QS TopMBA.com MBA APPLICATIONS AND ASPIRATIONS · ı Career progression is the most important factor for MBA applicants when choosing an employer (41.2%), followed by Salary and benefits

QS TopMBA.com

Insights from the 2018 QS TopMBA.com Applicant Survey

MBA APPLICATIONS AND ASPIRATIONS

QS TopMBA.com Applicant Survey Report 2018

2

Executive Summary 3

Introduction 4

Fast Facts 5

Part 1: Who is the MBA applicant? 7

ı 1.1 What does the profile of MBA applicants look like? 7

ı 1.2 What drives applicants to pursue an MBA degree? 9

ı 1.3 How are applicants planning to finance their MBAs? 11

ı 1.4 Which sources are applicants using to discover more about programs? 14

Part 2: What do MBA applicants want from a business school? 16

ı 2.1 Where do applicants want to study? 16

ı 2.2 How do they decide between schools? 20

ı 2.3 What are the most popular MBA specializations? 22

Part 3: Where do MBA applicants see themselves after earning an MBA? 26

ı 3.1 What are the most popular target industries for applicants? 26

ı 3.2 What skills do MBA applicants think employers value the most? 29

ı 3.3 How do MBA applicants choose an employer? 30

ı 3.4 Where do MBA candidates see themselves in 10 years’ time? 31

Summary 33


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A World of Aspiration and OpportunityThe process of applying to business school requires balancing retrospection with careful consideration of the future. At the exact moment applicants are researching various study options, they are also looking beyond business school to the career opportunities they expect to emerge with after earning their business degree.

MBA applicants in general are ambitious, diverse, and optimistic about the future and how they can shape it. When asked to describe where they see themselves in 10 years, the majority of MBA applicants (60.5%) said Running My Own Business followed by Director in a Large Company (51.7%) and CEO of a Company (49.4%). They clearly look to business schools to fulfil a promise of transformation to help them reach these goals.

Nine in 10 candidates anticipate applying to more than one institution. Nearly three in 10 (27.9%) are likely to apply to six or more. To help make these decisions, applicants start by making general online searches, visiting official school websites, and exploring various rankings publications. Of the information sources used, discussions with admissions staff, engagement with alumni, and content on the official school website are deemed to be the most useful. This is good news for schools as each of these sources are within the control of staff.

The pursuit of graduate management education is a major commitment in terms of both time and money. The number one reason for MBA applicants to select a specific institution is the Availability of Scholarships and Financial Aid, selected by 49.3% of this year’s respondents. The third most-selected response is Affordability (35.7%). These practical realities are perhaps not surprising given rising education costs in much of the world, which may be changing the calculus for attending business school. The average MBA applicant expects to fund 33.3% of his or her degree with personal or family savings. Incredibly, 41.0% of respondents said they would no longer consider pursuing a graduate degree if they did not receive some form of scholarship.

Entrepreneurship/Innovation is now the leading intended specialization for MBA applicants, as selected by 35.6% of respondents. Consulting, finance, and technology remain the top three industry choices for both male and female MBA applicants. However, men are significantly more likely to target Finance (37.4% vs. 30.2%) and Technology (29.8% vs. 21.9%). Women, on the other hand, express greater interest in Media and Advertising (12.8% vs. 6.4%), Human Resources and Training (12.5% vs. 6.3%), and Non-profit/Charity (10.8% vs. 4.8%). Regardless of intended industry, career growth is a motivation both for pursuing a graduate business degree and choosing an employer post-graduation. Career Progression (selected by 41.2% of respondents) and Salary and Benefits (37.0%) are the leading employer selection factors among prospective students in the survey.

Millions of MBA applicants each year entrust business schools to be a necessary and rewarding step for them to reach their long-term aspirations. This trust indicates that the value of graduate management education remains strong and that MBA graduates continue to be well positioned to drive social and economic development worldwide.

Executive Summary


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The QS TopMBA.com Applicant Survey details the mindset of prospective MBA students and their approach to pursuing MBA programs around the world. It is one of the largest business school surveys conducted worldwide and continues the annual research undertaken by QS, the world’s leading education specialists since 1990.

Each year, millions of people interested in business school visit TopMBA.com to learn more about the application process and to find ways to connect with global business schools. These individuals increasingly show interest in a variety of program types and delivery methods. This report aims to provide valuable insight into the changing trends of global MBA applicants, both in terms of the programs that attract them, and their career aspirations.

Authors and contributors

Phil Cottrell (BA University of Portsmouth)

Phil is the author of the report and editor of TopMBA.com. He has a breadth of editorial and digital marketing experience. He has worked across a variety of industries from e-commerce and commercial real estate to managing all content for a C-suite careers site aimed at UK and US professionals. Phil holds a BA in History.

Alex Chisholm (BA and MA George Mason University, MBA Thunderbird School of Global Management)

Alex is the Head of Business School Analytics for the QS Intelligence Unit. His focus is on data and trends affecting the supply and demand of business education worldwide. Alex has more than a decade of experience working as a researcher and teacher in higher education. Prior to joining QS, Alex led the research department at the Graduate Management Admissions Council (GMAC) and he continues to teach an applied data course for Harvard University Extension School.

Bashir Ali (BSc School of Oriental & African Studies (SOAS), MSc London School of Economics)

Bashir is a Market Insights Analyst at the QS Intelligence Unit working as part of the Market Insights Team. He studied economics at bachelor’s level and has also completed an MSc in Public Policy. Bashir was responsible for initial data preparation and analysis for this report.

Survey Sample

Findings in this report reflect 3,850 MBA applicants who responded to the QS Applicant Survey during the 2016-17 academic year. A survey invitation was sent to the tens of thousands of individuals who registered for the QS World MBA Tour during this period. The report shares diverse insights from these prospective students who resided in 127 distinct countries at the time of the survey.

Completion of the survey is also a requirement to qualify for scholarship funding from QS.

Introduction

https://www.topmba.com/app/


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Fast Facts

Part 1: Who is the MBA applicant?

ı The average age of the MBA applicant is 28.0 with men (28.2) slightly older than women (27.8). The oldest applicants come from US and Canada (29.6) while the youngest are found in Asia-Pacific (26.2). Women make up 41.9% of total applicants responding to the survey.

ı Although half of global MBA applicants (55.8%) have at least four years’ work experience, 16.9% reported having less than a year.

ı The most selected reason for pursuing an MBA is to take up a leadership/general management position (46.5%). But the top reason for applicants in Africa & Middle East (49.7%) and Eastern Europe (54.6%) is to gain international experience.

ı The largest expected funding source for MBA applicants is scholarships, which was selected by more than half (52.9%) of respondents. Private loans and personal savings are the next most selected sources.

ı The average MBA applicant expects to fund 33.3% of their total education costs with either their own funds or those from their family. 41.0% of MBA applicants across the world would no longer consider an MBA if they were to receive no form of scholarship.

ı The most useful information sources used by MBA applicants in their decision-making process are discussions with admissions staff and alumni, as well as the official business school webpage.


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Part 2: What do MBA applicants want from a business school?

ı Although the United States (58.7% of respondents) and the United Kingdom (36.9%) are the most commonly considered study destinations, a total of 11 countries were selected by at least 10% of respondents.

ı International recognition of qualifications (36.7%) and the desire to work in the country afterwards (36.6%) are the leading reasons for destination choice by global MBA applicants.

ı In terms of school selection, scholarships and financial aid availability are top drivers for residents of Africa and the Middle East (62.8%) and Asia-Pacific (55.7%). For all other regions, the reputation of a specific business school is the most selected criteria.

ı Entrepreneurship/innovation is the leading intended specialization for MBA applicants, selected by 35.6% of respondents, followed by international management (34.6%), and strategy (32.6%). Only residents of Eastern Europe did not report entrepreneurship/innovation as a top three intended specialization.

ı The full-time MBA is still the favored method of delivery, considered by 83.4% of applicants, when compared with part-time (28.6%) and online (15.8%). Online interest is more common in Western Europe (22.1% of respondents) and US & Canada (18.0%) and less common in Asia-Pacific (7.3%)

Part 3: Where do MBA applicants see themselves after earning an MBA?

ı Consulting (40.2%), finance (34.4%), and technology (26.5%) remain the top three industry considerations for MBA applicants. There are many gender differences, however, with women twice as likely as men to consider careers in media/advertising (12.8% vs. 6.4%), HR/recruiting/training (12.5% vs. 6.3%), and non-profit/charity (10.8% vs. 4.8%).

ı MBA applicants believe ‘leadership’ is the skill that recruiters most seek in MBA hires, selected by 54.2% of respondents this year and followed by problem solving (46.1%) and business acumen/commercial awareness (38.5%).

ı Career progression is the most important factor for MBA applicants when choosing an employer (41.2%), followed by Salary and benefits (37.0%) and International opportunities (32.5%).

ı An ambitious 60.5% of MBA applicants can see themselves running their own business in 10 years’ time. Not limited to selecting only one response, 49.4% of respondents also reported the desire to become CEO of a company.


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1.1 What does the profile of MBA applicants look like?

Part 1: Who is the MBA applicant?

This year the average age of an MBA applicant is 28.0. Applicants in the US and Canada tend to be older than the global average (female 29.2; male 30.2), while the biggest difference in average age by gender, can be seen in Latin America (female 28.0; male 29.9). This propensity for women to study for an MBA at a younger age than their male counterparts is replicated across all regions. This could be because of a desire from women to advance their careers quickly, before taking time out to start a family.

As seen in previous editions of this report, applicants from the Asia-Pacific region are the youngest in the world with an average age of 26.2 and 41.3% of respondents who are younger than 25. This may reflect the fact that Asian candidates often spend longer considering the pursuit of business education and in preparing application materials.

Historically, business schools have struggled to reach gender parity in their MBA classrooms. In recent years, however, progress seems to have been made with many leading institutions finally breaking through the 40% barrier that existed for many years. Women in our sample represented 41.9% of respondents and was highest in the US and Canada (55.9%). This elevated level may reflect initiatives undertaken by QS to open opportunities for women in business, including the QS Women in Leadership program.

Africa & Middle East

Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

All Respondents

Female Age Male Age of Female Applicants %

35.5%

38.6%

55.7%

43.0%

55.9%

43.6%

41.9%

28.7

26.1

28.7

28.0

29.2

29.0

27.8

29.5

26.3

30.5

29.9

30.2

29.4

28.2

https://www.topmba.com/events/qs-women-leadership


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When it comes to work experience, over half of global MBA applicants (55.8%) have spent at least four years in work. Generally, the most common range of work experience for MBA applicants is between four to six years. 42.1% of all North American candidates fall within this range, as do 34.5% of applicants from Western Europe, the largest for each respective region.

