Wharton Announces First Full-Time MBA Class in which Women Comprise the Majority

The Wharton School has become the first of the “magnificent seven” (M7) to announce, within its newest full-time MBA class, that more women gained admission than men. Women make up 52 percent of Wharton’s incoming class, which is the largest proportion in the storied program’s 140-year history and a large uptick from 41 percent the previous year. The remaining M7 schools have yet to release data on their incoming classes, but last year, the highest percentages of women were found at Harvard Business School (44 percent) and Stanford’s Graduate School of Business (47 percent). 

While women now make up the majority in both law and medical schools, parity has been harder to achieve within MBA programs. However, according to the Forté Foundation, a non-profit that promotes gender parity in business, the number of women in business school has steadily increased over the last 15 years. Forté has tracked female enrollment in about 50 full-time domestic MBA programs, and notes that while women made up only 30 percent of the total in 2005, that number increased to 39 percent in 2020. Also in 2020, a record-high 22 MBA programs enrolled classes that were over 40 percent women.

Is this a trend or an anomaly due to the effects of the pandemic on women in the workforce? Business schools saw a large uptick in applications as a result of the pandemic. And while the number of applicants from both sexes increased, according to the Graduate Management Admissions Council (GMAC), full-time MBA programs reported a 62 percent increase in applications from female students in 2020 compared to a 42 percent increase in 2019. 

Women, historically, have been more interested in seeking their MBA through hybrid and flexible models and the 2021 GMAC Prospective Students Survey showed that women reported a greater openness towards the hybrid learning models necessitated by the pandemic. Women were more willing to complete their degree online; 60 percent of U.S.-based women said that they were willing to complete more than 30 percent of their MBA degree online compared to just 52 percent of men. Similarly, women were more likely to agree that “career opportunities gained through an on-campus graduate business degree are the same as gained through an online degree” whereas men were more likely to strongly disagree (24 percent). 

While more data will be necessary to determine if the uptick in women applicants and matriculants is more than a response to a moment in history, there is room for optimism about the changes underway. Elissa Sangster, Forté Foundation’s CEO, expressed her pleasure that the pandemic didn’t deter women from seeking an MBA. “So many of our schools are hitting that 40 percent mark and heading north of it,” she says. “That’s going to change the dynamic already in business school and change the access point for women.” 

Role of Standardized Test Scores in MBA Admissions Evolves

During the 2020-2021 admissions season, many MBA programs introduced flexibility into their admissions process by waiving the GMAT/GRE requirement. And just last month, UVA’s Darden announced that it would extend its test-optional policy into the upcoming admissions cycle. The school’s current policy allows for students to submit GMAT/GRE or alternative test scores (including the LSAT, MCAT, or Executive Assessment). But students also have the option to request a waiver based on a provided alternative indicator of academic, personal, or professional achievement, which could include previous ACT/SAT scores.

Last year, Darden received around 1,300 waiver requests and admitted approximately 13 percent of the incoming class via test waiver. School representatives believe that the policy created a more equitable standard for admission while also “attracting a more diverse group of candidates.” Darden’s head of admissions, Dawna Clarke, also noted that Darden is employing data analytics to better understand student success and inform future policy decisions. Describing early results from Darden’s internal analysis on factors that are predictive of success in the first-year MBA curriculum, Clarke said, “Surprisingly, we found the verbal GMAT correlated more than the quant GMAT. The GPA correlated more than the GMAT. We found a correlation between SAT and ACT scores. And we found a correlation even with the interview. The interview was predictive of academic success… We are currently doing analytics for the first-year class to see how those people who opted to submit an alternative test or none at all are doing and that will help drive our policies.”

While it remains to be seen how other schools will address the GMAT/GRE requirement, the Wall Street Journal recently published an article describing a parallel decline in the role of standardized test scores in post-MBA recruiting. Historically, top consulting firms, McKinsey, Boston Consulting Group, and Bain, as well as reputable investment banks were thought to rely on the test scores as a filter for job applicants. This is changing. “I don’t mind one bit that campuses are waiving the GMAT requirement,” says Keith Bevans, a partner who leads recruiting at Bain, “Business schools are admitting a much broader range of talent, and I expect to find strong candidates this fall in places I wouldn’t normally see them.” He notes that while Bain still collects standardized test scores, they are not held against prospective employees, but rather incorporated into an internal analysis, which has found that higher scores do not always equate to higher productivity at Bain. Similarly, Danielle Bozarth, the lead partner for North America recruiting at McKinsey, also points out that MBA programs’ deprioritizing of test scores, “is aligned with our recruiting approach that [tests] are one of many ways to help assess a person’s skills or knowledge. We look for people who are good problem-solvers,” of which, she points out, there are many indicators.

While the role of standardized test scores is changing, prospective and current MBA students should carefully consider the entirety of their resume before determining whether to submit, or omit standardized test scores. We recommend thinking through the following questions:

• Are you a particularly strong, or weak, standardized test taker? Providing MBA programs and future employers with high scores on the GRE/GMAT will be beneficial even if they are considered a small component of your larger story.

• Do you feel that your GPA and academic credentials adequately reflect your capabilities as a student? If you have a weak GPA or other “soft” academic credentials on your resume, you may want to bolster these scores by taking the GMAT or GRE. This will give you the opportunity to showcase your ability to compete in a rigorous analytical and quantitative environment, and also prove your verbal competence.

• Does your resume include experiences that directly speak to your ability to critically assess complex situations under pressure and problem-solve? This could include success in case competitions, a role on the debate team, awarded scholarships or fellowships, and professional certifications, etc.

• Do you have any exceptional experiences that set you apart from other applicants by demonstrating a high level of skill, determination, and/or a commitment to success? For example: a role on a highly competitive sports team, a successful entrepreneurial venture, and/or documented professional success at a highly regarded company.

Student Loan Forgiveness Receives New Attention Under the Biden Administration

Debt is top of mind for graduate students. A Bloomberg Businessweek survey found that among 2018 graduates of prestigious MBA programs, almost half had borrowed at least $100,000 to finance the degree. The American Medical Association has long advocated for legislative action intended to ease the burden of debt on medical providers, and the American Bar Association released a report in 2020 detailing the negative impact of student debt on young lawyers’ mental health and calling for greater legislative advocacy on students’ behalf.

Late last week, when President Biden signed into law a covid relief package, he also removed a critical impediment to enacting broad-based student debt forgiveness. The bill contains a provision that allows any loan cancellation acquired between December 31, 2020 and January 1, 2026 to be excluded from taxable income. Previously, debt forgiveness (including Public Service Loan Forgiveness) was treated as additional income and taxed as such, with few exceptions. This update ensures that recipients of student debt relief are not left with large tax liabilities and are also not thrust into new tax brackets, with associated implications, due to debt cancellation.  

