Is An MBA Still Worth The Investment?
Professionals from a range of industries inside and outside of the business world choose to study the Master of Business Administration (MBA) to help them achieve their career goals. It’s a highly valued degree worldwide, with growing demand from employers who value the insight graduates hold. As a rigorous degree, it requires a significant time commitment from the student, as well as a financial investment. There are, therefore, a number of factors to consider when contemplating the MBA, including what the primary careers goals you want to accomplish are, how achievable the study schedule is for you, the cost of studying an MBA and the return graduates can achieve from their investment. Not all students embark on the MBA journey with financial gains in mind, but the return on investment (ROI) from the degree is an important focal point. We take a look at the MBA and the potential outcomes for students, using AIB alumni and global data to analyse whether it is still worth the investment.
Graduates experience quick ROI
When it comes to the ROI of the MBA, statistics show that the value is definitely still apparent. Across business schools globally, the Graduate Management Admission Council (GMAC) reported that business school boosts earning potential for graduates substantially, with nearly all business school alumni (95%) rating their education as good to outstanding value.
The 2017 AIB Alumni Insights Report further iterates the point, with the survey of AIB graduates finding that 47% received a salary increase within 12 months of completing the MBA. While still studying the degree, one in four graduates received a salary increase, indicating the value MBA students bring as employees. The report also highlights that the average annual income growth of graduates over the first four years is an impressive 11% per annum, and the average time taken to payback course fees is less than three years. This is likely to be thanks to graduates achieving career-oriented outcomes like a promotion or job change post-MBA, which naturally attracts a higher salary offering.
Predict your future earnings as an MBA graduate with the Agile MBA ROI Calculator
The demand from employers grows
Importantly, the demand from employers for MBA graduates is stronger than ever. A large 88% of corporate recruiters surveyed by GMAC said that they plan to hire recent MBA graduates, compared with 80% of companies that actually hired them in 2015. This figure is 33% higher than 2010 and has grown each year since then, so it’s clear that demand for MBAs remains a steady priority.
The practical professional benefits are strong
Aside from financial ROI, there are some very practical benefits to be enjoyed from an MBA if the individual selects the learning provider most suitable to their goals and lifestyle. In the 2017 AIB Alumni Insights Survey, 75.1% of AIB graduates indicated that the MBA experience enhanced their professional development, 64.7% experienced increased self-confidence and 67.3% learnt strategy development skills. This is thanks to the practical nature of the AIB MBA, with students making the most of the experience to ensure that the investment is worth it for them.
Practical programmes like the AIB MBA also encourage students to apply theories they’re studying in the workplace as soon as possible. This helps to enhance practical understanding and allows the student to experience immediate ROI, benefiting both the student and employer. AIB MBA Graduate Mitchell Flor said the MBA was so relevant, he was able to use it in his own business right away. “The content was so applicable that I used my own business as an assessment case study, providing greater insight into the things we did well and those we needed to improve,” he said.
MBA study is no longer a major burden
Traditionally, when individuals elected to study an MBA, it meant ceasing work for a couple of years and spending significant money on tuition. In an increasingly competitive market, the price point and accessibility of a degree can make or break a decision, which is why providers like AIB have taken a highly achievable approach to online learning. As well as offering an affordable degree that can be studied while continuing to work full-time, Australian students can take advantage of the government loan scheme FEE-HELP and international students can access various other loan schemes and payment plans.
The networks you build can prove invaluable
Contributing to the worth of an MBA are outcomes and experiences that exist outside of financial gains. As well as teaching you self-discipline, expert time management and resulting in the self-confidence to excel, it gives you the chance to create lifelong professional contacts. When you study an online MBA, while the opportunities for face to face networking aren’t as frequent, it does widen the scope of networks you can tap into. With MBA cohorts studying all around the world in every industry, and the online student and alumni communities to help you connect, there are no limits to the potential growth of your network.
AIB MBA Graduate Jimmy Bangun explained that the networking opportunities he pursued during his online MBA were one of the highlights of his degree. “Through the journey, I met a lot of different people outside of my industry. I think this was one of the real values of the online MBA – you’re not just stuck in one city with the same people – you can build networks overseas as well,” he said.
Do you think that the MBA is still worth the investment in today’s economy and job market? It’s clear that it offers much more than just financial return on investment, with practical benefits available from early on in the degree.
The MBA from AIB is Australia’s largest MBA, chosen by more professionals than any other MBA degree in the country. It has been specifically designed for busy working adults, delivered 100% online through our interactive Student Learning Portal. The AIB MBA offers genuine flexibility, industry-relevant course content and the practical knowledge and skills you need to achieve your career goals.