Where In The World Do You Get ‘A Value For Money’ MBA?

Anyone investing in an international MBA program considers, among several factors, where to get the best ‘value for money’ degree. The cost conscious candidates need to look no further than Europe, says the Financial Times based on data from the FT Global MBA Rankings 2016.

Nine of the top ten programs in Europe fit the bill for maximum gain in the short term, based on several factors ranging from alumni salaries, course length, fees and opportunity costs. 

The Berlin-based ESMT-European School of Management and Technology heads the list with graduates drawing weighted salaries (average alumnus salary three years after graduation) of $107,234, a 62% hike in earnings received before the MBA program.

Nine of the top ten programs in Europe fit the bill for maximum gain in the short term, based on several factors ranging from alumni salaries, course length, fees and opportunity costs.

The Lisbon MBA, a joint-venture between Nova SBE and Catolica-Lisbon, the leading business schools in Portugal follows next with $123,854 representing a 100% increase and France’s Edhec at $106,761 representing a 66% increase.

The European advantage stems from the fact that the one-year MBA course reduces opportunity cost by a year while offering an additional year of earnings that works out to a $150,000-$300,000 turnaround over the FT’s three year window for the Class of 2012 that the FT analysis takes as the base. A full-time MBA programme can be a mighty investment not only with a hefty price tag but, unlike part-time or online MBAs, bring an added penalty in opportunity cost or lost salary.

Thus, candidates in Europe lose $34,000 less than North Americans ($123,000 vs. $89,000) while entering business school with roughly equal pre-MBA salaries ($71,000 vs. $69,000 for North Americans).

However, a point to be noted is to that returns from a two-year course, as most of the American MBA programs tend to be, may take more time to bear fruit. But the waiting is worthwhile in terms of better salaries in the long term.

Meanwhile, INSEAD, Cambridge Judge, and IMD, three of the best known European B-Schools figure in the top ten. Especially, INSEAD graduates who bagged a 96% salary hike after returning to the workforce. Their weighted salaries at $166,510 were seventh best in the world, topping Kellogg, Sloan, Booth, and the London Business School (LBS).

Moving over to the US, the best valued B-School, surprisingly, is Brigham Young Marriott, where students saw a 120% jump to the tune of $123,665. Iowa Tippie (113% rise to $103,058) and Wisconsin (111% at $110,745) follow Marriott as best values.

Some of the most prestigious and expensive American MBA programs get a virtual shock treatment by ending up at the bottom of the pile. These include the University of Southern California Marshall, where students still received an 87% salary increase to $128,782.

At rank 80 is Yale (108% increase to $152,232),# 82 Harvard (94% rise to $172,501), #83 Stanford (87% increase to $185,939), #84 Booth (107% increase to $158,259), #89 Kellogg (93% increase to $162,923), #91 Tuck (95% increase to $156,652), #92 Columbia (99% increase to $169,866), #95 Wharton (84% increase to $177,877), and #96 MIT Sloan (90% increase to $159,909).

The average MBA salary (three years after graduation) was pegged at $135,000 in North America, with Stanford and Canada’s McGill Desautels ($88,345) at the top and bottom of the list.

Moving on to the costs, the survey found that the average paid tuition and fees worldwide came to $78,000 with Harvard, Stanford, Wharton, and Columbia topping at $135,000.

While the average total cost of North American programs came in at $222,000 (at a $177,000-$264,000 range), European programs averaged $166,000 (at a $130,000-$186,000) range.

However, more number of students in America received financial assistance by way of scholarships and grants. While 61% of students got such aid, it was 44% in Europe and 37% in Asia with the overall average being 52%.

Average Costs For The MBA Class of 2012 ($,000, PPP adjusted)

Cost Of an MBA : Fees, Opportunity Cost, and Financial Help by country of Study

Source: Financial Times