How Applicants Select Target B-Schools

MOST PROSPECTIVE STUDENTS’ TARGET LISTS INCLUDE SAFETY & STRETCH SCHOOLS

At the same time, however, the majority of prospective students (53%) also have identified safety schools. Those with high GMAT exam scores are equally as likely as those with lower GMAT scores to have selected safety schools. A majority of Millennial (55%) and Generation Z (59%) cohorts are most likely to consider “stretch” schools, even though they may not qualify (see above table).

On average, prospective students considered 2.8 program types in 2015, down from 3.1 in 2014. For their postgraduate careers, 71% of those surveyed cited a single industry of interest, compared with 58% in 2014. In addition, 61% of prospective students cited a single job function of interest, compared with 46% in 2014. The economy, GMAC researchers said, may play a role in this phenomenon as prospective students may perceive it to be easier to go after their “dream job” in this market compared with the post-recession years.

GMAC said that students deciding to enroll in a graduate business program typically have three general career goals in mind for their postgraduate employment: 1) continue on their current career path, 2) switch careers, or 3) start a business. The majority of full-time MBA applicants anticipate they will either continue along in their existing career path (27%) or switch career paths into another job function or industry (43%).

THREE IN TEN PROSPECTIVE MBA STUDENTS WANT TO START THEIR OWN COMPANIES

Overall, three in ten prospective full-time MBA students (29%) surveyed in 2015 expressed a desire to start a business, a decline from 30% percent who declared such interest in 2013 and 2014.

“Entrepreneurship as a goal is most prevalent among those who prefer to study in a full-time MBA program,” the study found. “Prospective students working in senior (28%) or executive (37%) positions are more likely to consider entrepreneurship as a postgraduate goal than those who are currently in entry-level (21%) or mid-level (23%) positions.

“Regional economic conditions may be an indicator of the likelihood to pursue entrepreneurship. As individuals perceive that economic conditions are improving, their desire to start a business declines, GMAC said. “In a growing economy, there are more jobs available, so prospective students may feel more confident about finding employment and less of a need to set off on their own.”

GMAC survey data shows that prospective students appear to be more selective or deliberate today regarding their expected job outcomes after graduation. An improving economy may play a role in this phenomenon. Rather than aiming broadly at a number of industries, nearly three-quarters (71%) of prospects cite a single industry of interest for postgraduate employment compared with only 58% who had such well-defined career goals in 2014. Similarly, prospects are more singularly focused on pursuing one particular job function in 2015 (61%) compared with 2014, when only 46% of prospective students were so deliberate about their postgraduate job choices.

“As more job opportunities open up,” the survey found, “prospective students may perceive it to be easier to go after their dream job rather than thinking about plausible alternatives. Overall, the top industries they target for postgraduate employment are similar to previous years’ findings and include consulting (32%), finance and accounting (31%), and products and services (25%), although by generation, Baby Boomers are most likely to seek jobs in the nonprofit/government sector.

TOP INDUSTRIES IDENTIFIED FOR POST-GRADUATE EMPLOYMENT BY GENERATION