2015 QS TopMBA.com Applicant Survey...2015 The aims and aspirations of future business leaders Contents Fast facts Section 1: Career objectives 1.1 Target industries 5 1.2 Where do

QS TopMBA.com Applicant Survey

Mansoor Iqbal (BA University of Leicester, MA University College London) Susan Gatuguta Gitau (BSc USIU - Africa, MSc Nottingham University Business School)

Benjamin Clayton (BA University of Cambridge)

2015

The aims and aspirations of future business leaders

Contents

Fast facts

Section 1: Career objectives

1.1 Target industries 5

1.2 Where do candidates see themselves in 10 years’ time? 8

1.3 Expected work hours 9

1.4 Reasons for pursuing an MBA 11

1.5 Salary expectations and current earnings 12

Section 2: Study plans

2.1 Where do applicants want to study? 16

2.2 What are the most popular MBA specializations? 19

2.3 What are the most important factors in school choice? 20

2.4 What format of MBA do applicants want to study? 22

Section 3: Who are MBA applicants?

3.1 How old are MBA applicants and how much work experience do they have? 24

3.2 In which industries do applicants currently work? 27

3.3HowareapplicantsplanningtofinancetheirMBAs? 29

3.4 Gender breakdown of MBA applicants 31

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The QS TopMBA.com Applicant Survey is one the largest surveys of the mindset, aspirations and demographics of MBA applicants ever conducted. It has been compiled annually by QS, the world’s leading higher and business education specialists, since 1990.

The results provide detailed insight into the status, attitudes, goals and ambitions of MBA applicants worldwide, and how they, and the employment and education markets for young professionals, are changing.

AUTHORS AND CONTRIBUTORS

Mansoor Iqbal (BA University of Leicester, MA University College London)

Mansoor is the author of the report and the editor of TopMBA.com. He is a higher and business education specialist with a background in consumer journalism, and has worked at QS since 2011. Mansoor studied English literature at both BA and MA level.

Susan Gatuguta Gitau (BSc USIU – Africa, MSc Nottingham University Business School)

Susan was a senior research analyst and member of the QS Intelligence Unit until August 2015.PriortojoiningQSshewasaprojectmanagerataleadingconsultingfirmandanaccount manager at a large pharmaceutical company. She holds a BSc in information systems and technology and an MSc in corporate strategy and governance.

Benjamin Clayton (BA University of Cambridge)

Benjamin is a junior analyst with the QS Intelligence Unit, where he focuses on business schools, MBAs, and the development of the English language as a method of instruction. He holds a BA in politics, sociology and international relations.

Georgia Philippou (BA Technological Educational Institute of Athens, MA Open University of Cyprus)

Georgia, the designer of the QS TopMBA.com Applicant Survey 2015, is a data visualization and research report specialist who works within the QS Digital team. Georgia studied graphic design at bachelor’s level and has also completed an MA in journalism.

SURVEY SAMPLE

A total of 4,904 applicants who registered for the QS World MBA Tour between 26th June 2014 and 23rd June 2015 responded to the survey on which this report is based (this survey only represents respondents to the QS TopMBA.com Applicant Survey, unless otherwisestated.Thefiguresherearenotsuggestiveofoverallfiguresforattendeesatthe QS World MBA Tour).

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FAST FACTS

Section 1: Career objectives

• Consulting is the most popular post-MBA target industry worldwide, on the radar of 45.5% of MBA applicants.

• 94.4% of applicants are considering changing industry.

• 71.9% of applicants see themselves either running their own business, acting as a director in a large company, or as the CEO of a large company, in 10 years’ time.

• Applicants anticipate a shorter working week; 54.8% of respondents plan to work no more than 50 hours per week.

• Slight drop in candidates pursuing an MBA to boost their salary compared to 2014 – down from 33% to 30.1%...

• …though salary expectations are up this year, with the global average now standing at$114,000(allmonetaryfiguresaregiveninUSdollarsthroughoutthereport).

Section 2: Study plans

• Applicants are open to a greater number of study destinations, a continuation of a trend we saw last year.

• The proportion of candidates basing their choice of study destination on the availability of scholarships/financial aid has risen to 55% globally, second only tointernationalrecognitionofqualifications.

• General management, international management and strategy are the most popular specializations by some distance.

• The availability of scholarships and financial aid is the most important factorin school choice globally, while rankings are universally not considered overly important.

• The full-time MBA has declined slightly in popularity (considered by 79.4% of respondents, down from82.6% in 2014),while nearly one in five applicants isconsidering an online MBA.

Section 3: Who are MBA applicants?

• Despite a one-year decline, the long-term trend towards older MBA applicants continues, with the global average standing at 28.

• Technologyovertakesfinanceas themostcommonly reportedpre-MBAsector(12.6% compared to 11.8%).

• Nearly two thirds of the global applicant pool are planning to fund their MBA through scholarships – up from 45% in 2008.

• All regions are moving towards gender parity, with the exception of the US & Canada, in which the ratio has further skewed towards female candidates, who now account for 54% of applicants compared to 52% in 2014.

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There are few surprises in terms of the most popular target industries – consulting and financeare,ofcourse,exactlythesectorsonewouldstudyanMBAtomoveinto,ortodevelop one’s current career in and, in the second decade of the 21st century, technology is certainly one of the most exciting sectors to be involved in.

Pharma/Biotech 5.1%Retail/Wholesale 5%

R&D/Science 4.7%Real Estate/Property 4.6%

Other 3.3%Legal 2.6%

Agriculture/Fishing/Forestry 2.4%Defence/Security/Rescue 1.5%

Respondents arepermitted to makemultiple industry choices

Consulting 45.5%

Finance 32.4%Technology 26.9%

Manufacturing/Production 15.1%Energy/Environment/Utilities 13.7%

Entertainment/Leisure 13.4%Consumer Goods 13%

Government/Public Sector 12.9%Education 11.2%

Media/Advertising 9.8%HR/Recruitment/Training 9.4%

Nonprofit/Charity 8.7%Logistics/Transportation 7.2%

Health/Medical 6.9%Hospitality/Travel/Tourism 6.9%

Engineering 6.9%Telecoms 6.6%

SECTION 1: CAREER OBJECTIVES

1.1 Target industries

5

Broken down by gender, the top three industries remain the same, though beyond that a few differences are evident. Media and HR/recruitment/training jobs do notmake the top 10 for prospective male MBA candidates, while engineering and logistics/transportation don’t feature in the female top 10, and technology is considerably less popular, suggesting the status quo unfortunately remains intact in some industries.

Most popular target industries by gender

Male Female

46.5%

Consulting

33.9%

Finance

31.1%

Technology

43.9%

Consulting

30.3%

Finance

20.3%

Technology

12.6%

Government/Public Sector

11.2%

Consumer Goods

10%

Education

8.4%

Logistics/Transportation

17.5%

Manufacturing/Production

15.8%

Engineering

15.2%

Energy/Environment/Utilities


11.3%

11.4%

Energy/Environment/Utilities

Consumer Goods

15.7%

Media/Advertising

13.6%

Government/Public Sector

13.3%

Education

13.2%

HR/Recruitment/Training

12.4%

6

As was the case in 2013 and 2014, in any given sector bar ‘other industries’, the most popular target industry is the one in which prospective applicants are currently working. Thisisoverwhelminglythecaseinthemostpopulartargetindustries,suchasfinance(82%), consulting (79%) and technology (74%), while we see lower percentages in industries such as the public sector (42%), or education (50%) in which one can safely assumeagreaterproportionofapplicantsarestudyinganMBAtoeffectacareerchange.Unsurprisingly, consulting comes out comfortably in second place in most industries, followedbyfinanceandtechnology.

This does not suggest, however, that applicants overwhelming want to remain within their current industry. Respondents can make multiple choices, so to choose one’s target industry is only to say they would be open to returning. To put it another way, 94.4% of prospectiveapplicantsareconsideringacareerchangetoadifferent industry.Thoseworkinginfinancearetheleastkeentoswitch,with17.7%committedtoremaininginthe sector.

Target industries by current industry

79% 13% 8% 14% 10% 32% 11% 11% 5% 1% 3% 29% 6%

41% 67% 9% 9% 5% 22% 7% 13% 14% 1% 11% 14% 4%

30% 8% 50% 8% 3% 23% 16% 9% 15% 5% 3% 13% 3%

43% 8% 2% 76% 28% 25% 9% 18% 1% 5% 1% 19% 3%

40% 5% 6% 24% 64% 24% 7% 19% 4% 3% 1% 25% 4%

52% 9% 10% 11% 4% 82% 12% 8% 6% 3% 2% 18% 4%

41% 6% 14% 16% 6% 30% 42% 9% 8% 3% 7% 20% 3%

38% 23% 9% 18% 20% 29% 10% 62% 3% 1% 4% 18% 4%

34% 15% 15% 5% 4% 17% 15% 6% 62% 8% 8% 23% 10%

39% 12% 10% 9% 7% 28% 14% 13% 9% 5% 4% 16% 3%

29% 25% 6% 8% 4% 24% 11% 17% 13% 4% 46% 11% 0%

53% 7% 10% 7% 14% 22% 10% 10% 12% 2% 4% 74% 11%

41% 10% 4% 9% 14% 18% 7% 9% 7% 3% 3% 53% 62%

Retail/Wholesale

Consumer goods

Finance

Other industries

Energy/Utilities

Public sector

Education

Consulting

CURRENT INDUSTRY

Engineering

Telecoms


Technology

Media/Advertising

7

The level of ambition displayed by MBA applicants clearly remains undiminished, with 71.9% of applicants envisaging themselves either running their own company or acting as the director or the CEO of a large company. Indeed, the proportion who see themselves heading up a big company has increased for the second consecutive year.

On the other hand, the proportion of respondents who see themselves as middle managers or directors in more modest companies have both fallen for the second time since 2013, while ‘partner in professional services’ has not recovered any ground since asignificantdroplastyear.

Onecould–quite justifiably–argue thatambition levelsareunrealisticallyhigh.Butthen,onemustremembertheconfident,ambitiousdemographicinquestion–agroupof people investing time and money in an MBA exactly so they can reach top positions.

1.2 Where do candidates see themselves in 10 years’ time?

20142015

28%26.8%

Running own business

24%23.4%Director in large/

public company

20.2%21.7%

CEO of large company

5.2%5.7%

Self-employed consultant

4.8%4.2%

Director in small company

4.3%4.2%Partner in

professional services

4.3%4%

Middle manager

4.1%4%Senior manager

in public sector

1.7%1.9%

Other

1.4%1.6%

Senior academic

1.2%1.4%

Senior technologist

0.7%0.9%Downshifting for

work-life balance

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Overall, the trend is towards a shorter working week. A working week of no more than 50 hours is now anticipated by 54.8% of candidates, compared to 51.4% last year and 48.5% in 2013. The middle ground is where a lot of the change seems to have occurred. In 2015 those who envisage a working week of 40-50 hours outnumber those who envisage one of50-60hoursby12.3%whilein2013thedifferencewasonly5.4%.Theonlyanomalyhere is the over 70 hours bracket, which, though it has gone down compared to 2014, stillremainshigherthan2013’sfigure.

Why are we seeing this trend? There are a few potential reasons, but lessened fear around job security, a greater desire from millennials to maintain a healthy work-life balance, and an MBA applicant pool that has grown more diverse, in which many will havelittleinterestintheaggressiveworkloadofajobinfinancialservices,mayallwellplay a part.

1.3 Expected work hours

12.6%

11.4%

10%60-70 hours

2013 2014 2015

4.6%

6.1%

5.3%Over 70 hours

39.6%

39.8%

42.1%40-50 hours

34.2%

31.1%

29.8%50-60 hours

8.9%

11.6%

12.7%Up to 40 hours

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Younger prospective MBAs envisage a longer working week after graduating; this makes perfect sense – they are likely to have fewer commitments and a lot more to prove in the workplace. And, let’s not forget, a good deal of youthful energy.

We see an interesting trend in the 35-39 bracket – they are the age group most likely to anticipate a working week of under 40 hours or one of over 70 hours. This can be taken asareflectionofdivergentambitions–whilesomewillwanttomovepastearlycareerintensity, others (a considerably smaller number it must be noted), will be looking to the most prestigious positions at this point in their lives – the positions that require the most hours of work.

The oldest age bracket – 40+ – ismost definitely skewed towards a downshift, withnearly two thirds looking at working weeks of no more than 50 hours, and only 1.5% considering working over 70 hours.

Expected weekly hours post-MBA by age

Up to 40 40-50 50-60 60-70 Over 70

27.6%27.6%

28.2%42.9%31.4%

9.7%

5.1%

14.6%

42.4%

9.7%

5%

18.3%

40.5%

8.2%

5.4%

13.8%7.4%

1.5%

49.8%

25-29 30-34

35-39 40+

10.8%

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Whydoourrespondentswanttoinvesthugeamountsoftime,moneyandeffortinanMBA? Well, to improve their career prospects, learn new skills and take up management positions – it is a vocational degree for managers, at the end of the day.

Percentage drops in several of the options given compared to previous years – candidates are permitted to choose multiple reasons – indicate MBA applicants are choosing fewer options and are therefore more focused on the ones that motivate them. Of the percentage drops, perhaps the most eye-catching comes near the bottom – a 2.9% drop in those focused on boosting their salary.

It may well be the case that these MBA applicants have clearer goals, as a result of feeling like they enjoy slightly more secure prospects, rather than just trying to give themselves an advantage in any way possible.

1.4 Reasons for pursuing an MBA

2014

2015

2013

61.3% 49.8% 32.4%33%64% 55% 41.2% 30.1%

60.5% 50.4% 31.1%33%66% 56.5% 42.8% 28.2%

31.3%

27.6%

30.1%

39.5%49.9%

57.5%

To start own business

Primarily for educationTo build a professional network

To enable a career change

To boost salary

To improve career prospects

To learn new skills

To take up a leadership /general management position

63.4%

58.8%

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We see a reversal of the trends of the past two years this time round, with average salary expectationsinchingupwardsto$114,000from$112,000inlastyear’sreport.Thefigureis still lower than the $117,000 reported in 2013 and certainly lower than 2012’s record high of $126,500. What does this tell us? Well, there are two things we can read from this.Thefirstisthat,ifwelooktoavailabledataontheactualsalariesofMBAgraduates– the QS TopMBA.com Jobs & Salary Trends Report is a good place to start – we can see that while salary expectations have been coming down, actual MBA salaries have been on the rise. Thus, we are naturally experiencing a levelling out – indeed, it would be a strange world in which prospective MBAs had salary expectations lower than what is actuallyonoffer.1

Secondly,andnotforthefirsttimeinthisreport,wemaywellbeseeinganincreasedlevelofconfidencefromtheapplicantpool(consideredasawhole)–somethingtowhichan increased average current salary might easily contribute – up this year to $42,000 from$41,000.RisesintheUS&Canada($62,000to$65,000)andAsia-Pacific($27,000to$31,000) are particularly notable and are coupled with increased expectations ($130,000 to $144,000 and $94,000 to $110,000 respectively).

Interestingly, in Western Europe a small increase in average current salary ($52,000 to $53,000) is coupled with expectations that have fallen from $126,000 to $121,000. No doubt the region’s continuing economic turmoil is playing on the minds of the MBA applicant pool. Though $121,000 cannot really be classed as pocket change…

1Globalfiguresareanaverageofregionalfigures,ratherthanaverageofallresponses.

1.5 Salary expectations and current earnings

30,000AFRICA/

MIDDLE EASTASIA-PACIFIC EASTERN EUROPE

2015

98,000

WESTERN EUROPE53,000

121,000

WORLDWIDELATIN AMERICA US & CANADA34,000

90,000

65,000

144,000

42,000

114,000

31,000

110,000

39,000

121,000

Avg, CurrentSalary ($)

Avg, TargetSalary ($)

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Salary expectations by country

Bangladesh

Chile

Ghana

Greece

Peru

Philippines

Kenya

Mexico

Colombia

Malaysia

Pakistan

Egypt

Nigeria

France

Kazakhstan

Indonesia

Zimbabwe

Brazil

India

Italy

Saudi Arabia

Russia

Japan

Turkey

United Arab Emirates

Germany

Canada

South Africa

Singapore

Qatar

China

United Kingdom

United States

Switzerland

Avg. Target Salary ($)

Avg. Current Salary ($)18,000

39,000

21,000

21,000

30,000

20,000

22,000

34,000

34,000

31,000

29,000

24,000

28,000

53,000

32,000

30,000

30,000

37,000

25,000

37,000

37,000

40,000

31,000

64,000

45,000

62,000

59,000

42,000

53,000

43,000

49,000

60,000

66,000

87,000

42,000

65,000

68,000

75,000

77,000

77,000

79,000

80,000

93,000

94,000

95,000

96,000

98,000

105,000

107,000

108,000

108,000

110,000

111,000

111,000

112,000

115,000

119,000

119,000

119,000

123,000

124,000

126,000

132,000

138,000

144,000

144,000

149,000

171,000

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An interesting trend can be noted this year in terms of age brackets. Younger respondents – who have also seemingly been hit hardest in terms of current salaries – are lowering their salary expectations; in this, we see a two-year trend across both the 25-29 and the 30-34 age brackets. Older respondents, on the other hand, have increased their expectations as compared to last year, though the preceding year had seen salary expectations come down across the board. Perhaps this is because those who have had moreexperienceofeconomicpeaksandtroughshavebeenlessaffectedbytheeventsof the end of the last decade onwards than those who came of age during the worst of it.

Current salary and target salary by age

Avg, Current Salary ($)Avg, Target Salary ($)

30-3425-29

101,804

33,000

116,774

43,000

40+35-39

44,000

2014

2015

2013

2014

2015

2013

36,000

106,662

109,340

36,000

46,000

117,456

125,530

47,000

122,283

120,924

134,649

49,000

47,000

51,000

50,000

130,939

123,770

131,227

54,000

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Male respondents still expect higher remuneration than female, though we see the gap closing for the second year running. In 2013, Male applicants expected to earn $12,000 more than their female peers. This fell to $5,000 last year and stands at $4,000 this year, as a consequence of female salary expectations falling at a slower rate than male. Interestingly, when it comes to current salaries, female respondents are actually reportingaslightlyhigherfigurethantheirmalecounterpartsthisyear,whichiscertainlyheartening, though with females only accounting for around one-third of responses to our (self-selecting) survey, it is perhaps a little too early for celebration.

Current salary and target salary by gender

Avg, Current Salary ($)Avg, Target Salary ($)

39,000

108,000

38,000

112,000MALE

FEMALE

41,000

42,000

122,000

114,000

2015

201540,000

40,000

110,000

109,0002014

2013

2014

2013

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SECTION 2: STUDY PLANS

2.1 Where do applicants want to study?

2013 2014 2015

2014 2015

Reasons for study destination choice

64% 60% 64%International recognitionof qualifications

50% 52% 55%Scholarship / financial aid availability

51% 51% 51%Would like to work there afterwards

52% 50% 53%Cultural interest and lifestyle

46% 42% 40%Target school

36% 34% 36%Create network

33% 34% 36%Improve language skills

18% 19% 16%It is (or is near to)the country i currently work in

14% 15% 14%Family connection

10% 11% 11%Visa situation

UNITED STATESUNITED KINGDOMCANADAAUSTRALIAGERMANYFRANCESPAINSWITZERLANDSINGAPORENETHERLANDSNEW ZEALANDITALYSWEDENDENMARKINDIANORWAYUNITED ARAB EMIRATESBELGIUMHONG KONGCHINA

11

22

33

44

56

65

77

88

99

1010

1112

1211

1314

1415

1513

1617

1718

1819

1922

2016

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Though there is a little movement in terms of the most popular study destinations – we see China dropping four places, Hong Kong supplanting Japan for a spot in the top 20 (also overtaking mainland China in the process), France edging out Germany for fourth spot – the list remains relatively consistent, with the US and UK continuing their dominance at the top. The two boast elite institutions, established business environments and of course have that all-important Anglophone edge; we can’t expect this hegemony to be broken any time soon.

There is another story, though, in the numbers behind this table – namely the percentage of applicants who would consider study in each of these countries (multiple choices are permitted). In 17 out of 20 cases, this percentage has increased – a continuation of a trend we saw last year – even among those which have lost rank.

Thisisamarkeddifferenceto,say,fiveorsixyearsago,whentheUSandUKwerewayout in front. Prospective MBAs, it seems, are open to studying in a far wider range of countries than they once were. This is perhaps a nod of validation to schools outside of the Anglophone duopoly, and also to the dynamism of global business in 2015. Interestingly,thenationthatsufferedthegreatestdropintermsofpercentagepointswastheUS–from67%to65%–thoughIndia’sdropfrom10%to9%ismoresignificantin real terms. Singapore remains consistent at 17%.

If we look to the reasons why people choose one country over another though, we can perhaps see another explanation for a wider range of choices. Though ‘international recognitionof qualifications’ remains themost commonly cited reason – it has evenbeen cited by a greater proportion of applicants this year compared to last – we see for the third consecutive year that the number of candidates who base their choice of study destinationontheavailabilityofscholarshipsandfinancialaidhascreptupto55%-orto put it another way, 11 out of 20 candidates. Naturally, if this is very important to you, you would do well to be open to a greater number of study destinations. We see ‘target school’ also falling down the table for the third consecutive year, from which we can draw obvious conclusions.

