Adapting to London: An MBA profile

When he decided that a career change was in order, German born Jochen Mueller opted to look into pursuing an MBA. After his partner was offered a job in London, Mueller explains that accepting his offer at the privately operated TASMAC London School of Business wasn’t a difficult decision to make.

“The advantages of further studies in general, and the possibilities of the TASMAC MBA in particular were too tempting,” Mueller tells TopMBA.com. “So I quit my job, went house hunting in London, organized the move, and a few weeks later I attended the student orientation event at TASMAC.”

However, before making his decision, in order to better understand how studying for an MBA in London would suit him, Mueller sought advice from a fellow countryman who had been through it all before.

“I got in touch with a German MBA alumni who used to work in my office. He told me all about the program he completed at TASMAC, as well as what it was really like to attend business school in London. This offered me a really valuable insight into what life would be like as a student in the city.”

An MBA versus a social life

To Mueller, one of the major benefits of living and studying in London are the many entertainment and sightseeing opportunities the city offers.

“As our time in London is limited, we want to get as much out of it as possible. So we spend at least one day a week in central London, going to concerts, the theatre and visiting the sights.

“I also spend a lot of time with my classmates. We have a good, sociable class and make an effort to share in all London has to offer.”

In fact, the German MBA student has enjoyed his time in London so much, that he doesn’t really consider his program to be work at all.

“It might sound funny, but I don’t perceive the MBA as a burden,” he says. “I am interested in all (okay, most!) of the topics, and I regularly read the newspapers, business books and other essential materials. But of course, I do appreciate the whole concept of the work/life balance.”

Funding an MBA

Mueller might not consider his study to be a burden, but what about the financial cost of the course?

“The funding of my MBA program is divided into the salary of my partner, support from my parents, wages from my part-time job, and my savings. London is one of the most expensive cities to live, but at the same time you want to enjoy the whole range of opportunities that the city offers, so it is advisable to have a sound funding for your studies.

“I would advise MBA candidates in London to try and work part-time, as it is not too hard to find a good job. However, with a pretty tough time schedule, you will need to be well organized for any extra work not to affect your studies.

“I would also recommend that candidates look for suitable scholarships. TASMAC offered me a scholarship for part of my fees, as I fulfilled the requirements. That has really helped me to manage the cost of my course.”

Post-MBA career

Now, eight months into his year-long MBA program, Mueller is contemplating his career options after he graduates.

“After a short holiday, (this is necessary, as the studies are quite demanding!) I am going to apply for a manager position, most likely back in Germany.

“I hope the current positive news about the German economy and labour market proves to be true, and that I will find a good job quickly. I am very confident that I will succeed in my next role as I feel that my business school prepared me well for the demanding needs of the current business life. It has helped me to develop both my hard- and soft-skills.”

Meet with the admissions staff and alumni of the TASMAC London School of Business at the QS MBA Fair in Accra 24 March. Free online registration

MBAs Salaries – expectations and reality

Nunzio Quacquarelli, editor of topmba.com, compares the latest reported salary data, with expectations of MBA applicants.

In an era of financial uncertainty and intense global competition, the MBA qualification is becoming a safe haven for young professionals seeking career advancement and salary progression.

First degree graduates and young professionals around the world have been hard hit by the credit crunch. Unemployment rates amongst new graduates has reached 10% in the USA, and as high as 20% in some EU and Asian countries.

By contrast business schools continued to report good post-MBA placement figures. Last year 279 business schools reported that over 90% of their class had job offers three months after graduation and 123 schools reported average salaries in excess of $75,000, according to the latest TopMBA.com/Scorecard.

The 2009 edition of TopMBA.com/Scorecard – the personalised business school ranking tool - reveals the average salaries self-reported by 350 of the world’s leading business schools.  IMD, IESE, London Business School, Stanford and INSEAD reported the highest average salaries in this latest edition based on students graduating in Summer/Fall of 2008.

