MBA, Shift from Sure Thing to a Gamble

No matter how many wrong moves you might have made in your career, you could get back on track by getting admitted to the MBA program. And you didn't even have to complete it. 

Once "in" where you needed to be in your career you could use other tools such as high emotional intelligence to climb the ladder. 

My wrong moves included majoring in English, investing too much time acquiring an unmarketable Ph.D. and having my first real job in a non-profit. All that became irrelevant once I put on my resume that I was studying for the MBA. On interviews I talked up what I was learning. I landed a plum position in Big Oil. 

That was how it was in much of the 20th century and even in the early 21st. 

Now, as the Bloomberg report documents, the MBA no longer is a sure thing. That's even though a top program costs about a quarter of million dollars. 

From 2021 to 2024 the percentage of Harvard Business School students who didn't have a job three months post-graduation almost quadrupled from 4% to 15%. The same thing has been also taking place at other elite graduate business schools such as MIT Sloan.

What's driving this is the overall pull-back on hiring for white collar jobs. The premium price the MBA usually demands compounds that difficulty. Employers aren't willing to buy into the expectation. Some new graduates are willing to accept lower than usual compensation. 

In addition, typically about 70% of new MBAs go for positions in finance, consulting and tech. All three are hiring less.

Also, intersecting are the current uncertainty about just about everything and figuring out the role of AI tools. That has created a pause in bringing on more human manpower. 

A stunner: Recently, the chair of Paul Weiss Brad Karp went on record with Law.com in making explicit that AI, which is already being implemented at that law firm, could eliminate lawyer jobs. I have a hunch that many other business leaders are thinking that, just not saying it. 

Apply that to MBAs and it's obvious that OpenAI's new tool - Deep Research - could do many of the tasks MBAs do. Deep Research will also write up the report of its findings. It's available for 20 bucks a month (down from $200 a month) for users of ChatGPT Plus.

Of course, the gamble in investing in the MBA may pay off. The median salary is $120K. That means you could be landing entry-level compensation of a lot more. 

In coaching, I recommend certifications and licenses, not advanced professional degrees. Those can get you in. 

Is the life you’ve known collapsing? As your intuitive career coach/tarot reader I guide you to what could be next. Clients range from lawyers to entrepreneurs to the trades. Free confidential consultation. If we work together, fees are what you can afford. To connect: Jane Genova (text/phone 203-468-8579, janegenova374@gmail.com). In-person and remote.