"WISCONSIN MBA CAREER SERVICES Spring Alumni Survey Results Overall Report"
WISCONSIN MBA CAREER SERVICES Spring 2007 Alumni Survey Results Overall Report Highlights Overall salary data University of Wisconsin‐Madison MBA Career Services When grouped by year, there is a clear trend staff conducted an extensive email survey of recent alumni to upward in terms of current base salary as the number determine how masters degree students fare in terms of of years after graduation increases. This despite the salary, bonuses, positions, and degree satisfaction. fact that base starting salaries of respondents were Overall, graduates of Wisconsin School of Business basically flat year‐by‐year. masters programs have experienced consistent base salary Median current and starting salaries, along with an growth, reported strong career advancement, and have estimated compound annual growth rate (CAGR), are favorable opinions of how their masters degree has helped presented in the chart and table below. them achieve their career objectives. Some highlighted findings from the survey include: All Survey Respondents $125,000 10% ► Median current base salaries among survey respondents were consistently well above starting Median Base Salary CAGR (Estimated) salaries immediately after graduation, and increased $100,000 8% steadily with increased years of post‐masters degree work experience. $75,000 6% ► The average estimated compound annual growth rate (CAGR) for the all survey respondents was 7.7%, more than double the rate of inflation during the $50,000 4% same time period. S tarting 3 4 5 6 7 ► Respondents rated their Wisconsin masters degree in Current Years After Graduation G ro wth business at 8.2 out of 10 in terms of how much it has helped them achieve their career objectives, with 50% of respondents giving the program a 9 or 10 Years Median Median CAGR ranking. Out Starting Current (est.) 3 $75,000 $90,000 6.9% ► 86% of respondents reported receiving a bonus 4 $65,000 $90,000 9.0% during the past 12 months, with 20% of those alumni 5 $65,000 $95,000 8.2% receiving bonuses in excess of $50,000. 6 $75,000 $107,500 6.5% 7 $65,000 $107,500 7.8% The survey included results from 236 alumni who received MBA, MS or MA degrees from the Wisconsin School of Business between May, 2000 and December, 2004. MS and MA alumni were included in the survey because either they were considered part of the MBA program at the time of their Wisconsin MBA Career Services studies, or they would be in the MBA program now if they attended the Wisconsin School of Business today. Most 3150 Grainger Hall Phone: 608‐262‐4000 respondents (61%) received an MBA. 975 University Ave. Fax: 608‐265‐4192 Madison, WI 53706 Web: www.bus.wisc.edu The survey was received by 483 alumni, producing a 49% response rate. Respondents included alumni of 12 of the Blair Sanford, Director current 13 specializations or their precursors, with the one 608‐262‐9817, firstname.lastname@example.org exception being Strategic Management in Life and Engineering Sciences (SMILES), which had its first graduates Lucas Wall, Assistant Director in 2005. The results of the survey are presented in this overall 608‐265‐4638, email@example.com report, as well as 12 specialization‐specific reports. Alicia Schetter, Assistant Director Please see the final page of this report for more details regarding 608‐265‐2353, firstname.lastname@example.org the sample set and methodology used to analyze the results. Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Base Salaries Specialization Median Starting Median Current CAGR (est) Participants were asked to provide their current Arts Administration $ 50,000 $ 55,000 2.1% base salary as well as their base salary in their first job immediately after graduation. The top three Human Resources $ 65,000 $ 85,000 5.2% specializations in terms of median current base salary ASAP $ 85,000 $ 95,000 2.6% were Risk Management & Insurance, Applied Corporate Finance (ACFIN), and Operations & Supply Chain $ 80,000 $ 95,000 4.0% Technology Management (OTM), however it should be Marketing Research $ 75,000 $ 95,000 4.9% noted that the total number of respondents in Risk Management was just four alumni. In 10 of the 12 Entrepreneurship $ 75,000 $ 95,000 5.1% specializations surveyed, the median base salary of Real Estate $ 75,000 $ 95,000 5.7% alumni was $95,000 or higher, and in all 12 specializations the median current base salary is higher Information Systems $ 75,000 $ 100,000 5.2% than the median starting base salary. Marketing $ 75,000 $ 100,000 6.4% Alumni of the Applied Securities Analysis Program (ASAP) had the highest median starting base salaries, Risk Management $ 80,000 $ 107,500 6.2% followed by Supply Chain and Risk Management. ACFIN $ 75,000 $ 107,500 8.9% Interestingly, OTM had one of the lowest median base starting salaries, leading to its remarkably high OTM $ 65,000 $ 107,500 11.6% estimated compound annual growth rate (CAGR) of 11.6%. The estimated CAGR for most specializations is well above inflation. For Arts Administration, the low CAGR is likely a result of the