GMAT Exam – Career Opportunities | Best MBA Colleges | MBA Salary Trends

GMAT Exam – Career Opportunities | Best MBA Colleges | MBA Salary Trends

August 27, 2019 3 By Stanley Isaacs


Seher is marketing manager of the entire south asia region of GMAC GMAC the organization that holds your GMAT test and that provides your information to the MBA schools of your choice Sehar is going to be talking about the current trends in the hiring market in the school selection that’s made by the students and she is also going to talk about the most talked about subject or topic in the u.s. the changes in the US visa and the impact that those changes have had. Welcomes Sehar we’re really very excited to have you. thank you Good morning everyone first of all I’m really surprised to see this hall full of people at and some of you were here at 8:00-8:30 which is amazing I mean it’s very rare to see students show up on a Saturday morning for a session in the hall that – you know where Bangalore’s weather is amazing I just flew yesterday night where it was really like nice breeze and the best but that’s the best part but the worst part is with the traffic conditions so I think all of you deserve an applause to be here in the morning it it in a hall and ready for the whole day so cheers to you and it’s amazing dedication that you guys are showing so all the best. Before I begin I just like to tell you what I’m going to cover in the session today and I am gonna talk about some of the trends like Payal said what are the market trends that are going on globally as well as in India I’m also going to cover some of the hiring trends so GMAC is its Graduate Management Admission Council. We are a non-for-profit organization we are based out of US and what we do is we actually own and host the exam called GMAT which I’m sure all of you are aware of so I’m not going to talk about GMAT in general and that’s how we’re going to talk about mostly things that you might not know the other thing that GMAC also owns is the NMAT exam. I thought I’ll just introduce I’m sure many of you know NMAT is Narsee Monjee Institute you guys have heard of it? Yeah, okay so yeah so we acquired the NMAT exam from Narsee Monjee and this is basically an example domestic so in case you interested to study in India there are some 50 schools which except NMAT there’s also an EA exam. So, EA is basically Executive Assessment which is also owned by us we it’s basically a Career Readiness exam which is if you have work experience of eight years plus, then EA makes more sense as compared to GMAT and maybe if there are any questions you can come to me after the session on this. This is what the organization that I represent is actually and this one slider will tell you everything about what we do. We started in 1953. We were started by about nine business schools which you know just came together and said you know how do we hire. How do we select candidates for our B-School admissions and there was the GMAT. It was born in 1953 and now about 2,300 B-schools accept GMAT. It’s accepted in 114 countries there are 7000+ programs which accept GMAT and this includes not just the MBA so I’m here to also bust some of the myths of which people think that you know GMAT means MBA but that’s not true there are lots of STEM programs, there are lots of MiM programs that accept MBA. Accept the GMAT so we’re going to talk about career opportunities later there are about 250,000+ students which write GMAT every year in NMAC like I said there are about 80,000 to 90,000 students that write in NMAT in India and what’s most interesting is the one that you see at the bottom most that 9/10 admissions, this data we are very proud of it that’s why we put it in this slide. 9/10 MBA enrollments you know across top fifty schools are made using a GMAT score. The bottom left number that you see the research I don’t know if you all of you can see it but I’m sure you must be wondering what is this research that you know you’re talking about. So, today what I’m going to present is a part of research that GMAC does every year. We actually do a lot of research with prospective candidates who actually make their profiles in MBA.com. So, there are some research questions that we put up also there is some research that we do with corporates. So, last year we actually interviewed about 1200 corporates and these corporates we asked them about What their hiring plans are? What is the salaries that you’re willing to you know give to MBA grads or to MIM grads and we have a lot of then trending data because this data is across actually 1,200 companies who are the Top Fortune 500 Fortune 100 startups so it’s across sectors across positions is what we interview. I’m going to show some of that research to you today I think we’ve covered that the agenda is covering market trends hiring trends H-1b visa program there’s a lot in the news I’m sure you’re reading so I’ll cover a little bit on that and then career opportunities. So, actually before we begin I’m going to tell you about what has happened overall in global like the global market what is happening this is one of the data that I picked from FT actually which is Financial Times. they put up ranking of MBA programs as well as MIM programs. as well as eMBA which is the Executive MBA and you see if you see the graph, in middle, is the one for the MBA program so when you see that earlier actually in 2002-2018 how the trend has become so earlier US when I say North America obviously I mean US was actually predominant or when you talk about MBA everyone just wanted to go to the US because they had you know the best MBAs and the programs across who were obviously if you wanted a salary