As may be expected given their lower age, applicants in Asia-Pacific have typically had less work experience than their counterparts from elsewhere in the world. The percentage of applicants from this region with less than four years of work experience (54.0% of respondents) is higher than any other major region. Perhaps this further reflects a longer consideration timeline for candidates in the region.

At the other end of the spectrum, Eastern European MBA applicants tend to favor a longer spell in the workplace before committing to an MBA. More than one in three applicants (37.5%) from the region have at least seven years’ experience. This could be down to a desire to establish a strong career position prior to studying for an MBA. To take the next career step, Eastern European applicants appear to understand the value of gaining international experience, something that can inject acceleration into their career paths.

Duration of work experience (years)

Regional work experience (years)

Less than a year

1 - 3 years

4 - 6 years

7 - 10 years

11 - 14 years

15+ years

16.9%

27.3%

30.9%

16.3%

4.8%

3.8%

Less than a year 1-3 years 4-6 years 7-10 years 11-14 years 15+ years


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

15.0% 31.8% 24.4% 18.0%

26.1% 27.9% 27.7% 12.7%

9.4% 20.3% 28.1% 28.1% 9.4% 4.7%

6.4% 4.5%

6.8% 5.3%

3,6% 2,0%

4.5% 6.6%

5.0%

8.4% 26.2% 25.7% 17.5%

24.2%3.5% 42.1% 19.2%

15.5% 22.1% 34.5% 19.8% 3.1%


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1.2 What drives applicants to pursue an MBA degree?

Top three motivations by region (%)

Reason for pursuing an MBA (%)

To take up a leadership/general management position

To improve career prospects

To learn new skills

To gain international experience

To build a professional network

To enable a career change

To start own business

Personal interest

To boost my salary

Other


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

Top reason given 2nd reason 3rd reason

49.7% 48.1% 42.0%

45.9% 44.9% 40.6%

56.4% 51.5% 42.4%

To take up a leadership/general management positionTo gain international experience

To learn new skills To improve career prospects

50.4% 47.5% 42.9%

45.0% 43.3% 42.3%

49.3% 45.2% 44.9%


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Why an MBA?

The time, money and effort applicants must invest into an MBA is considerable. So, what is it that makes applicants want to pursue one?

For a number of applicants who have already established their own businesses, they understand the value an MBA can have on the success of their companies. Open-ended responses to the motivations behind applying for an MBA included “to take my business to the next level”, “to spread my own business” and “I have a business, I want to run it better”.

The long-term desire might be for MBA graduates to join these aforementioned applicants in running their own business. But the short-term goal for most MBA applicants is often to learn new skills (chosen as a consideration by 41.2% of respondents), that will improve career prospects (42.0%), and lead to a general management or leadership position (46.5%). While a salary increase isn’t necessarily seen as the biggest consideration for applicants (16.6%), this is a proven impact of studying an MBA, as highlighted by the QS TopMBA.com Return on Investment Report: Full-Time MBA 2018. This report showed the average global salary uplift, pre- to post-MBA, to be 64.0%.

It is also worth noting that US and Canadian applicants (25.8%) and Western European applicants (19.9%) showed they were more motivated by salary than global applicants overall (16.6%). As applicants from North America are more likely to pursue an MBA without a scholarship, and more likely to take out student loans, it is understandable that a bump in salary is higher on their list of priorities.

When we look deeper into the regional reasons for pursuing an MBA, the biggest consideration for applicants from Eastern Europe (54.6%) and Africa & Middle East (49.7%) is to gain international experience. This is also the second most important consideration for Asia-Pacific applicants (44.9%). The value of gaining real-world experience in the established global markets of North America and Western Europe is clear. The majority (50.4%) of respondents from Latin America reported learning new skills as their top motivation, the only regional group this year to put skill development explicitly above a career-specific motivation.

https://www.topmba.com/why-mba/publications/qs-roi-report-2018


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1.3 How are applicants planning to finance their MBAs?

Largest funding source (%)

Scholarships

Company Sponsorship

Parents /Family

Loan (from a bank)

Government funding

Own Savings

Other

52.9%

9.7%

4.7%

15.5%

5.9%

10.9%

0.2%

Results in the table may not sum to 100% due to rounding errors

Would you still consider studying if you received no form of scholarship?

59.0% 41.0%

53.1% 46.9%

76.0% 24.0%

58.9% 41.1%

70.3% 29.7%

54.1% 45.9%

55.2% 44.8%Africa & Middle East

Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

Global

Yes No


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Where’s the money coming from?

A key concern for MBA applicants is how they will cover the costs of their degree, and this year’s survey makes clear the importance of financial aid. The majority of applicants (52.9%) expect scholarships to be the largest funding source in how they finance their degrees.

Prospective MBAs clearly expect some level of financial assistance. In fact, 41.0% of global respondents said they would not consider studying the program in question if they weren’t to receive a scholarship.

Nearly half of Western European (46.9%), Asian Pacific (45.9%), and African and Middle Eastern applicants (44.8%) would turn down the chance to study an MBA if no scholarship was in the offing.

While this expectation isn’t quite as prominent in North America, almost a quarter of respondents (24.0%) would still walk away from the chance to study an MBA if no scholarship was forthcoming. This figure may be lower in the United States due to an established student loan market. In fact, nearly 40% of US residents report their top funding source as either private loans from a bank, or a government-backed student loan. For non-US resident groups, this type of funding stands much lower at only 18%.

In fairness, the respondents to this survey may be somewhat more dependent on scholarship funding than the overall population of MBA applicants. Completing the survey is a requirement for prospective students to qualify for QS Scholarship opportunities.

https://www.topmba.com/scholarships


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Business schools to step in?

With scholarships and other financial aid programs taking on so much significance, business schools are responding to this expectation from applicants. According to recent data from the Graduate Management Admission Council, 61% of 2017’s MBAs received scholarships based on financial need, merit, or a combination of the two. This is up from 41% in 2014.

However, while schools are stepping up to provide financial assistance, a traditional source of sponsorship for MBA students is in decline. While companies would often part, or fully, sponsor an MBA education at the turn of the century, those days appear to be long gone. Over the past two decades, the number of companies paying for MBA and executive MBA educations has dwindled significantly. This is partly down to companies being fearful of long-term staff retention and losing out on their return on investment, and partly down to the prospective students themselves. People are looking for more flexibility in their careers and committing to a single employer for a number of years isn’t necessarily the attractive option it once was. Business schools have been left with little choice but to pick up the slack (and a good portion of the bill) if they wish to attract the best candidates to their programs.

MBA applicants do however understand that considerable personal financial investment will be required. On average, applicants expect that either their own or their family’s savings will contribute 33.3% of the total cost of the degree.

Expect saving contribution (%)

Expected Savings Contribution Percent of Respondents

Less than 10%

10% to 19%

20% to 29%

30% to 39%

40% to 49%

50% to 59%

60% to 69%

70% to 79%

80% to 89%

90% and higher

Official website of institution

General online search

Rankings

Discussions with admissions staff

Institution information sessions

Discussions with alumni

Non-institution websites about higher education

Printed institution prospectus

Social media channels

Course-finder websites

Phone calls with institutions

Online forums and chat rooms

Independent agencies and consultants

Used Useful or very useful

Not Used Not Useful

98.8%

99.0%

96.4%

83.9%

85.1%

80.4%

83.3%

73.9%

79.4%

72.5%

62.3%

69.2%

63.2%

95.9%

94.7%

91.2%

96.5%

94.3%

95.8%

77.0%

84.1%

70.2%

74.1%

82.0%

73.7%

78.3%


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1.4 Which sources are applicants using to discover more about programs?

Starting the search

There are many sources of information available to prospective students about potential business schools and programs.

Understandably, the starting point for research is more often than not online, visiting the official website of an institution, as well as independent rankings websites, non-institution websites, and social media channels. 98.8% of applicants are visiting official websites, with 95.9% finding them useful or


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Getting a real sense for the place

While online sources can give an overview of the institution and the content of each program, it’s almost impossible to provide a real sense of the culture one can expect to experience. That’s where discussions with admissions staff (96.5% of those who had discussions found them useful or very useful) and alumni (95.8%) can be particularly important. So, it’s no surprise they are rated among the most useful sources of information by applicants. From an applicant perspective, there is evidently no better way of understanding what it might be like to study somewhere than to speak with the people currently doing so.

As outlined in the opening of this report, this should be very encouraging for school professionals. Like their official website, these discussions are often fully within their control. If institutions can ensure that inspiring alumni are available to talk to potential applicants, and that admissions staff are available at events, and over email or social media, then they should be able to maximize these engagements. This will make it easier to attract quality candidates that fit the ethos and vision of the school.

Competition from other business degrees and academic fields

We asked applicants what, if any, alternatives to the MBA they might consider. The most common degree was a master’s in management, selected by 56.4% of global respondents. Other specialized degrees followed, including economics/finance (37.8%), marketing (27.2%), and analytics (18.1%). Men were significantly more likely than women to select economics/finance, accounting, and IT/e-commerce as alternatives. Meanwhile, women were more likely than men to consider degrees in marketing, healthcare, and sustainability management.

A small minority (7.2%) would also consider moving outside of traditional business programs to pursue law degrees. This behavior is most likely for applicants in the US and Canada (13.7% of respondents) and Western Europe (10.0%).

These findings expose the range of degree options that prospective students face today. Being aware of the wider pool of degrees being considered by students may enable schools to better communicate with candidates, as they make decisions about what and where they want to study.

very useful. With practically all interested applicants visiting institution websites, the question must be, are schools ensuring they’re fully optimized to attract candidates and provide them with the necessary information required? Business schools would do well to ensure they are providing clear information on the admissions process, course details, tuition fees, access to scholarships and financial aid, potential salary outcomes etc.

One thing is abundantly clear from applicants – they understand the importance of learning about their options by talking to those closest to the various programs.


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2.1 Where do applicants want to study?

Part 2: What do MBA applicants want from a business school?

