Women and Graduate Management Education (2012) Women in the Business School Talent Pipeline Women in Business GMAT® Examinees Jobs B-School Demand from Younger Women Value of Graduate Management Education MBA, Masters & Other Intended Degrees Industry Preferences Female Quants (Interest in Quantitative and Study-Work-Life Balance Specialized Degrees) Geographic Focus and Regional Comments – Spotlight on Europe – Note: The following data were collected from various recent sources, including GMAT® exam volumes and GMAC® surveys of prospective students, graduates, and alumni as well as from school admissions offices and employers, to reveal details about women as they progress through the business school talent pipeline. Please use caution when comparing or combining data cited above, as this information is subject to source sampling variability and differences across testing, regional groupings, survey years, or data collection methodology. Additional information can be found online at gmac.com/research Women in the Business School Talent Pipeline GMAT Examinees 106,800 – The Most Women EVER Of the total 258,192 GMAT exams taken, the number of exams taken by women was 106,800 and accounted for 41 percent of the global business school pipeline in the testing year ending June 30, 2011 (TY 2011). The number of tests taken by men was 151,392 (59%). This testing year also marked the third year in a row that women broke the 100,000 mark in the number of GMAT exams taken, and reflects the lowest male-female ratio (1.42) and a 2.1 percent average annual growth rate in the number of female examinees over the past 10 testing years (TY 2001 to TY 2011). Source: GMAC Profile of Graduate Management Admission Test® Candidates, 2007–2011 . © 2012 Graduate Management Admission Council®. All rights reserved. Page 1 of 12 US Women Are Largest Female Pipeline = 45,735 The United States was the country with the largest number of exams taken by female citizens—45,735 (39%) of the total 116,546 exams taken by US citizens in TY 2011. Overall, US women represented nearly 43 percent of the global business school pipeline of women. Source: GMAC Profile of Graduate Management Admission Test® Candidates, 2007–2011. Female Majority Greatest Among East Asian Citizens Among 10 global regions, the largest percentage of female citizens who sat for the GMAT exam in TY 2011 were from East and Southeast Asia (58%), including China, which accounts for 33,142 of the region’s total 57,649 exams. Central and South Asia (including India) had the smallest percentage of women (25%) who accounted for 7,077 of the region’s total of 27,902 exams. Source: GMAT Examinee Data, TY 2011 World’s Largest Majorities of Female GMAT Examinees (Five of the Top 25 Countries) In some countries, more women than men sit for the GMAT exam. Among the top 25 citizenship groups sitting for the exam in TY 2011, the following five had a majority of female examinees: China (second largest GMAT citizenship group, 64% of 40,069 examinees) Taiwan (eighth largest GMAT citizenship group, 58% of 3,449 examinees) Russia (12th largest GMAT citizenship group, 57% of 1,980 examinees) Thailand (14th largest GMAT citizenship group, 58% of 1,864 examinees) Vietnam (23rd largest GMAT citizenship group, 61% of 1,216 examinees) Source: GMAC Profile of Graduate Management Admission Test ® Candidates, 2007–2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 2 of 12 B-School Demand From Younger Women 54% Women Younger Than 25 Of all GMAT exams taken by women in TY 2011, more than half (54%) were taken by women younger than 25 years of age (57,541 of 106,800). Women ages 25 to 30 sat for 36,000 (34%) GMAT exams and women 31 and older sat for 13,259 exams (12%). Source: GMAT Profile of Graduate Management Admission Test® Candidates, 2007–2011 Women’s Average Age = 25 The average age of a female GMAT examinee is 25.4, slightly younger than male Mean Age by Gender, TY 2011 GMAT Examinees by Difference examinees with an average age of 26.9. Region of Citizenship Total Female Male (Male-Female) The age difference is more pronounced for Global Examinees 26.3 25.4 26.9 1.5 non-US citizens. The average age of female Non-US Citizens 25.9 24.7 26.8 2.2 non-US citizen test takers is 24.7, compared with 26.8 for men. US Citizens 26.8 26.5 27.0 0.6 Source: GMAT Examinee Data, TY 2011 4.4 Years = Faster Timeline on Route to B-School Prospective female students reported spending less time in each of the main decision-making stages on route to B- school than their male counterparts in calendar year 2011. On average, women spent a combined 53.2 months, or 4.4 years, in the following four stages, compared with the 60.6 months, or more than 5 years, for men: Stage 1 (Pre-Contemplation): On average, women took 31.9 months from completion of first degree to first consideration of graduate management education (vs. 36.4 months for men); Stage 2 (Contemplation): 15.1 months on average for women from consideration to registering on mba.com (vs. 17.9 months for men); Stage 3 (Preparation): 3.9 months on average for women from registering on mba.com to sitting for the GMAT exam (vs. 4.0 months for men); Stage 4 (Action): Both men and women spent an average of 2.3 months between sitting for the GMAT exam and submitting their first application. Source: GMAC mba.com Prospective Students Survey, forthcoming 2012 © 2012 Graduate Management Admission Council®. All rights reserved. Page 3 of 12 Application Behavior Women (39%) were slightly more likely than men (36%) to plan to enroll in a graduate business program within three to nine months of registration on the mba.com website. Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 MBA, Master’s & Other Intended Business Degrees 50,694 Women Intended to Pursue MBA in TY 2011 The number of women GMAT examinees intending to pursue an MBA, or Master of Business Administration, in TY 2011 was 50,694 (47.5% of all female examinees). Note: When asked to list their degree preference, GMAT examinees could select only one degree type. Source: GMAT Examinee Data, TY 2011 On Average, Women Submit 2.5 Applications to Two-Year, Full-Time MBA Programs In 2011, prospective female B-school students reported submitting an average of 2.5 applications to two-year full-time MBA programs; this was slightly below the corresponding average submitted by men (2.8). Source: GMAC mba.com Prospective Students Survey Interactive Data Report, forthcoming 2012 Special Outreach to Recruit Women Graduate management program types reporting special outreach to women included full-time MBA (70%), executive MBA (45%), part-time MBA (35%), flexible MBA (28%), and some specialized master’s programs including Master of Accounting (50%), and Master of Finance (23%). Source: GMAC Application Trends Survey, Admissions Management Data Supplement 2011 70% Full-Time MBA Programs Recruiting Women Nearly three-quarters of the full-time MBA programs surveyed in 2011 reported special recruitment efforts to increase the proportion of women among applicants (70%), the highest among MBA program types. Source: GMAC Application Trends Survey, Admissions Management Data Supplement 2011 Female Quants (Interest in Quantitative and Specialized Degrees) Accounting Demand Of all graduate management programs responding to a GMAC application trends survey, Master of Accounting programs reported the greatest percentage of women (57%) in their applicant mix. Source: GMAC Application Trends Survey, 2011 Women Accounting Undergrads Women accounted for 16,010, or 52% of the 30,721 GMAT exams taken by those with undergraduate accounting degrees in TY 2011, compared with 14,711 tests taken by men. The 6% increase from TY 2010 of women with accounting backgrounds in the GMAT examinee pipeline represented the largest growth by undergraduate major for women. Side note: Growth in the number of female examinees with nonbusiness backgrounds was noticeable among women who earned undergraduate degrees in English, increasing by nearly 6% from 2010, making it the second largest growth area overall for women in the GMAT pipeline after accounting. Source: GMAT Examinee Data, TY 2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 4 of 12 Women Finance Undergrads Women accounted for 10,795, or 38% of the 28,425 GMAT exams taken by those with undergraduate finance degrees in TY 2011, compared with 17,630 tests taken by men. The 5% increase from TY 2010 of women with finance backgrounds in the GMAT examinee pipeline represented the second largest growth among women with undergraduate business majors. Source: GMAT Examinee Data, TY 2011 Finance & 2-Yr MBA Programs = Greatest Number of Applications by Women (on Average) In calendar year 2011, female prospective students reported they planned to or had submitted the most applications (on average) to MA/MS in Finance programs (2.6) and to two-year full-time MBA programs (2.5). These average counts for applications submitted were higher than Master in Management and MA/MS in Accounting programs (1.9 each), and much higher than other program types, such as one-year full-time MBA (1.7), Master in International Management (1.6), joint-degree MBA (1.6), executive MBA (1.3), and part-time MBA programs (1.3). Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 Women in Business Jobs Employment Report In a survey conducted in September 2011, the vast majority (92%) of alumnae from the classes of 2000 to 2011 said they were employed; between 78% and 87% worked for an employer. Between 5% (for alumnae of specialized master’s degrees) and 15% (for executive MBA alumnae) indicated they were small business owners or self-employed. (In comparison, 87% of men were working for an employer, 7% were small business owners or self-employed, and 6% were not working). Source: GMAC Alumni Perspectives Survey, 2012 Women With the Job They Want Overall, 84% of the women in the class of 2011 were employed at the time of graduation, and 9 out of 10 said they got the type of job they wanted. Source: GMAC Alumni Perspectives Survey, 2012 Job Level Among women currently employed (alumnae Job Levels for Women Currently Employed Classes of 2000–2011, by Program Type from the classes of 2000 to 2011), the majority hold mid-level positions, ranging between 44% Full-Time Part-Time Executive Other Business MBA MBA MBA Masters for executive MBAs and 71% for part-time MBA grads. Alumnae of executive MBA Entry level 12% 6% 0% 32% programs held the greatest percentage of Mid-level 68% 71% 44% 53% senior-level (34%) and executive-level (22%) Senior level 16% 20% 34% 14% jobs. See accompanying table. Executive level 4% 3% 22% 1% Source: GMAC Alumni Perspectives Survey, 2012 Source: GMAC Alumni Perspectives Survey, 2012 45% Increase in Salary for Women a Result of Their Graduate Business Education Among all graduates of the class of 2011 who had accepted or received a job offer at graduation, women grads reported slightly higher increases in salary over their pre-degree salary, for an average of 45%, compared with a 39% increase among men. Source: GMAC Global Management Education Graduate Survey, 2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 5 of 12 Value of Graduate Management Education 90% of Women Believe Their Degree Is Outstanding, Excellent, or Good Value Women feel their degree is an outstanding, excellent, or good value – on par with 93 percent of men. In Value of Degree as Outstanding, Excellent, or Good three of four regions examined, a greater percentage Region of Citizenship Women Men of women noted this value, shown in accompanying table. United States 94% 91% Source: GMAC Global Management Education Graduate Survey, 2011 Canada 95% 91% Europe 92% 96% Asia Pacific 89% 86% Global 90% 93% Source: GMAC Global Management Education Graduate Survey, 2011 84% Women Felt Competitive Advantage and Improved Job Outlook The majority of all graduates –men and women – say their business degree provided a competitive % of Grads in Agreement on Value of Graduate Management Degree advantage and improved their chances of finding a job. In particular, more than half of all female Women in Perceived Benefit graduates feel their degree provided them with a Agreement sense of competitive advantage and improved Provided competitive advantage 84% chances of finding a job that meets their Improved chances of finding a job that meets expectations 84% expectations. In addition, most women feel prepared for the job market and introduced to Prepared me to meet challenges of today’s job market 82% new career opportunities because of their degree. Empowered me to be in control of employment outcomes 77% The accompanying table shows specific percentages of women agreeing to management Introduced me to career opportunities 73% education degree advantages. Source: GMAC Global Management Education Graduate Survey, 2011 Source: GMAC Global Management Education Graduate Survey, 2011 More Than Half of All Women Promoted After B-School More than half of all alumnae from the graduating classes of 2000 to 2011 (approximately 52%) had received a promotion with their current employer. The greatest percentage of women who received promotions were those who graduated from either a part-time MBA (64%) or executive MBA (62%) program, followed by 41% from full-time MBA programs and 42% of alumnae with other master-level degrees in business. In general, men and women received the same number of promotions since graduating, which varied by program type: an average of two for alumni of full-time and part-time MBA programs, and an average of three for executive MBA graduates. Source: GMAC Alumni Perspectives Survey, 2012 Success in Job Attainment by Industry Of B-school graduates seeking employment within each industry, the percentage of men and women with at least one job offer before graduation appears in the table below. Women appear to have experienced greater success than men in receiving job offers from the consulting, manufacturing, and finance/accounting sectors. Source: GMAC Global Management Education Graduate Survey, 2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 6 of 12 Percentage of 2011 Graduates With Job Offer Before Graduation by Gender and Industry Difference Between Women Industry Type Women Men and Men 2011 Consulting 64% 56% 8% Energy/utilities 28% 51% –23% Finance/accounting 56% 53% 3% Health care 43% 67% –24% Technology 59% 61% –2% Manufacturing 67% 63% 4% Nonprofit/government 38% 53% –15% Products/services 39% 49% –10% Source: GMAC Global Management Education Graduate Survey, 2011 Female Motivations for Pursuing B-School Among prospective students, a greater percentage of women than men indicated their intentions to pursue graduate management education were for professional credentials (58% women vs. 54% men), personal satisfaction/achievement (58% women vs. 51% men), and to increase job opportunities (73% women vs. 68% men). Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 Industry Preferences Top Industries of Employment for Class of 2011 Alumnae The top industries of employment among B-school alumnae from the class of 2011 were products and services (25%), finance/accounting (18%), and consulting (13%). Source: GMAC Alumni Perspectives Survey, 2012 Women MBA's and management degree-holders in the class of 2011 reported working in the following job Global Women in the Class of 2011 and Industry of Employment (%) functions in their first jobs after graduation: Marketing/sales, 25% Products/services 25% Finance/accounting, 23% Finance/accounting 18% Consulting, 13% Consulting 13% Operations/logistics, 12% Nonprofit/government 12% Human resources, 7% Health care/pharmaceuticals 11% General management, 6% Manufacturing IT/MIS, 4% 9% Technology Other job function, 11% 6% Energy/utilities 2% Source: GMAC Alumni Perspectives Survey, 2012 Source: GMAC Alumni Perspectives Survey, 2012 © 2012 Graduate Management Admission Council®. All rights reserved. Page 7 of 12 Study-Work-Life Balance Flexible MBA, Online MBA, and Part-Time MBA Formats Among the MBA programs surveyed, the program types with the largest percentage of women in their applicant pool were flexible (on-campus) MBA programs (40%), online MBA programs (38%), part-time MBA programs (37%), two- year full-time MBA programs (35%), and one-year full-time MBA programs (34%). Women represented less than one- third of applicants to EMBA programs (27%). Source: GMAC Application Trends Survey, 2011 Emphasis on Balance Seen in Program Consideration In calendar year 2011, a greater percentage of female prospective students reported interest in program types that offered flexibility when compared with their male counterparts. Among the program types, results were: part-time programs (30% of women vs. 29% of men), flexible MBA programs (21% of women vs. 17% of men) and online/distance MBA programs (15% of women vs. 13% of men). Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 Geographic Focus and Regional Comments Study/Work Focus Globally, among prospective B-school students, more women than men reported submitting applications to local business programs, 51% women vs. 42% of men. In addition, only 26% of female prospective students indicated an interest in working outside of their country of citizenship after business school, compared with 28% of men. Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 GMAT® Score Sending Patterns Women sent 293,952 or 39 percent of the total 750,399 GMAT scores sent in testing year 2011. Women from the United States accounted for 41 percent of all scores sent by women with 119,677 scores. On average, women around the world sent fewer score reports than men, 2.8 for women vs. 3.0 for men. Source: GMAT Examinee Data, TY 2011 — Spotlight on Europe — MORE European Women Taking the GMAT Exam Eight of top 10 European citizenship groups sitting for the GMAT in 2011 had a higher proportion of women when compared with five years ago. In total, there were 9,325 exams taken by European women, sending 18,516 score reports (of the total 51,946) in TY 2011. Female representation among all European citizens increased marginally over the past five testing years, from 37 percent in TY 2007 to 38 percent in TY 2011. Source: GMAC European Geographic Trend Report for GMAT® Examinees, 2007-2011 Leading Sources of Female Talent in Europe: France, Germany, Russia The European countries with the largest number of exams taken by female citizens in TY 2011 were: France (1,680 exams, 40% women), Germany (1,333 exams, 34% women), and Russia (1,123, 57% women). Combined, these three citizen groups represented 44 percent of European women talent in the pipeline for business schools. Rounding out the leading six countries of European women sitting for the GMAT exam: Greece (755 exams, 46% women), Italy (503, 27% women), and the United Kingdom (448, 28% women). Source: GMAT Examinee Data, TY 2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 8 of 12 European