median starting base Base Salaries by Years of Experience salary being overestimated (the median range was Generally, alumni with more years of post‐MBA/ actually “$50,000 or less”), and for ASAP the low MA/MS experience have higher base salaries than CAGR is a result of high starting salaries and increased alumni with less experience — as shown in the chart on variable compensation (bonuses) with experience. the first page of this report. It should therefore be The estimated CAGR was calculated using the noted that the average years of experience across all median starting and current values and average years specializations was similar, varying from 4.2 years for of post‐degree experience for each specialization. It is ACFIN to 5.7 years for Information Systems. Only not the average of each individual respondent’s Human Resources (5.3 years) was more than 10% plus estimated CAGR. or minus the average of 4.7 years. $120,000 12.0% $100,000 10.0% Median Base Salary CAGR (estimated) $80,000 8.0% $60,000 6.0% $40,000 4.0% $20,000 2.0% $‐ 0.0% P N TM g in e n p t s s ch SA ti n at FI en ce io em i ha sh ar st O C at ur em A ke C E st ur se A tr so ar Sy al ly ag is Re e e en Re M pp in n an R g pr dm io Su an ti n M Median Starting Base Salary tre at um s A ke sk rm En Median Current Base Salary ar Ri H rt fo M A In Estimated CAGR Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Perceived Value of MBA Ranking by Years of Experience Survey participants were asked about their There was not a clear trend among survey perceptions of the Wisconsin MBA/MS/MA programs. respondents of different graduating classes in terms of Specifically, alumni were asked, “On a scale of 1‐10, how they value their masters degree. The lowest how much has your masters in business from satisfaction score came from students graduating from Wisconsin helped you achieve your current career August 2000 through May 2001, which may be a position?” reflection of the poor job market for MBAs at that time as much as factors related to the Wisconsin program The average among survey respondents was specifically. Results are presented in the chart below. relatively high at 8.2. The most commonly selected score was 10 (chosen by 31% of respondents). The All Survey Respondents number of respondents selecting 10 is more than 9.0 double the number of students selecting 0 through 6 Average Ranking combined. Generally, students with lower current base 8.5 salaries ranked the program lower, and vice versa. 8.6 8.4 8.5 Overall, 50% of respondents gave a score of 9 or 10, 8.0 8.1 and 87% gave a score of 7 or higher. A breakdown of responses for all survey respondents is provided in the 7.5 7.8 chart below. 7.0 Helpfulness of MBA in Attaining Current Position 3 4 5 6 7 60% Years After Graduation 50% 50% Percent Selecting 37% 40% 30% Ranking by Specialization 20% 9% Among individual specializations, satisfaction was 10% 3% 3% the highest among ASAP, Risk Management, and 0% Marketing Research. The lowest score was a 7.3 from 1 or 2 3 or 4 5 or 6 7 or 8 9 or 10 Information Systems, however even this value indicates high overall satisfaction. Comparison of Number Chosen by All Survey Respondents specializations is provided in the chart below. 10 Average value ranking among all specializations 9.5 9 9.3 Average overall ranking: 8.2 9.0 8 8.5 8.1 8.3 7.9 7.9 7.9 7.7 7.6 7 7.3 6 P TM N g in e n p t s s ch SA ti n at FI en ce io em i ha sh ar st O C at ur em A ke C E st ur se A tr so ar Sy al ly ag is Re e e en Re M pp in n an R g pr dm io Su an ti n M tre at um s A ke sk rm En ar Ri H rt fo M A In Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Bonuses & Other Comp. Bonuses by Years of Experience Survey participants were asked if they had There was not a lot of difference among survey received bonuses or other non‐salary compensation respondents of different graduating classes in terms of during the past 12 months, and if so, in what amount. whether they received a bonus in the past year. Overall, 86% of respondents indicated they had Broadly, more recent graduates are somewhat more received bonuses or other compensation, with the likely to have received bonuses or other compensation majority of those (64%) less than $25,000. in the past 12 months. However, more than 4 out of 5 alumni of all graduation years reported receiving The following chart breaks down bonuses by size. bonuses or other compensation in the past 12 months, a very high percentage. Results are presented below. 9% All Survey Respondents 4% 95% 92% 89% Receiving Bonus 7% 31% 90% 87% 85% 81% 81% 80% 16% 75% 3 4 5 6 7 Years After Graduation 33% Bonuses by Specialization Among individual specializations, ASAP alumni Less than $10,000 $10,001‐24,999 were most likely to have received a bonus in the past 12 months, with all respondents indicating they received $25,000‐49,999 $50,000‐74,999 one. Information Systems, Marketing Research, and Supply Chain also topped 90%. Comparison of $75,000‐99,000 Greater than $100,000 specializations is provided in the chart below. 