1. 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
2. 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
3.3 How are applicants planning to finance their MBAs? 29
3.4 Gender breakdown of MBA applicants 31
2
3. 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. Prior to joining QS she was a project manager at a leading consulting firm and an
account 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
otherwise stated. The figures here are not suggestive of overall figures for attendees at
the QS World MBA Tour).
3
4. 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 (all monetary figures are given in US dollars throughout the report).
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
to international recognition of qualifications.
• 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 factor
in 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 from 82.6% in 2014), while nearly one in five applicants is
considering 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.
• Technology overtakes finance as the most commonly reported pre-MBA sector
(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.
4
5. There are few surprises in terms of the most popular target industries – consulting and
finance are, of course, exactly the sectors one would study an MBA to move into, or to
develop 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 are
permitted to make
multiple 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
6. 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 not
make 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
Manufacturing/Production
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
7. 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.
This is overwhelmingly the case in the most popular target industries, such as finance
(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
assume a greater proportion of applicants are studying an MBA to effect a career change.
Unsurprisingly, consulting comes out comfortably in second place in most industries,
followed by finance and technology.
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
prospective applicants are considering a career change to a different industry. Those
working in finance are the least keen to switch, with 17.7% committed to remaining in
the 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
Manufacturing/
Production
Technology
Media/Advertising
7
8. 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
a significant drop last year.
One could – quite justifiably – argue that ambition levels are unrealistically high. But
then, one must remember the confident, ambitious demographic in question – a group
of 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
8
9. 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
of 50-60 hours by 12.3% while in 2013 the difference was only 5.4%. The only anomaly
here is the over 70 hours bracket, which, though it has gone down compared to 2014,
still remains higher than 2013’s figure.
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
have little interest in the aggressive workload of a job in financial services, may all well
play 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
9
10. 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
as a reflection of divergent ambitions – while some will want to move past early career
intensity, 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+ – is most definitely skewed towards a downshift, with
nearly 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%
10
11. Why do our respondents want to invest huge amounts of time, money and effort in an
MBA? 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%
11
12. We see a reversal of the trends of the past two years this time round, with average salary
expectations inching upwards to $114,000 from $112,000 in last year’s report. The figure
is 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. The first is that, if we look to available data on the actual salaries of MBA graduates
– 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
actually on offer.1
Secondly, and not for the first time in this report, we may well be seeing an increased
level of confidence from the applicant pool (considered as a whole) – something to which
an increased average current salary might easily contribute – up this year to $42,000
from $41,000. Rises in the US & Canada ($62,000 to $65,000) and Asia-Pacific ($27,000 to
$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 $121,000 cannot really be classed as pocket change…
1 Global figures are an average of regional figures, rather than average of all responses.
1.5 Salary expectations and current earnings
30,000
AFRICA/
MIDDLE EAST
ASIA-PACIFIC EASTERN EUROPE
2015
98,000
WESTERN EUROPE
53,000
121,000
WORLDWIDELATIN AMERICA US & CANADA
34,000
90,000
65,000
144,000
42,000
114,000
31,000
110,000
39,000
121,000
Avg, Current
Salary ($)
Avg, Target
Salary ($)
12
13. Salary expectations by country
Bangladesh
Chile
Ghana
Greece
Peru
Philippines
Kenya
Mexico
Colombia
Malaysia
Pakistan
Egypt
Nigeria
France
Kazakhstan
Indonesia
Zimbabwe
Brazil
India
Italy
Saudi Arabia
Russia
Japan
Turkey
United Arab Emirates
Germany
Canada
South Africa
Singapore
Qatar
China
United Kingdom
United States
Switzerland
Avg. Target Salary ($)
Avg. Current Salary ($)18,000
39,000
21,000
21,000
30,000
20,000
22,000
34,000
34,000
31,000
29,000
24,000
28,000
53,000
32,000
30,000
30,000
37,000
25,000
37,000
37,000
40,000
31,000
64,000
45,000
62,000
59,000
42,000
53,000
43,000
49,000
60,000
66,000
87,000
42,000
65,000
68,000
75,000
77,000
77,000
79,000
80,000
93,000
94,000
95,000
96,000
98,000
105,000
107,000
108,000
108,000
110,000
111,000
111,000
112,000
115,000
119,000
119,000
119,000
123,000
124,000
126,000
132,000
138,000
144,000
144,000
149,000
171,000
13
14. An interesting trend can be noted this year in terms of age brackets. Younger respondents
– who have also seemingly been hit hardest in terms of current salaries – are lowering
their salary expectations; in this, we see a two-year trend across both the 25-29 and
the 30-34 age brackets. Older respondents, on the other hand, have increased their
expectations as compared to last year, though the preceding year had seen salary
expectations come down across the board. Perhaps this is because those who have had
more experience of economic peaks and troughs have been less affected by the events
of the end of the last decade onwards than those who came of age during the worst of it.
