Posts filed under 'Wait It Out: Our Series on the Recession & BSchool'
We continue with our series called “Wait It Out,” where we address many of the issues facing people thinking about business school in the current climate. Check back often as you contemplate your own business school choice!
We have talked a bit in previous posts about the effect of the economy on business school. But it looks like the Wall Street refugees aren’t the only folks contributing to the increase in b-school applications; we now have an increase in international students seeking out spots in MBA programs here in the US.
The reason for the increase? In a blog post this week, our friends at MBA Mission highlighted this other interesting factor affecting business school applications: the weakened US dollar. They noted an article from the Financial Times – “Falling Dollar Draws Students” – which discusses how the low US dollar is making American business school programs more attractive and affordable for international students. The article sites the fact that the GMAC has seen a 21% increase in international students registering for the GMAT test, with some MBA programs seeing the international applicant pool increasing by as much as 50% this year.
July 11th, 2008
This week Jeremy Shinewald, Founder of MBA Mission addresses our “Wait It Out” series where we discuss many of the issues facing people thinking about business school in the current climate. MBA Mission works with candidates around the world, guiding them through the entire admissions process, to be sure that each student’s unique attributes are showcased in a creative, compelling and focused way. Visit the MBA Mission web site for more information on the company’s boutique MBA admissions consulting services, and their blog for tips on essay writing, MBA planning, and other useful information.
I have been following Integrated Learning’s Blog postings with great interest, as they have considered the “wait it out” option for candidates who are concerned about applying in what is sure to be an ultra-competitive application year (commencing this June). One thing that should be written is that regardless of whether you think it is a good idea to apply now or to wait one more year to apply, it is always wise to take the GMAT well in advance of submitting your application, as this will remove a great deal of stress from the process and help you frame your decision making process going forward (for example, narrowing school choices and thus facilitating class visits well in advance). So, even if you do choose to push back your target date for applying, you should not cease to take steps toward advancing your candidacy.
As more and more candidates have asked us about the competitiveness of the upcoming admissions season, we have been pretty consistent with our advice. Although it is quite likely that application volumes will continue to surge, we remain “economically agnostic”. We suggest that candidates ignore external economic events and apply when the time is right for them, professionally and personally. After all, professional economists constantly disagree about the state of the economy and its path forward. Can we really say with certainty that the economy will “bottom-out” this year and that we will therefore see a peak in application volume this year? If the economy is in even rougher shape one year from now, should candidates wait an additional year after that? How long can forces that are out of your control prolong your quest for an MBA?
We find that most candidates who are contemplating putting off their applications are not just concerned about the competitiveness of the application pool, but are also worried about the deteriorating job situation on campus. Obviously, it is challenging to predict what the fulltime job situation will be like for candidates who are applying now and will be graduating in the spring of 2011. While we would never ignore the importance of that first post-MBA job, we feel that many candidates focus exclusively on the short term rewards of the MBA and fail to consider the long-term value. With a long term view, (wherein candidates gain an enduring and transferable skill set) pursuing an MBA at the right time personally and professionally, regardless of external circumstances, is still a compelling proposition.
April 24th, 2008
We continue with our series called “Wait It Out,” where we address many of the issues facing people thinking about business school in the current climate. Check back often as you contemplate your own business school choice!
In a recent post, our friends at MBAMission covered the Wall Street meltdown and Bear Stearns buy-out. They noted a Business Week article discussing the job prospects for current students leaving business school. No doubt b-school 2nd years are nervous – having entered school in 2006 (when there was a very strong job market and MBA’s were reporting impressive offers) they face the prospect that they will be less valuable today.
While we feel for those folks (indeed, many of our previous students are in that situation) our focus is not about getting OUT OF business school, it’s about getting IN TO business school. We don’t worry too much about job prospects – in all likelihood the job market will improve by 2009-2010, when you will graduate.
Meanwhile, Wall Street is laying off people in record numbers, and that’s an immediate concern for applicants. According to this Bloomberg article, Wall Street has laid off more than 30,000 people in the last 7 months. Many of them are mid-career professionals but many are also post-undergrad employees who will take the opportunity to go to b-school, jack up their credentials, and go back into finance when things have cooled down.
Should you be worried? Yes. How much? That depends. It depends on which group you’re in (those who’ve been laid off or those who were planning to go to b-school anyway), what your background is, how prepared you are for b-school and how well you differentiate yourself.
If you’re one of those who’ve been laid off and are considering an MBA, you really need to shine. Your resume will probably look pretty similar to all the other folks coming out of Wall Street. Your mission is to stand out. Business schools won’t have cause to doubt your financial acumen (even if the rest of America now does) but they won’t be short on choices, either. You will have to have a stellar GMAT score (be careful on that one – don’t assume that because you were in finance you’ll ace the GMAT – many finance people don’t) and you will have to have a legitimate business or career reason for going back to school.
If you are not from finance, you are still competing in the now larger pool of candidates so you also will need to stand out. One way is to simply not be from Wall Street. That will likely be refreshing, and b-schools will be looking to balance their class mix with people like yourself. But you will be competing against other applicants who also want to wait out the recession, and so you, too, need to promote your strategic business and career interest in an MBA. A great GMAT score will be important, as always, but so will evidence that you are not just bunkering down. Make sure you develop the goals you envision for yourself post-business school and tie them logically to the experiences you’ve had. That’s good advice in any year. This year it’s paramount.
April 2nd, 2008
We continue with our series called “Wait It Out,” where we address many of the issues facing people thinking about business school in the current climate. Check back often as you contemplate your own business school choice!
Everything we hear and read in the news these days tells us we are on the brink of a recession. As we noted in a previous post, an economic downturn typically leads to an increase in business school applications. So you might be thinking, what happens if after you graduate the job market is still not so strong, and in addition, you are facing competition from other newly graduating MBAs? Well, like any challenge we face, having a strategy and thinking things through ahead of time always helps. If this is on your mind, here are some tips to consider when entering (or re-entering) the work force:
1) Be reasonable. You may not land your dream job, but you will find another position that offers a path to your ideal job.
2) Consider all of your options. Sometimes smaller companies may offer you more options and less red tape than the larger firms.
3) Be open to relocating. If you are just starting off in your career and do not have a family and a mortgage, it can be relatively easy to relocate to another city which may hold more opportunities for you.
4) Negotiate. Companies will always try to underpay you. The only way to get a higher salary is to ask. So even if the market is not stellar, you should try to negotiate a higher base pay. Some companies may offer you a lower base pay and a higher bonus. While the math may appear to offer you the same net salary, it’s not that simple. For starters, bonuses are rarely guaranteed. Your base pay will be the starting point when you negotiate a raise or starting salary at a new job. If the company won’t budge on your salary, try to get a better title. It’s a freebie for the company and will help you as you move forward in your career.
5) Don’t be afraid to leave. If you find another better job once you’ve committed to a company, do not be afraid to leave. Studies have found that people who move companies for better opportunities earn higher salaries over the long run. Of course too much movement may raise red flags further down your career path. Before you jump ship, seek the advice of mentors in your field. (See #7)
6) Save money. Just because you are so excited to be earning real money and not living as a student, doesn’t mean you should go on a shopping spree. Be reasonable and responsible. You never know when you will have a rainy day or stormy month.
7) Find a mentor. This is a blog. We welcome your questions and comments, but we do not know you. We do not know your career path, goals and the intricacies of your niche in your industry. Find someone you can trust who does have that knowledge. It will serve you well throughout your career. I know someone who was - surprise, surprise - not happy with her bonus this year. Because of the market she did not know if she should say anything (as others in her company received even more meager bonuses) or if she should fight for what she felt she deserved. She called a mentor who told her a) she should be grateful for what she received and b) how to position her situation to her boss when asking for more money. She took her mentor’s advice and received an additional 10-15% bonus. A mentor with a few more years of experience will not compete against you and can offer valuable insight into the industry.
