Why doesn't everyone at MBB take advantage of the MBA sponsorship?
It seems like most opt to leave after 2 years or so and don't accept the MBA sponsorship, particularly at McKinsey. It seems like up or out doesn't really apply until you're on the partner track now days, and while there's obviously an opportunity cost to an MBA, I can't see why that stops most people. Why wouldn't everyone just accept a top, free degree?
My guess is
1.) Sponsorship -- You can't assume that everyone in McKinsey's class will get into a top 10 MBA or at least one of the MBA programs McKinsey sponsors (which I assume is around the top 7-15) 2.) Location -- They are tied to a certain geographic location due to family/friends/spouse/etc. and don't want to move across the country for two years. 3.) Opportunity cost -- You can't overlook this. Even if the MBA is paid for, you're making a four year commitment (2 years to get the degree, two years back at the firm). The opportunity cost of lost wages is easily $200-300k and then the opportunity cost of staying at an MBB firm instead of pursuing potentially more lucrative exit opportunities could be $100k+. Also factor in the opportunity cost of 2 years worth of work experience and how that plays into a promotion-- the individual is effectively two years behind on their promotion track 4.) Utility -- After MBB, a business degree would give individuals a broad business skillset-- something that most MBB consultants already have somewhat developed. By the time of sponsorship, most consultants have specialized into a certain business function or industry. If they know what they want to exit to, they don't necessarily have to have a business degree to do it. If they want to play a risk averse strategy or go into a completely different field, only then would a business degree help them.
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