A General MBA Leads to Better Job Offers

We live in an era of specialists due in large part to advances in science, technology and healthcare. Today, there are more than 145 specialties and subspecialties for physicians to choose from, up sharply in the last 25 years. Advances in technology have also fueled the growth of business specializations, particularly in finance. Yet when it comes to middle and senior managers, the opposite appears to be true. Generalists are winning the talent wars.

That’s the conclusion from evidence presented by researchers at Tulane and Columbia Business School, who reported their findings in the Harvard Business Review.

Market Penalty

Although some students who followed a more specialized track during their MBA studies did succeed along specific career paths, the majority of employers definitively favored those who could demonstrate a wider range of fundamental leadership skills.

The study also gave reasons why the business community appeared more welcoming to those with broader backgrounds. Jennifer Merluzzi, one of the professors who ran the long-range study, stated unequivocally, “Specialists were definitely penalized by the market. Not only were they less likely to receive multiple offers, but they were offered smaller signing bonuses. In some cases, the specialists earned up to $48,000 less than their generalist peers.”

Oversupply of Specialists

The fact that there is now a more favorable outlook for general MBA jobs might seem to run counter to the advice that many MBA students have heard repeatedly throughout their academic and professional careers. Mentors often warn, “You can’t make it as a wandering generality. You must have a specific skill set.”

But according to Professor Merluzzi, that line of thinking can lead to a job market with an oversupply of specialized MBAs, “You end up with many similar people in the market. Specialization becomes commodified, giving you less bargaining power, because you’re easily substitutable. Plus, when the firm is used to hiring a lot of people like you, it’s easier to calculate your value compared with someone with diverse accomplishments.”

Micro-Concentrations

However, her latest new findings don’t necessarily contradict with established wisdom. MBA students can distinguish themselves by fine-tuning individual skillset combinations without limiting themselves to intensive finance or marketing specializations.

One way to do that is through “mini-concentrations.” It has become increasingly common for MBA programs to allow students to earn a professional certification along with their MBA. For example, a certificate in project management from the Project Management Institute (PMI) can be rolled into the general MBA program. Students then enter the workforce with the broadest leadership training, in addition to a certification that is currently highly prized among recruiters within various industry verticals.

The Global Outlook

This preference for a more general MBA vs. a concentration track has become a global phenomenon. According to Andrea Masini, the Associate Dean of the business school at HEC Paris, senior level execs today are most in need of business leaders with more extensive knowledge. They need leaders who can take an active role and advise their teams in any problem area at any time.

Stefano Caselli, the Vice Rector of International Affairs at Italy’s Bocconi University says, “The concept of MBAs is to create top-quality managers in many areas of management.” The international picture, characterized by volatile economic projections and intense competition from developed and emerging markets, demands leaders who are proficient in a range of skills so they can shift gears instantaneously.

In addition, the earlier trend toward more narrow academic concentrations tended to stifle overall corporate creativity and limit enterprise-wide knowledge among middle-tier managers.

The Time of Generalists

Gary Vaynerchuk, CEO of VaynerMedia, turned a simple retail store into a $60 million business in under seven years. Part of that success is due to his strategy of hiring only generalists. But that doesn’t mean you have to spread yourself too thin, though.

Vaynerchuk said, “I don’t believe in trying to strengthen weaknesses, but I do believe in working hard to be good at many things. In life, you will be required to take on many different tasks. You might be really good at something now, but don’t let that stop you from finding out what else you can dominate. You’ll never know when you’ll need to tap into more than one skill. It’ll speak to your agility and your ability to offer a number of benefits to a certain situation when the time calls for it.”

That time could be as soon as graduation for many MBAs, coming into industries in the midst of disruption. Many companies are experiencing some type of disruption from the likes of mobile-based apps, the sharing economy, artificial intelligence and the Internet of Things.

While specialists are seen as experts in their fields, general MBA graduates are seen as more capable of assuming the highest executive functions in the face of accelerating change. “Leaders tend to be generalists,” Professor Merluzzi concluded. “They can shift course and manage multiple areas. They’re more flexible.” What organizations need to survive in this new reality are leaders who can adapt to new conditions instantly and lead their teams into unknown territories.

Categories: MBA