The counting of debt forgiveness dollars towards taxable income was a primary obstacle to broad student loan forgiveness programs. With the update now signed into law, Congressional Democrats led by Elizabeth Warren and Chuck Schumer, as well as 17 state attorneys general and consumer rights advocates are calling on President Biden to take executive action to cancel $50,000 in federal student debt per borrower. Despite this pressure, the President does not support loan forgiveness at this amount for every borrower, which he directly expressed in a CNN Town Hall last month, as it would aid people who attended elite schools or obtained professional graduate degrees and have strong repayment prospects. The Biden Administration has noted that cancelling student loans above $10,000 should be dependent on the type of loan and current income of the recipient. The President does, however, support $10,000 in blanket, federal student loan forgiveness, and he has urged Congress to legislate this action. Legislative action, he argues, will make it harder to undo. Meanwhile, he has ordered a Department of Justice review to clarify if he has the authority to cancel student loan debt via executive action. This review will be done with the White House Domestic Policy Cancel, who will also consider the best way to target loan cancellation.

While the loan forgiveness policies under consideration would not directly benefit borrowers with private or commercially held student loans, those borrowers could still benefit from the tax relief provision included in the covid relief bill. Marketwatch notes that it may help borrowers benefit from current loan relief options provided by public or private lenders as a response to the pandemic.

In an interview on student debt with the AMA, Alex Macielak, who works in student-loan refinancing, urged students to pay attention to the political discourse, “There’s a new administration. Student-loan debt is a hot topic, ... There’s been talk about forgiving loans for some people. However, how much, who would be eligible, and other important details are still in doubt. So, monitor the legislation and debate, because student loans are consistently evolving.”

Prospective MBAs, Particularly Women, Show More Interest in Flexible and Online MBA Programs

After a period of stagnation, MBA applications are on the rise. Not only do MBA programs tend to be counter-cyclical to economic growth, but, as The Economist notes, pivots made by MBA programs amidst the global pandemic have boosted their relevance. In addition to increased flexibility in the admissions process, schools have improved their online and flexible MBA offerings. Vijay Govindarajan of Dartmouth College’s Tuck School of Business, is quoted in The Economist article, explaining that rather than being “giant killers,” digital technology has allowed prestigious schools to “ensure their gold-plated MBA programmes shine even brighter.”

The CarringtonCrisp Consultancy confirmed these trends, finding increased interest in online and flexible MBA programs among prospective MBA applicants in their annual survey results. The results showed that 70 percent of respondents are more likely to apply to an MBA program now than they were a year ago. And, 46 percent are now seeking a form of flexible study. Over three-quarters, 78 percent, agreed that they are more likely to consider a school with flexible study options in its MBA program. Another 70 percent said that they are more likely to consider studying for all or most of their MBA online. 

When the CarringtonCrisp survey asked directly about respondents’ preferred method of study, just 15.5 percent selected “online,” falling behind the traditional two-year (28 percent), one-year (23 percent), and part-time (22 percent) programs. However, online study saw a significant year-over-year increase of 4 percentage points, while other methods held relatively steady or dropped. Additionally, a break-down by gender showed that women’s interest in online learning outpaced men’s; 19 percent of women selected online learning as their preferred method compared to 13.2 percent of men. Similarly, while over one-third of men said that they preferred the traditional two-year MBA program (34.7 percent), fewer than a quarter of women (21.5 percent) did, a smaller percentage than those who prefer full-time one-year (24.0 percent) or part-time (23.0 percent) programs.

The 2020 GMAC Application Trends Survey showed similarly large gains for flexible and online MBA programs. Globally, the survey showed large year-over-year increases in applications for the part-time self-paced MBA (53.0 percent), flexible MBA (48.6 percent), and online MBA (43.5 percent). And in the U.S., while 72 percent of full-time two-year MBA programs reported an increase in applications, 86 percent of online MBA programs reported growth in applications (up from 50 percent of programs in 2019 and 36 percent in 2018). Once again, the growth was driven by female candidates with 85 percent of online programs reporting an increase in female applicants, compared to 74 percent reporting increases in male applicants.

Business Schools Opting Out of Rankings Due to Pandemic

The Economist just published its latest MBA ranking, which Poets & Quants deemed, “the strangest list of the best business schools ever to be published.” European business schools IESE and HEC topped this year’s list, jumping up from their 2019 ranks of 10 and 3 respectively; however, 15 of the previously top 25 ranked schools declined to participate in this year’s ranking. In total, 49 out of the 165 schools invited to submit data either declined or were deemed ineligible and another 13 opted not to send the associated survey to their students or alumni. Among the 62 were some of the world’s most prestigious programs including Harvard, Stanford, Wharton, INSEAD, London Business School, CEIBS, Cornell, Dartmouth, and Duke.

The Economist’s resulting top ten, comprised of five U.S. and five European programs, included both expected and unexpected schools. The U.S. schools named in the top ten were Michigan Ross ranked third (up six spots from 2019), NYU Stern ranked fourth (+13), Georgia Tech Scheller ranked fifth (+18), University of Washington Foster ranked eighth (+12), and Carnegie Mellon Tepper ranked tenth (+22).  Most of the returning schools that opted into this year’s ranking saw significant positive momentum: 85 percent of schools that participated in 2019 and 2021 saw double-digit improvements in their rankings. Additionally, 41 of the top 50 (excluding two first-time participants) saw their rank increase by at least ten spots, and 24 of those improved by 20 spots or more.

The ranking, which was published despite GMAC’s request to the media to take a hiatus during the pandemic, comes during a tumultuous time for business schools worldwide. The logistical and economic effects of COVID-19 have impacted data typically included in ranking algorithms. Correspondingly, only 28 percent of business schools plan to participate in all MBA rankings this year according to Kaplan survey results published last week. The Kaplan survey, taken in October, asked admissions officers from 90 U.S. business schools, including 14 of the top 50 programs (ranked by U.S. News & World Report), about their plans to participate in rankings this academic year. While just 10 percent responded that they did not plan to participate in any MBA rankings, almost two-thirds (62 percent) said that they only planned to participate in some rankings.

Brian Carlidge, Vice President of Admissions at Kaplan, interpreted the results, saying that, “The majority of business schools have made their admissions processes more flexible, including making the GMAT or GRE optional, so many schools are lacking in test score data this year. Another major data point that goes into the rankings is job placement rate, and with the economy struggling as it is, it’s likely that it wasn’t as easy for Class of 2020 graduates to find employment as it was for Class of 2019 graduates. While many business schools are still reporting this data point for transparency, it’s also likely that others are reluctant to publicize it… With so much tumult, it’s hard to get a clear picture of where each business school lands. With so many top MBA programs not participating this year, it may make the rankings released in 2021 feel much less potent and relevant for aspiring business school students than in years past.”

Global Pandemic Spurs Demand for Graduate Management Education Worldwide

The Graduate Management Admissions Council (GMAC) just released its 2020 application trends survey report, The Global Demand for Graduate Management Education. The survey data, which was collected over an extended period to include pandemic-related effects, shows that while demand for business education is up, matriculation is slightly down.

