For many ambitious professionals, the question of whether earning an MBA will be worth it eventually arises at one point or another in their careers.
And while it is true that a Master of Business Administration is still one of the surest ways to build business and leadership acumen to stand out and accelerate your career; determining whether the benefits are worth the investment of time, money and effort is unique to every student.
Continue reading to learn more about how you can decide if an MBA is worthwhile for you.
What is an MBA?
An MBA – a Master of Business Administration – is an intensive postgraduate degree designed to give professionals a broad education in all aspects of business management to prepare them for leadership.
What are the costs of an MBA?
To determine whether the benefits of an MBA are worth what you’re investing in the degree, you should first understand what those investments are.
There are four main types of costs that are associated with undertaking an MBA. They are:
- Fees: course fees for an MBA – particularly a traditional MBA – can represent a significant financial investment, but these are also the most straightforward costs to understand and plan for. Additionally, online programs like the Fast-Track MBA can be much more cost-effective and students who meet the eligibility criteria may be able to defer their study payments through their relevant country’s student loans programs.
- Study costs: these types of costs may include items like textbooks, software, stationary and home office supplies if you need to set up a study area at home. Study costs usually don’t add much to the cost of an MBA, but they are still worth considering. AIB provides all our students with free and unlimited access to helpful tools such as Microsoft Office 365 and LinkedIn Learning.
- Time off work: if you choose to pursue a traditional on-campus MBA or an accelerated MBA, you likely won’t be able to continue to work full capacity while studying full-time. Any time not earning a salary or maintaining your network in the workplace should also be factored into whether an MBA is worth it.
See also: How Much Does an MBA Cost?
How do you decide if an MBA is worth it?
There’s more to deciding if an MBA is right for you than calculating the financial return on investment for your degree – although that is certainly an important aspect to take into consideration.
Knowing what an MBA is worth to you also involves asking yourself:
- What your goals are
- How an MBA can help you achieve those goals?
- What you need to invest in your MBA to get those results
What makes an MBA worth it?
The value of an MBA can manifest in many different ways, beyond the financial return on investment that graduates typically see. Here are some of the key benefits that make an MBA worth investing in.
Financial return on investment
Graduates of the Fast-Track MBA will see the financial return on investment for their degree in the form of higher future earnings.
On average, Fast-Track MBA alumni report salary increases of 14K while studying an MBA, and continue to see strong increases in the following years.
Based on these averages, you can estimate your future earnings with our MBA ROI Calculator.
Career progression goals are among the most popular reasons professionals choose to pursue an MBA, and this is one particular area where the investment definitely pays off.
74% of Fast-Track MBA alumni surveyed for The Fast-Track Alumni Insights Report 2021 report achieving their career progression goals. This progression can come quickly, too. 70% of our 2021 graduates surveyed moved into a senior role within one year of graduating.
Attractiveness to employers
Having an MBA can also increase the employability of graduates as well.
An overwhelming majority – 96% – of employers who responded to the 2016 GMAC Year-End Poll of Employers say hiring recent business school graduates creates value for their companies.
Building skills and knowledge
The skills and knowledge that AIB graduates gain and are able to immediately apply to their work also create value.
- Over 88% felt that the MBA improved their business acumen and enhanced their strategy development skills.
- 73% felt that the MBA enhanced their leadership skills.
- 71% of alumni motivated by entrepreneurial creativity felt the MBA enhanced their strategy development skills.
Growing your network
Students and alumni of the Fast-Track MBA can tap into a global network of more than 20,000 business school graduates. Access to the network gives you the tools to ensure continuing success and connections, leading to the most valuable opportunities.
Is an online MBA worth it?
Most online MBAs may not have the same name-recognition as a Harvard MBA (for example), but there are many other benefits of completing a degree online.
Online MBAs can be more cost-effective when comparing their fees with traditional MBAs. Completing an MBA online may also offer more flexibility and study options that offset the opportunity costs from the changes necessary to undertake a traditional on-campus MBA, such as taking time off work.
The Fast-Track MBA from the Australian Institute of Business is both cost-effective and extremely flexible.
The Fast-Track MBA
The Fast-Track MBA is Australia’s largest and most popular fully online MBA. Fully accredited and internationally recognised, our MBA is a flexible program that allows students to earn their degree and acquire practical skills and knowledge in two years while continuing to work.
The Fast-Track MBA is among the most affordable MBAs in Australia; something AIB is able to achieve while maintaining a high quality of education and student outcomes by investing where it matters most, rather than in maintaining campuses and lecture theatres.
And because the Fast-Track MBA has been designed to be completed online while students continue to work, there doesn’t need to be any costs associated with lost wages due to time spent out of work.
AIB students also join a global business network of more than 23,000 students, alumni, academics and industry experts from 95 countries.
So when is an MBA worth it?
Figuring out whether undertaking an MBA degree is worth the investment is an individual decision, and the answer will depend on factors personal to you that go beyond the financial ROI of the degree.
If you would like to discuss the value a Fast-Track MBA could add to your career, request an appointment today to speak to one of our course advisors.