We’d be wrong, though, to assume that prospective MBAs will just study wherever they can affordit–‘wouldliketoworkthereafterwards’remainsconsistenton51%,while‘culturalinterest and lifestyle’ is at its highest level since 2012. The picture is undeniably nuanced.

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Notably,thereareafewdifferencesinthemostpopularstudydestinations,dependingon which region of applicants you are looking at. France, for instance, features in the top three for both halves of Europe, but as low as seventh in Africa & the Middle East, Asia-PacificandLatinAmerica.SpainisnaturallypopularamongLatinAmericanstudents,andSingaporeandIndiaholdthegreatestswaywithrespondentsintheAsia-Pacificregion.

Respondents in the US & Canada are the least enthusiastic about other destinations, with only the UK managing to break 20% – 82.2% of them are indeed giving serious considerationtonotgoinganywhereotherthantheUS!StudentsinLatinAmerica,onthe other hand, seem to be very enthusiastic about international study, with several destinations scoring highly with their prospective MBAs – perhaps most notably Australia at43.8%andNewZealandat25.1%,figuresevenhigherthanthosecountriesreceivefromtheAsia-Pacificregionitself(thoughrespondentsinAsia-Pacificareseeminglythenext most open to a wide range of study destinations).

PreferredDestination

Africa &MiddleEast

AsiaPacific

EasternEurope

WesternEurope

LatinAmerica

US & Canada

USA 59.3% 66.9% 55.5% 54.7% 71.7% 82.2%

UK 53.9% 45.8% 57.1% 62.9% 57.8% 28.4%

Canada 40.0% 37.1% 20.2% 18.4% 50.1% 21.9%

Australia 29.4% 35.1% 16.8% 17.6% 43.8% 8.1%

Germany 24.9% 28.9% 25.2% 28.2% 36.9% 7.5%

France 20.5% 26.2% 26.9% 37.8% 35.4% 17.6%

Spain 16.0% 18.2% 24.4% 26.5% 43.6% 17.6%

Switzerland 21.2% 18.3% 19.3% 24.9% 30.8% 6.1%

Singapore 9.3% 30.9% 16.8% 14.1% 8.1% 5.7%

Netherlands 15.5% 14.3% 19.3% 16.3% 26.7% 4.1%

New Zealand 10.7% 19.4% 4.2% 6.5% 25.1% 2.4%

Italy 10.0% 12.8% 19.3% 17.3% 25.7% 7.1%

Sweden 15.4% 11.8% 14.3% 12.0% 21.0% 3.4%

Denmark 11.4% 9.8% 6.7% 11.4% 14.3% 2.4%

India 5.0% 18.7% 2.5% 2.0% 3.1% 2.4%

Norway 11.6% 8.2% 7.6% 7.8% 12.6% 2.8%

UAE 16.8% 5.7% 10.9% 6.7% 6.7% 2.4%

Belgium 8.6% 6.2% 13.4% 9.2% 14.5% 2.8%

Hong Kong 4.5% 11.0% 10.9% 9.8% 7.5% 3.9%

China 7.2% 8.2% 8.4% 7.6% 9.0% 5.9%

How do applicants’ preferred study destinations differ by region?

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As in 2014, general management and international management lead the way as themostpopularMBAspecializations– indeed,bothregisterhigherfiguresthisyearfollowing small dips in 2014. Strategy fails to retake second place from international management (last held in 2013) but has also made small gains. These three lead by some distance this year – broad management skills are in vogue it seems.

Leadershipandfinancehavebothdeclinedsignificantlyinpopularity–itmaybethatapplicantsareconfidentthattheseskillscanbeattainedaspartofthesuiteofskillsonegainsaspartofageneralMBA.Inthecaseoffinance,itmaybethattheapplicantpoolhassimplygrownmorediverseandisnolongersokeenlyfocusedonfinanceroles.

Further down the list, interest in technology management has increased, leaving it less than10%behindfinance–halving thegapwesawonly twoyearsago.Technology’sappeal will surely increase further in years to come; the sector is certainly one of the most dynamic and exciting in the second decade of the 20th century for prospective MBAs.

2.2 What are the most popular MBA specializations?

201320142015

TECHNOLOGY MGT 21.7%21.5%23.7%

MARKETING 33.2%32%29.8%

OPERATIONS MGT 23.2%23.8%24.7%

LEADERSHIP 39.4%37.5%33.5%

STRATEGY 47.7%43.9%44.1%

GENERAL MGT 49.4%46.7%48.8%

INTERNATIONAL MGT 45.6%45%47.2%

ENTREPRENEURSHIP 33.2%33.6%33.5%

CSR 12%12.5%

12.8%

E-COMMERCE 13%11.4%

12.9%

FINANCE 41.7%37.2%32.3%

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2.3 What are the most important factors in school choice?

US & Canada Western Europe

Eastern Europe Latin America

Africa & Middle East Asia-Pacific

SCHOLARSHIPS / FINANCIAL AID

ACCREDITATION STATUS

QUALITY OF RESEARCH /ACADEMIC STAFFAFFORDABILITY

SCHOOL REPUTATION

12345


CAREER PLACEMENT RECORD


SCHOOL REPUTATION

RETURN ON INVESTMENT

12345


SCHOOL REPUTATIONQUALITY OF RESEARCH /ACADEMIC STAFFRETURN ON INVESTMENT


12345

SCHOOL REPUTATION




AFFORDABILITY

12345 SCHOOL REPUTATION




AFFORDABILITY

12345


SCHOOL REPUTATION


QUALITY OF RESEARCH /ACADEMIC STAFFACCREDITATION STATUS

12=2=45

20

Aswesawabove,theavailabilityoffinancialaidisofgreatimportanceintermsofwherecandidates are choosing to study. This applies to both country and school choice. In every region except the two most prosperous (Western Europe and the US & Canada), it is the single most important factor. In Western Europe it is second, however it only makes it to thirdintheUS&Canada,areflectionofanestablishedcultureoftakingondebtwithaview to enjoying a return on investment (notably, the second most important factor in theUS&Canada).Thismaygosomewaytoexplainingthepresenceofaffordabilityintheregion’stopfive–alsothecaseforWesternEurope.Thereare,asonewouldexpect,many parallels between the two regions.

Others are a little more varied in what they value. School reputation, the number one choice in the US & Canada and Western Europe, is less important for applicants in Asia-PacificandAfrica&theMiddleEast, though it isstill in the topfive forbothregions.Respondents in the former place a great deal of stock in career placement records (also of interest to those in Western Europe and North America) and accreditation, while accreditationandqualityoftheacademicstaffareimportantforthelatter(onlythoseinLatinAmericaplaceasmuchstockinthisfactor)–thisisperhapsreflectiveofconcernsabout the quality of local provision and uncertainty about the quality of international provision beyond the best-known schools. An interesting challenge for business school marketing departments.

On which subject, rankings, it seems, are not a major factor in school choice, coming no higher than ninth (Western Europe) in any region.

See TopMBA.com’s full range of research reports at www.topmba.com/why-mba/publications

21

Our respondent pool this year seems to be less enthusiastic about the full-time MBA, with the proportion of applicants interested in the format now standing at around four infive.Thiswemaybeabletoascribeoncemoretoourdiversifiedapplicantpool,allofwhom may not have the luxury of forgoing their salary for one or two years to study an MBAorwhomaycravetheflexibilityafull-timeprogramjustcannotafford.

Fittingly, we also see an increase in interest in part-time and online MBAs – now on the radarofaroundathirdandnearlyoneinfiveMBAapplicants,respectively.Inthecaseof the latter, we might also ascribe this to the rapidly increasing quality of provision (the QS Distance Online MBA Rankings look at the best of these). The executive MBA has also goneupinpopularity,thoughthisofcoursecatersforaslightlydifferentdemographic–perhaps testament to a greater level of importance given to lifelong learning in a rapidly-changing business landscape. We may be seeing a surge in interest from those who did not want to leave safe jobs to enroll on a full-time program during the worst of the Great Recession, and are now better suited to the executive MBA by dint of their greater experience. It should be noted, however that the full-time MBA is still by far the most popular format.

2.4 What format of MBA do applicants want to study?

82.2%

82.6%

79.4%

Full-Time

27.8%

28.4%

32.3%

Part-Time

13.7%

14.7%

17.3%

Executive MBA

8%

8.7%

11.3%

Distance Learning

16.2%

18.3%

19%

Online Learning

2015 2014 2013

22

In terms of program length, there has been an increase in interest in 10-18 month programs, which have overtaken 19-24 month programs as the most popular program length. The lower opportunity cost of the one-year MBA is no doubt a factor in this. Also, by casting their nets wider than more traditional MBA destinations – namely the US, in which the two-year MBA is de rigueur – candidates are giving themselves a wider range of options when it comes to program length.

The two-year format unsurprisingly remains the most popular in the US & Canada, though we have seen a slight decline as compared to last year (from 58% to 54%). Those in Europe, on the other hand, overwhelmingly favor the one-year MBA, and it seems the formatiscreepingfurtheraheadinpopularityinLatinAmerica.Asia-PacificandAfrica&the Middle East are more evenly split.

Preferred study duration by region

7%

10%

4%

6%

6%

4%

41%

40%

62%

56%

48%

30%

38%

38%

25%

30%

36%

54%

14%

11%

9%

8%

10%

12%

Africa & Middle East

Asia-Pacific

Eastern Europe

Western Europe

Latin America

US & Canada

Less than 10 months 10-18 months 19-24 months More than 24 months

23

SECTION 3: WHO ARE MBA APPLICANTS?

3.1 How old are MBA applicants?

2008 2014 2015

28.2

26.5

26.9

28.7

28.2

27.3

28.9

26.4

29

29.8

28.6

29.5

28.5

26.8

28.9

29.5

28.1

29.3

Africa & Middle East

Asia-Pacific

Eastern Europe

Western Europe

Latin America

US & Canada

27.828.128

Global Average

24

Years of work experience

2015

2014

2013

2015

2014

2013

2015

2014

2013

2015

2014

2013

2015

2014

2013

2015

2014

2013

0-4 years 5-9 years 10+ years

55.7% 30.7% 13.6%

56% 30.5% 13.5%

53.8% 31.9% 14.3%

65.8% 26.9% 7.3%

69.8% 23.3% 6.9%

62.8% 27.3% 9.9%

46.2% 39.8% 14%

42.3% 41.7% 16.1%

42.7% 35.9% 21.4%

53.9% 35.9% 10.1%

51.3% 37.7% 10.9%

51.1% 32.3% 16.6%

54% 30.7% 15.3%

58.4% 32.5% 9.2%

52.5% 34.3% 13.1%

45.3% 39.8% 14.9%

51.1% 35.1% 13.8%

49.6% 32% 18.5%

US & Canada

Latin America

Western Europe

Eastern Europe

Asia-Pacific

Africa / Middle East

25

The average age of respondents to our survey has come down this year in every region as compared to last year. This is second successive year in which this has been the case. However, in this instance it is perhaps more edifying to look at the long-term trend. Going as far back as 2008, we can see that the average age of MBA applicants has actually gone upsignificantly.Theglobalaveragethisyearstandsat28(thehighestpointreachedinrecent years came in 2012, when it stood at 28.3).

The increased availability of high-caliber part-time provision may go some way to explaining this, and perhaps the uncertainty that has characterized this decade has made upping one’s skillset a more appealing proposition for prospective candidates a little further into their careers (some of whom may have been riding out the worst of it before leaving their jobs to study).

ApplicantsintheAsia-Pacificregionremaintheyoungest,whilethoseinWesternEuropeare the oldest, tarrying with regional norms regarding when in one’s career one enrolls on an MBA. Notably, respondents from the US & Canada are the second-oldest on average. It is in this region that the average age has climbed the most since 2008 – an interesting trend given that traditionally North Americans enroll in MBA programs at a relatively early career stage.

When it comes to relevant work experience, in nearly every region we see an increase in candidateswithfiveormoreyearsofworkexperienceascomparedto2014.Theexceptionis Eastern Europe, though it is also the region with the lowest proportion of applicants with less than four years of work experience and the most with over 10. Respondents fromAsia-Pacificarebysomewaytheleastexperienced–ashasconsistentlybeenthecase in previous years. Outside of Europe, it seems we have a slightly more experienced applicant pool than in 2014, but less so than in 2013. In Eastern and Western Europe, on the other hand, it is more experienced than in 2013, despite the slight increase in inexperienced applicants in the former.

26

Thebigstoryhereisthatonly11.8%ofrespondentsarecurrentlyworkinginfinance,a significantdrop since2013,when it accounted for 15.3%of respondents – a goodrepresentation of the changing face of the MBA. Indeed, this pushes it into second position, behind our new biggest current employment sector – technology, in which 12.6% of applicants work. It seems that those working in this dynamic sector have seen thescaleoftheopportunitiesonofferandarestrivingtogaintheskillstobeabletocapitalize on them. Engineering, education (a sector which is increasingly calling for MBA skills, it seems) and industry are on the up, while fewer applicants from the telecoms sector seem to be looking to MBA study this year.

WeseethegreatestreductioninapplicantsworkinginfinanceinWesternEurope–whichperhaps we can link to uncertainty in the region – while the proportion of MBA applicants in consulting is higher in Western Europe than anywhere else in the world. Eastern Europe,ontheotherhand,isdominatedbythoseinfinancialservices.Ithasthehighestproportion of respondents in this sector, followed by the US & Canada. Africa & the Middle East is notable for the high proportion of applicants working in education – which we can relatetothelargescalechallengesfacedinthisregion.Asia-Pacificisbyfarthegreatestcontributor of applicants working in the technology sector, which makes sense, given the region’s status as the engine room of technology jobs in the past few years.