The findings reflected the unusual nature of the 2020 application season during which many business schools introduced greater flexibility—the extension of deadlines and liberal deferral policies—into the admissions process. As such, schools, both international and domestic, reported that the 2020 admissions cycle brought an increase in the number of applications received, as well as acceptance rates, but also a corresponding increase in deferral rates and a decrease in yield when compared to the 2019 cycle.

In the US, over two-thirds of MBA programs (70 percent) reported an increase in application volume for the 2020 application period compared to the prior year (only one-third of programs reported increases in 2019). But despite increased application volumes, the median acceptance rate in 2020 was slightly higher than in 2019 (76 percent and 74 percent, respectively). And the median deferral rate—the result of schools’ more lenient policies as applicants grappled with obtaining visas, online schooling, and travel amid COVID-19—doubled from three percent in 2019 to six percent in 2020. Both Canadian and European MBA programs reported even higher median deferral rates of 11 percent, likely due to their higher numbers of international applicants, who were three times more likely to defer than their domestic counterparts (15 percent and 5 percent, respectively). Median yield rates in the US decreased by two percentage points between 2019 and 2020 (68 percent and 66 percent, respectively).

It remains to be seen how program acceptance rates for the upcoming cycle will be impacted as students who chose to defer their start to next year begin enrolling. It is important to note, however, that Harvard Business School just announced plans to matriculate the largest MBA cohorts in its history over the next two years (approximately 1,000 students each year). In a blog post announcing the plan, Chad Losee, Managing Director of MBA Admissions and Financial Aid, wrote, “In April, when we announced our one-time deferral policy for those admitted to the Class of 2022, we were already thinking ahead to those of you applying in the next two years. We did not want you to be disadvantaged by spots already reserved for those who deferred from the Class of 2022.”

Though other elite programs have not yet made similar announcements, they may follow suit in welcoming larger classes in the near-term.

MBA Programs Seek to Increase Flexibility in Admissions Process

Earlier this month, Georgia Tech’s Scheller College of Business and the University of Maryland’s Smith School of Business announced that their full-time MBA programs would go test-optional for the 2020-2021 admission cycle. These two are the latest among a growing group of schools to waive standardized test requirements for eligible applicants. Like Northeastern University’s D’Amore-McKim School of Business, Georgia Tech’s Scheller plans to pilot the test-optional policy for all Fall 2021 applicants. The University of Maryland’s Smith School of Business is implementing a test waiver program where applicants who meet an existing set of criteria can opt out of providing standardized test scores. UVA Darden, University of Wisconsin-Madison’s School of Business, and Rutgers Business School have incorporated similar criteria-based waiver systems.

The schools point out that while they have used standardized test scores previously, to gauge an applicant’s ability to compete in the academic rigor of their program, they say their admissions teams remain confident in their holistic assessment of an applicant’s potential. UVA Darden is asking candidates who do not provide test scores to include alternative evidence that they will be able to succeed academically.

The schools hope that the policy will attract more applicants. After announcing its test-optional policy, UVA Darden reported receiving “an influx of qualified applicants who had been furloughed or laid off amid the pandemic.” Speaking to the Wall Street Journal, Blair Sanford, Assistant Dean for Full-Time MBA and Master’s Programs at Wisconsin-Madison said, “Some of the reasons why we decided to expand the policy in the first place still exist. The pandemic is still in place… In addition, it gives us a broader reach to attract qualified students in a difficult environment.”

The schools are also optimistic that the policy change will appeal to a more diverse swath of applicants, particularly those from a range of socioeconomic backgrounds. The costs of taking the standardized tests, including preparation, can be a barrier to otherwise well-qualified applicants. Maryam Alavi, Dean at Georgia Tech’s Scheller College of Business, in an interview with Poets & Quants said, “Beyond the complications COVID-19 has introduced in terms of access to exams, an overreliance on standardized test scores in MBA admissions decisions puts underrepresented minorities, individuals from lower socioeconomic backgrounds, and first-generation college graduates at a disadvantage. We move forward confident that the change in this year’s admission process will attract our most diverse, qualified, and successful MBA cohort yet.”

According to the Wall Street Journal, however, many of the elite schools remain hesitant to move completely away from standardized testing, though most have begun accepting the results from online GRE and GMAT testing. And a few top-tier schools including NYU’s Stern, Columbia University’s Business School, and most recently, Vanderbilt University’s Owen, have opted to accept the Executive Assessment (EA) test as an alternative to the GMAT/GRE for full-time MBA applicants. The EA, which is much shorter at 40 questions and 90 minutes compared to the four-hour GRE or GMAT, generally requires less intensive preparation than its longer counterparts.

It will be interesting to see how things evolve from here, even among elite schools. Michael Robinson, Associate Director of MBA Admissions at Columbia Business School, has expressed interest in following the methods and outcomes of elite undergraduate institutions that have gone test-optional. At an MBA roundtable over the summer, Robinson said, “So, for us in admissions, it’s not that we want to basically admit people with the highest test average. It’s more about whether this person can succeed academically in that class. There are ways to get the right answer to that question without a GRE or GMAT or executive assessment. So I’m really curious to see what’s happening there. We’ll see what that looks like.”

MBA Programs Turn to Virtual Learning this Semester

Stanford’s Graduate School of Business recently announced that it would start the autumn quarter online, as Santa Clara County is on California’s COVID watch list. School administrators say they will revisit their decision the week of September 21st. If the county is off the watch list for three consecutive days, indoor classes will be considered.

The announcement is the latest from an elite MBA program planning on a wholly virtual curriculum, rather than a hybrid model. Earlier in the month, University of Pennsylvania’s Wharton School and Georgetown University’s McDonough School of Business also announced that they would start the semester with all-virtual coursework.

MBA programs have been under scrutiny as administrators work through pandemic-related restrictions. With some MBA price tags as high as $200,000, including living expenses, many students are questioning if the virtual experience, without the in-person networking opportunities, is worth the price.

Prior to this month’s announcement, a group of Wharton MBA students petitioned the school for a discount due to their diminished experience.  The group’s petition, signed by 532 second-year students or just under 70 percent of the class, included results from a survey of second-year Wharton students. The survey responses from 572 students showed frustration and disappointment in the school’s response to the pandemic and a desire for more communication and collaboration in decision-making processes. Over three-fourths of respondents, 78 percent, were “not excited for the upcoming semester,” and 94 percent said that they felt the value of their MBA experience had been diminished by at least 40 percent. Just 14 percent of respondents felt that the school had incorporated student feedback into its decision-making process for the Fall 2020 semester. The school has responded that it will not discount the tuition this year.

Similarly, 270 MBA students at NYU’s Stern School of Business sent a letter to the administration, asking the school to decrease tuition rather than move forward with a planned 3.5 percent tuition increase. A Stern spokeswoman responded that the tuition will not be amended, but that it has increased MBA scholarships this year and is working to maximize its student experience. The school plans to provide a hybrid learning model.