Countries with Greatest Representation of Women in the Pipeline Irrespective of the number of exams taken, there were 14 European countries where women accounted for the majority of test takers in TY 2011. The Eastern Europe pattern is noticeable, ranging from Romania (with 65 percent women) to Croatia (with 51% women). By volume, the largest volumes of female majorities were in Russia, followed by Romania, Bulgaria, and Ukraine. Source: GMAT Examinee Data, TY 2011 European Women’s Timeline Fastest vs. Global Peers Among those surveyed in 2011, European women had the fastest timeline among women from all global regions with an average of 40.6 total months or 3.3 years from precontemplation to submitting an application. Much like their male counterparts, the longest timeline for women by region was among Canadian women, who spend an average of 72 months in the timeline to business school. Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 Shorter Timeline for Prospective European Female Students The difference in the timeline to business school for European women vs. men is 14.1 months, or just over a year. On average, European women spent a total of 40.6 months, or 3.3 years, in the timeline to business school, compared with the 54.7 months, or more than 4.5 years, for men. Source: GMAC mba.com Prospective Students Survey Report, forthcoming 2012 Age Margins by Gender Globally Women test takers are on average 1.5 years younger Mean Age by Gender, TY 2011 than men. Within Europe, the difference in age GMAT Examinees by Difference between men and women GMAT test takers was Region of Citizenship Total Female Male (Male-Female) greater among Western European citizens, with men Total 26.3 25.4 26.9 1.5 1.3 years older than women on average, marking the third largest age difference after East Asia and East Asia 24.6 23.6 26.0 2.39 African citizens. Among Eastern European citizens, Africa 28.6 27.4 29.4 2.01 there is an average difference of 0.9 years between Western Europe 25.9 24.7 26.5 1.73 men and women. See the accompanying table. Central Asia 26.6 25.5 26.9 1.35 Source: GMAT Examinee Data, TY 2011 Middle East 26.9 26.1 27.3 1.15 Age Margins Within Europe Australia and Pacific 28.8 28.1 29.2 1.10 Islands The average age of European GMAT examinees in TY 2011 is shown in the table by gender and Eastern Europe 25.7 25.3 26.2 0.95 citizenship. Men were typically older than women, Mexico, Caribbean & 27.8 27.3 28.1 0.78 and by two years or more in only four locations: Latin America Cyprus, Finland, Luxembourg, and Italy. Canada 27.7 27.3 28.0 0.77 There were only three locations in Europe where the United States 26.8 26.5 27.0 0.59 average age of a woman was older than a man by a Source: GMAT Examinee Data, TY 2011 year or more: Malta, Slovenia, and Georgia. Source: GMAT Examinee Data, TY 2011 © 2012 Graduate Management Admission Council®. All rights reserved. Page 9 of 12 GMAT Exams Taken By European Women in TY 2011 Mean Age in TY 2011 Exams Taken in TY 2011 European Citizens Female Male Total Female Male Total % Women France 23.4 25.3 24.6 1,680 2558 4238 40% Germany 24.2 25.3 24.9 1,333 2542 3875 34% Russian Federation 24.9 26.6 25.6 1,123 857 1980 57% Greece 23.8 25.0 24.5 755 877 1632 46% Italy 23.5 25.5 25.0 503 1333 1836 27% United Kingdom 27.5 28.7 28.4 448 1175 1623 28% Romania 25.4 26.6 25.8 308 163 471 65% Spain 27.7 27.9 27.9 289 811 1100 26% Bulgaria 25.2 26.2 25.7 286 249 535 53% Netherlands 25.3 27.2 26.6 282 639 921 31% Ukraine 25.5 27.1 26.2 239 207 446 54% Portugal 27.6 29.4 28.8 193 430 623 31% Poland 26.5 25.6 26.1 176 174 350 50% Sweden 25.8 27.2 26.7 172 314 486 35% Switzerland 26.5 28.0 27.6 135 443 578 23% Armenia 24.1 24.7 24.3 117 90 207 57% Finland 26.5 28.5 27.4 117 110 227 52% Austria 24.4 26.1 25.6 99 187 286 35% Norway 25.2 25.9 25.7 96 174 270 36% Belgium 25.6 26.5 26.3 87 316 403 22% Serbia and Montenegro 25.0 25.2 25.1 79 98 177 45% Albania 25.5 26.3 25.8 73 52 125 58% Ireland 32.8 31.9 32.1 70 247 317 22% Georgia 27.3 25.9 26.5 69 89 158 44% Belarus 26.2 27.2 26.6 66 50 116 57% Hungary 26.0 26.2 26.1 65 93 158 41% Moldova 24.5 25.5 24.9 54 37 91 59% Croatia 25.4 26.4 25.9 52 50 102 51% Lithuania 25.5 25.3 25.4 49 57 106 46% Slovakia 26.1 26.2 26.2 42 53 95 44% Czech Republic 26.5 27.0 26.8 37 72 109 34% Denmark 29.8 30.5 30.2 37 74 111 33% Cyprus 23.3 27.4 25.7 35 51 86 41% Estonia 25.7 26.4 26.0 30 19 49 61% Latvia 24.1 24.8 24.6 28 51 79 35% Azerbaijan 24.3 25.0 24.9 24 120 144 17% Macedonia 26.8 28.4 27.3 23 10 33 70% Bosnia and Herzegovina 24.4 26.1 25.5 14 27 41 34% Iceland 27.1 28.1 27.8 13 28 41 32% Slovenia 31.0 27.6 28.9 11 17 28 39% © 2012 Graduate Management Admission Council®. 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