GMAT is a standardized test that is required by business schools for admissions to their MBA programs. I would say that GMAT’s importance and practicality extend far beyond the admissions process, and there are good reasons for it.
Not only is GMAT your gateway towards an MBA degree, but it is also a defining factor in post-MBA job applications. That’s right; thousands of corporate recruiters explicitly ask you to include your GMAT scores in your job application.
Why do they require GMAT? Simply because GMAT is a test of your critical thinking and analytical skills. These skills are highly sought out in the corporate world and can be a defining factor for landing your dream job.
Let’s explore the scope of GMAT in a bit more detail. Starting with what it is.
What is GMAT?
GMAT, short for Graduate Management Admission Test, is a computer-based standardized test that assesses your analytical, writing, quantitative, verbal, and reading skills. It is an entry-level test that is exclusively required by business schools worldwide for admission to their graduate programs.
- Analytical Writing Section
- Integrated Reasoning
- Quantitative
- Verbal
The Analytical Writing section is 30 minutes long and tests you on your ability to analyze and review a given argument.
Integrated Reasoning tests your ability to evaluate data presented in multiple formats. It consists of 12 questions with a time duration of 30 minutes.
The Quantitative Section tests your ability to reason mathematically. It includes various quantitative problems such as algebra, geometry, and arithmetic. The total score ranges from 0 to 60 for this section, and there are 31 questions. The allotted time is 62 minutes.
The Verbal Section tests you on your reading comprehension, critical thinking, and sentence correction abilities. The score ranger from 0 to 60 and the time allotted is 65 minutes. There are 36 questions.
Importance of GMAT for MBA Admissions
The first and foremost purpose of GMAT is to get you into an MBA program or some other graduate business program. All top business schools like Harvard, Stanford GSD, Yale, and others require you to submit a GMAT score along with your application.
So, GMAT is of utmost importance because an MBA degree is a requirement if you seek success in the corporate world.
Although most top schools take a holistic approach to your application, the GMAT plays a considerable role in thinning out the pool of applicants.
Since GMAT has proven a reliable measure of a test taker’s success in business school, your GMAT score is a clear indication if you will keep up to the program’s demands. Hence, it’s a no-brainer for the admissions committee to base their decisions on GMAT scores. If you also have a stellar profile on top of a high GMAT score, you sure will cut.
Let’s see what GMAT gets you in terms of long term investment. The following are the top 5 US business schools and the average salaries their graduates earn after completing their MBA. These rankings and other information included have been taken from 2019 US News business school rankings.
Harvard is at the very top of the chain, with a mere 10 percent acceptance rate. It is undoubtedly the most prestigious business school out there. The average GMAT score requirement for Harvard is 731, and the average salary their graduates make is $137000.
Chicago booth comes in second place with an acceptance rate of 24%. The average GMAT requirement is 730, and the average salary is $129000.
Wharton business school is third in the ranking. It has an acceptance rate of 19% and an average GMAT score of 730. The average salary their graduates go onto earn is $136000
Stanford is fourth in the rankings, with the lowest acceptance rate of only 6%. It also has the highest average GMAT score requirement of 737 and the highest average salary of $144000.
MIT Sloan business school takes the fifth spot. It has an acceptance rate of 12% and an average GMAT score of 722. MIT graduates make around $128,000.
GMAT plays a significant role in your career. Notice how a difference of few score points can affect a graduate’s yearly income.
Value of GMAT in the Corporate World
Remember, I said in the beginning that GMAT has other utilities beyond the admissions process. Your GMAT score helps you landing a top-tier job at consulting firms, financial planning firms, Investment banking, and many management firms.
Having gone through GMAT forums such as GMATCLUB, r/GMAT, and others, you would see countless applicants testifying that competitive consulting companies explicitly require your GMAT scores on your application. Not to mention, some of these top-tier firms like Mckinsey and Accenture won’t even glance at your application if you didn’t report your GMAT score. Many of these consulting firms have their recruitment exams, which are based on the GMAT style of testing. So, if you didn’t do well on the GMAT, you are most likely not going to do well on their recruitment exams.
Your journey through preparing for GMAT will instill knowledge in you that will stay with you for the rest of your life. No matter where you end up, the knowledge you gain is bound to help you in some way later on in life.
Moreover, GMAT is hard work; practicing test questions hours on end and consulting multiple books takes time, effort, and patience. These qualities are much sought after in the professional world. Hence GMAT helps you develop good habits that are essential to success in life in general.
Bottom Line
No matter if you are a business school aspirant or someone who wants to land a prestigious job at a top-tier consulting firm, GMAT has been tried and tested in determining both academic successes as well as career success. As a requirement for business school, GMAT is your gateway into top-notch business schools. Your GMAT score helps you stand out from the crowd. As a test of your abilities, the GMAT will help you with your job application. Hence, GMAT carries immense value and should be a top consideration for anyone pursuing a business management career.