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You may have noticed lately that the
economic news looks scary – so does it have an effect on
your b-school opportunities?
Yes...and no.
Time and time again, it's been shown that in periods of
economic stagnation, regression or recession that
b-school applications go up. That's right, they
increase. Why?
Because many people feel that they can avoid the
economic downturn by spending it furthering their
education, graduating with a valuable degree just as the
economy turns around. The net effect usually sees the
newly-minted b-school graduate with a nice salary bump
and a wealth of job opportunities in the newly
revitalized marketplace.
Does it always happen that way? As with everything in
life, it's no guarantee. But it's seen to occur far more
often than not.
However, it does affect your b-school chances. With an
increase in applications – and by all indications this
early in the season, apps are already quickly
rising – it goes without saying that your chances get
that much tougher. Just because applications go up
doesn't mean that b-schools open more slots; they don't.
You're now competing in a greater pool of applicants
than before, which makes it even more critical that you
stand out from the crowd.
"People with the most attractive 'options' exercise them
in bad times," says Senior Consultant Doug Braithwaite.
In other words, "those who usually get the top year-end
bonuses – and are not going to get them now – tend to
help themselves more quickly and creatively than those
who are or have to be more conservative." Doug goes on
to say that he can't prove the quality of applicants
goes up during rough economic times, but that he can
safely predict "that quality and volume of applicants
will go way up in Round 2."
So how is it possible that the current economic
situation won't affect your application?
If you're in a position where your job was cut,
downsized, or eliminated, there's no need to panic.
Admissions officials follow business news just as you
do; they know which companies are facing hard times,
which ones have failed, and which are on the rise. So if
you're an applicant from a previous Wall Street
giant-turned-pumpkin, you don't need to worry that the
admissions committee will turn their eyes away from you
simply because your job was eliminated. You're not going
to be penalized. "Though this down-turn seems more
dramatic with the demise of some premier investment
banks, there have been downturns before. As an
admissions officer during the 2000-2002 downturn, we saw
plenty of applicants who had lost their jobs. In those
cases, it was not an issue they had been cut. Rather it
was how they responded – to use a cliché, did they view it
as an opportunity?" says Senior Consultant Mark
Meyerrose.
You should, however, move forward with your applications
as soon as possible – if you've decided a MBA is right
for you. Target the early deadlines and then
find an outlet that provides a constructive use of your
time until you get accepted.
Senior Consultant Susan Schaffer offers this advice for
those who feel like jumping into a MBA to ride out the
current storm: "Be careful in how you pitch yourself to
the committee. While they aren't going to toss your
application just because you were laid off, they also
don't like being an emergency last resort choice. Our
advice about having a solid and realistic career plan
and a sincere interest in the school is even more true
if you aren't employed. The last time schools saw a huge
influx of applications due to the tech bust, schools
definitely had their pick – and a strong candidate
without a job could definitely beat out a weaker
candidate with one – as long as the strong candidate
didn't look like the MBA was the easy way out."
Stay on top of employment trends in the business world.
It will do you no good to construct an application theme
around a business sector that is falling on hard times;
investment banking is one example. Be realistic about
the career path you want to follow and make sure it's
not a path that is sliding into harder times ahead. By
being realistic with your choice of direction, you're
showing the admissions committees that you're aware of
current events and trends and know what you're getting
into. "With the scores of experienced bankers out there
either looking for work or applying to b-school, the job
market in that sector is extremely tight," says Mark.
"Recently, I had several discussion with individuals
about their career goals, who have since re-evaluated
their plans. Perhaps in two or three years the financial
services industry will again be hot; but for now,
especially as it relates to your b-school app, it is
best not to make that assumption."
Is this a time to panic with regards to a MBA education?
Not at all. But be aware that the competition will be
fiercer than previous years. The bottom line on business
school timing is that you should go for your degree when
the timing is right for you. Your MBA education is one
of the largest investments you'll make in your life. We
want you to maximize the return you will get on your
time, efforts, and money. A realistic appraisal of your
undergraduate record, GMAT scores, job experience,
career goals, and your school choices will be the best
guideposts for deciding whether to go for the brass ring
now, or wait until you're sitting on a better horse.
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