The Value of The MBA in Today’s Business Environment
The Master of Business Administration (MBA) is a programme which has stood the test of time. Despite such a positive reputation, people have questioned the modern value of the MBA, and whether the programme is still as relevant to today’s business environment. To explore this perception further, we took a detailed look at the Graduate Management Admission Council’s (GMAC) 2015 Global Management Education Graduate Survey Report. Exploring the early job search results for 3,329 graduating business school students in the class of 2015, the report tackles everything from statistics about skills learnt, to those about salary increases – see below for the key findings.
Range of expected results
Often, the value of the MBA is measured against the results that it achieves upon completion for the student. In the GMAC Report, those continuing their current employment the class of 2015 indicated that they anticipated an increase in salary (47%), increase in job responsibilities (46%), a promotion (39%), and/or a change in job title (33%). These figures have risen in comparison to 2014, in particular in the area of those anticipating promotions or increases in budget.
Modern day skills
As time has gone on, MBA providers around the world have been required to adapt curriculums to suit modern business practices. This is an obligation for those schools that are accredited, furthering the importance of ensuring that you undertake your MBA with an accredited provider. According to 2015 business graduates, the skills most improved as a result of their graduate management education include general business knowledge, managing decision-making processes, leadership, and managing strategy and innovation. These skills are essential to today’s ever-changing business environment, especially when it comes to the need to continuously innovate and make informed decisions.
High quality programme
With a programme of such history, it’s important to understand that the value of the MBA hasn’t decreased with time and that the content has remained at a very high quality. According to the GMAC Report, nine in 10 (89%) graduates of the class of 2015 rate the value of their business degree as ‘good to outstanding’. The chart below indicates that the full-time and executive MBA programmes also received the highest percentage of ‘intent to recommend’ by all participants.
When considering future job prospects, the GMAC Report highlighted that the class of 2015 graduates feel that their graduate management education was successful in increasing their employability. The vast majority of graduates (86%) agree that their education improved their chances of finding a job that met their expectations, and 85 percent indicated that it gave them a competitive advantage in the job market. A large 78 percent also stated that their studies exposed them to new career opportunities, further increasing the value of the MBA.
One of the primary motivators for those attending business schools like the Australian Institute of Business is the prospect of a salary increase. The GMAC Report shows good news for those people, with graduate job offers reaching a three-year high. Globally, business school graduates accepting early job offers reported a median post-degree salary increase of 90 percent over their pre-degree salary! This is up considerably from 80 percent in 2014, and 73 percent in 2013.
What do you think?
Overall, the GMAC Report shows that the value of the MBA and business education as a whole has certainly not decreased. With salary increases at a three-year high, and a range of additional benefits, it is clear that the MBA is still highly valued, and very applicable to today’s business environment. I am interested though – what do you think about the value of the MBA in today’s business world? Comment below to share your views.
This article was written by Laura Hutton on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB.