More than half of graduate business school alumni are currently employed in an industry or job function they did not have experience in prior to entering business school, according to a report released by the Graduate Management Admission Council (GMAC).
The findings from the Council’s 2017 Alumni Perspectives Survey show that two in five (39 per cent) alumni learned of new opportunities while enrolled in a graduate business programme, and 88 per cent said that they are satisfied with their job and employer.
“Year after year, our research has shown that a graduate management education offers significant personal, professional and financial rewards. We’re now seeing strong evidence of how valuable the degree is with regard to changing careers,” said Sangeet Chowfla, president and CEO of GMAC. “Given the current pace of change in the economy and the workplace, candidates can be confident in the knowledge that a graduate management education can prepare them with the skills and flexibility they need to be in a better position to pivot and adapt their careers when opportunities present themselves and industries are disrupted.”
The report details the education and career outcomes of nearly 15,000 graduate business alumni representing 1,100 graduate business programmes located around the world. It highlights that the value proposition of a graduate business degree is high regardless of graduation year or programme type. The key findings are:
Compensation
Ninety-five per cent of the respondents rated their graduate management education in between ‘good’ and ‘outstanding’. On average, the total compensation package can range from a median of $75,513 for an entry-level position upward to a median of $440,122 in total compensation for a C-suite executive. Business school alumni earn 76 per cent of their total compensation in base salary, on average. As they advance the career ladder, a greater proportion of their compensation comes from non-salary sources such as bonuses.
Employment profile
Ninety-two per cent of survey respondents are currently employed — eight in 10 (81 per cent) worldwide are employed with a company and 11 per cent are self-employed entrepreneurs. Globally, the products and services (27 per cent), technology (14 per cent), and finance and accounting (11 per cent) sectors employ the greatest proportion of alumni represented in this survey. Though alumni work across the spectrum of industries, their degree type often differentiates career paths. MBA alumni are more likely to work in technology, non-profit and government, manufacturing, health care, energy, and utilities, compared with alumni holding non-MBA Master’s degrees. Business Master’s alumni, for example, are more likely to be found employed in finance, accounting and consulting industries.
As for job functions, MBA alumni are more likely to hold positions in marketing, sales, operations, logistics, and general management. Alumni of non-MBA business Master’s degrees are more likely to work in finance, accounting, and human resource positions.
In total, more than four in five alumni agree their education prepared them for leadership positions (86 per cent), prepared them for their chosen career (85 per cent), and increased their earnings power (82 per cent).
Entrepreneurship
Most alumni delay their entrepreneurial activities until after graduation. In fact, two in three alumni entrepreneurs began their business after graduation following employment at another company. One in eight alumni entrepreneurs sought venture capital and 72 per cent of these individuals received such funding. Half of the alumni entrepreneurs say their university provided faculty guidance, experts from the community, and mentors to guide their entrepreneurial activities.
Valued skills
Alumni rank interpersonal skills as most important in the workplace, regardless of job level or function. Among the top five talents important to their job, the ones related to “people” skills or emotional intelligence are highly ranked by alumni, with interpersonal skills, such as active listening, persuasion and negotiation, and time management, topping the list.
Alumni in higher-level positions are more likely to indicate that managing human capital, strategy and innovation, and the decision-making process are more important.
Alumni recommendations
Most alumni are likely to recommend their graduate business programme to colleagues and friends. The overall Net Promoter Score — a customer loyalty metric that business schools receive from their alumni — is 47, which is greater than scores received in many sectors of the economy. Net Promoter Scores are positive for all graduate business programmes, although differences by programme type range from 22 for Master in Management programmes to 62 for full-time two-year MBA programmes. If offered the choice, more than nine in 10 (92 per cent) alumni would have pursued their graduate management education knowing what they know now.
To download the GMAC 2017 Alumni Perspectives Survey Report, visit: gmac.com/alumniperspectives.