Even Harvard Business School is feeling the effects. The school, which plans to provide students with a blended model including small-group work and in-person course elements as well as virtual learning, announced this summer that its matriculating class will be about 20 percent smaller than typical due to the number of accepted students who chose to defer their start date.

Business Schools Speak Out in Defense of International Students

Early last week, the Immigration and Customs Enforcement Agency announced updated guidelines for the Student and Exchange Visitor Program (SEVP), which will impact foreign-born students studying in the U.S. The updates include the following:

• Foreign students on F-1 visas who take full online course loads will not be permitted to maintain residency in the U.S.

• Students may take a hybrid course load with both in-person and online offerings. The student’s school must certify that he/she is not taking an entirely online course load.

• Students whose course loads change throughout the semester will still be subject to the rule. If a student changes her course selections or is required to switch to online-only at any point in the semester, she must notify the agency within ten days.

• Students whose schools are online-only should consider transferring to a school offering in-person instruction to lawfully remain in the country.

• Students who remain in the U.S. while taking an online-only course load may face “immigration consequences.”

The guidance, which was updated in response to the COVID-19 pandemic for the spring and summer 2020 semesters, to allow for online study, is a reversion back to the previous ruling that SEVP does not allow for a student to take an online course load and maintain U.S. residency. However, given the uncontrolled nature of the pandemic throughout much of the country, schools and students have expressed shock at the update, particularly as many universities are still seeking the safest means to proceed with classes in the fall and must now contend with decreased flexibility. The universities that have publicly responded to the guidelines have been clear in their intentions to support their international students.

• NYU announced that its fall plans would include a hybrid model with an emphasis on accommodating international students. Stanford, which had planned to provide most courses online, also pledged to support its students in finishing their degrees. Columbia University communicated its intentions to “alleviate the negative effect of these new regulations,” as well a plan to provide pop-up centers for students unable to return to campus.

• Princeton, MIT, Duke, California Institute of Technology, and Dartmouth told Forbes that they are reviewing the policy’s implications and noted the importance of international students to their communities.

• MIT and Harvard have filed a lawsuit against the administration stating that the option to offer remote courses during the pandemic is “of paramount importance to universities across the country.” Northeastern University has also joined the suit and Cornell is supporting it via amicus brief.

• The California State Attorney General has also announced a lawsuit against the new policy.

The updated guidelines are thought to be part of the Trump Administration’s push for schools to re-open for in-person instruction in the fall, as well as part of continued efforts to restrict immigration. Last month, the President suspended the H-1B visa program for the remainder of 2020 via executive order. While the order kept the Optional Practical Training (OPT) program in operation, which allows international students to work in the country for one to three years, the H-1B visa is often seen as the goal for OPT participants.  As such, the executive order disappointed business schools as it may serve to discourage international students from studying in the U.S. by making it harder to find long-term employment post-graduation. Last October, the Graduate Management Admissions Council (GMAC) supported by a group of 50 business school deans, published and signed a white paper calling for an increase in H-1B visas to encourage the flow of international talent into the country.

There is a sense among U.S. business schools that the administration’s restrictions on immigration and work visas will only further harm their ability to compete internationally. According to GMAC, almost half (48 percent) of MBA programs saw a decline in applications from international students for their 2019 entering classes.

GMAC Asks Media to Delay Publishing Business School Rankings

Last month the Graduate Management Admissions Council (GMAC), along with several other business education organizations, requested that MBA ranking organizations postpone publishing rankings amidst the COVID-19 pandemic. The request, sent via letter to Bloomberg Businessweek, The Economist, Forbes, Financial Times, QS, and US News & World Report, asked for the delay on the grounds that business schools are working to meet the needs of their students and communities and need support rather than additional responsibilities during this period.

The letter also pointed out the pandemic’s likely effect on metrics, speculating that survey results from this period may do more to reveal current stress than a business school’s effectiveness, with graduating students, alumni, and companies who recruit MBA graduates all facing significant challenges of their own.

The request concluded with a call for dialogue between the ranking organizations and the business school community. GMAC hopes to work in partnership with business education industry groups (AACSB, EFMD, and MBA CSEA) and the ranking organizations to consider the short and long-term implications of COVID-19 on business school education, including student mobility restrictions, test center closures, corporations’ hiring plans, and the challenge ranking organizations face in updating metrics during this period that will accurately measure a business school’s effectiveness. For example, schools’ responses during the pandemic regarding their ability to innovate to meet the needs of their stakeholders may more accurately reflect their value to prospective students than previously relied upon metrics.

The response to the request has been mixed.

• Bloomberg Businessweek announced earlier this month that it would suspend its rankings. In addition to the request put forth by GMAC and schools, Bloomberg News Senior Editor Caleb Solomon added that it “felt inappropriate” to ask students, alumni, and recruiters to fill out a survey in an already overwhelming time. He also pointed out that the data collected would likely be overwhelmed by the pandemic and may not accurately show differences between schools.

• Forbes, which publishes a biennial ranking of business schools, ranked the programs in 2019 and is not due to have another ranking published until 2021.

• The Economist and QS have not published statements on their intentions to publish MBA rankings this year. Typically, The Economist and QS publish their Global FT MBA rankings in the fall.

• The Financial Times, which produces the most influential business school ranking in Europe and Asia, published its Global MBA 2020 ranking in January, and just last week published its 2020 Global Executive Education MBA Ranking. Despite the pandemic and global uncertainty, their latest ranking shows change at the top, but it mostly consists of a reshuffling of established front-runner schools.

• The most highly anticipated response, however, is from U.S. News and World Report, whose business school ranking garners the most attention within the U.S. Their Chief Data Strategist, Bob Morse, told Poets & Quants that, “the team at U.S. News continues to monitor the unprecedented disruptions caused by COVID-19 to business schools themselves, and their current and prospective students. As a result, we’re still reviewing our strategies for our upcoming Full-time and Part-time Best Business Schools rankings, as well as our fall 2020 data collection.”

While it remains to be seen how each ranking organization will move forward with compiling and publishing rankings, the GMAC letter provides valuable input for prospective business school students to keep in mind when reviewing available rankings and considering schools for the upcoming year.

• While most surveys combine more than one year of data, to smooth sudden changes, carefully consider if a school of interest has dropped or risen suddenly to determine what metrics may be driving the change. Are certain metrics likely affected by the pandemic and likely to rebound? Or do you think they accurately reflect the schools’ ability to meet the needs of its students?

• Look at each metric individually for a more complete view. Many of the ranking websites even allow you to sort schools based on the component metrics. You can then see how the schools rank based on what you are most interested in (quality of alumni network, starting salary, research opportunities, experience with faculty, etc.). This may also help you to understand what may be most affected by the lack of student mobility, testing cancellations, etc.

While the appeal of rankings is strong, we urge you to carefully consider how you can use them to find the best experience for you. Our advice has always been, and remains, to use them as only one component of your decision-making. During this period, more than ever, they should be a method to inform, but not drive your business school selection.

