The value of pursing a Master of Business Administration degree (MBA) has been analyzed and debated for many years. There are ROI analyses for comparing the following:
- the cost incurred to the incremental salary increase post-graduation
- the value of a part-time versus a full-time MBA degree program
- pursuing a degree during a recession versus during an economic boom
Ultimately, what an MBA can do for a person’s career significantly depends on where they are in their career when they enter a program, the type of program they’re enrolled in and the resources the program and school offers. While prestige of school might be important for some employers (yes, there are some companies who will only hire people from top tier schools and MBA programs), the school itself is becoming less important than the skills and knowledge you actually gain from this type of program.
Career Stages and Getting Your MBA
People primarily entering an MBA programs are in one of three stages in their career
- no work experience (they either just graduated from college or are in their senior year of college)
- 2-5 years of work experience
- above 5-years of experience.
Most MBA programs today suggest that you have at least two to five years of work experience before you apply. For those accepted without any work experience, they typically have an excellent academic record and have scored very high on the GMAT. The GMAT is a standardized test required for acceptance to most MBA programs; however, many colleges are moving away from this requirement. Professionals with two to five years of experience are in the “sweet spot” of the acceptance window. They have just enough real-word experience that they know the game, but not far enough in their career that they have reached a senior management position.
Finally, there are those that have greater than five years of experience. In this career stage, they are typically either looking to get promoted faster in their current profession or are looking to switch professions all together (e.g. from education to accounting or sales to finance).
Types of MBA Programs
The types of MBA programs have dramatically increased recently with many universities offering on-line or virtual degree programs. Schools are also offering part-time, full-time and weekend programs. The type of program that will best enhance a person’s career depends on what they want to do when they graduate from the program. Regardless of the knowledge gained, an MBA is first and foremost a signaling mechanism to the market that tells employers and future business partners that you are dedicated to a certain path. I have heard arguments for and against the different options, but generally those that are willing to forgo the most generate the greatest market signal.
The type of MBA programs that most schools offer is the general MBA program. However, more and more colleges have increased their MBA program offerings to include specializations. Choosing to specialize in an MBA program is a big decision. There are many factors to consider before deciding on a specialization. For example, the academic requirements for each specialization, the career opportunities that will be available after graduation, and the curriculum that will be offered. Some people might already know what they want to specialize in, especially if you’re mid-career. Some specializations include:
- Marketing
- Finance
- Accounting
- Health Care Administration
- Human Resources Management
MBA Career and Alumni Resources
If you already have an established career or job with a company, then career and alumni resources might not be that important to you going into the program. But you never know when or if you’ll need them. An MBA program can help you build a network of contacts with other professionals from diverse backgrounds and positions. This network can be an invaluable asset as you pursue new opportunities or lead initiatives in your organization. Attending a school that has strong ties to well-known organizations, and that might otherwise be hard to get into, can give you a foot in the door. This kind of association might not be available to your peers from other MBA programs. So consider alumni relations and career resources when it comes to the value of your MBA degree.
What Will You Get Out of an MBA Program?
What each group will get out of an MBA program depends on what experience or background they had when they started the program. Those with no work experience will most likely end up in the same or similar positions as if they only had an undergraduate degree. However, you can expect to rise through the ranks quicker.
People entering with 2-5 years of experience are more likely to enter a management training program or position designed for MBA graduates such as in consulting, investment banking or brand management. Finally, those with plus 5 years of experience are more likely to utilize a part-time or Executive MBA program and either stay at their current employer, within their current profession or head toward an entrepreneurial career path.
Conclusion
No matter the type of program or career stage you’re in when you enter an MBA program, there is a lot of value that an MBA degree has for your career prospects. Some leadership positions at some companies prefer a candidate who has an MBA, while others do not. MBA programs are rigorous and demanding programs. They don’t only teach you theoretical knowledge, but also the practical skills you’ll need in senior management positions. MBA degree programs provide many opportunities to learn how to work in teams, how to lead them and how to make decisions under pressure. They also help you develop entrepreneurial skills, how to think strategically.
And just like with any other education endeavor, what an MBA can do for your career depends on what you put into it and what you intend to get out of it.
