With potential enrollment of thousands annually, the military market includes those who intend to stay in the service and those who are planning to leave. Prospects are easy to target and communication channels are relatively accessible.
The U.S. Department of Defense has a budget of $657 million* for Off-Duty and Voluntary Education and $390 million for Civilian Education and Training (including both graduate and undergraduate education). Tuition assistance levels are low, however, averaging $250 per credit hour with an annual cap of $4,500.
Those planning to stay in the service tend to—
- View the degree as a means to an end: promotion;
- Choose a program based on convenience and expedience over credential value; and
- Face constraints based on location, deployments, and work-related intrusions.
They may be good online students, but are not likely candidates for full-time programs unless the programs are sponsored by their branch of service.
A new program aimed at retaining officers beyond their initial five-year commitment will offer tuition and salary for attendance at full-time graduate programs. This could result in as many as 1,000 additional prospects for full-time programs annually.
Those planning to leave (OITs—Officers in Transition) may be—
- Similar to classic "career-changers" who often enroll in full-time MBA programs;
- Less knowledgable about the business world than students from the civilian sector (but they often bring much more fully-developed people management and leadership skills);
- Older than other career-changers;
- More experienced, professionally, and more established personally (often, they have families); and
- Financially conservative, so cost is a significant factor in program selection.
On average, 40,000 individuals separate from the U.S. military annually and about 1,000 elect to attend MBA programs. (Data for other countries are also assumed to be significant.) Some have financial support at their disposal: in the United States, they have more than $25,000 in GI Bill benefits over the life of a typical MBA program. Still, most will require financial aid.
There is significant competition for both segments of this market—
- Schools with less selective admissions are very active recruiters and often have representatives and classes available on bases.
- Other schools offer online programs designed for military personnel, give credit for military training, and have price points attuned to military tuition assistance.
- Many employers recruit heavily among those separating from the military and more formerly military positions are being converted to civilian support status, enabling transitioning officers to literally change suits and go back to the same position.