hike or you wanted a change in profession that’s the destination that you were looking at but now when you see that more and more of Europe and Asia pacific though Europe is actually the Green Line that you see and the Asia Pacific is the red line graph that you see. So, more and more Asia Pacific and Europe is coming up with their programs and these are the top FT rank programs. On the left that you see is your MiM programs. MIM is Masters in Management. Are you guys aware of the MIM programs? yeah I see some nods so this is actually predominantly in Europe so that’s why you see the line graph of the top 50 programs in Europe but that you also see that the trend is that some of the though there right at the bottom but some of the asia-pacific programs the red graph is coming up and obviously there’s also executive mba where and you’re seeing that more and more Europe Asia Pacific is coming up as destinations in and the US is kind of coming down it’s not that it’s coming down as just other destinations are coming up more and taking the space this is to tell you that US is still the most popular destination this data is around actually a trends of 3 years of GMAT score sending data when you see US was 50% in 2016 basically Indian test takers would send 50 percent of their wood skills and their scores to the u.s. programs now that has come down to 37 percent and all the other destinations are growing up obviously this is a share of the US that has come down other destinations are coming up there’s India obviously you we have ISB we have a lot of other programs that are coming up in India which are one of the top most there’s also Canada as a destination that has eaten up a lot of share of US then there’s also France, UK and Singapore so we are going to talk about some of these programs they have cost effective programs where in the ROI is turning out to be much better as compared to if you do you know sometimes in the US where you spending much more and your ROI is not you’re not getting it as you would expect there are also some recent H-1b changes that have happened some of them have been positive some of them not so but I am talk a little about those as well so this is a recent rule. I don’t know how many of you have read but would you know about this change that has happened in the H-1b program about the advanced masters so master’s degree is given preference for an h-1b how many of you know about this I just wanted to get a feel of okay so quite a few of you knows so this was effective April 1st so basically what has happened is that there are 85,000 visas which are H-1B visas which are given surah that 60 65,000 is it’s a lottery system as we all know the 20,000 is additional visas have been reserved for people who have a master’s degree from the US so automatically your chances to get an h-1b work permit basically in the US has become slightly higher about 16 percent chances of you getting an h-1b is higher if you have done your advanced degree from the US. This is what the news is this has already been applicable from April 1st and with this we will see I’m sure a lot of US hiring also increasing because of this change because companies will now know that you know there is a higher probability of people who have an advanced degree to get an h-1b so definitely hiring is going to be impacted by this in a positive way. There are some I wouldn’t say that there’s just this positive news and everything is great because guess the Trump’s policies and we have read I’m sure you guys are also following the news every two weeks there is something that comes up like I read like last 15 days something came up that spouse visa which is the H4 visa now that would be banned So, you know it’s not it’s the policy has not been out yet it’s not been written it’s not been applied but there are plans to you know have maybe the H4 visa which is the spouse visa might be not to be anymore given to the h-1b holders so that’s one of the negative news that has come out so in case you’re planning to obviously settle abroad which most of you would plan to if this comes into place then obviously it’s a little bit of a hiccup the other thing that I read was that some of your social media profiles which is a music that social media profiles will also be screened now you know your last five years social media profile will be looked at while if you’re applying for an h-1b but these are just these are not implemented yet the policies are not out yet it’s just plans but this one I’ve put it up on the slide is because this plan is already effective this is from April first this has already started taking place so this is some great news for people who want to study or in the u.s. so globally actually the interest in MBA is still strong or you see like these are all test takers not just India when you see the 3-year GMAT score sending data you see that MBA interest is still 50% of people are still it’s send and their scores for MBA programs. Masters has started picking up business masters has started picking up and then there is obviously PhD and other programs. For India however MBA is something that was global data this is India data for India particularly it’s a very MBA focused market so 74% of your scores Indians sent it to and I’m sure you all will agree send it to MBA programs followed by 17% to master’s and then the PhD opportunities for candidates it continues to grow there are lots of like I had discussed about some of the study destinations that have have come up there are obviously Canada France UK Singapore start considering these locations as well some of the Canadian business schools you talk about McGill Desautels etc they’re amazing schools