Medical Schools Plan to Resume Clinical Learning Experiences

In May, the AAMC provided an update on medical schools’ plans to resume operations.

For medical students working in clinical care, most schools plan to resume work this summer.  As of early May, 103 of 155 total schools had reported their plans to the AAMC; 15 percent planned to restore students’ clinical care work by the end of May, 55 percent (cumulative) by the end of June, and 77 percent (cumulative) by the end of July. An additional 15 percent were still finalizing plans.

The AAMC noted the delicate balance necessary for returning students to clinical care. Patient safety and containing COVID-19 must be parallel goals alongside allowing students access to the patient-centered learning hours they need for a timely graduation. Medical schools are also struggling to create meaningful learning opportunities due to the diminished capacity of many supervising physicians to teach and the fact that routine surgeries and visits have been limited or restricted.

According to an article published in Crain’s Health Care Forum over the weekend, during this period, many schools have front-loaded virtual course work. The article also mentioned that some schools, such as the Cleveland Clinic Lerner College of Medicine, were able to allow students’ access to patients using virtual clinics and virtual hospital rotations.

As many students prepare to return to clinical care, obstacles will remain. Many schools and hospitals are not going to allow students to work directly with confirmed or suspected COVID-19 patients and some hospitals are limiting the number of people who can enter a patient’s room simultaneously. This suggests that training will continue to require creativity and a dependence on technology, with schools working with state boards and accrediting bodies to determine what will be approved.

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. 

Proposed Federal Budget Will Negatively Impact Medical Students in Need of Loans

The average cost of medical school tuition, fees, and health insurance for the 2019-2020 academic year ranged from just under $38,000 for an in-state, public institution to $62,000 for private school or public school for non-residents, according to the Association of American Medical Colleges (AAMC). The median debt for students at graduation totaled $200,000. As such, prospective and current medical students should pay particular attention to how student loan funding and forgiveness will change as a result of the President’s recently proposed Fiscal Year 2021 budget. Below, are a few proposed budget changes that would directly impact medical students and residents.

• The capping of GradPLUS loans to $50,000 per year and no more than $100,000 in a lifetime. The AAMC says that 47 percent of medical students rely on these loans to fund their education. Capping the total amount allowed per annum and over a lifetime at these values, which are lower than the full cost of medical school, will force students to seek funding through private financing, which typically carries less favorable lending terms.

• The elimination of public service loan forgiveness programs. Currently, an AAMC survey of graduates estimates that about one-third of them are interested in pursuing public service loan forgiveness programs, which allows graduates—who work to benefit the community and make timely loan payments for ten years—to receive loan forgiveness. These programs are an important recruiting tool for many public-facing organizations, including inner-city hospitals, community health centers, and teaching hospitals, and is critical to providing healthcare services to communities in need.

• The cutting of Medicare funding for Graduate Medical Education (GME). The budget proposes funding GME solely through new grant programs from general revenues, rather than Medicare’s trust fund. However, the cuts to Medicare are so substantial that even given the new proposed funding stream, hospitals would be asked to absorb cuts of over $50 billion in funding, which could result in fewer physicians and resources at teaching hospitals.

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.

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:

---

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

---

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.

New Department of Education Data Shows that Only 11 Law Schools Report Positive Debt-to-Earnings Ratio for First-Year Graduates

Late last week, the American Bar Association Journal reported that “most law students earn less money per year after graduation than the amount they borrowed for law school.” This is based off data recently released by the U.S. Department of Education. The article goes on to share that graduates from only 11 law schools reported higher median first-year earnings compared to median federal debt for graduates in 2015 and 2016. Further, the median debt-to-income ratio among law schools is 1.86, which means that graduates took out a median of 86 percent more in loans during law school than the median amount received in their first year working after graduation; median debt upon program completion for graduates was about $110,000 and median first-year earnings were about $53,000. 

Using the same Department of Education data, Law.com published a debt-to-earnings ratio for the U.S. News and World Report’s Top 14 law schools, as well as for New York-based law schools. We have compiled the data into some charts below for both the top-ranked, as well as NYC-based schools. They show the debt-to-income ratio, median first-year earnings for graduates, and median federal debt incurred for 2015 and 2016 graduates. It is important to note that these data points do not include private loans, loan interest, or borrowing for undergraduate or other graduate programs. So, the ratios may show slightly more positively than the full debt-load that many law school graduates are facing.