Current salary and target salary by age
Avg, Current Salary ($)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
14
15. 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 $4,000
this year, as a consequence of female salary expectations falling at a slower rate than
male. Interestingly, when it comes to current salaries, female respondents are actually
reporting a slightly higher figure than their male counterparts this year, which is certainly
heartening, though with females only accounting for around one-third of responses to
our (self-selecting) survey, it is perhaps a little too early for celebration.
Current salary and target salary by gender
Avg, Current Salary ($)Avg, Target Salary ($)
39,000
108,000
38,000
112,000
MALE
FEMALE
41,000
42,000
122,000
114,000
2015
2015
40,000
40,000
110,000
109,0002014
2013
2014
2013
15
16. 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 recognition
of 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 STATES
UNITED KINGDOM
CANADA
AUSTRALIA
GERMANY
FRANCE
SPAIN
SWITZERLAND
SINGAPORE
NETHERLANDS
NEW ZEALAND
ITALY
SWEDEN
DENMARK
INDIA
NORWAY
UNITED ARAB EMIRATES
BELGIUM
HONG KONG
CHINA
11
22
33
44
56
65
77
88
99
1010
1112
1211
1314
1415
1513
1617
1718
1819
1922
2016
16
17. 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.
This is a marked difference to, say, five or six years ago, when the US and UK were way
out 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, the nation that suffered the greatest drop in terms of percentage points
was the US – from 67% to 65% – though India’s drop from 10% to 9% is more significant
in 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
recognition of qualifications’ remains the most commonly cited reason – it has even
been 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
destination on the availability of scholarships and financial aid has crept up to 55% - or
to 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
afford it – ‘would like to work there afterwards’ remains consistent on 51%, while ‘cultural
interest and lifestyle’ is at its highest level since 2012. The picture is undeniably nuanced.
17
18. Notably, there are a few differences in the most popular study destinations, depending
on 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-
Pacific and Latin America. Spain is naturally popular among Latin American students, and
Singapore and India hold the greatest sway with respondents in the Asia-Pacific region.
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
consideration to not going anywhere other than the US! Students in Latin America, on
the other hand, seem to be very enthusiastic about international study, with several
destinations scoring highly with their prospective MBAs – perhaps most notably Australia
at 43.8% and New Zealand at 25.1%, figures even higher than those countries receive
from the Asia-Pacific region itself (though respondents in Asia-Pacific are seemingly the
next most open to a wide range of study destinations).
Preferred
Destination
Africa &
Middle
East
Asia
Pacific
Eastern
Europe
Western
Europe
Latin
America
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?
18
19. As in 2014, general management and international management lead the way as
the most popular MBA specializations – indeed, both register higher figures this year
following 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.
Leadership and finance have both declined significantly in popularity – it may be that
applicants are confident that these skills can be attained as part of the suite of skills one
gains as part of a general MBA. In the case of finance, it may be that the applicant pool
has simply grown more diverse and is no longer so keenly focused on finance roles.
