© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Graduate Management...

© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.

Graduate Management Education Trends 2014

Glenda Lucas | Market Development, Senior Manager, AmericasGraduate Management Admission Council

MAACBA| October 2014


Agenda

• Global Student Demand

Application Trends and Candidate Messaging

US Market Specifics

• Jobs and Corporate Recruiters


GMAC Research

GMAT Trend Analysis

GMAC Survey Research

GMASS Search Service


Global Demand for Graduate Management DegreesGMAT Exams Taken Worldwide Since Testing Year 2001

TY01 TY02 TY03 TY04 TY05 TY06 TY07 TY08 TY09 TY10 TY11 TY12 TY13 TY14

244,655265,613

286,529

243,529Exams Taken

TY2014

Source: GMAT® Exams Taken Data: TY2001 to TY2014

IR Impact


Global Demand for Graduate Management Degrees

243,529Exams Taken

TY2014

“Unique” Rate = 78% 188,927

Unique Examinees TY2014

Regional Differences:North America: 85% unique | APAC: 69% unique

Source: GMAT® Data Analysis


Discovering Talent Worldwide188,927 Unique GMAT Examinees in TY2014

North American 79,037 Examinees-9% Compound Annual Growth Rate Since ‘10

European19,248, -1%

Mexican &Latin American5,585, -2%

Middle Eastern& African11,279, -5%

Asian-Pacific73,778, +4%

Source: GMAT® Examinees by Region of Citizenship


Student Characteristic Trends

Younger Candidates

Women

Specialized Masters

Global Trends‘10 to ‘14

Younger than 2542% 48%

Women40% 42%

Scores Sent22% 30%

Source: Unique GMAT examinees and scores reports sent.


Asia-Pacific Europe North America Middle East- Africa

LATAM

47% 47%42%

29%20%

57% 57%

41%

29%20%

TY2010 TY2014

Region of Citizenship

Youth Movement in Europe and Asia% of GMAT Examinees Younger Than 25

Regional Variation – European ExampleYounger: France (69%), Germany (68%) | Older: UK (31%), Portugal (35%)

Source: GMAT® Unique Examinees by Citizenship


More Women in Asia% Women among GMAT Examinees

Asia-Pacific North America Europe Middle East- Africa

LATAM

43% 39% 38% 36% 35%

49%38% 37% 39% 35%

TY2010 TY2014

Region of Citizenship

Regional Variation – APAC Example

More Women: China (66%), Vietnam (59%) | Fewer Women: India (28%), S. Korea (33%)

Source: GMAT® Unique Examinees by Citizenship


Masters in Educational LeadershipMasters in Communications

Masters in Engineering ManagementMasters in Entrepreneurship

Masters in Real EstateMasters in Hospitality

Masters in Health AdministrationMasters in HR, Ind. Relations, or Org. BehaviorMasters in Public Admin. or Public Policy Mgt.

Masters in Supply Chain Mgt, Logistics, or Ops.Masters in International Business

PGD - 2yearMasters in Economics

Masters in ITMasters in Marketing

PhD in BusinessMBA, Distance or Online

EMBA, 2 YearsPGD - 1 year

Masters in Business or ManagementMasters in Finance

Masters in AccountingMBA PT

MBA FT 1-YearMBA FT 2-Year

502533705737357509651,0411,3031,3701,8092,4262,7393,2313,479

5,2496,670

8,0878,861

16,24816,347

19,97532,407

35,54980,145

The large portfolio of GME degrees

Individuals sending GMAT score reports to various GME programs, TY2014

Up Since ‘10 Down Since ‘10


Interest in specialized business master’s programs has increased over the past five years, but MBA programs remain the dominant program type that mba.com registrants consider for their advanced business education

% of mba.com Prospective Students indicating program consideration, 2013


Women Men < 25 25 to 30 31+ 0 1 to 3 4 to 9 10+ Gender Age Years of Work Experiecne

37%

63%

36%45%

18% 16%

37% 36%

11%

49% 51%

68%

23%

9%

46%

32%

15%6%

MBA Degrees Non-MBA Business Masters Degrees

Unique Examinees Sending Scores in TY2014 by Degree Type

Note: Unique GMAT examinees sending scores by program group 3 classification

Distinct Pipelines


Globally, fewer programs reported increases in specialized masters applications in 2014.