If you are considering law school, and you will be paying your own way through federal or other loan programs, you will want to assess this data during your school selection period. Ultimately the program that will best fit your needs should balance strong academic rigor and meaningful experiential learning opportunities with your future debt burden. The debt-to-income ratio rankings, as you can see, do not line up exactly with the school’s academic rankings, and the median debt and median earnings should be one of the many factors in your decision-making process. Additionally, these figures may provide insight into how much time you will want to spend researching fellowships and scholarship opportunities that can also ease the total cost of your schooling, particularly if you’re interested in pursuing lower paying career paths, such as public interest law.

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?

Positive Learning Environments and Regular Feedback Result in Lower Levels of Depression Among Medical Residents

The impending physician shortage, coupled with the problem of physician burnout, has led to important discourse over the treatment and training of future physicians. Medical training programs are looking to improve wellbeing among medical students and residents through various avenues including reduced tuition, investments in wellbeing programs, and mental health resources. But are they doing enough? A recent op-ed published by the AAMC, by Srijan Sen, MD, PHD, suggests medical residency programs need systemic changes on top of the current efforts focused on building individuals’ resilience and wellbeing.  

Dr. Sen, along with collaborator Connie Guille, MD, analyzed data collected via the Intern Health Study to highlight the negative impacts of residency on interns’ health and propose data-based solutions for a healthier environment. The Intern Health Study, a longitudinal study that includes responses from more than 20,000 medical trainees, shows that the rate of depression increases “Five-fold within the first few months of residency” and remains higher throughout training with “about one out of four residents screening positive for depression at any given time during residency.” Dr. Sen goes on to note that beyond the questionnaire responses describing stress, there are physical indicators as well. “Telomeres, a cellular marker of aging, shorten five times as much during internship as during a typical year of life…” And, what’s more, a compromised physician is more likely to make medical errors and to provide lower-quality care to patients.

Dr. Sen references a 2019 study that reviewed over 50 internal medicine programs using residents’ feedback and information collected in national databases. The findings show variation in the depression rates between programs; more importantly, the variation showed consistency with some programs regularly registering high and others low. When Dr. Sen compared the programs, the findings showed that while the volume of hours, type of work (administrative versus patient care), and work-family conflict all impact the rates of depression, another critical component differentiating the high and low depression programs was the type of learning environment.  “A key factor among low-depression programs was residents reporting that their inpatient rotations were a positive learning experience. Another was receiving timely and appropriate feedback from faculty. Both of these factors indicate that a focus on education, and specifically directed education from faculty, makes a major difference.”

The findings are particularly pertinent given an article published last week in the NY Times by Perri Klass, MD. The article, which is in response to a recently published JAMA Pediatrics article (Walking on Eggshells With Trainees in the Clinical Learning Environment), speaks to the difficulties that many faculty members feel providing feedback to trainees. While the medical community is working hard to end the harassment and bullying of residents that typified many interns’ experiences historically, some feel the pendulum has swung too far and that they are unable to provide criticism, tough feedback, or make interns feel discomfort without retribution or poor evaluations.

Dr. Klass quotes Dr. Janet R. Serwint, professor emerita of pediatrics at Johns Hopkins, who says, “When I look back at my career and my life and how important some of that feedback was, and it was hard for the giver to give to me, I’m sure, but they did it in a respectful way… I worry that the balance is swinging in such a way that it’s all about, oh, you are wonderful.” During her time as the vice chairwoman of education and the residency program director, she said that some faculty would mention problem residents, but often they had not broached the issues directly with them. “It’s the discomfort, or the worry of retaliation and evaluation.” Furthermore, Dr. Melanie Gold, lead author of the JAMA article, goes on to say that she has also struggled with interns unwilling to experience discomfort during medical training. Her examples include a student who complained to a course director about transgender health’s inclusion in the curriculum and others who, due to religious objection, were unwilling to even observe a patient consultation. Dr. Gold went on to say that many faculty members feel ill equipped to engage in the resulting difficult conversations.

While these articles are written from differing perspectives, they describe a shared desire by residents and faculty for meaningful feedback and instruction. Given that discomfort is an inherent condition of medical training, the data would suggest that some programs are able to navigate this discomfort better than others. Dr. Sen says that “Faculty members also need to learn trainees’ specific strengths and weaknesses and then provide thoughtful, specific feedback that truly supports their learning. Programs ought to encourage faculty to invest the time necessary to support learners and reward them for doing so.”

