Why would The Wall Street Journal report that MBA applications across the world are down three years running? Isn’t an MBA a sure ticket to a high paying and interesting career?
At Slade Group we’re very interested in labour market trends and skills matches, but it’s been a long time since we’ve heard the phrase ‘an MBA would be highly desirable’ as a criteria for hiring.
There seem to be three indicators for the decline in the attraction of MBAs:
- Follow the money
- Currency of skills
- ‘Value Added Ratio’
Follow the money: The money’s left Wall Street, Collins St, Pitt St etc and is headed for wherever the Technology sector lives. While MBAs are useful in the tech sector, software engineers, mathematicians, systems engineers, machine learning skills are in more demand.
Currency of skills: Big jobs data tells a rich global story. At the recent Nous Group forum, Burning Glass Technologies’ Matthew Sigelman, joined the data dots to build the picture for skills, education and employment.
Skills are the unit of currency and they’re on the move. Traditional degrees can now carry less weight than relevant skills based learning like Lean Six Sigma or PMP Certification.
The big question raised at the Nous forum was how do we, as individuals, employers and governments reskill more often, and take charge of our future? Read more here.
Value Added Ratio: MBAs cost a great deal so when the ‘added value ratio’ doesn’t add up for someone who failed or nailed their GMAT, the attraction to an MBA course also declines. In lockstep, huge hikes in course costs have matched flat lining and declining salaries for MBA graduates. From 4:1 first year salary to course cost to a 1.8:1 ratio, the MBA flavor has soured.
The fact is that an MBA can now be worth less than the sum of its bitty parts. It all trends towards upskilling for in-demand expertise throughout our careers as a pathway for growth and success. In response universities are finally starting to unbundle their degrees and allow for macro and micro learning programmes.
We’re in the middle of interesting times!
What is your experience in your world of learning @work?