2009 2010 2011 2012 2013 2014

63% 62% 69% 73%61%

58%

Master in Management% of Programs with In-

crease

2009 2010 2011 2012 2013 2014

68% 65%83%

57%42% 37%

Master in Finance% of Programs with

Increase

2009 2010 2011 2012 2013 2014

78%62%

51%

74%

35%48%

Master of Accounting% of Programs with

Increase

Source: GMAC Application Trends Survey 2014. Note: previous year data may differ slightly from public reports due to late survey respondents. Differences, however, would be minor.


One Possible Reason

TY2010 TY2011 TY2012s TY2013s TY20140

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

23,331

29,613

35,22637,383 36,085

Chinese Citizens: Unique GMAT Examinees

Source: GMAT® Examinees by Citizenship. TY2012 and TY2013 smoothed to adjust for IR testing spike in TY2012.

Note: Testing in China has jumped in July and Aug 2014


Why are new pipelines so important?

36,085 Citizens

23,747 Citizens

GMAT Examinees TY2014

Student Age Population Change

2012 to 2020

205m 225m+18m, +9%

225m 188m-38m, -17%

Source. GMAT Testing Data TY2014. US Census Bureau International Data Base. Retrieved April 2013

Expectations for Tomorrow


Globally, FT MBA programs show signs of stabilization while PT MBAs struggle

2009 2010 2011 2012 2013 2014

42% 43% 41% 44%

29%

44%

PT MBA% of Programs with

Increase

2009 2010 2011 2012 2013 2014

69%

49%33%

47% 49%37%

FT MBA 1-Year% of Programs with

Increase

2009 2010 2011 2012 2013 2014

64%

41%28%

43%50%

61%

FT MBA 2-Year% of Programs with

Increase



Will Specialized Masters Degrees ErodeMBA Pipelines of Tomorrow?

Accounting Masters Finance Masters Management Masters

31%

46%38%

19%8%

24%

50% 46%38%

Likely Uncertain Unlikely

How likely are you to consider an MBAnow that you’ve earned a specialized masters?

Source. GMAC Graduate Management Education Graduate Survey (GMEGS) 2014.

Question answered by 2014 grads!


Time Frame When Students Develop Short List of Business Schools, by Average Number of Months Beforethe GMAT Exam, and by Citizenship

mba.com Prospective Students, 2013


Top Motivations

Increase Job Opportunities (66%)Increase Salary Potential (64%)Develop Business Knowledge,

Skills, & Abilities (63%)

Source: GMAC mba.com Prospective Students Survey, 2013

Moving Beyond One-Dimensional Student Motivations

ReligionPolitics and public life

Volunteer workEntertainment

CommunityThe environment

WealthTravel

RelativesFree time and relaxation

Friends and acquaintancesFamily and children

Career and workFinancial security

4.04.3

4.75.25.25.35.45.55.55.6

5.96.06.16.1

1 = Not at all Important

7 = Extremely Important

Psychographic Drivers of Prospects


US Testing Specifics


US Business Schools – Professional Degrees % of Programs with Application Growth by Year

2009 2010 2011 2012 2013 2014

39% 39% 40% 42%

28%34%

PT MBA (n=92)

2009 2010 2011 2012 2013 2014

32%45% 42%

55%

32%39%

EMBA (n=33)


2009 2010 2011 2012 2013 2014

75%58%

33%

62%43% 43%

Online MBA (n=15)


US Business Schools – Full-Time Degrees % of Programs with Application Growth by Year

2009 2010 2011 2012 2013 2014

61%

40%29% 32%

52%62%

FT MBA 2-Year (n=101)


2012 2013 2014Domestic Candidates 22% 38% 48%Foreign Candidates 41% 56% 65%

US FT 2-Year MBA Programs withincreasing applications by applicant type

Programs with Growth by US RegionOverall Apps vs. Domestic Apps

• Midwest: 67% vs. 34%• West: 65% vs. 52%• South: 63% vs. 55%• Northeast: 54% vs. 44%


