Getting an MBA is a big move for your career as well as your profession. You get a better qualification, your resume is highly strengthened, and your market value is boosted by the precious experience. The degree is also a financial investment that should not be taken lightly. Its real value lies in the guaranteed MBA ROI.
Return on investment (ROI)
The Internet provides a number of ROI calculators for b-school candidates to estimate their ROI over different periods of time. They are very handy and easy to use.
There are a number of ROI rankings available too, including one by Forbes magazine, where you can see programmes’ rankings in terms of alumni’s return on investment over a five-year period. The survey is conducted every five years and is probably the most relevant one in terms of return on investment.
ROI rankings take into consideration the sticker price of the programme (the price schools officially announce, also on their websites), five-year net ROI and annual net ROI.
Read: Top 4 MBA Careers and Their ROI
Forbes magazine’s 2015 ROI-focused MBA ranking is based on data from the class of 2010, when the world was still in the throes of the most serious crisis to hit the global economy since the Great Depression. It is understandable that the ranking reflects a certain slowdown in ROI in comparison with previous periods, and especially when compared with the 1990s. The magazine's method takes into account the so called five-year gain, which minimises the year-to-year fluctuations in income. The survey clearly shows that graduates are still very successful in achieving an excellent ROI, only with a slight delay. The average payback period for the class of 2010 among the top 25 b-schools in the US as quoted by Forbes’ ranking was four years versus 3.7 years for the class of 2008. The disciples of the non-US international two-year programmes needed 3.4 years to get their investment back. The most impressive results are that of the one-year international MBA programme, whose alumni needed just 2.4 years to reach the breakeven point.
Recruiting prospects & salary increase
The 2016 Corporate Recruiters Survey, conducted by GMAC, shows that the hiring projections for MBA graduates are on the rise again. About 88% of employers who work directly with business schools planned to hire MBAs in 2016, according to the survey. In comparison to 2015, this is a rise by 8 percentage points.
Additionally, according to GMAC’s Alumni Perspectives Survey, the expected starting salary for MBA grads, according to hiring employers, amounted to USD 100,000 in 2015 in comparison to USD 55,000 for bachelor degree holders. The combined median salary earned by MBAs in the 20 years since their graduation is USD 2.5 million, the data shows.
Read: MBA Networking - How to Do It Properly?
Networking and hibernating
Joining an MBA programme will allow you to develop a solid, consistent and prolific network of high-value individuals who may end up being your clients, partners, employers or employees, lawyers, financial advisors or bankers.
When else in your life will you have the chance to tap into the thoughts, ideas, business approaches and points of view of other brilliant minds, 24/7 for two years? This is a unique opportunity, and it alone is worth the tuition fee which can sometimes be hefty.
Change your thinking
The benefits of joining an MBA programme go far beyond pure ROI. You will receive education in more than just business skills and knowledge. You will learn to think in a way that will make you a valuable, precious member of any business team. You will unlock your potential for innovation and will tap into your creativity. You will enhance your management and team-working skills, and will learn how to strategise and analyse on an international level. All of these form priceless aspects of your MBA education. If you choose a two-year programme, the first year teaches you business strategy and management skills, but the second year lets you challenge your current models of approaching business and take a new view on business cases. That education will free your mind to think out of the box, and often one step ahead of many others.
Broaden your perspective
You’ve never thought of international markets before? Now you can. You’ve never considered an international career? Now you may need to. You’ve never thought you could be your own boss? Now you have got all it takes.
Make use of all the school has to offer
Lavishly stocked libraries of literature and case studies worth a fortune; great facilities; access to precious databases; access to some of the greatest minds in business and economics; travel; internships, etc. Education goes way beyond the classroom.
Credibility
It’s just three letters, but they will without a doubt change the way people think of you after they see your business card. A business degree will give you credibility and ‘weight’ to help you be taken seriously by peers, competitors and clients. It gives you that little bit ‘extra’ that may make a client choose you from among a number of providers, or an employer choose you from among a number of candidates.