Noticing his own obituary in an 1897 newspaper, Mark Twain famously wired the editor, ‘The report of my death was an exaggeration,” and went on to live for another 13 fairly productive years.
The anxious glances by professionals considering an MBA or executive MBA are similarly exaggerated.
Despite the gloomy front-page stories in early 2009 the economic downturn will not be the death of MBA recruitment or business school applications.In fact, the opposite is true — the MBA culture is countercyclical.
This means that many professionals who have lost their jobs and received a payoff, or perhaps are just feeling insecure in their positions, are sensibly viewing the downturn as the perfect time for business school.
They rightly feel they can ace that MBA and hit the ground running when the upturn happens. MBA recruiters — the best yardstick of the value of an MBA — are not going to be bitten as they were in 2001, when they took a conservative line on hiring, leaving them with a dearth of qualified leaders when the inevitable upswing occurred.
This in turn influenced business school recruitment: applications decreased and some reported the death of the MBA boom. This time around, though, there’s news of job losses and hiring freezes, especially in finance, MBA recruiters are being far less cautious.
Nuria Guilera, admissions director at ESADE, a top business school in Spain, observed that the ESADE MBA Career Fair in October last year featured 30 companies, an increase on 2007, and only the recently folded Lehman Brothers had dropped. ‘The real economy is still business as usual and looking to hire MBAs,” says Guilera, though she adds that ‘it is perhaps too soon to know whether the situation will improve or deteriorate.”
Judith Hodara, associate director of admissions of The Wharton School in Pennsylvania, thinks the outlook is bright: ‘MBA recruiting results for the class of 2008 were outstanding, both in terms of job offers and salaries achieved by MBA graduates — ahead of levels achieved in 2007.”
For the risk-averse, a secure current position may have more appeal. For the increasing numbers for whom the situation is less secure or those who know that the benefits of an MBA outweigh the risk, now is the time to get researching, get those applications in and save a seat at a top business school.
Nunzio Quacquarelli, managing director of the QS World MBA Tour, says there are several reasons for a spike in interest and applications to business schools. ‘Some young professionals are choosing to try and sit out the downturn in business school while for others it’s a more calculated decision. Either way, during tough economic times getting an education will put you in a fantastic place to get ahead into a strong management position during the upswing.”
For thousands of young professionals, now is the time to get moving, get that necessary MBA education and advance your career in time for the rebounding economy. It’s one sure way to show that career atrophy is an exaggeration. — www.topmba.com
Ross Geraghty is managing editor of the TopMBA Career Guide