Why GMAT? What It Means for Your MBA Application

If you’re wondering, “Why GMAT? Why not the GRE or EA instead?” then this article is for you.

The GMAT remains the most widely-used admission test for MBA programs. Business schools use GMAT scores in three primary ways:

• To assess an applicant’s likelihood of success in business school.
• To support the program’s rankings.
• To help narrow down the applicant pool to a manageable number.
  

These factors make the GMAT one of the most important components of an MBA application.

For a broader overview of the exam, see our complete guide: What Is the GMAT? [LINK: “What Is the GMAT?” pillar post]

The GMAT as a predictor of success in MBA programs

MBA programs want to admit candidates who will succeed in their programs, graduate with flying colors, and go on to fulfilling, successful careers. But how can schools know whether an applicant has the academic skills needed to pass Microeconomics or write a strong paper for a demanding Business Communication course?

Applicants submit their undergraduate GPAs, but there is no guarantee that a 3.0 or 4.0 at one institution represents the same level of achievement as a similar GPA at another. Likewise, candidates submit essays as part of their applications, but those essays may reflect the work of an editor (or an unscrupulous MBA admission consultant [LINK: “Never Trust a Smiling MBA Admissions Consultant” article]), rather than the applicant alone.

As a result, business schools use GMAT scores as a standardized measure of quantitative reasoning, verbal reasoning, and data comprehension ability. The GMAT provides a common benchmark that allows admissions committees to compare applicants from different educational and professional backgrounds.

If this were the GMAT’s only purpose, a solid “good enough” score would simply check the box, and admissions committees could focus primarily on other parts of the application. Factors that are more interesting — such as work experience, leadership, and application essays — would play a larger role in determining who is offered a place in the next MBA cohort.

However, GMAT scores serve another purpose. Average and median GMAT scores are incorporated into business school rankings and are often viewed as indicators of a program’s selectivity and quality. As a result, GMAT scores continue to play a disproportionate role in the admissions process.

The GMAT and MBA program rankings

MBA programs are in constant competition with one another. Higher rankings generally bring greater prestige, which can lead to stronger applicant pools, increased employer interest, and better career outcomes for graduates. 

GMAT scores play a significant role in that competition. Over time, average GMAT scores at top programs have climbed dramatically. Rather than using the GMAT solely to confirm that applicants possess the academic skills needed to succeed, schools often compete for candidates with exceptionally high scores because those scores help raise the average for the incoming class and, in turn, support the program’s rankings.

This has important implications for applicants. If your GMAT score is above the median for a particular program, admissions committees may view it as a meaningful positive factor within your overall application.

On the other hand, a score below the median can become a disadvantage, even if the score is strong enough to indicate a high level of preparedness for MBA-level coursework.

Of course, the GMAT is only one part of the admissions process. Scoring below your target program’s median does not mean that your chances of admission are doomed. However, if your GMAT score does not strengthen the program’s class profile, you’ll likely need other aspects of your application to stand out. Exceptional work experience, a compelling personal story, significant leadership accomplishments, or a distinctive background can all strengthen an application and help offset a below-median GMAT score.

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Using the GMAT to winnow the MBA applicant pool

Top MBA programs can receive thousands of applications each year, sometimes approaching 10,000. Given that volume, admissions offices face a practical challenge: they simply cannot spend the same amount of time on every application.

As a result, some programs may use GMAT scores as an initial screening tool. In other words, if your score falls below a certain threshold, your application may receive less attention during the early stages of the review process. That means your unique background, accomplishments, and professional experience may not get the consideration they deserve.

The bottom line: why take the GMAT?

Depending on the rest of your profile, a strong GMAT score may be one of the most important components of your MBA application. If you have a realistic path to scoring at or above the median for your target programs, it’s often worth pursuing. So go for it!

However, if your score is likely to remain well below that mark, it can become a meaningful weakness in your application. That doesn’t mean your admissions chances are gone. Business schools routinely admit candidates who stand out in other ways, whether through exceptional work experience, leadership, personal achievements, or a compelling story. You also have another option: stepping out of the GMAT “arms race” entirely by taking the GRE or Executive Assessment instead. Depending on your strengths and target programs, one of those exams may be a better fit. 

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