United States

United Kingdom

Canada

Australia

Germany

France

Spain

Singapore

Switzerland

Netherlands

58.7%

36.9%

34.5%

25.2%

22.4%

19.4%

14.9%

14.3%

14.1%

10.7%

10.1%

9.5%

8.0%

7.9%

7.7%

6.9%

5.6%

5.4%

5.0%

4.9%

India

New Zealand

Sweden

Italy

Denmark

Norway

Ireland

Finland

United Arab Emirates

Japan


17

International recognition of qualifications

Would like to work there afterwards

Scholarship /Financial aid availability

Institutions I'm interested in are located there

Cultural interest and lifestyle

It will help me build a network of connections

Affordable costs of study and/or living

It is close to my current location

Improve language skills

Family connection

Visa situation

Other

Reason for country choice destination

Top selection driver for leading preferred study destinations

Australia

Canada

France

Germany

India

Singapore

Spain

United Kingdom

United States

#1 Reason #2 Reason #3 Reason

Scholarship /Financial aid availability Cultural interest and lifestyle

Would like to work there afterwards International recognition of qualifications

Institutions I'm interested in are located there Affordable costs of study and/or living

48.9% 44.4% 44.4%

38.2% 38.2%

34.6%

42.4% 37.3% 37.3% 32.2% 32.2%

46.1%

50.2% 41.4%

43.4%

52% 41.5%46.3%

54.8% 34.2%41.1%

50.5% 41.6%44.6%

48.4% 39.3%40.7%

49.1% 42.2%45.8%

35.9%


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US and UK still most popular study destinations

The level of international recognition an institution’s qualifications receive is the most cited reason for destination choice. Therefore, it’s no surprise the US, where MBA programs were first founded, is the most popular study destination, followed by the United Kingdom. After all, in the QS Global MBA Rankings 2018, US institutions dominated the top 20 (12 business schools), with UK institutions the second-largest representative in the top 20 (four business schools). However, the list of countries considered (shown above) illustrates just how global business school education has become and how many quality opportunities global applicants have to consider.

The second most popular reason for choosing a destination, after international recognition of qualifications, is the desire to live and work in the country post-graduation. Feasibly, this could be another reason why MBA applicants no longer see the US and the UK as the clear runaway options that they once were. The political uncertainty that continues to shroud both global superpowers could be leaving prospective students unclear about the long-term benefits of studying, and ultimately living, in the two countries.

Britain’s decision to leave the EU and President Trump’s rhetoric on foreign policy has left applicants uncertain about visa restrictions and work opportunities upon graduation. The long-term effects of Brexit are still far from certain, but it isn’t hard to imagine that as jobs, particularly in the finance sector, move away from London to other European destinations such as France and Germany, MBA applicants will go with them.

Whereas a decade ago, the US and UK were way out in front, this year sees a continuation of a trend for prospective MBAs to consider a far wider range of countries to study in. As one respondent stated, they were simply interested in “all countries with good MBA programs”, of which there are now many.

While the US and UK may well dominate the Global MBA Rankings 2018, that isn’t to say that all the best business schools are located there. In fact, two of the top three programs are in France, at INSEAD and HEC Paris, both of which are just edged out of the top spot by Harvard Business School. Spain also has two representatives in the top 20, IE Business School (10th) and ESADE Business School (17th).

Elsewhere, Canadian business schools may be perceived to be a more welcoming (and more affordable) option to many international students, compared to their US neighbors. In fact, for applicants selecting visa considerations as a country selection criteria, Canada is the most preferred destination in the world. Canadian institutions may also offer a higher chance of employment post-MBA, and with six business schools in the top 100, and 13 in the rankings in total, applicants don’t have to compromise on quality of education either. Likewise, Australia has 11 business schools in the rankings (two within the top 40) and can offer students a lifestyle that is hard to match.

https://www.topmba.com/mba-rankings/2018




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We also see how prevalent financial considerations can be when deciding upon a study destination. Germany is a prime example, where affordable costs of study and/or living is the top reason for applicants preferring to earn an MBA in the country (52.0% selected). It is clear the United Kingdom (chosen as a factor by 16.7% of respondents) and the US (13.9%) are seen as considerably more

expensive long-term options, in comparison to some of their geographical neighbors.

Business school considerations

Applicants are obviously not just making country-level study decisions. Most prospective students (90.0%) will also consider and apply to multiple business schools. Globally, it is most common (62.2% of respondents) to send applications to between two and five business schools. This would suggest that these applicants have done the necessary research to narrow down their shortlist, allowing them to submit focused applications. However, some candidate groups, especially in the Asia-Pacific region, tend to apply to even more schools. For instance, applicants from Bangladesh (21.1% of respondents), Pakistan (17.8%), the Philippines (13.1%) and India (11.3%) intend to apply to more than 10 institutions. With typically younger applicants in this region, it is evident they perhaps take longer and cast a wider net when determining the right institution for their studies.

Country selection by affordable costs of study and/or living

Germany

India

Canada

Australia

Singapore

Spain

United Kingdom

United States

France

52.0%

37.3%

29.4%

26.3%

19.2%

17.8%

16.7%

13.9%

9.2%


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2.2 How do they decide between schools?

