Learning to develop the best
In economic uncertainty, many executives turn to further education to compete in the jobs market. Rita Lobo explores how executive MBAs are a way to obtain qualifications and stay ahead
Taking education further has always been a way to enhance employability, but as global finances continue to face turbulence and uncertainty, managers and executives are investing more than ever in career-enhancing education opportunities. Obtaining a
n MBA is increasingly expensive. A spot at a top institution like the Judge Business School at the University of Cambridge can cost in excess of £40,000 for one year’s tuition. One year at New York University’s Stern School of Business comes in at $157,000, and the tuition for one year at the Kellogg School at Hong Kong University of Science and Technology will cost nearly $150,000. To ensure the money is well spent and executives get a good return on investment for their time, choosing the right programme at the right university
is imperative.
Recently, there has been a growing trend towards the Executive MBA (EMBA). Though not new – the first EMBA programme was launched by the University of Chicago Business School in 1943 – its popularity has been growing in recent years. These degree programmes are targeted specifically at executives already working in the industry and allow students to continue working during their studies. Increasingly,
universities are launching degree programmes catering to more experienced professionals, geared towards enhancing the careers of working professionals.
Attractive opportunities
The defining factor of EMBAs is that the curriculum is built around the experience and expertise students have already acquired in their working life. Many of the programmes combine classroom learning with full-immersion learning externally, and extensive student/faculty interaction. Mick Cornett, an executive who attended the Stern School EMBA in 2011, said: “Each of the classes has had a direct, sometimes immediate, impact on my day-to-day ability to interact and make decisions.”
Beyond the classroom, the networking and business opportunities for working executives that come with undertaking an EMBA are invaluable. Joshua Scott Chang, who attended the Kellogg-HKUST EMBA programme in 2008, said: “it is a rare opportunity in life to be part of a network of leaders who are passionate about learning and wanting to make a positive contribution to society through business.”
Many working professionals use EMBAs as a way of speeding up their ascent of the career ladder, and many universities suggest enrolment in such courses is associated with recently obtained or anticipated promotions.
Due to the cost of such courses – both in terms of time and money – undertaking an EMBA is often a joint effort between the company and the executive. Employers must be flexible to allow time out for the employee to attend classes, and to support their employee through the gruelling year of work and study. It has been estimated that most EMBA students clock in 100-hour weeks between job and university for the duration of their courses.
EMBAs are often more expensive than regular MBA programmes and the best degrees are almost prohibitively expensive. Many top corporations, such KPMG, Panasonic and Nestlé, have opted to sponsor their executives during their studies. According to the Stern School, many employers find the corporate sponsorship of EMBA students a valuable way to attract and retain top talent: “sponsoring high-potential employees will help organisations demonstrate their commitment to employee
career development”.
This practice is widespread among top-tier companies. According to a recent study by Business and Legal Reports, between 2007 and 2010 there was an increase of 23 percent in the number of companies that had a tuition-funding programme, from 52 percent to 85 percent. The report also showed that, despite the economic downturn, 78 percent of companies had not changed plans to sponsor the further education of valuable employees.
Lorrie Lykins, managing editor and director of research services at the Institute for Corporate Productivity said: “In a lot of our members, Fortune 500 and Global 200 companies, what we’re hearing is that they are really ramping up tuition reimbursement programmes because, as we come out of this recession, the war for talent is really going to ramp up in earnest more than ever before. This is really viewed as a key recruitment tool.”
Benefits for employers and employees
Executives and managers are still willing to put up with the expense of funding their own EMBAs because there is an almost guaranteed return on investment. The Executive MBA Council has concluded from its research that salary and bonus packages for recent EMBA graduates increased by 16.3 percent in 2012. As the business landscape continues to face difficulties and challenges, executives with this type of background and experience are in increasingly high demand.
The jobs market has never been more competitive and an executive with superior academic experience is a coveted employee. This does mean more people are seeking out such courses and it has become increasingly important for prospective EMBA candidates to select the right courses and institutions. As more middle management executives obtain EMBAs, only the best and most reputable institutions will be able to deliver all the benefits students seek.
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