Issue link: http://www.e-digitaleditions.com/i/535050
42 BizEd JULY | AUGUST 2015 INDICATORS OF CHANGE Over the last decade, the EMBA market has seen big changes in three major areas: Decreased tuition support. Com- panies largely are no longer willing to pay full tuition to send their employees to EMBA programs. According to the Executive MBA Council (EMBAC), only 24.6 percent of students enrolled in EMBA programs in 2014 were fully supported by their organizations. That's up slightly from 24 percent in 2013, but still down from 40 percent in 2003. The survey also indicated that 39.8 percent of EMBA students were self-fund- ed—down from 41.2 percent in 2013, but still up from 25 percent in 2003. In addition, many U.S. companies still swear by a tax credit, which allows them to provide a maximum annual tuition reimbursement of US$5,250 per employee tax free. That amount cannot buy much education in today's market. I have held discussions with many human resource professionals, cor- porate decision makers, and pro- spective students about what they see ahead for EMBA programs. Most have shared the same sentiment— that we shouldn't expect a large in- crease in fully sponsored executive degree programs any time soon. Increased student expectations. Many students now enroll in EMBA programs not to improve their skills for their current positions, but to change companies and careers. That means they expect career service oƒerings, and business schools are scrambling to deliver. But EMBA students also tend to earn high salaries—accord- ing to EMBAC's 2014 Student Exit Benchmarking Survey, the average salary and bonus package for gradu- ates is US$181,965, up from $159,963 in 2013. That means it can be di—cult for business schools to satisfy EMBA students' expectations of placement. In addition, more EMBA students represent "new consumers" for busi- ness education, who are paying for tuition themselves. Often part of the millennial generation, these new consumers closely critique the entire EMBA experience, from the faculty to the facilities, from the dean's vi- sion to the catering. They expect a high degree of personalization, social connection, and brand identification; they want more for their investment; and they will be vocal about their expectations throughout their academic journey. Negative market per- ceptions. Even as EMBA students develop higher expectations of their programs, some recruit- ers and HR professionals have begun to view the EMBA as inferior to a traditional MBA—as a kind of "MBA Lite"—in terms of workload and deliverables. One factor driving this view is that it takes less time to complete an EMBA than a traditional MBA. In the U.S., for example, full-time students need 15 to 18 months to complete an MBA degree; part-time students need around 36 months. It is di—cult for critics to fath- om how busy EMBA students with in- tense work schedules can complete pro- grams of equal rigor in just 20 months. Detractors also suggest that EMBA programs aren't as rigorous. Consul- tants and blogs like BeattheGMAT. com advise executives to apply to EMBA programs over MBA programs because the admissions criteria might not be as tough. They point to the fact that admissions o—ces often place more emphasis on professional expe- rience and less on quantitative fac- tors such as undergraduate GPA and GMAT scores. In fact, some schools have dropped the GMAT requirement altogether—only two of the six major EMBA programs in New York City still require the GMAT for admission. Finally, some stakeholders believe that faculty might accommodate executive students too much, in terms of workload and deadlines, largely because of the revenue potential of EMBA programs. Whether or not this is true, any sense of a conflict of interest among faculty only rein - forces the "MBA Lite" perception. HOW SHOULD B-SCHOOLS RESPOND? While I don't think that the "MBA Lite" perception is justified, we can't ignore the fact that other stakeholders hold this belief. It's time for business schools to redirect people's thinking and reposition the EMBA as an experience that's not only of equal rigor to the MBA, but also one that students and companies alike believe is worth paying for. I see several ways to achieve this goal: Analyze tuition and cost. When EMBA programs were first intro- duced, they largely followed a "busi- ness-to-business" model. Program directors sold the degree directly to corporate human resources o—cers, EMBA ATTITUDES Out of 2,323 EMBA students sur- veyed in 2014*, 41 percent reported that they had received promotions during their programs, up from 38 percent in 2013. And when asked to rate the importance of an EMBA program's attributes on a 5-point scale (5 being the highest), students placed greatest importance on program length (4.4); class size, school reputation, and compatibility of class and work schedules (all 4.2); and quality of other students and study groups (4.1).‡ *2014 Student Exit Benchmarking Survey from the Executive MBA Council