Scholarships/financial aid

School reputation

Affordability

Career placement record

Quality of research/academic staff

Return on investment

School specialisation

Recent school ranking

Profile of students/alumni

Student experience/lifestyle

Desire to live in a particular place

Teaching style (e.g. case method)

Employer's recommended choice

Course length

Class size

Start date

Other


21

Following scholarships and financial aid (selected by 49.3% of respondents), a business school’s reputation is a close second with 47.8% selecting overall. They see the school’s brand as something they will carry forward with them after earning their MBA degrees. Echoing prospective student’s growing concerns about securing funding options, affordability is the third most-selected factor (35.7%). More than one in four applicants (26.2%) also look toward the career placement records at specific schools, again illustrating the fact that applicants already have an eye on the other side of the business school pipeline. While profile of students/alumni was only the ninth ranked factor (11.1%), anecdotal evidence from respondents such as the importance of, “the community (students, staff and alumni)”, and “mentorship from graduates”, highlight that it’s certainly an important consideration.

Scholarships and financial aid is the top consideration for applicants in Africa and the Middle East and the Asia-Pacific regions, while affordability is represented in the top three responses for every region except Eastern Europe. In the US and Canada, affordability and return on investment rank second and third respectively. This, likely driven by the US market, may be due to rising tuition fees and the need to justify (to themselves and others) both the real and opportunity costs of pursuing an MBA degree. Especially in an environment where two-year programs remain the norm.

Top three motivations by region

62.8% 45.5% 43.5%

55.7% 40.0% 37.5%

58.5% 38.5% 36.9%

55.1% 53.6% 30.3%

59.0% 30.6% 29.7%

58.7% 37.9% 28.0%


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

#1 Reason #2 Reason #3 Reason

School reputation

Recent school ranking

Scholarship /Financial aid availability Affordability

Return on investment


22

2.3 What are the most popular MBA specializations?


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

#1 Selection #2 Selection #3 Selection

Marketing

Finance

General business Leadership

Entrepreneurship/innovation

Strategy

International management

39.5% 38.6% 31.4%

35.9% 31.3% 31.3% 31.3% 30.1%

45.5% 39.4% 34.9%

40.4% 38.7% 35.8%

39.6% 37.6% 27.4%

41.9% 40.8% 39.3%

40%35%30%25%20%15%10%5%

Entrepreneurship/innovation International management Strategy Finance

General business Marketing Leadership Technology

All Select Women Select Μen Select


23

Entrepreneurship is displacing traditional specializations

While traditional MBA specializations such as international management (considered by 34.6% of all global applicants), general business (24.9%), strategy (32.6%) and finance (29.1%) are still prominently featured on the list of most considered study options, it’s particularly striking that entrepreneurship and innovation (35.6%) is the most popular. This highlights the drive of millennials to determine their own future, rather than working for someone else. Not only does an MBA provide students with the tools to become a successful leader, it also opens prestigious and invaluable networks which can help get ideas off the ground in the short-term, while providing the skills required to run your own business in the long-term.

As reflected in the QS TopMBA.com Jobs & Salary Report 2018, employers of MBAs are increasingly looking for hires with entrepreneurial skills, and those who can think beyond traditional management techniques. It’s hardly surprising we see a high level of demand for programs which teach these skills.

Of course, general leadership, finance and general business skills are also important in any MBA job, and their absence from the top of the list may therefore come as a surprise. However, it could be argued the reason applicants didn’t give as much weight to these specializations is because they believe these skills will be attained within the core of any MBA program.

Women see more options from the MBA

A concerning gap exists between the sexes in terms of an interest in finance. While men rate it as the second most popular specialization (33.4% would consider it as a specialization), women only see it as the sixth most popular (only 23.3% would consider it). This reflects the lack of gender diversity and equality in the finance sector. According to an article in the Financial Times in April 2017, women make up just 24.4% of senior staff at 25 major international banks, while LinkedIn recorded that, in the wider financial services sector, women made up just 23% of all “leadership” hires in 2016.

It appears that, while men are typically interested in the traditional MBA route of finance, women are more likely to consider an MBA with a marketing or international management specialization.

This theme is expanded upon in the next part of the report, when we look at the differences between the genders, regarding career objectives.

https://www.topmba.com/why-mba/publications/jobs-salary-trends-report-2018


24

What delivery methods are MBA candidates interested in?

Full-time programs still the favored method

When asked which methods of delivery they would consider (multiple selections were permitted), applicants expressed an overwhelming preference for the full-time MBA (83.4% overall). There is currently much discussion about the perceived benefits of the full-time MBA, and the impact it can have when students must take extended time away from the workplace. This has even led several business schools to shutter their full-time MBA programs, including The University of Iowa’s Tippie College of Business in 2017, following similar decisions in recent years from Wake Forest University and Virginia Tech, in the US alone.

However, this year’s survey clearly shows that, while offering prospective students with different studying options should be encouraged, applicants still see the benefit of the full-time MBA model.

Perhaps then the debate isn’t about full-time versus part-time offerings, but rather the total amount of time students must commit to a full-time program experience. With the exception of the US & Canada where two-year full-time MBA programs are the norm, applicants from all other regions expect to complete their MBA degrees in less than two years.


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

Global Average

Full-time Part-time Online/Distance learning

80.1% 30.2% 23.6%

88.2% 22.2% 7.3%

75.9% 27.8% 20.3%

88.0% 39.9% 24.5%

75.2% 32.6% 18.0%

81.0% 35.9% 22.1%

81.0% 35.9% 22.1%


25

The attraction of online learning

Applicants from Africa & Middle East and Latin America are most likely to be interested in online or distance learning, perhaps owing to the relative lack of established and prestigious schools in these regions, when compared to those of North America and Western Europe. For example, out of the 232 business schools to feature in the Global MBA Rankings 2018, only 10 are in Latin America.