they’re in your top 50 ranked. FT ranked schools and they’re all so much I would say like I said the ROI is much better because the tuition fee is much less or so that way it works out also some of the new destinations that are coming about are Germany Spain, Nordics it’s is known to have really low cost MBA So, consider that as well I’ll end there Netherlands Switzerland and Italy are also gaining traction. In the US also because of this you know the pipeline is every all the schools need when you actually I don’t know how many of you have visited these QS stores and this MBA tours so you see and then there are these fairs you know where schools come in so the schools are still hungry for pipeline you know just because of these policy changes it’s not that they don’t want so they want student so automatically if the competition goes down actually no way you’re benefited if you have that kind of dedication to study in the US many scholarship opportunities are available so don’t just look at the top you know your Harvard and Stanfords also look at also the next 50 schools in the US because they’re amazing scholarship opportunities that these schools give we’ve spoken about the h-1b rules which actually benefit the advance master degree holders Stem programs have come up and I’m going to talk about some of the stem programs which GMAT is which accept the GMAT score so I’ll give you the list feel free to take a screenshot of that there are also MIM programs coming in the u.s. now so Europe is obviously number one but there are MIM programs coming up in the u.s. also which accept GMAT and which is also a great stream that you would want to maybe pursue. Let me quickly touch about some of the hiring trends because that see GMAT or any of these schools as a means right to an end and the end is hiring the end is a placement the end is the network that you create in your B-school so, that’s what we are going to talk about for a few minutes The plans for hiring so this is a survey like I said we invest a lot of our resources GMAC as an organization spends a lot of their resources in research with with corporates so like I said 1200 corporates across Fortune 500 were interviewed and we got to know that actually the trends for hiring are actually seeing are very positive so when you see asia-pacific particularly as a region there is they said they’re about 69% of the companies in asia-pacific are planning to and this is about international hiring guys I’m not talking about domestic so it’s all relevant for you guys who want to we go abroad and study and get a job then and settle you know for in that particular country so Europe also shows positive outlook so there are about 71% companies in the Europe who said that they are looking at and they are planning to have international hires u.s. however is stable so earlier also there were about 40-45-47% of the companies and it’s the same so US has not seen a growth but all the both the other continents you see is your Asia Pacific and Europe they’re seeing a growth these are some of the median salaries there’s a lot of text here so I’m going to actually jump to the graph that is there so this is actually the graph which shows the median salaries which the companies in the US are willing to pay to MBA grads so I don’t have a pointer here but I would like to point out the first graph that the first one that you see is one hundred and fifteen $151,000 is the median salary that US companies are willing to give to an MBA grad followed by there’s master’s in management if you’re doing MIM in the US there’s 80,000 is the median salary then there’s master’s of accounts master’s of finance, master’s of business analytics So, some of these programs are these are the median salaries that you should expect next year or so for different programs. US has obviously been the most highly paid like if you’re studying in the US and if you’re applying for a job there the company’s there up paying the most for an MBA grad like I said it’s $150,000 if you compare that with Asia Pacific and Europe so the Europe graph that you see on the right is actually for an MBA they are willing to pay $95,000 Asia Pacific is much lower it is forty five $45,000 but I think what you should also see is not just the salary bit but also how much you’re investing to do an MBA there because at the end of the day it’s it’s the ROI that counts but this is to give you an idea on what kind of salary bands you should be looking at per country basis the program that you’re doing so obviously MBAs get the most then there is Masters in management like for Europe it’s much lower though for an MBA like I said it’s 95,000. I’m seeing the graph on the right the median salary the block that you see the blue block that you see for an MIM it’s $35,000. So, that’s much lower than an MBA. similarly if you see for Asia Pacific $45,000 is for MBA. So, hiring outlook for programs in demands of the top three functions that came up in our the the companies said that they are willing to hire our for strategy innovation, finance and business intelligence or analytics consulting is the most common job consulting is also in the US the highest paid It’s about $135,000 is what you should be expecting as a salary if you are in consulting is most common job also in Asia Pacific and Europe. Strategy and finances come up for US also there are other programs masters of accounting masters of Finance, Masters of Business of data analytics that you should look at if you’re interested in industries such as you know energy utility sector they are hiring most for masters of accounting, masters of Finance also energy utilities sector is hiring a lot and for data analytics