QS TopMBA Applicant Survey 2013: Overview

The annual QS TopMBA.com Applicant Survey highlights the aspirations, study preferences and demographic trends of a global pool of the business leaders of the future. The 2013 edition of the research reveals a number of notable trends, perhaps the most striking of which is an increasing averseness to risk – testament to the continued aftershocks of 2008’s financial crisis.

Running their own business remains the most common response for where applicants see themselves in a decade’s time, showing that a spirit of entrepreneurship persists. However, the figure of 26.8% represents a continued downward trend, falling from 28.7% in 2011, and 28.3% in 2012. On the other hand, the proportion of respondents that see themselves working as a director in a large company has increased to 23.5% from 19.8% in 2011 - narrowing the gap between the two from 8.9% to 3.3%.

Breaking the glass ceiling

The majority of candidates working in 9 of the 13 industries covered also intend to remain within their current field. The figure is over 75% in consultancy, finance and energy/environmental/utilities. The exceptions to the rule are retail/wholesale, telecoms, education, and ‘other’. Consultancy and finance, unsurprisingly, remain the most popular target industries

Considered in combination with the slight reduction in those aiming to start a business, the suggestion here is that the MBA is being used as a way to break the ‘glass ceiling’ in one’s own industry, rather than a catalyst for a seismic career shift.

MBA salaries: more realistic expectations

Another indication of a more pragmatic mindset is more realistic salary expectations. While in 2012, applicants targeted an average salary of US$126,500, in 2013 the figure stands at a far more plausible US$113,000.

Thuli Skosana, admissions manager at Copenhagen business school, agrees this is the case: “There is certainly recognition that post-MBA salary increases will not be as high as they were in the past, and candidates are more realistic and flexible in their expectations.”

This is echoed by Steve Cousins, MBA recruitment and admissions manager at Cass Business School, who believes that this is indicative of a larger shift in attitude: “The idea of doing an MBA is now less wedded to the sole idea of salary increase.  Broadly, our candidates are looking at the job they want to get and how the MBA can help them get there.  They want a role that pays well but money is lower down on the list of motivations than it used to be.”

Notably, average current salaries have also fallen, from US$44,333 to US$40,000.

Part-time MBA popularity continues to rise

In terms of study plans, the 2013 QS TopMBA.com Applicant Survey shows that, as for every other year since the financial crisis, fewer candidates are considering full-time study among their options – another indication of increased caution as many look to remain in their current positions while they study.

However, the figure of 82.2% represents a drop of only 0.7%, the smallest single-year change in the period in question, suggesting that the decline may be levelling out.

Interest in part-time programs and online programs continues to rise, up from 26.7% to 27.8%, and 15.3% (in 2011) to 16.2% respectively. Though we can read this as the result of increased caution, another potential driver of this growth is a diversified pool of applicants, for whom such study modes makes an MBA a possibility where it wouldn’t have been before.

US and UK lead, but other destinations on candidates’ radars

The UK and US remain the world’s most popular study destinations, but their dominance is showing signs of weakening as applicants increasingly consider other destinations, though with 2.7% more candidates considering studying there, interest in the US has actually increased considerably. Canada (5.4%), Australia (4.8%), Germany (3.4%) and France (2.6%) also appear more frequently on the radars of applicants. The decisive factor for most candidates is where they plan to work after completing their MBA, up to 51% from 41% in 2011.

Asian destinations have also increased in popularity. The high levels of interest in China, in which 7% of candidates are interested, and India, for which the figure stands at 8%, are certainly eye-catching. The fact that 9% of Western European applicants are considering the former seems particularly of note. Singapore still leads the way in Asia, though, and is on the radar of nearly 16% of global applicants.

This increasing interest in Asia is acknowledged by Western schools, as Ashok Som, associate Dean of the Global MBA at ECSSEC, confirms: “ESSEC has recently launched the building of its Singapore campus, a foothold in the Asia Pacific region that opens our opportunities outside of Europe to our students... It's extremely valuable for students to understand the new players in today's global economy.”

Increasing reliance on scholarships

There has been a substantial long-term increase in the number of candidates relying on scholarships, rising from 45% in 2008 to 61.1% this year. Again, this can be read as suggesting a widening applicant pool. Increased prudence may be among the reasons behind the drop in candidates relying on loans – down to 13.8% from 27.4% in 2008.

This is the case at Copenhagen Business School, says Skosana: “Candidates are exploring scholarship options and loans from family rather than financial institutions more frequently. There are more queries about full scholarships, particularly from candidates who come from developing economies.” Cousins echoes this, suggesting that tightened regulations may well have played a part in the decline of students taking out loans.

More female MBA applicants

In terms of demographics, there has been a single-year drop in the average age of applicants in every region expect the Americas, though the global average remains higher than in 2011, and the mean age of applicants in every region is higher than in 2008.

Though outside of the US & Canada, and Eastern Europe (female applicants outnumber male in the latter) it remains firmly entrenched, there is reassuring evidence that gender imbalance is being corrected. Som beleives this is the case: “We are seeing the number of female applicants and the number of female students enrolled increase year to year.” The range of sending countries is diversifying, he continues, “This year, we have women representing the US, Russia, Qatar, China, Taiwan, and Indonesia.”

Skosana echoes this, “We have seen a steady increase in applications from female candidates from emerging markets such as China and India.”

The full 2013 QS TopMBA.com Applicant Survey discusses these and other global and regional trends in greater detail, with expert commentary from report authors Nunzio Quacquarelli and Danny Byrne.