100% Received bonus/other compensation in past 12 months 100% 96% 90% 94% 92% 89% 89% Average: 85% 85% 86% 80% 81% 70% 73% 75% 60% 54% 50% in TM n g P e N p s ch t es ti n en t io at SA em hi ha FI ar rc st rs O em ra ke C C A ou st se E eu A st Sy ar ly al Re ag es i en pp in M Re n an R g pr dm io ti n Su an M tre at s A um ke sk rm En ar Ri H rt fo M A In Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Alumni Comments Great Value ► “Best career choice I have made was to invest in Survey participants were given the opportunity to myself by going back to earn my MBA. Wisconsin provide comments about their experiences with the was an incredible learning environment: both Wisconsin School of Business masters degree program. collaborative and competitive. My post MBA salary Seventy‐nine respondents (33%) left comments related was nearly six times that of my pre MBA salary: to the program, with the vast majority positive in quite a ROI for me!” (Real Estate) nature, though some alumni offered suggestions for improvement. ► “My salary more than tripled from immediately It is impractical to list all of the comments provided pre‐MBA to immediately post‐MBA. Talk about a in this report, however some are listed here, grouped great investment!” (Information Systems) by type. The specialization(s) indicated by the ► “A UW MBA is the ultimate value buy.” (ASAP) respondent is (are) provided in parenthesis after each comment. ► “Excellent value and very quick return on investment!” (Risk Management) ► “Great value. The real estate program at Madison was critical for me.” (Real Estate, Finance) Positive Overall Experience ► “The program is a great value for the total cost, and ► “The programs, faculty, students and Madison is a wonderful place to study.” (Real Estate) administration made it one of my greatest ► “My MBA has dramatically impacted my career — memories. I truly feel fortunate to have gone to the my current salary is more than 4x what it was UW‐Madison School of Business.” (Supply Chain, before b‐school and I would not have gotten into Marketing) Brand Management without my UW MBA.” ► “An excellent school with a lot of emphasis on (Marketing, Entrepreneurship) building the foundation blocks, which later in practical life are very helpful.” (OTM) ► “Excellent experience during the MBA program at UW‐Madison. Finance program gave me good Specialized Focus exposure to real life situations. UW MBA gave me the foundation that I was looking for in my career.” ► “Awesome niche programs.” (Supply Chain) (ASAP) ► “I think the career specializations provide a strong ► “Exceptional experience!” (Supply Chain) and significant advantage for Wisconsin students. The pairing of foundation business courses with ► “From both a professional and personal classes and practical, hands‐on work experiences development, the 2 years spent at UW was (as offered through many project assistantships) beneficial for me. I know if I did not attend UW cannot be more suited for students who have a and receive my Masters, my current position or my career path and specific career goals in mind.” life would not be the same. The program allowed (Arts Administration) me to mature as a person, taught me how to recognize and work with different personalities, ► “I hope that the MBA program continues to build and gave me a broad global perspective of how on its strengths in regards to its various business is done around the world. Thank you UW specializations.” (Real Estate) Madison MBA.” (Supply Chain) ► “Wisconsin provides an exceptional, custom‐ ► “My MBA has helped me immensely in my current tailored degree with a high level of student‐teacher profession and will continue to set me apart from access within a competitive, energized niche my peers.” (Human Resources) school. Several of the specialized programs are first‐rate.” (Real Estate) ► “It was absolutely fantastic. Iʹm very proud of it.” (ACFIN, Entrepreneurship) ► “Going to Wisconsin for an MBA in Marketing Research was the best thing that could have ► “It gave me many of the skills and knowledge that happened to me.” (Marketing Research) I need to do my job, and opened the doors I needed to pass through to get to it.” (Entrepreneurship) ► “I believe I am better prepared for success in the field of marketing research than graduates from ► “Tremendously beneficial — I have performed better any other program in the US — including Kellogg, and been more prepared in my early career years Harvard, Chicago, Michigan, etc.” (Marketing than my colleagues from other schools.” (ASAP) Research) Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Group Comparisons Additional Education Survey respondents were asked if they had In addition to specializations and years since obtained any additional degrees or certifications since graduation, there are other ways to compare groups of completing their masters degree at the Wisconsin survey respondents. Some of those ways include: School of Business. In all, 62 respondents (26%) ► The type of degree earned (MBA, MS, or MA); indicated they had continued their education in some ► Whether the alumnus has continued on to achieve fashion, including 15 CFAs, 5 PhDs, and 4 JDs. additional degrees or certifications; Alumni who listed additional degrees or ► Whether the alumnus had only one major or more certifications reported higher salaries and bonuses than than one major. those who did not. Comparisons of the groups on several key statistics are presented in the table below. Comparisons of those groups are presented here. With Additional No Additional Item Degree/Cert. Degree/Cert. Degree Type Sample size 62 174 Currently, all graduates of the Wisconsin School of Business MBA program receive MBAs, however in Years post graduation 4.6 4.6 previous years students in some specializations were Median base salary $107,500 $95,000 allowed to receive an MS or MA degree instead (without continuing on to a PhD). Therefore, this Base salary >$100,000 64% 34% survey was sent to MBA, MS, and MA graduates for the years studied. Received bonus 90% 84% In all, 143 alumni (61%) reported they received an Bonus >$25,000 44% 26% MBA, while 79 alumni (33%) received an MS, and 14 alumni (6%) received an MA. All but one of the 14 MA Average ranking 8.5 8.1 alumni listed Arts Administration as their major — for details about MA graduates, please see the Arts Administration report. Generally, MS alumni have higher base salaries and bonuses, and ranked their masters degree from the Single Major vs. Multiple Majors Wisconsin School of Business higher than MBA alumni. Currently, students in the Wisconsin School of Some of this may be attributable to the fact that MS Business MBA program are only allowed to specialize alumni tend to have slightly more post‐masters degree in one program, however in previous years students experience than MBA alumni. were allowed to major in multiple specializations. In Graduates of the MS degree programs may also all, 35 alumni (15%) reported more than one major. have benefited from the higher level of focus provided No clear differences were observed in the survey by the MS programs at that time relative to the MBA. It results for alumni who listed only one major compared should be noted that for more recent graduates, there is to alumni who listed more than one major. less of a difference between MBA and MS alumni. Comparisons of the groups on several key statistics are Comparisons of the groups on several key statistics presented in the table below. are presented in the table below. Single Multiple Item Item MBA MS Major Majors Sample size 143 79 Sample size 201 35 Years post graduation 4.5 4.8 Years post graduation 4.6 4.5 Median base salary $95,000 $101,250 Median base salary $95,000 $95,000 Base salary >$100,000 40% 51% Base salary >$100,000 42% 47% Received bonus 87% 91% Received bonus 86% 86% Bonus >$25,000 22% 53% Bonus >$25,000 33% 23% Average ranking 8.0 8.6 Average ranking 8.3 8.0 Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Titles and Companies Financial Services Industry Survey participants were asked to identify their Title Employer current employers and titles, as well as their titles and Executive Director JP Morgan employers immediately after completing their masters Portfolio Manager State of Wis. Invest. Board degree from the Wisconsin School of Business. Alumni reported jobs across many industries, and Senior Analyst Perry Capital at many levels of responsibility. It is difficult to Securities Analyst Stark Investments generalize based upon job titles and employers alone, Director Northwestern Mutual however here are some interesting results of the survey: Vice President UBS Securities Associate Credit Suisse ► Nearly half (44%) of alumni are with the same company as they were immediately after Vice President Lehman Brothers graduation; Alternative Inv. Specialist American Family Insurance ► The word “Manager” appeared in the current job titles of 78 alumni (33%); ► 37 alumni listed “Analyst” in their current job title; ► 30 alumni listed “Director” in their current job title; Consumer Packaged Goods ► 15 alumni listed “Vice President” in their current job title; Title Employer ► Seven alumni listed themselves as “Self‐ Senior Brand Manager Spectrum Brands employed,” while another three listed themselves Brand Manager Coors Brewing Company as “President” and two more as “Owner.” Sr Market Research Mgr SC Johnson Some of the titles & employers currently held by Wisconsin School of Business masters degree alumni Financial Analyst Procter & Gamble are provided on this page, grouped by industry. Senior Associate General Mills Marketing Analytics Mgr Kraft Sr Mkt Research Analyst Johnson & Johnson Manufacturing Industry Market Intelligence Mgr Clorox Title Employer CEO PowerDesigners, LLC Research & Tech Mgr Boston Scientific Technology Industry Dir., Master Branch Ops. W.W. Grainger, Inc. Title Employer Strategy Manager Takeda Pharmaceuticals Enterprise Architect AT&T Product Manager Invitrogen Advisory Software Eng. IBM Supply Chain Manager Abbott Laboratories Sr Research Consultant Dell Manager of Logistics LG Electronics USA Program Manager Cisco Systems Business Operations Mgr GE Healthcare Group Leader Epic Systems Consulting