Following this discourse is important for future medical students and interns who are applying to medical school or residency programs. Applicants can distinguish themselves by showing that they understand the role that feedback—positive and negative—plays in preparing for a medical career. Demonstrate this understanding by using interviews and essays to describe situations where negative feedback spurred improvement, learning, and connection with others despite discomfort. Just as faculty must be willing to consider how best to promote learning, trainees must demonstrate an openness to the criticism and discomfort necessary and inevitable in the preparation for a medical career.

Further, when evaluating programs, applicants should take into consideration the learning environment. Observe the interactions between faculty and interns, and question current and former program participants about how and at what frequency feedback is offered. It may also be worthwhile to engage administrators or admissions representatives on how the program structure trains and supports faculty in providing feedback, facilitating difficult conversations, and creating a positive learning environment. While more visible wellbeing investments can be compelling, it is critical to look closely at the structural elements of a program that data shows matter to the lives of residents: hours worked, tasks performed, work-life balance, and the learning environment.

Law School Graduates Enter Best Job Market Since Recession

Employment outcomes for the law school class of 2018 are showing a rebound back to pre-recession levels according to selected findings released by the National Association for Law Placement earlier this summer. The full report, Jobs & JDs: Employment and Salaries of New Law School Graduates — Class of 2018, is expected to be released in October 2019.

The employment rate, which has increased over the past three years, is up to 89.4 percent from 88.6 percent in 2017 among those with a known employment status, despite the total number of jobs declining by about 150 overall compared with 2017. Seventy-one percent of graduates obtained full-time, long-term, bar passage required work, which is even higher than rates measured prior to the recession. And, the number of employed 2018 graduates seeking a different job, 13.2 percent, is the lowest percentage recorded since 2002 and down 11.4 percentage points from the class of 2011’s record high of 24.6 percent.

James G. Leipold, NALP’s Executive Director says, “Certainly, the overall employment rate has improved because of two intertwined factors. First, and most importantly, the smaller graduating class has meant that there is less competition for the jobs that exist. Second, large law firm hiring has increased steadily since 2011, adding more than 1,900 jobs in seven years.”

Despite the positive employment report, Kaplan Bar Review Survey results released earlier this week show that most recent law school graduates say the job search process was more time consuming than they expected. Fifty-two percent of the 417 surveyed say the search required more time than anticipated while only 11 percent say it required less time. The remaining 37 percent say the amount of time required was in line with their expectations. Additionally, the survey asked respondents to grade their alma mater’s career services for their support with assisting them in finding a job. While 23 percent of those surveyed graded their alma mater an “A” and 30 percent a “B”, 23 percent gave a “C” and a combined 25 percent gave marks of a “D” or an “F”. 

Students were more positive regarding their alma mater’s ability to prepare them with the necessary legal skills. When students were asked to grade their alma mater on how well it equipped them to successfully transition from a student to a legal professional, the marks were considerably higher. One-third of students gave their school an “A”, 45 percent a “B”, 16 percent a “C” and only 6 percent a “D” or “F”.

Anecdotally, students shared that while grades are important, they may have overinflated their importance in finding a job while also underestimating the value of networking. Students said that they wished they had known to start early and to focus more on networking throughout law school and the job-search process, including using social media connections.

Commenting on the survey results, Vice President of the Kaplan Bar Review, Tammi Rice, advises that, “The job market for newly graduated lawyers has not been this strong since the start of the Great Recession, which is promising, but that doesn’t mean that jobs are just going to fall into their laps. It requires networking, starting the process early, and often passing the bar exam, as many employers won’t hire you until you’ve secured your license. We encourage all recent law school graduates to take advantage of the resources and guidance your alma mater’s career services office can provide you. They have a vested interest in seeing their graduates succeed, so they want to be helpful as you look to land a job that requires that you passed the bar.”

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.

Make the Most of the MBA Tour: Conduct Thorough School Research

At The MBA Tour in NYC on July 20th, you will get the chance to further evaluate the offerings of the schools on your list. But, don’t forget, admissions directors, will be assessing you too. Come prepared. Conduct thorough school research, compile a list of questions that will show your knowledge of and enthusiasm for specific programs, and be prepared to speak eloquently about yourself and your experiences.

Prior to the event, consider also the following tips:

1.       Update your resume. Ensure it is up to date with your latest professional accomplishments and includes specific results you’ve achieved as well as impact you’ve had on the organization. Try to avoid a resume full of job descriptions or industry specific/technical language a reader from a different field won’t be able to understand.  Admissions directors will be looking for your ability to translate complexities effectively because business school classes are diverse. Your classmates will hail from a wide array of industries and educational backgrounds. Finally, when registering for the event, upload your resume into The MBA Tour system so schools are able to review it prior to meeting you.

2.       Refine your post-MBA goals. The MBA Tour will provide schools opportunities to make pitches and they will likely speak to the newest and most popular offerings. This can be distracting. While you want to keep an open-mind, remain focused on your goals and those program specifics that will best get you there.

3.       Craft an elevator pitch. This should be an introductory speech of about three minutes, which will provide admissions officers a high-level view of your current state and future goals. Spend some time to ensure it feels friendly, informative and natural. Practice it aloud to a friend. And be sure to include:  

a.       Who I am (unique facts and current state professionally): What is your name and where are you from? Where are you currently working and what do you do? How many years of experience will you have at matriculation? 

b.       What I’m looking for: When would you like to start an MBA program? What MBA concentrations are you interested in learning more about and why?

c.       Where I want to go: What type of job are you looking for post-MBA? Are there specific companies you are particularly interested in? What are your long-term goals?

4.       Review the schools who will be attending the fair and select your top ten. You may have time to speak with more, but this will help you to allocate your time wisely. It will also be helpful to prioritize your top three to five schools because you will want to spend the most time speaking with their admissions directors. Research these programs and prepare relevant, school-specific questions that show your knowledge of and enthusiasm for their offerings. Avoid questions that could be answered with a few clicks on their website, as well as those regarding your odds of admittance.  

5.       Review the list of attending partner organizations, which will include test-tutors and admissions consulting companies. Consider your interest in these services and do some research on the various firms so you can target those that will best suit your needs. Many will provide deals to MBA Tour attendees, so lookout for event promotions.

Most importantly, have fun at The MBA Tour.  It will likely be a meaningful and informative experience that could inspire one of your most significant professional decisions.

Even After Obtaining an MBA, Women and Minorities Continue to See Pay Gap Compared to Men and Non-Minorities

Earlier this year, the Forte Foundation released survey results reporting that a pay gap continues to exist, even after an MBA, between non-minorities and minorities and men and women. The survey, which included 900 men and women who graduated from MBA programs between 2005 and 2017, collected respondents’ pre-MBA salaries as well as their salaries from their first post-MBA position and currently.

Between non-minority and minority graduates, the pay gap improves somewhat over time, decreasing from 24 percent to 16 percent between pre- and post-MBA salaries, and then continuing to decrease to 12 percent on average for the reported current salary. Minority students, identifying as black, Hispanic, or Native-American, did see the largest return on investment from the MBA with an average pay increase of 76 percent. Minority men reported an 84 percent increase between their pre-MBA salary and their first job after graduation and minority women gained a 70 percent increase on average.

Conversely, the pay gap between men and women appears to increase over time. Pre-MBA, women were paid 3 percent less than men, this gap increases to 10 percent for the post-MBA salary, and widens to 28 percent among the current salaries. The pay differential between white men and minority women is the largest with a difference of 52 percent.  Both genders reported a positive return on investment from the MBA with women gaining a 63 percent salary bump after graduation and men seeing a larger increase of 76 percent.

The gender differential may be explained, partly, by a tendency for men and women to gravitate towards different job functions. Women enter marketing and human resources at higher rates than men, while men are more likely to pursue finance, general management, consulting and IT careers. The study shows that finance and operations are the job functions which contribute most to the gender pay gap, with men earning 60 percent and 48 percent more than women, respectively. Marketing is the only job function where women reported earning more than men (2 percent).

Forte Foundation CEO, Elissa Sangster, warned against attributing the entire gap to job functions. “While some salary disparity can be explained by the job functions women choose, there is likely unconscious bias and other factors at play,” Sangster added. "When we asked women MBAs how they intend to address the gender pay gap they’ve experienced, it’s more common for them to leave the company rather than speak about it with their manager, human resources, or company leadership. This is a wake-up call -- companies need to take proactive steps to lessen the pay gap, or risk losing highly skilled women employees."