However, we also see considerable interest in online programs from North America (18.0%) and Western Europe (22.1%). This could be traced to several factors, including recent improvements in the delivery of online programs (the QS Distance Online MBA Rankings looks at the best of these). As technology improves all around us, so does the way in which business schools use that technology to produce engaging and interactive programs. Online consideration is highest for MBA applicants in Africa and the Middle East (23.6% selecting) where MBA programs are relatively less established than in other markets. Perhaps this is an example of online delivery fostering international education opportunities for those unable, or unwilling, to move abroad.

Online programs also deliver a level of flexibility that attract a diverse network. Students crave this flexibility as they have become used to it. Technology is used to tailor so much in our lives, it makes sense that using it for education is an appealing option.

With improvements and increasing accessibility to online MBA programs, there is a growing pool of candidates that may now be considering an MBA but who are unwilling to forgo a salary for one or two years. This final point holds added weight when we consider the high figure of applicants who would not consider an MBA if no scholarship was offered. As one applicant pointed out, the attractiveness of online learning came down to the fact that they would be, “able to continue with my current job while doing distance learning for my MBA.”

While the global average of applicants considering online learning stands at 15.8%, applicants in Asia-Pacific are half as likely (7.3%) to consider taking their learning online. One reason for this may be the cultural need in some countries for the face-to-face feedback and approval embedded within the educational approach. Another issue for some countries in the region might be a lack of consistent internet connectivity that makes online learning practical.


https://www.topmba.com/mba-rankings/online-mba-rankings/2017#sorting=rank+custom=856098+order=+search=


26

3.1 What are the most popular target industries for applicants?

Part 3: Where do MBA applicants see themselves after earning an MBA?

Consulting

Finance

Technology

Government/Public Sector

Engineering

Manufacturing/Production

Consumer Goods

Energy/Environment/Utilities

Education

Media/Advertising

HR/Recruiting/Training

Non-profit/Charity

Health/Medical

Retail/Wholesale

Entertainment/Leisure

Hospitality/Travel/Tourism

Real Estate/Property

Other

Logistics/Transportation

Pharma/Biotech

Telecoms

R&D/Science

Agriculture/Fishing/Forestry

Legal

Defense/Security/Rescue


27

Consulting

Finance

Technology

Government/Public Sector

Consumer Goods

Media/Advertising

HR/Recruiting/Training

Non-profit/Charity

Manufacturing/Production

Education

Engineering

Retail/Wholesale

Entertainment/Leisure

Energy/Environment/Utilities

Hospitality/Travel/Tourism

Health/Medical

Other

Real Estate/Property

Pharma/Biotech

Logistics/Transportation

R&D/Science

Legal

Agriculture/Fishing/Forestry

Telecoms

Defense/Security/Rescue

Women Men

39.5%

30.2%

21.9%

16.8%

13.4%

12.8%

12.5%

10.8%

9.9%

9.8%

8.0%

7.6%

7.6%

7.4%

7.3%

7.2%

6.1%

5.3%

4.8%

3.5%

3.5%

3.0%

2.6%

2.5%

1.4%

40.7%

37.4%

29.8%

14.8%

10.7%

6.4%

6.3%

4.8%

14.2%

9.5%

16.8%

5.2%

5.1%

13.3%

5.3%

5.9%

3.9%

5.7%

3.8%

5.6%

3.5%

2.2%

3.2%

5.2%

1.8%


28

Men stick with tradition while women see more opportunities

When asked which industries applicants planned to target for work after achieving their MBA, the answers provided relatively few shocks. For both men and women, the top three industry sectors remain the ever-popular trio of consulting (40.2%), finance (34.4%) and technology (26.5%). However, it appears that men are perhaps more likely to stick to these traditional MBA career paths, especially in the case of finance, where there is a 7.2% proportional gap between men and women considering a career in the industry. A similar gap can be seen in technology (8.0%), while engineering (8.9%) sees the largest split between the sexes. In such a male-dominated industry, it is of concern that both higher education, and the engineering industry itself, are struggling to attract women to the field, to add some much-needed diversity.

Women, it appears, are more likely to utilize the versatility of their MBA as they aim to pursue careers in a broad range of industries. This is illustrated by at least 10% of female MBA applicants showing some form of interest in pursuing a career in consumer goods, education, HR/recruiting/training, media/advertising and the non-profit/charity sector.

MBA applicants clearly see some specializations as a way to prepare themselves for a given industry. For example, marketing is the top specialization for those considering working in media/advertising and consumer goods after graduation. For manufacturing/production and government/public sector, a specialization in international management is most commonly selected. Strategy aligns most with consulting. Technology specializations lead the way for those considering going into, not surprisingly, technology and engineering. Finally, focusing on entrepreneurship/innovation in school is most common for those intending to work in energy/environment/utilities and education.


29

3.2 What skills do MBA applicants think employers value the most?

Are MBA applicants thinking about ‘soft skills’ enough?