MBA Internship Opportunities Remain Stable in Technology, Finance, and Consulting Amidst Vast Domestic Unemployment

Over the past month, approximately 26 million Americans have filed for unemployment, showcasing the devastating economic impact of COVID-19. MBA internship programs, however, “have proven surprisingly immune” to the current economic woes according to a Bloomberg News article posted earlier this week. While some industries, including travel, hospitality, and advertising/marketing, have been disrupted, most companies within the core MBA tracks of finance, consulting, and technology still plan to move forward with their internship programs.

The Bloomberg article notes two reasons for the resiliency of these MBA internships. The first is the dependency companies have on internships for assessing potential full-time hires and building talent pipelines, particularly within finance and consulting. The second is the capability the sponsoring companies have for pivoting to online platforms for work and networking, providing the flexibility necessary to make internships work even in uncertain times. Abigail Kies, Assistant Dean for Career Development at the Yale School of Management noted that internship acceptance rates this year were comparable to 2019, and said she was pleased to see so few companies rescinding internship offers compared to previous economic downturns.

There will, however, be noteworthy program changes at some key recruiters. JP Morgan, Chase, Capital One, HSBC, and Nasdaq, along with Goldman Sachs and Morgan Stanley have all adapted their internship programs through delayed start dates, shortened programs, or virtual work. Goldman Sachs will delay its internship start date and compress the program to five weeks, while Morgan Stanley will run the majority of the program virtually. Other predominant MBA employers including, Google, Amazon, BCG, Deloitte, and PWC plan to continue with their intern programs and have not reported hiring impacts.

Admitted Students Hesitant to Start MBAs via Distance Learning

Poets & Quants published the results of a survey last week that showed prospective MBA students are feeling anxious over the uncertainty regarding when campuses will reopen. Among survey respondents, almost all—96 percent—said that missing out on the on-campus MBA experience is a “major concern.” Approximately one-third of the admitted students said that they will want to defer their start year if students are not invited back to campus in the fall, while fewer than one in five (17 percent) said they are okay with attending classes online. Just under half, 43 percent, believe that tuition and fees should be reduced if MBA programs cannot be conducted on campus, with a suggested tuition decrease averaging 37.5 percent.

With most business school deans reporting that they do not believe campuses will return to normal operations until September 1, 2020 or later, according to a recent survey that included 48 business school deans completed by Eduvantis, a higher-education consulting firm, there is talk that the current necessity of technology-based courses may forever impact the mode of business education delivery. The Eduvantis survey also asked deans to comment on how much their programs will “tilt towards distance learning” even after normal operations have resumed. While just 26 percent of respondents believe that their schools’ offerings will look “similar to what it was before,” a majority, almost three-fourths, say that they believe their schools will tilt more towards online learning to varying degrees. Additionally, there was notable consensus in response to an open-ended question asking deans what long-term institutional positives, if any, may stem from COVID-19 with 65 percent responding within the theme of “increased online teaching capabilities and comfortability.”

A recent Financial Times article described this period in business education as a time of innovation, and even as a tipping point for embedding technology more firmly into the foundation of the MBA experience by necessitating that even formerly resistant staff now provide online courses.  The article quotes Paul Almeida, dean of Georgetown University’s McDonough School of Business. “We do feel the students’ pain, the challenge they are facing, not just moving from face-to-face teaching to a virtual classroom but having to study from home and concerns about the future jobs market,” says Almeida. “But this crisis has planted seeds for innovation and transformation in the use of technology, about the potential for using our buildings differently so that people can study more flexibly and staff can telework.” He points out that distance learning can provide faculty researchers opportunities to work more collaboratively with other institutions or labs, “where we can unleash the power of working across universities.”

While this time of uncertainty is rife with questions, it seems that business school leadership and faculty are uniquely positioned to meet the challenges with optimism. Many programs have been building up online course offerings and integrating technology into course delivery for years. Prospective students, particularly those who are feeling anxious over the possibility of obtaining part of their degree online, may alleviate some of their anxiety by familiarizing themselves with their preferred schools’ existing online structure and offerings. While it is true that online substitutions will not provide the same experience as an in-person, on-campus MBA, schools are demonstrating that there is still ample opportunity for an excellent business education, and they are looking to find and integrate the best practices from this period into their standard operations.

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

Amazon has adopted a new MBA recruiting strategy, according to a recent article in the Wall Street Journal. They are turning away from a previous focus on the most elite schools to broaden the scope of MBA talent they evaluate for full-time jobs and summer internships. This exciting new strategy will is being deployed to increase the diversity of background and talent in Amazon’s new hires. But it will now be increasingly difficult for prospective employees to meet anyone from Amazon face-to-face during the hiring process. Most on-campus visits will be replaced with virtual meetings.

While previously, the company hired approximately 1000 full-time employees and MBA interns from the 12 most prestigious schools, it has recently extended a similar number of offers to students from 80 MBA programs. So expectedly, the declines in the number of Amazon hires at top-tier programs have been striking. MIT and Kellogg reported declines of over 60 percent from 2017 to 2019. Berkeley Haas saw a decrease of about 50 percent over the same time period, reporting that Amazon is recruiting more from other programs at the school. And Columbia and NYU sent 40 percent fewer students to the company. While Michigan Ross no longer publishes its employment numbers, Amazon was the top employer for Ross in 2017, with 38 graduates, and they have confirmed that fewer went there in 2019.

Some schools report that Amazon’s virtual recruiting strategy has also dimmed students’ enthusiasm to work for the company; students responded positively to the face-to-face access to recruiters and executives in the past and are still adjusting to the change. Susan Brennan, Assistant Dean of Career Development at MIT’s Sloan school, says that “Students are drawn toward an opportunity where they have a direct connection.” More MIT graduates are now opting for employment at tech startups and consulting firms that are still sending representatives to campus to meet and interact with students. Others, such as Kim Austin, Director at Texas A&M’s Mays Business School career-management center, which saw an increase in Amazon employment among graduates, says that while it was initially a shock, students there have been pleased by the uptick in hires, and are adapting to the new reality of virtual meetings.

Other prominent MBA recruiters, including Goldman Sachs and Bain & Co. have adopted a similar strategy in expanding the list of schools from which they recruit. And it is likely that, they too, will conduct many of their meetings virtually. 

The MBA Tour North America 2020: MBA & Business Master’s Conferences

Considering or applying to business school? Don’t miss this exclusive & free opportunity to network with top business schools like IE, INSEAD, Fordham, UBC, Boston University & Georgia Tech! Join us in a city near you:

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Toronto - Thursday, January 30

New York City - Saturday, February 1

Boston - Monday, February 3

Washington D.C. - Thursday, February 6

Los Angeles - Saturday, February 8

San Francisco - Sunday, February 9

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You’ll have the opportunity to:

• Meet face-to-face with admissions representatives in small groups

• Improve your resume with advice from admissions experts

• Attend individual school presentations to compare various programs 

• Learn how to finance your degree and improve your application

• Get tips from test prep experts on preparing for the GMAT

• Network with alumni and fellow applicants

• Enjoy free refreshments

• And much more!