March 13th, 2008
With talk of a recession and a declining job market, we continue with our series called “Wait It Out,” where we address many of the issues facing people thinking about business school in the current climate. Check back often as you contemplate your own business school choice!
In our previous post, we discussed some basic reasons for why people would want to go to school during a slow-down in the economy, particularly if they’ve been laid off. Jobs are tougher to find, and even if a job is out there, getting paid the salary you expect is still a tough thing to do. If you are carrying student loans from college or you’re not sure if you’re competitive enough in the market, b-school may be a good place to hide out, bolster your resume, and emerge ready to take on the world.
Of course, the downside to that thinking is that if you’re thinking it, chances are other people are thinking it, too. When the economy goes south, lots of people hide out in school, increasing competition for space in the country’s business schools.
What can you expect in 2008/2009? We took a look at previous economic downturns and to show that, yes, in fact, people will go back to school, in droves.
From these two tables it is pretty clear that more people take GMAT tests and send in applications when the economy goes south. And whether or not Mr. Bernanke defines this time as a recession, the signs of a downward economy are everywhere.
What’s the lesson from all this? Should you stay out of business school? The right way to answer that question is to decide if you are, in fact, ready for b-school. Does your resume show solid experience, and do you have a specific goal in mind for what to do with your MBA? Will you be contributing member to your class? Going to b-school should always be for the right personal reasons, and not because it feels like the right thing to do.
That said, if it is the right time for you, then there is no reason to shy away from it just because of increased competition. Applying for school forces you to evaluate yourself and your capabilities, and put pen to paper about who you are and what you want out of your career. Increased competition is an opportunity to look deeply into yourself and present the best picture of yourself to the admissions committees.
February 22nd, 2008
With talk of a recession and a declining job market, we begin a series of monthly posts called “Wait It Out,” where we will address many of the issues facing people thinking about business school in the current climate. Check back often as you contemplate your own business school choice!
With the economy sagging, you may wonder whether now is a good time to enroll in a business school. While I cannot answer for you personally, I can say that many find it an appealing option.
“If things are not necessarily going well, especially in the financial market, it might be a good time to take a year or two out, especially if you’re intending to get an MBA,” says John Roeder, director of admissions at Vanderbilt’s Owen Graduate School of Management.
College graduates hoping to gain a few years of work experience under their belt before heading off for an advanced degree may discover that it is hard to find job come May. Unemployment is at a two year high of 5 percent and the number of new jobs being created is at its lowest since the weeks following Hurricane Katrina. So if the goal is to attend business school at some point in one’s career, why not do it now and get it out of the way? Two years down the line the economy may be in better shape. If it’s not, then at least one would be better qualified for a seemingly more palatable job. That’s the logic that propels some graduates to apply while the economy lags.
If you have some work experience under your belt, the timing may be even better. As was reported in this New York Times article during the last recession, Eric Landry was laid off from his Texas software job along with 350 co-workers. He seized the opportunity to earn a masters in software engineering at the University of Texas in Austin. ‘’I have always wanted to go back to school and get the software training that I need to go to the next level,'’ Mr. Landry said. ‘’But it was never the right time.'’ Prior to being laid off, he was not ready to forgo his earnings to undertake a new debt. But without a job and a weak economy (he is not likely to find a new position offering the same salary) and with government loans, the entire graduate school package was appealing.
“We’ve seen trends that indicate that when there’s a downturn in the economy—especially if people are laid off—that people always consider that a good time to go back for more education,” says Debbie Berechman, executive director of the MBA program at MIT’s Sloan School of Management, as quoted in this Business Week article. “But it’s not clear exactly what that means now, and it depends on how much of a downturn there is.”
February 4th, 2008