Do I need an MBA?

If you often think this, then the answer is probably yes. The reasons may vary from faster career advancement, high earning prospects, profile changes or seeking deeper knowledge in a particular field. We examine some of these aspects.

Several of the top ranking Finance, Consulting and banking firms expect those employees, recruited at entry level posts, to work for a few years and head back to school for an MBA degree for the next level of promotions or for moving up the hierarchy. It could also be that several of the MBA aspirants may be investing in the degree as a means to fast track their career.

This is borne out in an alumni survey by the Graduate Management Admission Council (GMAC) had revealed an overwhelming 87% of the respondents credit their degrees for advancement in their careers.

An MBA course is certainly expensive with some of the major institutes like London Business School in pegging their annual tuition fees at around $89,700 making it among the most expensive. Other costs like books, rent, food and transport would make it much more.

For full-time courses, the candidates would have to leave the job for the duration. Over the years, an increasing number of companies have become disinclined to finance their employees for MBA courses. Educational loan mean a debt that has to be repaid.

However, for many, the returns are worthwhile. Among the top earners are some Stanford and Harvard graduates who landed jobs with starting base salaries in the $275,000 to $300,000 range in investment banking and private equity. Of course several other factors like work experience play a major role in the final pay packet.

For some, an MBA is required for a switch in career profile. A person holding a Certified Financial Analyst (CFA) degree may at a certain stage, feel the need for an MBA to enhance his or her prospects. At least two thirds of MBA applicants were stated to have opted for the program with career switch on their mind.

Yet there are others whose career has hit a plateau and need to broaden their role that needed new skills.

In the GMAC survey, carried out in 2014, 92% had given their degree credit for leadership preparation; 88% for career preparation, 87% for faster career advancement, and 86% for increased earnings potential.

Among other benefits of pursuing an MBA course are developing leadership qualities and networking skills. Since the tough nature of the course makes it imperative for students to work closely with their colleagues, peers and mentors, they tend to develop a network that would be of advantage at various stages of the course and much later into their career.

The course would also lead to widening of experience and horizons, a chance to work with the best, learn more about global economy. The business schools also provide opportunity to interact with Professors of great repute and experience, participate in seminars and lectures by top executives in various sectors, learn people management and communication skills. (Image Courtesy: pixabay.com)