US SchoolsGMAT Scores

Received % of total

1. FT MBA 2-Year 246,540 49%

2. PT MBA 59,535 12%

3. Master's in Accounting 58,715 12%

4. Master's in Finance 33,322 7%

5. FT MBA 1-Year 21,084 4%

Top 5 Subtotal 419,196 83%

US Total 503,708 100%

Top 5 Program Types ReceivingGMAT Score Reports in TY2014

Source: GMAT Score-Sending Trends TY2014


US Student Pipeline Characteristics

Middle At-lantic

Midwest Northeast South Southwest West

38% 38% 41% 42% 41% 38%39% 40% 41% 42% 40% 40%

TY2010TY2014

Middle At-lantic

Midwest Northeast South Southwest West

41% 43% 42%47%

40%

30%

40%46% 44%

51%42%

33%

TY2010TY2014

% Women

% Younger Than 25

Source: GMAT® Unique Examinees by Residence


GMAT Examinees by US Metro Area of Residence TY20145 Year

Growth Rate

Change from

TY2013New York-Northern New Jersey-Long Island, NY-NJ-PA 10,384 -9% -4%Los Angeles-Long Beach-Santa Ana, CA 4,114 -9% 1%Chicago-Naperville-Joliet, IL-IN-WI 3,925 -9% -5%Washington-Arlington-Alexandria, DC-VA-MD-WV 3,319 -8% 0%Boston-Cambridge-Quincy, MA-NH 3,038 -11% -7%Houston-Sugar Land-Baytown, TX 2,793 -6% 1%Dallas-Fort Worth-Arlington, TX 2,500 -8% -10%San Francisco-Oakland-Fremont, CA 2,393 -8% 0.3%Atlanta-Sandy Springs-Marietta, GA 2,186 -11% -7%Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2,137 -8% -1%Seattle-Tacoma-Bellevue, WA 1,509 -5% 4%Miami-Fort Lauderdale-Pompano Beach, FL 1,445 -6% 4%San Diego-Carlsbad-San Marcos, CA 1,239 -6% -1%Minneapolis-St. Paul-Bloomington, MN-WI 1,184 -10% -7%Detroit-Warren-Livonia, MI 1,121 -8% -5%San Jose-Sunnyvale-Santa Clara, CA 1,100 -11% -4%Denver-Aurora, CO 1,039 -8% -6%Pittsburgh, PA 914 -4% -2%Tampa-St. Petersburg-Clearwater, FL 882 -5% -11%St. Louis, MO-IL 849 -8% -6%


Change in GMAT Examinees from

TY2013

Growth• Seattle: 4%• Miami: 4%• Houston: 1%• LA: 1%

Decline• Atlanta: -11%• Boston: -11%• San Jose: -11%• Minneapolis:

-10%

GMAT Examinees by US Metro Area

GMAT Examinees by US Metro Area of Residence Women Younger Than 25

MBA or EMBA Interest

Business Undergrads

New York-Northern New Jersey-Long Island, NY-NJ-PA 41% 40% 74% 51%Los Angeles-Long Beach-Santa Ana, CA 41% 32% 76% 45%Chicago-Naperville-Joliet, IL-IN-WI 37% 33% 77% 50%Washington-Arlington-Alexandria, DC-VA-MD-WV 39% 29% 79% 40%Boston-Cambridge-Quincy, MA-NH 40% 39% 74% 45%Houston-Sugar Land-Baytown, TX 42% 36% 69% 54%Dallas-Fort Worth-Arlington, TX 40% 41% 61% 57%San Francisco-Oakland-Fremont, CA 44% 29% 79% 40%Atlanta-Sandy Springs-Marietta, GA 40% 40% 66% 61%Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 38% 39% 76% 53%Seattle-Tacoma-Bellevue, WA 42% 33% 71% 48%Miami-Fort Lauderdale-Pompano Beach, FL 42% 56% 55% 66%San Diego-Carlsbad-San Marcos, CA 37% 30% 75% 44%Minneapolis-St. Paul-Bloomington, MN-WI 40% 34% 80% 51%Detroit-Warren-Livonia, MI 38% 45% 73% 55%San Jose-Sunnyvale-Santa Clara, CA 42% 26% 80% 34%Denver-Aurora, CO 41% 39% 56% 55%Pittsburgh, PA 39% 48% 79% 57%Tampa-St. Petersburg-Clearwater, FL 41% 49% 59% 68%St. Louis, MO-IL 40% 52% 65% 61%


Characteristics of GMAT Examinees by US Metro Area


GMAT Scores Received by School Location TY2014 5 Year Growth

RateChange Since

TY2013California 72,327 -3% 8%New York 62,829 -4% -2%Massachusetts 52,563 -4% 2%Illinois 39,678 -4% 1%Texas 36,893 -3% 1%Pennsylvania 30,801 -5% 2%North Carolina 19,483 -5% 1%Florida 16,593 -6% -6%Michigan 12,936 -5% -1%Georgia 11,271 -9% -2%Ohio 11,162 -8% -5%Indiana 10,388 -5% 2%Virginia 9,045 -6% -2%Maryland 8,959 6% 15%District Of Columbia 8,257 -8% -2%Connecticut 8,229 -2% 7%Washington 8,040 -1% 14%Missouri 7,013 -5% 1%Tennessee 6,992 -5% 3%New Jersey 6,528 -9% -9%