3.2 In which industries do applicants currently work?

2014 201514.4% 11.8% FINANCE

3.1% 2.7% RETAIL/WHOLESALE

5.2% 6.8% INDUSTRY

4% 3.6% ENERGY/UTILITIES

3.8% 3.5% CONSUMER GOODS

4.8% 4.9% PUBLIC SECTOR

4.3% 5.3% EDUCATION

10.2% 9.9% CONSULTING

6.6% 7.3% ENGINEERING

3.8% 3% TELECOMS

1.5% 1.3% REAL ESTATE

12% 12.6% TECHNOLOGY

3.1% 3.3% MEDIA/ADVERTISING

2.5% 2.5% NONPROFIT

27

9.5%

2.4%

4.3%

3.4%

4%

15.7%

3.2%

9%

4%

6.1%

2.6%

7.3%

4.1%1.4%

2014

10.3%

3.4%

6.3%

3.7%

5.8%

14%

4%

10.8%

3.2%

4.7%

2.1%

6.6%

3.7%

2.4%

2015

US &CANADA

13.3%

3.5%2.2%

5.7%

6.7%

17%

3.5%

6.4%

3.2%

1.2%1%

3.7%

3%

4.7%

2014

15.6%

3.6%

4.2%

6.2%

5.5%

9.1%

6.2%

7.2%

3.3%

2.3%2.3%

4.2%

2.6%

3.9%

2015

WESTERNEUROPE

9.4%

3.5%

3.3%

3.8%

8.7%

12.7%

6.9%

20.1%

2.5%1.3%1.7%

2.5%2.2%3.8%

2014

9.8%

2.9%

3.8%

2.7%

8.1%

10.5%

8.1%

20.2%

3.3%1.6%1.8%3.5%

2.5%

3.4%

2015

ASIAPACIFIC

7.5%

3.3%

7.5%

3.3%

7%

15.1%

5.1%

6.8%

1.8%

3.5%2.2%

6.6%

2.5%

4.1%

2014

6.4%

3.5%

7.7%

3.3%

8%

14.2%

6.7%

6.4%

3.4%

3.3%

2.3%

6.2%

2.1%

3%

2015

AFRICAMIDDLE EAST

8.4%

8.2%

5.4%

4.6%

5.4%

12.3%

5.4%

8.2%

3%0.3%

3.8%

6%

4.9%

2.7%

2014

12.6%

5.4%

4.3%

4.9%

7.2%

8.9%

6.9%

9.7%

2.9%1.1%

1.7%

5.2%

3.7%

2.3%

2015

LATINAMERICA

11.3%

5.6%

1.4%

4.2%2.1%

16.2%

4.2%

5.6%

9.9%

2.1%1.4%

4.2%

4.9%

8.5%

2014

11.7%

2.6%

5.2%

3.9%

3.9%

16.9%

3.9%

11.7%

3.9%

2.6%

2.6%

5.2%

1.3%

2015

EASTERNEUROPE

RETAIL/WHOLESALE

CONSUMER GOODS

FINANCE

MANUFACTURING/PRODUCTION

ENERGY/ENVIRONMENTUTILITIES

GOVERNMENT/PUBLIC SECTOR

EDUCATION

CONSULTING

ENGINEERING

TELECOMS

PHARMA/BIOTECH

TECHNOLOGY

MEDIA/ADVERTISING

NONPROFIT/CHARITY Some industries excludeddue to low figures.

How does this differ by region?

28

Demand for scholarships continues to rise. Nearly two thirds of the global applicant pool arenowbankingonreceivingsomekindoffinancialaidtofundtheirstudies,up3.6%from2013’sfigureof61.1%andverycloseto20%higherthan2008’sfigureof45%.Nodoubt as part of the same trend, we see the proportion of applicants who intend to fund their studies through loans hitting a low of 10.3%. Risk averseness on the part of both borrowers and lenders is likely to be behind this trend, as is the changing makeup of the applicantpool,whomaybelesswillingorabletotakeonsignificantdebt.

There is little change in the percentage of those using their own savings year on year, but withthisfigurenow4.5%lowerthan2012’sfigureof13.8%,thelong-termtrendawayfromself-fundedcandidatesisfurtherconfirmed.Schools–particularlythoseoutsidethe elite – would do well to be alive to these trends. Friends and family remains a fairly steadybutinsignificantfundingsource,butweseeasmallincreaseinthoseexpectingcompany sponsorship – indeed, it has now crept into second place. We are seeing a recovery in terms of company sponsorship in reality, so this increase is perhaps not as indicative of wishful thinking as it may have been in recent years.

3.3 How are applicants planning to finance their MBAs?

Scholarships Loan Own Savings Parents/Family Company Sponsorship

65%10%

9%

4% 12%

2015

4%

62%14%

10%

11%

2014

61%14%

10%

4% 10%

2013

29

Regionaldifferencespanoutasyoumightimagine.ApplicantsintheUS&Canadaarebyfar the happiest to take on debt, as is the traditional way of doing things in North America, while you’remost likely to find those planning to use their own savings inWesternEurope, where one-year MBAs a little further on in one’s career (when one might have amassedsomesavings)arethenorm.ApplicantsfromLatinAmericaremainthemostfocused on scholarships, with Eastern Europeans moving into a close second this year as a consequence of a near 10% surge. The most eye-catching statistic here, however, isthehugedeclineintheproportionofcandidatesintheAsia-Pacificregionplanningtofund their MBAs through company sponsorship. Perhaps this represents more realistic expectations on the part of these candidates (this is the second consecutive dip), though we cannot rule out the possibility, of course, that this drop is anomalous in its scale at least.

How does this differ by region?

16%

4%7%

4%69%

Africa &Middle East

12%

13%

7%

5%

63%Asia-Pacific

6%10%

8%

3%73% EasternEurope

10%

8%

18%

5%

58% WesternEurope

7%7%

10%1%75% Latin

America

7%

23%

13%

4%

53% US &Canada

Scholarships Loan Own Savings Parents/Family Company Sponsorship

30

3.4 Gender breakdown of MBA applicants

US & Canada Western Europe

Eastern Europe Latin America

Africa & Middle East Asia-Pacific

By region

49%

52%

51%

48%

20132015

2014

2013

2014

40%

47%

60%

53%

2013

2014

36%

34%

64%

66%

2013

2014

30%

32%

70%

68%

2013

2014

36%

41%

64%

59%

56%

55%

44%

45%

2013

2014

54%

46%

2015

54%

46%

2015

54%

46%

2015

65%

35%

2015

67%

33%

2015

58%

42%

Female Male 39%

61%

Global

31

The survey on which this report is based relies on a self-selecting sample. This does not, however, make the continuing lack of gender parity in the applicant pool any less concerning – particularly when we see it reflected in theMBA classroom, and thenfurther down the line.

That being said, we are at least seemingly moving in the right direction. In only one region do we see a decline in the proportion of female applicants, and that is Eastern Europe, inwhichtheapplicantpoolremainsover50%female.Significantly,thisalsoremainsthecaseintheUS&Canada,wherewesawmorefemalethanmaleapplicantsforthefirsttimelastyear.A2%increasethistimeroundputsitonaparwithEasternEurope.LatinAmerica comes relatively close to parity, at 46% female, 54% male. Progress in Africa & theMiddleEastandAsia-Pacificremainsslower,thoughweseenorepeatoflastyear’sdecline in the proportion of female candidates in the latter.

32

QS Quacquarelli Symonds Ltd

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2015 QS TopMBA.com Applicant Survey...2015 The aims and aspirations of future business leaders Contents Fast facts Section 1: Career objectives 1.1 Target industries 5 1.2 Where do