View the full list of participating school and more event details here.

Environmental, Social, and Governance Issues Becoming Important Component of Graduate Management Education

At the conclusion of each year, Poets and Quants asks business school deans to predict future trends in and relating to business education. This year social impact emerged as a prominent theme. More specifically, the idea that amidst society’s environmental, political, and social challenges, business leadership will be called upon to act and that those who do not will be held accountable. Scott DeRue, Dean of University of Michigan’s Ross School of Business, tells Poets and Quants, “In 2020, I anticipate that society will continue to be challenged in many profound ways… In business, CEOs will be expected to be more engaged than ever in policy-related issues and social causes. Employees, customers, and investors will increasingly demand that companies explain how they are diversifying leadership, addressing climate change and sustainability, and improving equitable access to jobs and economic opportunity. It will be a challenging time for leaders across all sectors, wherein missteps will be very public, and purposeful leadership celebrated.”

The role of social impact in business education was also the topic of a Financial Times special report released in late October. The report noted that the demand for increased integration of policy-related topics in the business school curriculum is coming from both current and prospective business students, as well as corporations that recruit from the schools. Students who may have once pursued graduate degrees in public policy are now looking to obtain an MBA and make a positive difference in the world via business. Kevin Stevens, Dean of Loyola University of Chicago’s Quinlan School of Business, told the Financial Times that, “Demand is coming from all sides: we are hearing it from corporations and we are really hearing it from our students. This generation is so concerned about what the future looks like and what shape the planet will be in that they are demanding we focus on it.” In response, schools are updating courses, initiatives, and even their own operations to incorporate environmental, social, and governance (ESG) issues.

To gain a better understanding of how schools are incorporating ESG into their offerings, the Financial Times requested that schools submit examples of current initiatives within four categories: teaching, research, special initiatives, and business school operations. The goal of the request was for a specified group of judges to look at both trends and best practice examples, as social impact is inconsistently defined and difficult to measure. The most notable take-away was the sheer number of submissions that the Financial Times received. In response to the call for information, 220 business schools submitted various ways in which they were delivering social impact, based on the four categories. But the judges found challenging the wide variety of definitions used and the complexity of assessing the impact of the programs.

Additional noteworthy trends identified by the Financial Times’ special report:

• Higher levels of ESG activity were associated with schools with religious affiliations (e.g., Loyola University Chicago, and Fordham) or those located in Northern Europe or France.

• Judges found it difficult to assess the quality of ESG-related courses, which many schools offer, but few make a mandatory part of the curriculum.

• Prestigious schools such as Harvard, NYU, Stanford, and Oxford appeared predominantly within the research category.

• There was a lack of clearly connected peer-reviewed research that proposed implementation plans.

See list of submissions deemed best practice here: https://www.ft.com/content/b6bcfa02-ef37-11e9-ad1e-4367d8281195

The Aspen Institute also reviews and recognizes ten courses annually that they designate as the best for preparing and inspiring business students to address the largest issues of our time as a part of the Ideas Worth Teaching initiative. This year the ten winning courses covered topics including: accounting and defining business value, sustainability and climate change, leadership, strategy, people analytics, and marketing. The courses, including syllabi and readings, are available online here: https://www.ideasworthteachingawards.com/

Social impact and the role of public policy are becoming more integrated into daily business dealings, particularly for those in or aspiring to leadership. Anyone considering an MBA should familiarize themselves with the Financial Times’ designated best practices or the Aspen Institute courses to understand how these ideas are best integrated into the MBA curriculum. Reading and creating a point-of-view on areas of interest will also serve prospective students engaging with admissions officers, as well as current business school students interviewing for internships or jobs. The role business schools and students have in leading research and innovation for society’s greatest challenges will only grow over time.

Record Number of Women to Matriculate to MBA Programs This Fall

New data released by the Forté Foundation and reported by the Financial Times and the Wall Street Journal this week show that a record number of women are enrolled at top MBA programs this fall. At over 50 of the top-ranked business schools in the U.S., Europe, and Canada, women average 39 percent of the class, an increase from nearly 38 percent in 2018 and 32 percent in 2011.

At the top of the list, the Olin Business School at Washington University in St. Louis has almost approached gender parity, with enrollment at 49 percent female. Following closely behind, with 45 percent or more women, are The Wharton School at the University of Pennsylvania and the Ross School of Business at the University of Michigan. There are 19 schools that have 40 percent or more women enrolled, including Harvard Business School, the Kellogg School of Management at Northwestern University, the Yale School of Management, and Duke University’s Fuqua School of Business.

While this increase in female students has been linked to declining overall applications to MBA programs in the U.S., greater female representation has long been a goal of top business schools, with many making significant marketing and outreach efforts geared towards women over the last two decades.

The Financial Times highlighted the women’s ambassador program at Olin, which urges current students and alumni to encourage other women to apply, as well as a Women in Leadership Conference for prospective MBA students at University of Michigan’s Ross. Speakers at Ross’ annual event address issues pertinent to women including creating inclusive communities, becoming a better ally for other female students, and navigating imposter syndrome. The Dean of Michigan Ross, Scott DeRue, noted that at this year’s conference, 42 percent of attendees had designated Ross as their first choice for an MBA going into the event, but afterwards that number increased to 89 percent, suggesting that the content resonated strongly with prospective students.

Elissa Sangster, Forté Foundation’s chief executive, couldn’t be more pleased with the increasing gender balance in business schools. Like most educators, she believes this will improve business education for all by increasing the diversity of opinion in the classroom. “It changes the conversation between students and their tutors, whether talking about corporate strategies or how to manage people.”

Even Elite U.S. MBA Programs Experience Application Drop as International Students Look to Study Elsewhere

Last week, the Wall Street Journal reported that even elite U.S. MBA programs experienced a steep drop in the number of applications they received in the 2018-2019 admissions cycle compared to the year before. The business schools at Dartmouth, Yale, Northwestern, and Duke each reported double-digit percentage drops in applications compared to the prior year, and even the most prestigious programs such as Harvard, MIT, Stanford, University of Pennsylvania, and Columbia were affected. The declines continue the downward trend for the MBA. The Wall Street Journal also reported new data from the Graduate Management Admission Council (GMAC), which shows application numbers falling for the fifth straight year. The admissions cycle that ended in the spring of this year garnered 135,096 applications for programs including the MBA; a total year-over-year decrease of 9.1 percent, which is larger than the previous year’s decline of 7 percent.