When looking at the skills which MBA applicants think employers value the most, it’s interesting to notice discrepancies when compared against the results of the QS TopMBA.com Jobs & Salary Report 2018. In this, employers were found to be dissatisfied with MBA hires and their “soft skills” in particular. MBA applicants are indeed correct to think leadership skills (selected by 54.2%) are highly sought across industries. However, the biggest disconnect between importance and satisfaction, comes in the form of interpersonal and communication skills. While applicants clearly recognize the need for strong soft skills, such as communication (38.1%) and teamwork (36.3%), the fact these aren’t placed higher suggests they may need to pay more attention to their human side.

Leadership

Problem solving

Business acumen/Commercial awareness

Communication

Teamwork

Innovation

Creativity

Ability to work under pressure

Organisational Skills

Confidence

Developing professionalism

Integrity

Perseverance & motivation

Cultural & linguistic skills

Computing skills

Numeracy/math skills

Autonomy/Independence




30

3.3 How do MBA applicants choose an employer?

Money and progression more important than satisfaction

When it comes to deciding upon an employer, MBA applicants show themselves to be very career-driven. This is hardly a surprise, especially considering the demographic we are looking at. But, while career progression (chosen by 41.2% of applicants) and salary & benefits (37.0%) rank first and second respectively, it may be more telling that MBA applicants rank work/life balance (14.5%) in eighth and job security (7.4%) at a lowly 12th.

Job satisfaction (26.3%) is deemed important and is the sixth most important consideration when choosing an employer, but is not seen as important as long-term career prospects (27.2%) which ranked fourth most important. This is perhaps best understood when looking at where MBA applicants see themselves in 10 years’ time. MBA applicants know that they will reap the benefits of the degree but also understand that the return on investment will not necessarily be immediate.

Something that often gets overlooked is appreciation. As one of our respondents chose to add: “When I choose an employer, the most important thing for me is to be appreciated for my efforts and trying to do my best”.

Career progressionSalary & benefitsInternational opportunitiesLong term career prospectsJob role/responsibilitiesJob satisfactionLeadership developmentWork-life balanceCorporate cultureTraining & developmentCompany ethics & community involvementJob securityPrestige of organisationJob type/functionIndustry sectorProfessional statusGeographic locationDiverse workforceOther


31

3.4 Where do MBA candidates see themselves in 10 years’ time?

In 10 Years I Hope to Be…

Running own business

Director in large company

CEO of a company

Self-employed consultant

Partner in professional services

Senior manager in public sector

Director in small company

Middle manager

Senior academic

Senior technologist

Other

Down-shifting for work-life balance


Asia Pacific

Eastern Europe

Latin America

US & Canada

Western Europe

#1 Selection #2 Selection #3 Selection

Running own business

Partner in professional services

CEO of a company Director in large company

67.2%

57.5%

57.1%

68.2%

57.5%

57.6%

56.1%

53.5%

57.1%

54.0%

53.3%

52.4%

45.1%

50.9%

55.6% 28.6%

46.7%

40.4%

45.6%


32

MBA applicants dream big for their futures

The growing entrepreneurial nature of the MBA is highlighted once again by the response to where MBA applicants see themselves in 10 years’ time. Over 60% of applicants are interested in running their own business in the next decade. The benefits of an MBA are clear to aspiring entrepreneurs, who wish to make a real difference to the world around them. It is refreshing to hear responses such as, “running own charity offering management consulting for other charities working to preserve our environment” and “leading a large non-profit organization” to the question of where applicants see themselves in the future. For anyone looking to establish their own business, the MBA can provide the skills, network and connections to do exactly that, whether immediately or further along the career path.

The MBA applicant must be prepared to invest considerable time and money into the degree, so rightfully they expect a considerable return on that investment. For those not looking to be running their own business within a decade, they are certainly expecting to be steering somebody else’s ship. The second and third most popular responses were director in a large company (51.7%) and CEO (49.4%).

With less than 10% of applicants expecting to be working in middle management in a decade’s time, they certainly can’t be faulted for their ambition. Given the investment they will have to make, in terms of money, time and dedication, it’s understandable that they are seeking, and expecting, the top positions instead.


33

SummaryWhile this report discusses several important themes and trends, MBA applicants still show the same determination, ambition and desire that top business schools, all over the world, seek to fill their classrooms. The confidence of candidates to run their own business or sit in the boardroom of major international companies is also what makes MBAs such an attractive proposition for hiring managers.

The outlook is not perfect, however. Rising costs and barriers to global mobility are real concerns held by today’s MBA applicants. This is reflected in the dependence on scholarship availability and the search for affordability. If business schools want to keep their programs as diverse and interesting as they should be, these reservations must be closely monitored and addressed.

What is also clear is that major companies have their work cut out in attracting the very best of tomorrow’s MBA graduates. They must find a way of becoming more appealing than the ever-increasing desire to follow the entrepreneurial path.

The process of applying to MBA programs can be stressful for candidates who view it as a key step toward improving their personal and professional trajectories. The process is also increasingly competitive for business schools as they are forced to cut through the noise of more degree types, more delivery formats, and more quality study options around the globe. The magic is when the right match is made between an applicant and a business school, improving the chances of an individual to someday realize his or her aspirations.

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QS TopMBA.com MBA APPLICATIONS AND ASPIRATIONS · ı Career progression is the most important factor for MBA applicants when choosing an employer (41.2%), followed by Salary and benefits