Further down the list, interest in technology management has increased, leaving it less
than 10% behind finance – halving the gap we saw only two years ago. Technology’s
appeal 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%
19
20. 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 STAFF
AFFORDABILITY
SCHOOL REPUTATION
1
2
3
4
5
SCHOLARSHIPS / FINANCIAL AID
CAREER PLACEMENT RECORD
ACCREDITATION STATUS
SCHOOL REPUTATION
RETURN ON INVESTMENT
1
2
3
4
5
SCHOLARSHIPS / FINANCIAL AID
SCHOOL REPUTATION
QUALITY OF RESEARCH /
ACADEMIC STAFF
RETURN ON INVESTMENT
ACCREDITATION STATUS
1
2
3
4
5
SCHOOL REPUTATION
RETURN ON INVESTMENT
SCHOLARSHIPS / FINANCIAL AID
CAREER PLACEMENT RECORD
AFFORDABILITY
1
2
3
4
5
SCHOOL REPUTATION
SCHOLARSHIPS / FINANCIAL AID
RETURN ON INVESTMENT
CAREER PLACEMENT RECORD
AFFORDABILITY
1
2
3
4
5
SCHOLARSHIPS / FINANCIAL AID
SCHOOL REPUTATION
RETURN ON INVESTMENT
QUALITY OF RESEARCH /
ACADEMIC STAFF
ACCREDITATION STATUS
1
2=
2=
4
5
20
21. As we saw above, the availability of financial aid is of great importance in terms of where
candidates 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
third in the US & Canada, a reflection of an established culture of taking on debt with a
view to enjoying a return on investment (notably, the second most important factor in
the US & Canada). This may go some way to explaining the presence of affordability in
the region’s top five – also the case for Western Europe. There are, as one would expect,
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-
Pacific and Africa & the Middle East, though it is still in the top five for both regions.
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
accreditation and quality of the academic staff are important for the latter (only those in
Latin America place as much stock in this factor) – this is perhaps reflective of concerns
about 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
22. 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
in five. This we may be able to ascribe once more to our diversified applicant pool, all of
whom may not have the luxury of forgoing their salary for one or two years to study an
MBA or who may crave the flexibility a full-time program just cannot afford.
Fittingly, we also see an increase in interest in part-time and online MBAs – now on the
radar of around a third and nearly one in five MBA applicants, respectively. In the case
of 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
gone up in popularity, though this of course caters for a slightly different demographic –
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
23. 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
format is creeping further ahead in popularity in Latin America. Asia-Pacific and Africa &
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
24. 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
27.8
28.1
28
Global Average
24
25. 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
26. 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
up significantly. The global average this year stands at 28 (the highest point reached in
recent 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).
Applicants in the Asia-Pacific region remain the youngest, while those in Western Europe
are 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.Theexception
is 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
from Asia-Pacific are by some way the least experienced – as has consistently been the
case 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
27. The big story here is that only 11.8% of respondents are currently working in finance,
a significant drop since 2013, when it accounted for 15.3% of respondents – a good
representation 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
the scale of the opportunities on offer and are striving to gain the skills to be able to
capitalize 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.
We see the greatest reduction in applicants working in finance in Western Europe – which
perhaps 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, on the other hand, is dominated by those in financial services. It has the highest
proportion 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
relate to the large scale challenges faced in this region. Asia-Pacific is by far the greatest
contributor 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
29. Demand for scholarships continues to rise. Nearly two thirds of the global applicant pool
are now banking on receiving some kind of financial aid to fund their studies, up 3.6%
from 2013’s figure of 61.1% and very close to 20% higher than 2008’s figure of 45%. No
doubt 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
applicant pool, who may be less willing or able to take on significant debt.
There is little change in the percentage of those using their own savings year on year, but
with this figure now 4.5% lower than 2012’s figure of 13.8%, the long-term trend away
from self-funded candidates is further confirmed. Schools – particularly those outside
the elite – would do well to be alive to these trends. Friends and family remains a fairly
steady but insignificant funding source, but we see a small increase in those expecting
company 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
30. Regional differences pan out as you might imagine. Applicants in the US & Canada are by
far the happiest to take on debt, as is the traditional way of doing things in North America,
while you’re most likely to find those planning to use their own savings in Western
Europe, where one-year MBAs a little further on in one’s career (when one might have
amassed some savings) are the norm. Applicants from Latin America remain the most
focused 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,
is the huge decline in the proportion of candidates in the Asia-Pacific region planning to
fund 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%
Eastern
Europe
10%
8%
18%
5%
58%
Western
Europe
7%
7%
10%
1%75%
Latin
America
7%
23%
13%
4%
53%
US &
Canada
Scholarships Loan Own Savings Parents/Family Company Sponsorship
30
31. 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%
2013
2015
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
32. 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 the MBA classroom, and then
further 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,
in which the applicant pool remains over 50% female. Significantly, this also remains the
case in the US & Canada, where we saw more female than male applicants for the first
time last year. A 2% increase this time round puts it on a par with Eastern Europe. Latin
America comes relatively close to parity, at 46% female, 54% male. Progress in Africa &
the Middle East and Asia-Pacific remains slower, though we see no repeat of last year’s
decline in the proportion of female candidates in the latter.
32
