Applications to MBA programs are up 12% nationwide.
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Although companies are shunning college degrees as a requirement for employment, applications for MBA degrees are rapidly increasing. The Graduate Management Admissions Council says applications for graduate b-school programs have increased by 12% over last year. In fact, 80% of responding schools reported growth in their two-year MBA programs. (For example, New York University’s Stern School of Business has seen a nearly 40% increase in MBA applicants). Meanwhile, nearly half of companies plan to eliminate bachelor’s degree requirements this year. CNBC says the measure could benefit about 62% of U.S. workers without a degree. However, more than half of mid-level roles and almost 20% of senior-level roles now require no undergraduate education, let alone a master’s degree, according to results published by Intelligent.com. So why are Gen Z students rushing to earn an MBA, even though many employers don’t use education as a hiring criterion? Is an MBA the experience Gen Z applicants are missing? ?
Job Requirements: Overcoming Gen Z’s bad reputation
Gone are the days when a diploma was a surefire way to get a job, says Jason Wingard, a senior contributor at Forbes magazine. “Employers no longer trust that college graduates will come into the company with the skills they need to get the job done,” he said. Companies are casting a wider net to find promising applicants who were previously disqualified for not having a bachelor’s degree. I’m thinking.”
Applications to MBA programs in 2023 decreased by 4.9% year over year, the largest decline in the past five years. Perhaps the surge in applications is offsetting past declines. Forbes reports that there is a well-documented lack of motivation, professionalism, and communication skills among college graduates. In fact, a recent survey found that 75% of companies are dissatisfied with their Gen Z workforce. Can MBAs counter the poor treatment Gen Z is experiencing in the workplace?
For students, earning an MBA builds life skills to manage their entire career. Additional education can contribute to professionalism and balance some of the challenges Gen Z faces based on current workplace sentiment. An MBA program experience provides an introduction to valuable business skills as well as exposure to new contacts, new awareness about employers and opportunities. An advanced degree can demonstrate a high level of commitment to your career. But education isn’t everything. More skills are involved.
Tracking tech layoffs: Does an MBA make a difference?
Two years ago, the job market for MBA graduates was hot, according to the Financial Times. Today, The Tech Layoff Tracker reports that more than 151,000 people will be affected by layoffs in 2024. While this number may sound bad, it’s not as bad as the 430,000 white-collar workers laid off in 2023. Starting salaries for MBAs are decreasing. It is now just 86% of its level eight years ago (adjusted for inflation). Still, starting salaries for MBAs are about 20% higher than new roles for undergraduates in economics or finance, according to details from Revelio labs.
To succeed in a skills-based job interview and demonstrate your competency for the position, Gen Z requires more than just an advanced education. Companies are looking beyond degrees, and that’s a good thing. But having an insight into the world of work is better, and the really advanced classes work on communication skills. As Stella Adler famously said, “It takes talent to match talent.” Your degree probably isn’t the deciding factor in getting your next job, but how you tell your story is. Always important.
Getting and keeping a job doesn’t start with where you went to school. So what is the real value of an MBA? The answer, as all MBA case studies show, is that it depends. The value of education remains determined on an individual basis, demonstrated by behavior, and communicated through communication. After all, education is what you make it. That applies not only to Gen Z, but to all other generations as well. How you communicate your skills and personal value proposition will reveal your true value.