Table 1: Averages by region for the 50 business schools reporting the highest salaries

Schools In	Average base starting salary US$	Range: Min. Salary	Range: Max. Salary	% Accepted employment 3 months after graduation	Average years work experience	Number of schools in top 50
North America	102094	93000	117000	91	5	19
Europe	106595	94000	129000	90	6	27
AustralAsia	101010	97000	105000	93	7	4

Source; QS TopMBA.com/Scorecard 2009

Table 1 reveals that of the 50 business schools yielding the highest salaries, 19 are in North America, 27 in Europe and 4 are in Australia and Asia. Employment rates are similar across all these schools with between 90-93% of students having accepted employment within three months of graduation and the profile of candidates is similar, with an average of five to seven years of work experience. In the 1990s, salaries for graduates of top US schools like Harvard, Wharton and Stanford were consistently higher than their European counterparts. In 2008/9 it is European schools which take the honours with an average reported starting salary of $105,248. It’s important to note though that the above salary figures do not include the guaranteed bonuses received by many MBAs and which are more common amongst graduates of US business schools.

IMD in Switzerland reports the highest average salary among European schools at $129,000 (up from $121,000 in the previous year). Janet Shaner of IMD says, “IMD looks for high-achievers and their general management MBA results in many of their graduating MBAs entering industrial and commercial management functions within Europe, a segment where demand is continuing to grow.”

But it’s not just the established business schools producing impressive salaries on graduation. Ashridge Business School reports an average starting salary of US$115,000 for their 50 MBA students. Amy Armstrong of Ashridge says, “our students have an average of over 10 years of work experience and they remain in strong demand with employers, even during an economic downturn.” Small class sizes, slightly more years of work experience and the strong Euro go, some way to explain why European schools are outperforming their international counterparts.

Comparing MBA Salaries with Expectations

MBA salaries have stood up well during the recession, but it is important for MBA applicants to remain realistic about what is achievable. QS TopMBA has also recently surveyed applicants to measure these expectations with some surprising results.

Table 2 shows the expected salaries amongst MBA applicants from countries around the world, the percentage uplift compared to current salary and the proportion intending to study outside their home country. Candidates from Japan, the USA, UK, Germany and Canada have high current salary levels and realistic salary expectations in the range of $90-116,000, representing salary uplifts of between 58-85%. U.S. candidates primarily are looking to stay in their own country to study and benefit from the high local salary levels. Although the 12% looking to study overseas represents an increase on previous years, as they seek to differentiate themselves form the large numbers of locally educated MBAs by gaining international experience.

Table 2: Comparison of current verse expected salaries for MBA applicants

	Current Salary $	Target Salary $	Expected % Salary Increase	% Looking To Study Overseas
Japan	69,852	111,000	58%	80%
United States	62,892	116,198	85%	12%
Germany	57,053	90,384	58%	75%
United Kingdom	52,812	91,250	84%	18%
Canada	51,034	100,378	73%	34%
Brazil	49,054	109,539	123%	96%
France	48,467	93,269	92%	55%
Italy	42,500	99,230	133%	65%
Israel	41,851	141,500	258%	85%
Singapore	40,795	86,617	112%	54%
Turkey	40,416	77,065	91%	89%
Russia	40,020	105,827	164%	88%
Spain	39,852	81,617	105%	65%
India	35,339	96,145	172%	75%
China	34,417	81,504	137%	85%
Mexico	34,414	69,342	101%	87%
Venezuela	30,135	64,609	114%	90%
Peru	29,594	87,714	196%	93%
Taiwan	28,750	80,000	178%	85%

Source: TopMBA.com Applicant Research 2009

Table 2 also reveals that applicants from some countries might have unrealistic expectations. Israeli applicants expect a salary uplift of 258%, with target salary level of $141,000 per annum. This is achievable for those who join top investment banks and consulting firms. However, in the current economic climate it is unrealistic for all Israeli candidates to receive job offers from these elite firms.

For candidates from emerging markets, a high proportion intend studying overseas, in the USA, Canada, Australia or the European Union and their salary expectations are based on securing employment in the country in which they choose to study. Visa restrictions on working in the country of study vary. At present, the USA has limited the number of work visas available to graduating MBAs. By contrast the European Union, Australia and Canada have very favourable work visa environments.

Despite the global recession, MBA employers have continued to recruit international MBA candidates. Lord Michael Hastings, Global Head of Diversity at KPMG International, says “KPMG is constantly working with global clients who are not just saying ‘here is a tax issue we’d like you to advise us with.’ They are asking us how we shall function to best develop our business. MBAs provide this richness of perspective that is not easy to pick up by standard study. There is huge value to MBAs.” With the prospect of economic recovery in 2010, the likelihood is that the current crop of MBA applicants will achieve their salary objectives when they graduate in 2011.