Shortage of 2,419 PhDs in Business in 10 years

While I agree that better money can be made in the non-education sector I believe most don't realize how much you can actually earn in the education market. I had a conversation with a MIS department head about a month ago at a Tier 2 B-school and he told me that starting salaries for new tenure-track positions is up around $90-100K and there are some at the school (obviously with lots of experience) making well over $200K teaching and at least that consulting on the side. I just want folks to realize that the demand is there and you can make an ok living teaching.

You're saying this professor is making somewhere around $400K a year? I'd say that's an ok living...

Do professors commonly engage in consulting/side work?

Money and your qualifications absolutely go hand in hand. Have 1 publication and 2 papers under review (mutliple authors is just fine) and you will be a great great bet for any university. Also, take an extra year if you can and get to the 1 pub + 2 in review stage. This will not only help you get to a decent research oriented school , but will also give a heck of a head start in the process of gettting tenure.

When targeting publications, start with the top journals. Remember you are training yourself so that you can get tenure, not just a Ph.D. Be willing to dive into for example, Management Science articles and try to replicate results wherever possible.

Many professors make a lot of money from consulting. A side benefit is that you get a lot of real problems to work on , not only for yourself , but also for your graduate students. This translates into a lot of research opportunities and hence more publications.


Praetorian

$400K for a professor is actually very very good.

I am sure many professors make more than that with consulting projects. Many have their own consulting firms. I am guessing the consulting projects start after tenure. Unless the projects lead to a big grant, they may not be too valuable as far as tenure is concerned.

If you have worked in corporations, $400K doesnt sound as attractive. But factor in the lifestyle and its a whole lot different.

Guys i would do a PHD more for love of it than for money.

Exactly. People in the US/west evaluate everything with money but in the east (basically in South Asia) the same is not the case. People in the east value the degree with knowledge and education.

I'm not sure such blanket generalizations help. Where are you going with this purely racist stuff? I'm not Asian, and I chose to go the PhD path, and I know for a fact that there are plenty of people in my position..

Agreed. Those comments were unnecessary.

The comment by GMAT TIGER is neither necessary nor representative. I have talked to Asians who emphasized about where/how to get good money post-PhD. I have spoken to Westerners in my PhD program who really show a passion for academia. One guy just completed his MBA but immediately continued on with a PhD program.

not that i'm being representative of either side...
i left a job that earned me more than atypical post phd tenure track business asst. prof. would earn, just to go through the arduous path of the phd. yes, for the love of it.

Sorry guys for any misunderstanding and I appologize to you all if it was offensive.

being respectful to everybody, I further want to add that people everywhere are becoming more money oriented.

my intention was to say that if i do PHD, i do it for my love of and quest for high level of specilized knowledge and deeper understanding of subject matter.

i think a phd is business is overrated. better off to stick with the mba

overrated in what way? financial returns? knowledge attainment? prestige?

btw, if everyone stick with the mba, eventually there might not be any mba for anyone to stick to. In any case, just as an mba is not for everyone, neither is a phd.

This shortage is true.. I've read the AACSB report, and other sites on the internet confirm this. A lot of business professors are retiring within the next 5 - 15 years.

Btw, the PhD is NOT overrated! Of course, it is not for everyone. But so is college - it's not for everyone, or the MBA.. It's just a matter of preference.

i know that AACSB requirements require a minimum amount of full time PhDs on staff, but... unfortunately, just because a professor retires does not mean he or she will be replaced by another professor; i think education has unfortunately adopted too much of a business model approach and professors get replaced with cheap part time adjuncts w/ no benefits whenever possible.

I would contend that part of these "business dynamics" are due to the b-school deans at top schools being so fixated on MBA rankings. One way to get up in the rankings (it's been tried before, at least) it to reduce class size and increase selectivity. That way you don't need as many faculty members and you can afford to have some retirements without replacement.

I'd also add that as someone who was an adjunct faculty member before becoming a PhD student, I don't think we can implicitly generalize that the quality of b-school education has decreased along with the increased use of part time adjunct faculty and other practitioners. I know more about accounting for business combinations than any of my current professors (at a top 20 b-school) will ever want to know, and I taught at a 2nd tier Canadian school. And while it's also true that AACSB requirements require a minimum proportion of full-time tenure track PhDs, their rules are actually almost as extensive for evaluating the credentials of adjunct faculty; as an example, practitioners/professionals who teach one course per semester are viewed much more favorably than full-time lecturers and non-tenure track faculty members.

I'm not dissing adjuncts at all. my comment on cheap/no benefits is coming from the point of view that I think it is unfair treatment and sort of creates second class citizen type treatment for them and not meant to be an evaluation of their quality. I've seen adjuncts teach 3 or 4 sections a semester at the same school... maybe the person wasn't a great researcher and thats why they never landed a tt job, but in my mind that person should just be given a contract position as a prof. its akin to the treatment illegal immigrants get.