Talent At Work: Recruitment and Career Blog

Debunking the MBA Promise: The True ROI of MBA’s


Posted on March 22nd, by Henry Goldbeck in HR Management, Job Search. 2 comments

The True ROI of MBA’s

For years a MBA degree had been perceived as a golden ticket to the executive fast track. Students investing $100,000 plus at the lower end Universities for an MBA degree and, top tier universities like Harvard were priced at $308,300 for a BBA and MBA.

Dilbert, Scott Adams

So is it worth it?

Studies done by Academy of Management Learning and Education cited “compared the salaries earned by MBA’s with their non-degree peers, research concluded that although MBA grads earned higher starting salaries than college grads, mid-career MBA’s saw no salary boost after earning the degree. Some studies even found those who pursued an MBA full time suffered from the disruption in their employment.”

The increasing cost of education has made prospective students begin to question whether it makes financial sense to take on the debt in earning a MBA for the possibility of a greater salary in the future.

Would a MBA make you more hirable?

Anna Ivey, a former dean of admissions at the University of Chicago Law School “Undergraduates in various fields frequently ask me if earning a MBA will make them more hirable or land them a bigger salary when they get their first job.” “But based upon what I’ve seen, if [an MBA] is something that you’re doing because you want to make more money, rather than because you’re really interested in how businesses function, you’ll probably be disappointed.”

Based on research by Businessweek, the post Harvard MBA pay increase is an estimated $44,000, the estimated time to recuperate the education cost is 7.01 years.

Arguably, based on Goldbeck recruitment history, a MBA does broaden your window of opportunities, many of our clients in specific industries requests for MBA candidates. Employers will however consider candidates without an MBA with a successful professional history but, not ever a MBA graduate with lack of related experience.

On the flip side, MBA graduates with previous managerial level industry experience argued it’s benefits. Honing your ability to take or make opportunities where your MBA could enhance the progression of your career development, rather than sitting back for opportunities. This is a given with any type of education, whether it is a 2 day course or a Masters program.

Source:Bloomberg Business Week – Years to re-cooperate the costs of an MBA
http://www.businessweek.com/interactive_reports/roi_rankings.html

The following two tabs change content below.
Henry E. Goldbeck, President of Goldbeck Recruiting Inc, is a Certified Personnel Consultant (CPC) and founded Goldbeck Recruiting in 1997. Since then, Henry has built the company's reputation as a leading headhunter and recruitment agency in sales, marketing, operations, engineering, and executive level positions across a variety of industries.




2 thoughts on “Debunking the MBA Promise: The True ROI of MBA’s

  1. I’ve noticed that my MBA has got me more job interviews and a stronger impression of professionalism, but didn’t make me more money right off the bat or guarantee me getting a job. Contrary to the article, I think the MBA is a career accelerator that gets you better jobs and more money more quickly, but I do agree that it requires experience as well.

  2. Wonderful post! I am currently a BBA student taking Human Resources Management and I would like to receive a MBA in the near future. I am one of those students that asked if it would be worth my time getting an MBA. After reading your article, I think it would be. Yes I am interested in learning more about business and yes I am interested in making more money, so I hope that by doing my MBA early on in my career I can get a ROI. At the very least this will open corporate doors for me in the future.

    Thanks for posting this article.

%d bloggers like this: