Is not taking the GMAT worth $300,000 to you?

Many students want an MBA because of learning, improved personal skills, close cohort connections, employer links and alumni community. They can produce dramatic improvements in the salaries and career opportunities for students. However, many students are daunted by the GMAT test, especially those whose English-language skills lead then into lower GMAT scores. Many students try to get around that by aiming for MBA programs that do not require the GMAT. Sadly, outcomes are generally much worse for MBAs which no not require the GMAT than for those that do.

For example, according to the Financial Times ranking the UK programmes which don't make the GMAT compulsory have graduates earning USD $95k or less after three years. Those who do are earning $104k or more. That difference will widen year after year for most alumni.

MBAs with GMATs do better because the GMAT is the best predictor of success in MBA programmes. That means that employers value MBA programmes with the GMAT more highly, especially those hiring for traditional MBA roles. Both the students, and the opportunities, are generally better.

The GMAT is not impossible. I'm a theology and philosophy undergrad with no special talent for numbers. I studied 40 hours for my GMAT and got into London Business School.

And just because a school requires the GMAT does not mean that every admitted candidate needs to scored highly.

Is that effort, or twice, three times -- even ten times it -- worth $300,000k to you? If not, then it will be a good investment for you to take the GMAT if you want to take an MBA in order to accelerate your career.
PS Many candidates don't realise that most candidates spend 100 or fewer hours preparing for the GMAT, and many study for 50 or fewer (as I did).

[Edited by Duncan on May 05, 2020]

Good post Duncan. Knowing this salary data, it would even make good financial sense to invest in one-on-one GMAT tutoring or other preparation methods, even if it seems like they have high price tags. Of course, not every applicant will need such robust support - but I've even heard of candidates who have improved their scores from the low 500s to 650+ with constructive preparation. It's not easy but it's worth it.

It will show your skill and also you will get scholarship which wil help you financially , you will get admission in top college in your country

Also, reiterating on Duncan's point... If you're gonna be going for a $150K graduate program... you need to take a $250 test just so that you get into the pool...

Sux... but what doesn't!!

Is not taking the GMAT worth $300,000 to you?

Many students want an MBA because of learning, improved personal skills, close cohort connections, employer links and alumni community. They can produce dramatic improvements in the salaries and career opportunities for students. However, many students are daunted by the GMAT test, especially those whose English-language skills lead then into lower GMAT scores. Many students try to get around that by aiming for MBA programs that do not require the GMAT. Sadly, outcomes are generally much worse for MBAs which no not require the GMAT than for those that do.

For example, according to the Financial Times ranking the UK programmes which don't make the GMAT compulsory have graduates earning USD $95k or less after three years. Those who do are earning $104k or more. That difference will widen year after year for most alumni.

MBAs with GMATs do better because the GMAT is the best predictor of success in MBA programmes. That means that employers value MBA programmes with the GMAT more highly, especially those hiring for traditional MBA roles. Both the students, and the opportunities, are generally better.

The GMAT is not impossible. I'm a theology and philosophy undergrad with no special talent for numbers. I studied 40 hours for my GMAT and got into London Business School.

And just because a school requires the GMAT does not mean that every admitted candidate needs to scored highly.

Is that effort, or twice, three times -- even ten times it -- worth $300,000k to you? If not, then it will be a good investment for you to take the GMAT if you want to take an MBA in order to accelerate your career,

You should be really intelligent to get a good GMAT score, with 40 hours of learning. But that's not the normal case, at least for me!

Have heard about many gmat preparation courses. for ex. kaplan, Manhattan gmat, veritas, gmatpill, egmat, magoosh etc. But as far as I am aware, if one decide to go with any of these, it would need much more hours of study to get a reasonably good score.(again, for average students)

May be you'd be able to suggest another preparation course for gmat that could be done within a comparatively shorter period of time. Or, it is worth sharing with others on how did you prepare for your gmat..

[Edited by distance learner on Jun 28, 2015]

I got quite average grades through my undergraduate and masters courses but like most people learn better when I am motivated. My BA was in theology and sociology, so the mathematics was tough because I had not done any since I was 16. I used a book on algebra, just a revision guide with lots and lots of exercises, probably for school children. There are just a few things to focus on: linear equations, exponents, roots, quadratic equation, inequalities.

The verbal reasoning bit was easier for me because I am British, so I just needed to think about the slight differences with American English, in vocabulary and phrasal verbs, since the test is in US English.

Of course it takes a longer time if you want to get a very high score, but I had decided to wait until I had several years experience, and I was applying in Europe where the GMAT requirements are less high.

Remember, the benefits to GMAT takers are not limited to the schools with very high GMAT scores. A schools that asks for 550 or 600 is placing a floor underneath the students, in the way that a TOEFL or IELTS score does. Teacher have to pitch their teaching between the top and bottom of a group, in terms of their effectiveness as learners. If the floor is a little higher then everything else goes faster.

Of course the other point is that admissions offers know this. With the exception of the very high volume application types, from India and the PRC, admissions officers will understand that an able candidate will not score as highly if English is not their first language. Of course the high volume of candidates from India and China means that they often need to get above average scores, especially if they apply with the bare minimum of work experience.

Thank you Duncan. Interesting.

Hi Duncan, what may your GMAT score be, then?

[Edited by Elbrus on Aug 06, 2015]

Sorry for the very late reply. My GMAT is 640.