Source: GMAT® Score Sending Data

GMAT Score Reports Received by US State

Change in GMAT Score Volume from

TY2013

Growth• Maryland: 15%• Washington: 14%• California: 8%• Connecticut: 7%

Decline• New Jersey: -9%• Florida: -6%• Ohio: -5%• New York: -2%

GMAT Scores Received by School Location

% Non-US Citizens

% US Citizens

% MBA and EMBA Programs

% Non-MBA Masters Programs

% Other Programs (e.g., PhD)

California 56% 44% 79% 19% 2%New York 62% 38% 65% 32% 3%Massachusetts 65% 35% 75% 22% 3%Illinois 56% 44% 75% 22% 2%Texas 47% 53% 60% 35% 4%Pennsylvania 55% 45% 78% 18% 3%North Carolina 42% 58% 71% 26% 3%Florida 38% 62% 52% 42% 5%Michigan 52% 48% 71% 26% 3%Georgia 38% 62% 70% 26% 4%Ohio 55% 45% 57% 39% 4%Indiana 54% 46% 72% 24% 4%Virginia 41% 59% 70% 27% 3%Maryland 68% 32% 41% 56% 3%District Of Columbia 51% 49% 63% 36% 2%Connecticut 56% 44% 82% 16% 3%Washington 47% 53% 67% 28% 5%Missouri 44% 56% 51% 30% 20%Tennessee 24% 76% 66% 31% 2%New Jersey 51% 49% 58% 38% 4%

Characteristics of GMAT Examinees Sending Scores to Top 20 US States


Job Outcomes in 2014


How students view their economy% of prospects perceiving regional economy as stable or strong

Jan 2009

Jun 2009

Nov 2009

Apr 2010

Sep 2010

Feb 2011

Jul 2

011

Dec 2011

May

2012

Oct 2012

Mar

2013

Aug 2013

0%10%20%30%40%50%60%70%80%90%

APAC North America Europe

Until 2011, prospects worldwide sensed a modest recovery

Source: GMAC mba.com Prospective Students Survey. Data by residence and smoothed by three months.


A tale of three regions since 2011

How students view their economy% of prospects perceiving regional economy as stable or strong

Jan 2009

Jun 2009

Nov 2009

Apr 2010

Sep 2010

Feb 2011

Jul 2

011

Dec 2011

May

2012

Oct 2012

Mar

2013

Aug 2013

0%10%20%30%40%50%60%70%80%90%

APAC North America Europe

Source: GMAC mba.com Prospective Students Survey. Data by residence and smoothed by three months.


More Companies are Hiring

2007 2008 2009 2010 2011 2012 2013 2014*

64% 59%50%

62%72% 71% 73%

80%

% of Companies HiringMBA Graduates

* 2014 Planned MBA HiringSource: GMAC Corporate Recruiters Survey, 2014

The percent of companies planning to hire MBAs reached 8-year high in 2014.


Northeast South Midwest West

84% 81% 83%76%

87%81%

91% 87%

% companies hiring MBAs

2013 (actual) 2014 (planned)

% o

f com

pani

esHiring Expectations Among US Companies

Source: GMAC Corporate Recruiters Survey 2014. Not enough 2014 data available for Middle Atlantic and Southwest. 2012 planned shown for these regions.


The MBA PremiumExpected Median Starting Salaries for Recent Business Graduates

$95,000

US Companies

$69,000

European Companies

MBA

Source. GMAC Corporate Recruiter Survey 2014



$95,000

$75,000*

$73,000

$63,000

US Companies

$69,000

$55,000

$57,000

$52,000

European Companies

MBA

Masters in Management

Masters in Finance

Masters of Accounting

Source. GMAC Corporate Recruiter Survey 2014*Source. GMAC Corporate Recruiter Survey 2013



$95,000

$75,000*

$73,000

$63,000

$50,000

US Companies

$69,000

$55,000

$57,000

$52,000

$41,000

European Companies

MBA

Masters in Management

Masters in Finance

Masters of Accounting

Bachelors Degree (All Fields)

Source. GMAC Corporate Recruiter Survey 2014*Source. GMAC Corporate Recruiter Survey 2013


Summary

• GMAT trends indicate general softening

• World regions with strong interest in specialized masters programs tend to have a greater share of women and younger candidates taking the GMAT

• App trends show a mixed picture for MBAs and moderating for specialized masters as China slows

• The US job market continues to stabilize for graduates


Questions?Glenda Lucas I [email protected]

Thank You!

mailto:[email protected]

© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Graduate Management...

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