloyd Minor, MD and Dean of the Stanford University School of Medicine says, “We’ve found that current and future physicians are not only open to new technologies, but are actively seeking training in subjects such as data science to enhance care for their patients. We are encouraged by these findings and the opportunity they present to improve patient outcomes. At the same time, we must be clear-eyed about the challenges that may stymie progress.”

The respondents appear keenly aware of the changes occurring within medicine and both physicians and residents say that they expect about a quarter of their current duties to be automated using technology over the next 20 years. Students predict that, on average, 30 percent of their duties will be automated. Further, just under half of the physicians surveyed (47 percent) and about three-quarters of the students surveyed (73 percent) say that they are currently seeking out training to better prepare themselves for innovations in health care. Among physicians who said they are currently attending training, the most popular subjects are genetic counseling (38 percent), artificial intelligence (34 percent), and population health management (31 percent). Students seeking additional training courses are taking advanced statistics and data science (44 percent), population health management (36 percent), and genetic counseling (30 percent) at the highest rates.

When asked about which innovations have the most potential to transform health care in the next five years, physicians as well as students and residents (grouped) were both most likely to respond with personalized medicine, followed by telemedicine. Both groups also see potential in artificial intelligence, wearable health monitoring devices, and genetic screening.

When the groups were asked about how helpful their education has been in preparing them for new technologies in healthcare, just under 20 percent of both students and residents (18 percent) and physicians (19 percent) responded “very helpful.” Current students and residents were more positive overall, with 58 percent responding that their education was “somewhat helpful.” Only 23 percent responded negatively. Among physicians, 36 percent found their education somewhat helpful, and the remaining 44 percent replied negatively.

The most notable gap, perhaps, is the one highlighted below, which showcases the difference between the perceived benefits of medical innovation for patients and how prepared the provider is in implementing that innovation. The two charts, students and residents (grouped) and physicians, show the group that agreed an innovation will be “very beneficial to future patients” compared to the group that said they feel “very prepared to use the innovation in practice.” Some of the gaps are marked. For example, over half of students and residents (55 percent) and physicians (51 percent) believe that personalized medicine will be very beneficial to future patients, yet only five percent of students and residents and 11 percent of physicians feel prepared to deliver it. Personalized medicine showed the largest gap between perceived benefit and preparedness for both groups, while virtual reality showed the smallest. Both groups feel very prepared to work with electronic health records, but there were lower levels of perceived benefit to the patient.

Gap Between Perceived Benefits to Patients and Provider Preparedness

This report demonstrates the changing nature of the medical profession, its current and continuing intersection with technology and big data, as well as the need to provide opportunities and training to medical providers so that they can use these innovations to improve patient care. Prospective and current medical students will want to carefully consider how they are using their time prior to and during medical school. It may be beneficial for them to spend time speaking with physicians and residents to gauge what technologies and research are driving change. Taking classes prior to medical school, in statistics and data modeling, as well as technology and AI may have a positive impact on their ability to bridge the gap between present demands and the traditional medical school curriculum.

Tech Companies Seek MBA Hires Who Excel in Entrepreneurial Culture

Technology companies have taken a large hold on MBA recruiting, with a particular interest in those students who can thrive in ambiguity and have a proven track record of creative problem solving. In turn, students are attracted to these companies for their generous compensation packages, the opportunity to take ownership over popular products, and the culture of innovation.

Liz Arnold, associate director for tech, entrepreneurship and venture capital in the Career Management Center at Cornell University’s Johnson School of Management, said “I encourage all students interested in tech to build their entrepreneurial skill set, to really understand how to take the initiative on their own to go from idea to launch. I think that particular skill set is valued at most tech companies, because the tech companies want students to be autonomous and take projects and run with those ideas and move them forward.”  Similarly, Sarah Eytinge, MBA University recruiter at Microsoft, describes the company as having an entrepreneurial culture, and as seeking MBA recruits who can thrive in ambiguity, learn and adjust their course, and take creative approaches to complex problems. “We have a lot of teams in an innovative culture trying new things and failing fast,” she says. “They have the benefit of working for a large company like Microsoft so we have the resources to make those investments and take those risks. For those MBAs who are interested in entrepreneurship, they are surprised by what they have access to – they thought it was just a big company.”

Recruiter Insights on Top-Tier Programs for Entrepreneurship and Creativity

The Recruiter Insights Rankings, a component of the 2018 Bloomberg Businessweek Best B-Schools ranking, include deep-dives into recruiters’ views of the best programs based on entrepreneurial reputation and training, as well as the most creative and innovative graduates. The rankings include the responses of 3,698 employers that recruited MBA graduates, and focus on specific survey questions. Bloomberg Businessweek analysts then assigned scores to the top 30 schools with a score of five being the highest and one being the lowest. Below are the top ten for the three categories relevant to entrepreneurship.  

What schools have the best reputation for entrepreneurship?

What schools provide the best training in entrepreneurship?

What schools are producing the most creative graduates?

Prospective students interested in expanding their entrepreneurial skill-sets for an interest in a technology career or who are among the 27 percent of prospective full-time two-year MBA students who listed entrepreneurship/self-employment as a primary career goal post-graduation in GMAC’s Prospective Students Survey 2018, should carefully consider the top programs listed above. Additionally, during the school selection or interviewing period, prospective students should proactively engage with administrators and professors from specific MBA programs to see how they support students in achieving these strong outcomes.

See full listings for each of the categories below:

What schools have the best reputation for entrepreneurship?

What schools provide the best training in entrepreneurship?

What schools are producing the most creative graduates?

MBA Employment Trends and Projections

Demand is high for recent MBA graduates. In 2017 in the U.S. and Canada, technology firms increased year-over-year MBA hiring by 22 percent and consulting and financial services firms increased hiring by 7 percent and 4 percent respectively. The same report (QS Top MBA Jobs & Salary Trends Report 2018)  projects that overall MBA recruiting in the U.S. and Canada will continue to demonstrate robust growth in 2018 (7 percent) and marginal growth in 2019 (2 percent).   

Technology: The growth in technology firms’ MBA hiring corresponds with reports that Amazon is hiring about 1,000 MBA graduates per year, almost double that of the next largest MBA employer, consulting firm McKinsey[i]. And the growth isn’t expected to slow in 2018. The QS Top MBA Salary Trends Report projects that recruiting in the U.S. and Canada by technology firms will continue growing in 2018 (15 percent) with more marginal growth predicted for 2019 (two percent).

In addition to Amazon, Microsoft and Google also recruit consistently within MBA programs, but with lower overall hiring. It is worthy of note that, among the Top 10 programs (US News and World Report), the largest percentage of 2017 graduates who accepted positions in the technology industry came from Berkeley Haas. 

Consulting: Consulting firms recruit a large percentage of MBA graduates (approximately a quarter to a third of each class at Top 10 MBA Programs) and this is expected to continue. The QS Top MBA Salary Trends Report projects that recruiting in the U.S. and Canada by consulting firms will increase by 15 percent in 2018 with a slight dip to 7 percent in 2019.

McKinsey, the second largest employer of MBAs, is the top employer of MBA graduates at Northwestern Kellogg, Chicago Booth, and Columbia Business School. Following McKinsey in MBA recruiting are Bain and Company, The Boston Consulting Group, and Deloitte.

At Stanford, the percentage of graduates securing roles in consulting is lower but trending upwards.

Finance: Developments in technology, political uncertainty, and greater competition from technology and other firms, has negatively impacted MBA recruiting by financial services firms. Wharton, as well as Chicago Booth, and Columbia Business School have experienced recent employment dips in the sector. According to a 2017 MBA Employment Survey by Training the Street, students reported lower interest in working for Wall Street and expressed wanting to explore options with companies, such as boutique banks, that may offer a higher quality of life.[ii]

The Salary Trends Report projects another year of modest growth for the industry in 2018 (4 percent) with a slight decline predicted for 2019 (-1 percent). 

[i] https://poetsandquants.com/2017/10/04/amazon-now-hiring-1000-mbas-a-year/

[ii] https://www.bloomberg.com/news/articles/2017-08-09/record-percentage-of-mbas-don-t-want-to-work-on-wall-street