technology sector is what sorry there’s a lot of data but with research is difficult to really you know to decide what to show and what to remove they’re about 64% of the companies who we interviewed actually said that not just MBA they’re willing to look at all of these programs so these are the most popular programs feel free to take a picture if you want to or I can share this information separately with you masters of information technology supply chain marketing all of these programs have come up is one of the popular programs where these recruiters are willing to hire from. Next talking about what is GMAT significance if during hiring so it’s a mean it’s it’s important for you guys to know that GMAT Score does not lose its significance just when you get admission into a B-school it’s actually very relevant when you’re also seeking placements in these companies so you look at this graph overall about 30 percent of companies of these companies who we interviewed there again like I said fortune 500. Fortune 100 companies are asking for your GMAT score while hiring so don’t forget that and then there’s also different sector wise we’ve done this analysis that finance companies companies in finance I looking at your GMAT score the most 39% of them are looking at a GMAT score followed by consulting manufacturing energies technology and products and services across the world GMAT is being used for hiring decisions most of the times if you are applying inAsia then 33% of companies are using GMAT score for hiring and followed by US Europe and Latin America. This is actually a graph to tell you that some of the questions that I get most often from people is that you know why do we have an IR scored in GMAT. why do we sorry why do we have an IR section altogether because the score does not get added in the total score you get a separate score for IR and I’m sure you all are aware of that so here is the answer to that the IR becomes very relevant for companies because actually it’s tests you on two skills which are really hard to find so there is Data analysis and interpretation and problem-solving skills these are the two skills that IR is actually testing you on and if you see the graph which is the x-axis is the level of requirement and the y-axis is a difficulty to find so when you see that the difficulty to find of these these two skills is very hard for these companies so they have started asking for IR scores while hiring also so you might not need maybe an IR score while you’re while you’re seeking admission and B school but in hiring specially if you’re looking at some of the data heavy programs or data heavy profiles then IR becomes very relevant for you this was about the research that we did with companies. Let me take you through some of the career opportunities that open up with with GMAT and I’ve spoken about some of the STEM masters programs there are I’ll share the list with you which is a this is just some of the programs because obviously on a slide you can’t put all of them but some of the top programs that GMAT is accepting when I say undergraduates I also mean some of the one or two years work experience candidates as well there’s Defered Programs that’s only for undergraduates that is a 2+2 program. your ISB has one which is the YLP program young leaders program then there’s also the Havard and the Yale who have this deferred program that means you know while you’re in college you get admission and then two years you work and then you join the college that is what the basis of a deferred program is there’s also business master’s programs there are great colleges your HEC Paris LBS they’re really the #1 for MIM programs the amazing thing is that when you look at the tuition fee there you’re spending about 40 to 45 lakh actually including the living expenses to actually get it for yourthat you spend for an MIM in an HEC or in LBS and the ROI that you see is great because the placements are obviously not the salaries would not be equivalent to an MBA we just saw that but then because you’re investing much lesser you’re also getting a placement opportunity which actually covers your cost within a year there are also full-time flagship programs in India which accepts GMAT so it’s not just the ISB or the SP Jain but there are lots of programs that are accepted in India so I’m going to share that list with you this is the list of GMAT accepting US stem master’s programs So, again as I said feel free to take a picture or take this slide from me separately I don’t have a pamphlet or something with listing these programs but all of them accept and they are the top stem programs these are some of the colleges in India which accept GMAT and GMAT is a recognized exam by the AICTE. I don’t know how many of you know but this is one of the things where if you’re planning to write the GRE that is not an AICTE exam in India specifically if you want to keep both the options open then GMAT makes more sense when I say both the options open I mean India as well as abroad so that ways your are at an advantage there are these top B-schools which accept the GMAT for full-time PGDM programs in India theirs is ISB, SP Jain, IMT Ghaziabad cand all of these there’s also for working professionals obviously you have the traditional global B schools and they really don’t need any description on your left there are also these Indian B schools your IIMs etc they have your executive programs which are accepted by GMAT so that opportunity also is open to you and when you write the exam I just wanted to quickly end the session but before I end it I wanted to introduce you to this feature that we have introduced in GMAT and since we have introduced