Though the declining applications are attributed to many factors, of primary concern is the perceived change in environment for international students and immigrants. Currently, in the U.S., 85,000 H-1B visas are issued annually to highly-skilled workers via lottery with the demand far exceeding the supply. According to the Wall Street Journal, under the Trump Administration, there have been an increasing number of requests for H-1B visa applicants to provide supplemental information and many are still being declined.  Prospective students’ concerns about the availability of work visas post-graduation are impacting their school selection. The Wall Street Journal quotes Matthew J. Slaughter, dean of the Tuck School at Dartmouth: “A lot of individuals, a lot of terrific international applicants, they’re choosing not to apply to any U.S. schools,” he said.  

This is evident in the 13.7 percent decline in international applications seen this year for U.S. programs. According to a GMAC report released last week, Early Warning Signals: Winners and Losers in the Global Race for Talent, the U.S. experienced, “a steeper decline than any other country in the world, and a drop that came amidst largely rising or stable applications everywhere else in the world.” Both Canada and Europe reported increases in the number of international applicants in 2019. And Chinese business schools reported a 5.2 percent increase in applicant numbers, though it was driven primarily by domestic demand. While China still sends the largest number of business school students abroad, Chinese applicants are increasingly opting to attend school in Asia.

The GMAC report highlights the changes in international demand for U.S. business programs as a leading indicator for international talent mobility, suggesting that while business schools may be experiencing the negative effects now, the U.S. workforce may suffer losses in talent and productivity in future years. The report states, “Indeed, immigrants play an outsized role in innovation and entrepreneurial activity. According to a Brookings Institution study, ‘…while immigrants represent about 15 percent of the general US workforce, they account for around a quarter of entrepreneurs and a quarter of inventors in the US. Moreover, over a third of new firms have at least one immigrant entrepreneur in its initial leadership team.’ For startup firms valued at $1 billion or more, in particular, immigrants have started more than half, and they play key management and product development roles in more than 80 percent of these companies.”

The GMAC report goes on to recommend policies that the U.S. can adopt to safeguard its talent pipeline in future years, while also bolstering international applicants to U.S. business schools. These include updating the visa regulations by removing “per-country” visa caps and reforming the H-1B visa program, as well as creating a “Heartland Visa,” which encourages immigration into regions of the country that could most benefit from injections of talented individuals. Fifty business school deans and 13 CEOs have signed an accompanying open letter that endorses the policy recommendations of the GMAC report and, more broadly, calls for a change in the U.S. approach to high-skilled immigration. Bill Boulding, dean of Duke University’s Fuqua School of Business, while expressing optimism about the future of U.S. business schools to the Wall Street Journal, notes that schools will need to continue to change to address the current environmental challenges. “The pipeline of talent to the U.S. is being diverted elsewhere. We see a pattern that is really alarming,” Boulding said. 

Business Schools Seek to Reinvigorate the MBA Using More Personalized Degree and Course Offerings

Just as the decline in the number of applicants to two-year, traditional MBA programs has spurred changes in the MBA delivery model, it has also incited innovation within graduate business school curriculums. Administrators and educators are working hard to ensure the MBA remains relevant to prospective students and employers alike. An article published earlier this year on EducationDive.com, identified key trends within the MBA. In addition to changing program formats (increased use of online, flexible, and part-time programs) and an increase in shorter, specialized graduate management education programs, the article calls out two trends affecting the substance of the MBA: STEM designation and “breaking boundaries.”

The first trend, “STEM” (Science, Technology, Engineering, Mathematics) designation, granted by the U.S. Government, can cover either the full-MBA degree or component programs within the MBA that have a strong emphasis on data, analytics, and quantitative skills. This designation is not only appealing due to the number of tech employers who are recruiting MBAs, but it also makes an MBA program more attractive to foreign students. The STEM designation means that program graduates are eligible for a work visa that allows them to remain in the U.S. for up to three years post-graduation as opposed to just one. The STEM designation also broadens the appeal of business school to a more diverse array of prospective students. In mid-September, Johns Hopkins was the latest school to announce that its MS in Marketing will be STEM designated starting in 2020. And there are many other programs with the designation throughout the country. Currently, the University of Rochester Simon Business School is the only one that has the designation for all specializations within the full-time MBA, but others including the University of Wisconsin-Madison, Notre Dame Mendoza, and Duke Fuqua offer some certified specializations.

The second trend, “Breaking Boundaries” references programs that are challenging and expanding upon the traditional core business curriculum. Some programs are collapsing the core courses in finance, marketing, and communications into one interdisciplinary course. This allows students to obtain the information in a more organic and comprehensive way, as well as freeing up time for students to take additional electives within their areas of interest. MBA programs are also partnering with other academic departments at a greater rate to create cross-disciplinary degrees that appeal to employers and students who want to start working with a higher level of industry expertise. Michael Wiemer, senior vice president and chief officer of the Americas at the Association to Advance the Collegiate Schools of Business says, "The emerging demand is for shorter, condensed, and highly relevant offerings offered in a variety of convenient formats." In August, UT Austin’s Dell Medical School and McCombs Business School announced a partnership for the Master of Science in Health Care Transformation. Even more recently, HEC Paris announced the creation of a double-degree program along with the cooking school L’atelier des Chefs, as a direct response to increasing demand from its students for careers in the hospitality sector.

Further demonstrating business schools’ commitment to offering the most relevant curriculum, a Poets and Quants article published last week noted that in 2019 182 new courses are being offered across all top-25 ranked schools. This is an increase from 2017, when 21 of the top-25 schools offered 132 new courses. Ten of the top 25 schools are offering at least ten new courses, which is also higher than in 2017 (four). Dartmouth Tuck and Harvard have the highest number of new offerings at 13, followed by Columbia and Rice (12), Texas McCombs (11), and then Michigan Ross, Yale School of Management, NYU Stern, Chicago Booth, and Stanford GSB each with ten. The courses range in topics but include 20 with a focus on Data and/or Analytics, ten on AI and/or Machine Learning, 12 on Entrepreneurship, and ten on Tech. While, the majority of new course offerings fall within the more typical MBA disciplines of Management (22), Operations (21), Marketing (20), Strategy (20), or Finance (18), relatively few additions were categorized under traditional topics such as Economics (six), Accounting (four), and Real Estate (three).

These trends are very positive for prospective business students seeking to gain an increasingly personalized and beneficial degree. Anyone considering an MBA or other business degree should understand how the curriculum and structure of the program will support their short and long-term goals, keeping in mind the questions below:

• If technology is an interest, does the school offer any STEM-designated programs or certifications?

• How many credits are used on the core curriculum and how many are available for electives? When was the last time the school made updates to the core curriculum?

• What certifications are offered by schools of interest? Which certifications might help you garner an interview, internship, or job at companies you’re interested in?

• What relationships, certifications, or degree-programs exist with other academic disciplines? Are you able to take courses in other schools? What industry knowledge would help you to impress a recruiter in your desired field and is it attainable through the business school?

• How many new courses are offered each year? Is the curriculum staying current with market trends, particularly in your areas of interest?

