The MBA has traditionally been seen as one of the most effective ways to boost a career in the business world. Viewed as a route to higher earnings and better job opportunities, this degree can, however, involve a high cost and time commitment and comes with no guarantees of success. What should you consider before applying to an MBA program?
What Are the Advantages of MBAs?
Your original college qualifications and subsequent work experience may get you so far up the corporate ladder; an MBA could boost you further and faster by developing your business, managerial and leadership skills. Networking is another plus point. Your fellow students could ultimately spread out across the globe and work for many different organizations. This could give you a useful set of future business connections and potential job opportunities.
You may also see a significant uptick in your salary, both immediately after graduation and over the years that follow. According to GMAC (Graduate Management Admission Council) research, a 2011 MBA graduate in the U.S. can expect an average base salary of $91,433 (a typical bachelor's degree would earn you $50,180). Salaries are slightly higher in Europe ($91,696) and lower in Asia Pacific regions ($30,315).
This type of study is also a lot more flexible than it may have been in the past. You can, of course, opt for a full-time course and put your career on hold for a couple of years until you graduate. Alternatively, you could study on a part-time basis, take an online MBA or sign up for a distance learning program if you prefer.
What Are the Disadvantages of MBA Study?
If you sign up for a full-time program, then you effectively need to fund two years of study and take yourself out of the job market, although you may get some paid internships during this period. You also have to remember that not all MBAs are equal and the best results, in terms of job opportunities and higher salaries, generally come from ranked and accredited programs. A cheap course from an unknown college may get you nowhere fast.
Competition for the best business schools is fierce and these degrees can be expensive. According to the Business Week School Comparator, fees at the ten top tier U.S. colleges range from $112,400 down to $83,360. Costs in Europe and Asia may be at the lower end of this range, even for high ranking institutions. For example, an MBA at the London Business School is currently charged at around $87,550 (£53,900).
Opting for an online or distance course can also come with pitfalls. You may lose networking benefits as you may never meet other students or only come together periodically. Rankings and employer perception can also be lower for a non-standard program. Finally, you need to remember that getting an MBA is no guarantee of future success. In bad economic periods, you could find that it is still hard to get hired, even with this additional qualification.
Before Enrolling in an MBA Program
It is important to weigh up the advantages and disadvantages of studying at business school. Although you can improve your prospects, this will involve a significant cost and time commitment. If you do decide to apply, look carefully at the types of MBA programs that may suit you and then check out college and course rankings. It's also worth investigating how many students on any given program are offered jobs and how average salaries compare from school to school.
Sources:
- Poets & Quants: "More MBA Job Offers, Higher Pay," John A. Byrne, May 10, 2011. Accessed online June 10, 2011
- London Business School: MBA Fees & Financing. Accessed online June 10, 2011
- Business Week: Business School Comparator. Accessed online June 10, 2011
Carol Finch - Carol Finch is the Topic Editor for Retirement Planning, Budgeting, E-Commerce & Technical/Business Writing on Suite101.
Join the Conversation