Companies are shying away from college degrees as a job requirement, but MBA applications are soaring. The Graduate Management Admission Council says that applications for graduate b-school programs increased 12% over the last year. In fact, 80% of respondent schools are reporting growth in their two-year MBA programs. (NYU’s Stern School of Business has received a nearly 40% increase in MBA applications, for example). Meanwhile, nearly half of companies plan to eliminate bachelor’s degree requirements this year. CNBC says that move could benefit the roughly 62% of US workers who don’t have a degree. But over half of the mid-level roles and nearly 20% of senior level roles now don’t require an undergrad education – let alone a masters’ degree – according to results published by Intelligent.com. So why are Gen Z students rushing to grab MBAs, when many employers don’t use education as a hiring criteria? Is an MBA the experience that Gen Z applicants are missing?
Job Requirements: Overcoming Gen Z’s Bad Reputation
Gone are the days when a diploma was a sure thing for landing a job, according to Forbes Senior Contributor, Jason Wingard. He writes that “employers no longer trust that college graduates will arrive with the skills they need to get the job done. (They’re even questioning the value of Ivy League degrees, which once guaranteed a resume lands on top of the pile.) By casting a larger net, companies hope to find promising applicants who were once disqualified for not having a bachelor’s degree.”
During 2023, applications to MBA programs experienced a year-to-year decline of 4.9% – the largest decline in the last five years. Perhaps the surge in applications is making up for past declines. Forbes reports a well-documented lack of motivation, professionalism, and communication skills for recent college grads. In fact, 75% of companies in a recent survey found Gen Z hires unsatisfactory. Can an MBA combat the poor rep that Gen Z is experiencing in the workforce?
For students, obtaining an MBA builds life skills for managing an entire career. Additional education can contribute professionalism and counter-balance some of the challenges that Gen Z faces based on current workplace sentiment. The experience of an MBA program offers exposure to new networks of contacts, new awareness of employers and opportunities, as well as the introduction of valuable business skills. An advanced degree can show an advanced commitment to your career. However, education is never the whole story. More skills are involved.
Tracking Tech Layoffs: Will an MBA Make a Difference?
Two years ago, the hiring market for MBA graduates was on fire, according to The Financial Times. Today, The Tech Layoff Tracker says there have been over 151,000 people impacted by layoffs in 2024. As bad as that number sounds, it’s not as stark as the 430,000 white collar workers who were laid off in 2023. Starting salaries for MBAs have declined; now just 86% of levels from eight years ago (adjusted for inflation). Still, according to details from Revelio labs, the MBA starting salary is about 20% higher than new roles for econ and finance undergrads.
Succeeding at a skills-based job interview, and proving your capabilities for a position, requires more than just an advanced education for Gen Z. Companies are looking beyond the degree, and that’s a good thing. But having insights into the world of work is a better thing – and the really advanced class is working on their communication skills. As Stella Adler famously said, “You’ve got to have a talent for your talent.” Maybe a degree isn’t a deciding factor in landing your next job – but how you tell your story always is.
Landing a job, and keeping it, doesn’t start with where you went to school. So, what’s the real value of the MBA? The answer is, as you will find out in every MBA case study, it depends. The value of education is still determined on an individual basis, demonstrated in action, and conveyed via communication. After all, education is what you make of it. That’s true for Gen Z, and every other generation. How you communicate your skills and your personal value proposition is where you will find your true worth.