Industry Title Employer Non‐Profit Companies VP, Generational Insights Frank N. Magid & Assoc. Title Employer Senior Associate Point B Solutions Group General Manager Classic Theatre Cobalt Engagement Manager McKinsey & Company Controller McCarter Theatre Company Senior Consultant Deloitte Assoc. Director of Dev. Madison Symphony Orch. Senior Consultant Trianz, Inc. Development Director Wisconsin Chamber Orch. Spring 2007 Alumni Survey Results Wisconsin MBA Career Services Overall Report Interpretation of Results Sampling Methodology The primary objective of this survey was to gather Wisconsin MBA Career Services acquired names salary data on recent masters degree alumni of the and contact information for alumni who graduated Wisconsin School of Business. In order to obtain the with MS, MA, and MBA degrees from the Wisconsin highest response rate possible, survey participants School of Business from 2000 through 2004. The data were asked to select from ranges provided for were provided by the staff of 11 specializations — Arts questions related to salaries and bonuses. Administration, Applied Corporate Finance (ACFIN), Specifically, for the questions regarding current Applied Securities Analysis Program (ASAP), Brand & base salary and starting base salary immediately after Product Management, Entrepreneurial Management, graduation, the following ranges were provided: Information Systems, Marketing Research, Operations & Technology Management, Real Estate & Urban Land Less than $50,000 $50,000‐59,999 Economics, Risk Management & Insurance, Strategic $60,000‐69,999 $70,000‐79,999 Human Resource Management, and Supply Chain $80,000‐89,999 $90,000‐99,999 Management — and Wisconsin School of Business $100,000‐114,999 $115,000‐129,999 Alumni Services. $130,000‐149,999 $150,000‐179,999 In total, 633 names were acquired, including 523 $180,000‐199,999 $200,000 or more with email addresses. The survey was administered Stay at home parent/volunteer/other via email only. An email containing a link to the survey was sent to 523 alumni initially on January 31, For the question on bonuses received over the past 2007. A follow‐up email with a link to the same survey 12 months, the following ranges were provided: was sent on February 8, 2007. The survey was closed Less than $10,000 $10,000‐24,999 on February 13, 2007. Of the 523 alumni included in $25,000‐49,999 $50,000‐74,999 the initial email survey request: $75,000‐99,999 Greater than $100,000 ► 236 (45.4%) completed the survey; Did not receive bonus or additional compensation ► 235 (45.2%) did not respond to either email; Because survey participants were asked to select ► 37 (7.1%) did not receive the survey because of from ranges rather than provide exact figures and undeliverable email addresses; because those ranges varied in magnitude and the top ► 12 (2.3%) opted to decline the survey. value was uncapped, it was decided that using the The survey was 15 questions long, including a final median range was a more reliable summary statistic question for open‐ended comments. Responses were than an average or weighted average value. In this and required for 13 of the 15 questions. A full text of the the specialization‐specific reports, the midpoint of the questions is available to Wisconsin School of Business median range, or the average of the midpoints of the faculty, staff, and students upon request. two median ranges (for an even‐numbered set of data), was used as the median for the given data set. For example, assume there are six respondents 4 years post‐graduation in Specialization X with the Grouping by Year following current base salaries: Students were asked to identify the month and Less than $50,000 $50,000‐59,999 year of their graduation. For purposes of these reports, $70,000‐79,999 $80,000‐79,999 students were grouped in terms of years post $115,000‐129,999 $200,000 or more graduation. The number of years was determined by The median reported for this data set would be the taking the total number of months between the month average of the midpoints of the third and fourth ranges of graduation and the month of the survey (January when listed highest to lowest, or $80,000. This principle 2007), dividing by 12 and rounding to the nearest was applied consistently throughout all reports. whole number. This led to alumni with August and December graduations in one calendar year being grouped with alumni with May graduations in the following calendar Anonymity of Respondents year. Coincidentally, this is in agreement with standards set by the MBA Career Service Council. Survey participants were not asked for their names and were told their specific responses would not be Overall, there were 2 respondents 2 years post‐ provided on an individual basis. To honor this pledge, graduation (1%), 58 respondents 3 years out (25%), 38 detailed information on individual respondents cannot respondents 4 years out (16%), 52 respondents 5 years out be provided. Grouped data has been provided in this (22%), 54 respondents 6 years out (23%), and 32 and other similar reports. respondents 7 years out (14%).