While there is a tendency to assume that the differences in men and women’s salaries are related to women’s presumed unwillingness to negotiate, research is now showing that this is not the case. Berkeley Haas Professor, Laura Kray says, “We know that people who negotiate get more than those who don’t, but that’s not a ‘women’s issue’—two-thirds of men don’t negotiate. Women are asking, but they’re not always getting what they ask for, and they’re more likely to be told things that aren’t true.”

Kray recently published research with Margaret Lee, a postdoctoral research fellow, sponsored by the Center for Equity, Gender, and Leadership, showing that the differentials in total compensation are even more exaggerated than those spotlighted using salary data. The two reviewed surveys from Berkeley Haas alumni who graduated between 1994 and 2014 and work full-time. The data showed that “while men’s base salaries were on average about 8 percent higher than women’s, it’s in the bonuses, share values, and options—which tend to not be tracked as publicly as salaries—where the men’s salaries outpaced women’s. Overall compensation for Haas women MBAs averaged about $290,000, or about 66 percent of men’s $439,000 average. Kray and Lee also linked part of the pay gap to the fact that men manage larger teams than equally qualified women.”

 The Forte Foundation study also included career advancement statistics and found that men on average have garnered more promotions (2.3 vs. 1.8), have more direct reports (3.3 vs 1.8), and have achieved higher organizational rankings (Director level vs. Senior Manager) when compared with women. There were no statistically significant differences in career advancement for minorities versus non-minorities. Just as Sangster suggested, it appears that bias is at play, whether consciously or unconsciously, which contributes to men receiving management and leadership opportunities, earlier than women, with greater associated pay.

Declining MBA Applications Prompt Business Schools to Change Program Delivery Models

Late last month the University of Illinois at Urbana-Champaign announced its decision to shut down its two-year MBA program and reallocate funds to its online MBA. Just prior to this announcement, earlier in May, the last two-year MBA class graduated from the University of Iowa Tippie School of Management.

And they’re not the only ones. Wake Forest University, Virginia Tech, and Stetson University in Florida have also cut their two-year MBA programs. According to a recent Wall Street Journal article, “Between 2014 and 2018, the number of accredited full-time M.B.A. programs in the U.S. shrank nine percent to 1,189, with schools reporting 119 fewer two-year degrees in the most recent survey by the Association to Advance Collegiate Schools of Business.”

At the University of Illinois, the numbers told a clear story: In 2015 the incoming full-time, two-year MBA program had 74 students, in 2018 it had 49, and the current matriculation for the fall of 2019 is 38 students. Applications for the online MBA program, however, have tripled since 2016. Jeffrey Brown, dean of the business school at the University of Illinois, said the full-time MBA program will lose two million dollars this year. “This was an easy business decision to make, and a relatively easy educational decision, but it was an extremely hard call to make from the emotional side of things,” said Brown.

With the documented lackluster application volume to MBA programs and amidst a strong economy, some schools are focusing on offering competitive online MBA programs, as well as more specialized master of science degrees. The Wall Street Journal noted that among the business schools included in the aforementioned AACSB survey, there were 140 new specialized master’s programs in 2018, a 16 percent jump from 2014. And the number of online MBA programs doubled to 390.

Believing that one component of the decline in applications may be due to the steadily increasing costs of the two-year MBA, Harvard Business School and University of Chicago’s Booth School of Business have both decided to hold tuition costs steady while also increasing scholarship funds.  An article in Forbes recently noted that the “decades-long steady march of escalating price increases” has been consistent across almost all business schools and has typically exceeded the cost of inflation. The article notes that last year, tuition costs increased at variable rates from 11 percent at MIT’s Sloan to 1.6 percent at UCLA’s Anderson. Chicago Booth’s decision to freeze tuition garnered praise from Dean Edward Snyder of the Yale School of Management who said, “I think that is a brilliant move… It’s not because of weakness. It’s because of strength, and it’s the first school that is stepping back and saying we are not going to keep going down this path... It doesn’t indicate how the business model is going to get redone, but it is a signal that it needs to change.”

While online models may not be able to offer the corporate recruiting and networking opportunities, or prestige that the full-time, two-year MBA provides, the programs appear to meet a need in the market for developing business skills. And they do so with added flexibility and without the high costs of tuition and time out of the workplace.

This is good news for prospective students. The online route is providing a closer substitute for educational delivery than we’ve seen in the past. And for those still interested in the full-time, two-year model, lower application volume could mean a higher likelihood of securing both a coveted spot at a top ten school, as well as scholarship money.