How valuable is an MBA these days?
- Not so much
- Not at all
I read an interesting article recently on whether or not a Master’s in Business degree is really as lucrative or as educational as it used to be. Certainly, there’s always great value in learning, and for credit and collection managers, the additional knowledge can enhance the education and experience they already bring to the table. But as times are changing, it may appear that learning from your own successes and mistakes, as well as those of others, could have a much greater value than sitting in the classroom and studying the theory.
So how much of a cost-benefit does an MBA have? With some well-known business schools charging $50K per year (and considerably more) for a two-year program, right out of the gate someone needs to make a substantial amount of money to pay off education loans.
I believe an MBA is worth the expense, time, and effort when the graduate has the opportunity to pair the knowledge they’ve gained with a position of reasonable income, eventually leading to the C-suite level.
Not all MBA degrees are created equal. The number of colleges, universities, and business schools offering an MBA program is increasing, which means that a degree from a lower ranked school might not have much value. Generally speaking, recruiters and hiring managers do not view an MBA earned from an unknown or online-only institution the same as from a top-10 school. For professionals forgoing a few years of work to go back to school, doing so at a second or third-tier school could end up being a costly waste of time, money, and opportunity.
Hiring managers have also come to feel that having the letters MBA after an applicant’s name doesn’t automatically make them an ideal hire. Some believe that people who have achieved leadership positions and achievements without the degree have more value than those who have received straight A’s.
While many entrepreneurs hold MBAs, startup companies may not always look to hire other MBA holders. Instead, they may be looking for creative perspectives much different from their own.
Although an MBA might help in getting a job interview, it will not guarantee that the applicant will land the job. On the other hand, people with valuable work experience and accomplishments could greatly boost their career acquiring the knowledge gained from an MBA program. Especially if it is part-time and allows them to apply what they are learning to their current position and responsibilities.