5 Reasons Why People Do an MBA Degree
The Master of Business Administration, also known as the MBA, is a hot topic at the moment in the world of business education. Many people are choosing to make the investment into their future by undertaking these studies, but what is their reasoning behind it? I’ve had a chat with some of AIB’s current and past students, and the following five points were the most common reasons why people do an MBA degree:
1. Increase salary
With increased experience and additional skillsets comes an increased salary. Many students choose to undertake the MBA in order to gain new knowledge that can set them apart from their colleagues. An MBA can also be significant bargaining power when negotiating a salary – you have made the investment into your future which employers should recognise as an asset to their organisation. Of course, assets mean money, so this tends to result in an increase in salary for MBA graduates.
2. Change career path
Many students enrol in the MBA with a vision of changing their career path. This includes the desire to change industries as well as the desire to make themselves more employable in a variety of different fields. This is all possible with a degree such as the MBA as it covers business as a whole. For example, students of the AIB MBA undertake core subjects on the topic of finance, marketing, leadership, strategic operation issues, management, human resources and corporate governance. It is clear that no matter which sector or career path you want to pursue, the MBA is of great relevance to a number of fields.
3. Challenge one’s self
The MBA is not an easy degree to get accepted into, nor is it easy to complete. Many people choose to further educate themselves as a personal challenge. In AIB’s case with the 12 month MBA while you work, many students indicated that the challenge of fitting the MBA in around their busy schedule was one which they found to be a very rewarding experience upon graduation. There is also an overwhelming sense of personal achievement upon completing a degree like the MBA.
4. Get qualified
Quite often, students have been working in a role for many years but don’t have the qualifications to provide reasoning for the decisions that they make. Many students highlight that they feel they need theory behind them in order to provide rationale. They may have been handling an issue in a certain way for years, but they don’t truly understand why it is done in that way. The knowledge that students gain from an MBA helps in decision making, as well as gaining respect from colleagues due to your increased knowledge. A qualification teams the knowledge gained throughout your career with practical theories, resulting a sound knowledge of business as a whole.
5. Advance your career
Although it may be possible to ‘climb the corporate ladder’ over the years, there are a number of career paths which require formal qualifications such an MBA to progress. Being willing to engage in professional development activities also demonstrates to your employer that you are committed to be the best you can be. Many graduates find that an MBA gives them a higher chance of advancing their career in a smaller amount of time. More and more employers are recognising the value of an MBA degree and choosing to hire managers with that knowledge behind them.
What do you think?
Have you considered studying an MBA? What is your main motivator to do so? I would love to hear your views and if you can relate to any of the above points. Alternatively, do you have any other reasons why people do an MBA degree? Please feel free to share them in the comments box below.
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.