Should I get an MBA?

People often ask whether it makes sense or not to get an MBA.

The person asking may be in transition and has some extra time available and may not be feeling confident about the prospects of the job market.

Or, the individual may be looking to be promoted, and they view doing a part time MBA as a great way to position themselves or better market themselves within their organization.

It is not an easy question to answer. In some cases, for that individual who seeks a C-Suite position at their blue chip global company, and they already possess all the other desirables on their resume, (the right companies, the right positions, the right mandates) the answer might be yes.

For someone who is seeking an upper hand in attaining a job, but might not possess the C-Suite ceiling potential or may not want to select the corporate route, the answer might be no.

The school that produces the MBA is becoming of greater importance.

As a point of reference, there are 5,500 business schools in India and it is much easier to access an MBA programme than ever before.

But what has also changed, is what an MBA means to employers.

An MBA is no longer seen as a differentiating factor, unless it was obtained at one of the world’s best business schools. With all the online MBAs that are increasing in popularity, and the number of part-time MBA courses available, MBAs are no longer rare, and they are certainly no longer a guarantee for employment.

MBA programmes are often marketed as a shortcut to higher earnings. A study by The Economist determined that MBA graduates can expect to increase their salary by 79%, but that needs to be further clarified.

The candidate usually has to have many of the other boxes checked in both their work experience and in their overall profile. (i.e. if two candidates are identical but only one of them has an MBA) In addition, locating a company offering a job in the first place is often a challenge in itself for many job seekers.

In the U.S., the number of MBAs awarded by business schools has increased sevenfold from 1970. Nearly 200,000 students from American institutions have been awarded Master’s degrees in business every year since 2010. In the simplest of terms, the employment market has not been able to keep up.

In a world of increasingly apparent entrepreneurs and the drastic reduction in the size of the average company, it is becoming more apparent that it is about the person, and not the resume who is in control.

There is also another common fact that now disrupts the playing ground, and that is that many technical diplomas are landing jobs faster than university degrees in many areas within technology.

Food for thought, 20% of business-school graduates told the Graduate Management Admission Council, a business-school body, that their course did not improve their earning power.  

The average MBA program from the best and most desirable schools will cost $100,000 or more.

Be sure that you do your homework and really assess your MBA rationale, as well as your desired end game before you decide to pursue your MBA.

Farewell,

Mike