it very recently I thought I will just put a slide on this so when you write your GMAT actually there are five programs that you can send your score to free of cost I’m sure you’re aware of that what we are doing is at the backend we’re actually seeing what kind of schools that you’re applying to what kind of programs that you’re applying to and what is your profile like I mean what is your GMAT score like and we are doing that backend you know algorithm is running which is actually telling you that basic the programs that you have selected these are some of the programs that you might not have selected but they are the ones that you should maybe apply so there’s my recommendations feature on GMAT now so when you give the exam on mba.com itself you can see it on your profile when you click on it I mean just if there’s a tick box it will make sure that shows you the top programs for you this is your profile Tips and strategies to crack the GMAT is my last bit we are not the best people to talk about it you have the whole day and there are lots of sessions which are going to talk about especially I read the payal session is going to cover about how do you crack the GMAT. So, they’re the best and experts to tell you. The only thing that I wanted leave you with was that we are we running this campaign actually what we’ve done in the past five months is that we GMAC as an organization thought that you know there are so many players out there in the market there’s so many coaches mentors so how can we make sure that these coaches and mentors reach out to you guys so we’ve recorded actually videos we’ve recorded two to three-minute bytes and there are some 40-50 videos this content is really something that I think is is like a goldmine for someone who’s actually preparing for GMAT so if you go on this link you can just take a note of this thing it’s a bit.ly link GMAT experts if you fill in this data of yours or you can actually unlock the expert series what’s amazing is also you get a chance to win a grand prize you get a you get a chance to win an iPad if you know you’re the lucky one who kind of sees the videos which is this sort of a video gallery you’ll also find Rajat somewhere here over. He’s on the bottom right so there are lots of these video bytes that we’ve recorded across the country top experts who teach GMAT so go ahead and you know fill in your information there unlock this series and see these two to three minute tips and strategies on how to crack the GMAT it’s completely free of cost you don’t have to pay for these to watch these videos in fact you can get a reward there’s also a lot of prep product rewards that we are running after you see these videos there’s a short quiz I’m sure you can answer those questions if you answered it you get to win some prizes so that’s about it that’s from us on tips and strategies there’s a lot of official material also available there’s our Official GMAT guide etc for you to prepare that some of you might get when you answer some questions you know in the course of the day. So that’s it from my side and I think I’ll be on time yes we are great awesome so if if there are any questions maybe can we take one question okay we can take then Hi thank you for all the insights and all I have one question in one of the slides I have seen you have mentioned the term as full-time MBA programs but none of our IIMs are listed in that list may know why they are not listed this is for the executive programs GMAT is accepted but executive actually means they are I mean the programs which are taken up from home right it’s not a full that is executive programs that’s that’s different that’s your online exams which your online MBA or I don’t know what that’s really not something that IIMs offer there must be some one or two months part-time programs but that’s not we are talking about we talk about full time like where you actually go to and you have to study in the classrooms for a year so those one-year programs are executive programs where you actually need a work experience before even applying to the program so for a regular full-time like IIM you don’t need work experience but for an executive program you are expected to work for at least two years before you apply for these programs but this is not your online MBA that’s very different that’s not something that we are talking about this is these are not considered a full-time MBA program so full-time MBA programs are your two-year MBA programs which you can join after your graduation this is executive that is after your work experience but when I say it’s just a terminology it’s actually when I say full-time you’re also you have to dedicate your one year into studying and you know attending college it’s nothing it’s not to do from home or anything so don’t get confused on executive programs actually hold as much value as your full-time two year MBA programs even at IIMs and what about ISB we have only One year flagship program. ISB does not have two separate programs they have one program only just the route is different and I’m sure ISB folks can talk more about that there’s one route is wherein there’s a YLP program which is your deferred route like I spoke about after your college itself you can actually right and then you work for about 14 months and then join is be the other could be that you work before and then apply into ISB so these are the two routes that you could apply to ISB but as we folks can I think answer that better but the ISB doesn’t have to programs it’s just one it’s just the route to get into that program there are several .Yeah thank you thank you that was really very enlightening for her let’s have it for Sehar please