Despite Significant Debt for Graduates of Elite Business Schools, the Return on Investment for an MBA is High

Earlier this month, the Wall Street Journal reported that MBA graduates from the classes of 2016 and 2017 had an aggregate federal student loan burden of $3.7 billion, an average of $39,900 per student, according to data from the United States Department of Education. Graduates of elite MBA programs held even more significant debt on average. Northwestern’s Kellogg graduates averaged $116,420 and NYU’s Stern graduates averaged $105,931; similarly, alumni of Yale University’s School of Management, Chicago Booth, and UVA Darden all had average debt between $85,000 and $100,000. Notably, these data points only include federal loans and not money obtained from the private loan market, suggesting that the estimates do not represent the full debt load.

A Bloomberg Businessweek Survey on MBA debt was also released earlier this summer with similar findings. The survey, which included the responses of more than 10,000 2018 MBA graduates globally, found that close to 50 percent of students at top business schools had borrowed at least $100,000 to fund their MBA. Among the top U.S. programs, a minimum of 40 percent of the MBA graduates at Duke, Dartmouth, University of Michigan, Cornell, and University of Chicago said that they had taken on at least $100,000 in debt. The percentage was lower at MIT, University of Pennsylvania, NYU, and Northwestern, at around one-third of graduates.

The same Wall Street Journal article notes that “The cost of a traditional two-year MBA has more than doubled since the global financial crisis sent droves of college graduates back-to-school starting in 2008, to an average of $30,100 a year in 2016, according to the latest figures available from the Education Department.” Currently, however, according to the U.S. News and World Report, the tuition for the top 15 ranked two-year full-time MBA programs in 2019 exceeds $50,000, with some priced higher than $70,000.

Even if this summer’s announcement that Harvard Business School and the University of Chicago Booth will freeze tuition for the upcoming school year portends a broader slow-down in tuition hikes, the cost of an MBA will remain significant. Despite the high cost, however, the MBA has still been shown to have a strong return on investment. Last year, QS Quacquarelli Symonds, a data and research company specializing in education, released findings from its Return on Investment Report for the full-time MBA, which include:

• The average global ten-year ROI of an MBA is $390,751, which accounts for tuition, cost of living, and foregone wages. The highest ROI is found at Stanford at $1,023,150, the only school to enter seven-digits.

• The average global payback time is 51 months. Europe offers the quickest return at 39 months versus 55 in North America, which is likely due to shorter program lengths.

• The U.S. is home to 19 of the top 20 schools for highest post-MBA salary. The global average is $79,829 ($89,037 in North America) and Stanford is at number one with an average of $140,600.

• North America also has the highest average salary increase at 74 percent.

While the prospect of taking on large debt as an investment in an MBA shouldn’t necessarily deter prospective students, the means for financing the degree should be considered as thoughtfully as the school selection.

UNC Kenan Flagler Provides Alumni with Strategies to Avoid Post-MBA Burnout

Earlier this month, the Financial Times published an article on workplace wellbeing and burnout. The article included the results of a reader survey on how employers support employees’ mental health. Two-thirds said that their work had a somewhat to extremely negative effect on their health. Forty-four percent said that they did not think their organization took mental health seriously and half said that they either didn’t know where at work to go or had nowhere to go if they needed support. While the survey respondents were self-selecting, the results show a significant issue with employer support of mental health, including stress, burnout, anxiety, and depression.

 The article warns us that the problem runs across sectors, but may be particularly relevant to graduates of law, business, and medical schools; the authors note that “Fields such as law, finance, and consulting seem particularly prone to intense, demanding workplace cultures, but the issue affects people in all sectors. One doctor dies by suicide every day in the US.” Similarly, Blind, an anonymous social app for tech employees, surveyed its users in May 2018 and 57 percent of the 11, 487 respondents said that they were burned out. Only five of the 30 tech companies represented had an employee burnout rate below 50 percent, and 16 of the companies had a burnout rate higher than the average (57 percent). Later surveys, also by Blind, found that 52 percent of tech workers responded that they do not have a “healthy work environment” and that 39 percent of tech workers said they were depressed.

The FT survey also found that reasons behind burnout clustered into four themes: overwork, cultural stigma, pressure from the top, and fear of being penalized. The article suggested that many experts point to an epidemic of overwork resulting from the common expectation that employees be available and responsive to client needs 24/7. “In his book, Dying for a Paycheck, Stanford professor Jeffrey Pfeffer posits that this crisis is getting worse over time, amid stagnating wage growth and an increasing reliance on the gig economy. ‘We are on a path that is completely unsustainable,’ Pfeffer says. ‘The CDC [Centers for Disease Control] tells you that chronic illness is 86 percent of the $2.7tn US healthcare spend. Many come from stress-related behaviours. If you’re going to solve the healthcare cost crisis, a piece of that solution has to go through the workplace.’”

In an acknowledgment of the intense positions that many post-MBA graduates find themselves in, Robert Goldberg, an affiliate UNC Kenan-Flagler faculty member, recently led an interactive session for UNC alumni to build awareness of and strategies for preventing burnout.

First, Goldberg encouraged alumni to explore various “energy zones” which, described below, he adapted from The Power of Full Engagement (Loehr & Schwartz, 2003).

• Performance zone: Passionate, enthusiastic, engaged, optimistic, alive, challenged, and absorbed

• Survival zone: Anxious, impatient, angry, irritable, defensive, fearful, and frustrated

• Burnout zone: Hopeless, exhausted, sad, discouraged, lost, empty, worried, and depleted

• Recovery zone: Calm, peaceful, grateful, relaxed, receptive, relieved, rested, and renewed

Goldberg said that to stay in the performance zone, you must enter the recovery zone before you enter burnout. As such, those in intense professions may need to spend time recovering every working day. This can be done using various energy management techniques, including physical (stepping away from the desk at regular intervals), mental (prioritizing competing demands), emotional (feeling valued and appreciated), and spiritual (connecting work to higher purpose). 

Finally, Goldberg addressed the importance of “personal resilience” to maintain strong performance, defining resilience as “the ability to become strong, healthy, and successful after something bad happens.”

Goldberg shared the following five factors, summarized below, for building resilience capability:

• Perspective: Take some space to view a situation, accepting the negative aspects and finding opportunities. “Recognize what can be changed and what can’t.”

• Emotional intelligence: Become present in your emotions and name what you’re feeling. Don’t feel guilt or shame over the emotions that you experience, but give yourself time and space to process them.

• Purpose, values, strengths: Be aware of the purpose that you find in your work, and how it relates to your larger moral compass. Use this awareness to stay centered during chaotic times.

• Connections: Form relationships with your friends and colleagues and give and receive support from this network.

• Managing physical energy: Take care of yourself. Exercise, eat well, and have hobbies and activities to engage in apart from your work.

Graduate students, particularly within business, law, and medical school, may want to consider incorporating these strategies into their lives now. Building healthy and sustainable stress management habits, within the hectic graduate school environment, will be good preparation for managing career stress, avoiding burnout, and maintaining wellness in the future.