When it comes to getting a Master of Business Administration (MBA) there are a number of things to take into consideration. This ranges from career goals, family/spouse considerations, personal finance situations, and how much time you are willing to sacrifice in pursuit of your MBA.
Recently a friend at work pretty much said he’s pretty much for sure going to get his MBA through a part-time program. Ironically, a couple years ago I was pretty much 100% sure I would go through with getting an MBA while he was pretty much 100% sure he would not get an MBA. Today, I’m not so sure that I want to get an MBA, for various reasons.
1) Top-10 versus non-Top-10 schools
I have a friend who is pretty much set on going to a top-10 MBA program. His reasons for pursuing a top-10 school vs. other schools is solid; there is a big difference in value between a top-10 vs. a non-top-10 school.
I was reminded of this the past weekend when I read Dale Stephens’ article “A Smart Investor Would Skip the M.B.A.”
If you aren’t accepted to Harvard, the argument against going to business school becomes even stronger. At least with their Harvard M.B.A.s, less than 5% of the class of 2012 was unemployed three months after graduating. But at the University of Southern California, 23% of 2012 M.B.A. grads were still unemployed three months after graduation. And that’s at USC, a fairly well-known school. The return on investment of going to Harvard or another top-10 business school has remained relatively high, but the return on going to lesser schools is very questionable.
While getting into a top-10 school is not impossible, it’s highly unlikely for a large majority of applicants. I already know that if I get an MBA, the odds of it being at a top-10 program are slim to none.
2) Part-time versus Full-time
It’s highly unlikely I would consider a part-time program; the real value in getting an MBA is the network, not the curriculum or knowledge that can be gained from sitting through classes. Someone I know who got their MBA called it a “slightly amped-up version of an undergraduate curriculum.” Assuming the knowledge gained is not what you are paying for, you are not going to build a network in a part-time program like you would in a full-time program where you have a cohort.
The main benefit that can be realized from a part-time program is the ability to keep your current job and possibly have your company pay for a portion of your tuition. Again, you still run into the problem of whether the time and money sacrifice is worth it or not. Assuming I would go to a full-time program, I still have to grapple with the top-10 dilemma as well as the fact that I would have to lose two years worth of income…plus the massive debt that comes along with the degree.
3) Knowledge gain outside of an MBA program
The internet has largely neutralized the knowledge gain that can be realized from an MBA. There are lectures and full courses available online, free of charge, for anyone to access. Add on the tens of thousands of books that can teach you the same concepts, theories, and logic that an MBA degree will teach you, as well as the nearly endless supply of information available on the internet, and you have to question whether it’s worth paying all that money to get a piece of paper that says you have achieved an MBA.
I think most people will agree that an MBA is mostly a piece of paper that helps you move up the corporate ladder, as well as (hopefully) a network of others who went through the program with you.
4) “Hard Skills” and Career Progression
While there may come a time that you need an MBA or you need to switch careers, you can sometimes compensate for it in the “hard skills” area. Whether it’s learning an application better than anyone else you work with, becoming a linchpin who goes above and beyond their regular duties, or even gaining technical skills that allow you to perform at a higher level and contribute more value to the company than other employees, there are various skills you can attain that will put you ahead of others who are arguably “more qualified” than you.
Of course, this whole debate of whether you need an MBA or not depends on your career goals. The important thing to keep in mind is that it is possible to move up in the corporate environment without an MBA. If you can demonstrate to a company that you can improve processes, gain understanding of complicated processes and programs, and lead others even when you don’t necessarily have the authority, there will always be room for you at the next level.
____________
Yes, it is true that having an MBA will benefit your career and you are likely to gain more if you have one versus if you don’t have one. But what if you end up making about the same…or even less…than if you had not gone through with an MBA? Everyone has to weigh the pros and cons of getting an MBA, but currently I think the cons outweigh the pros…unless you are going to Harvard.
What do you think? Is an MBA worth pursuing?
____________
Photo by Patricia Drury
Check out some of our favorite personal finance resources:
Are you getting the best credit card rewards? Check out the top cash back credit card offers (updated daily)
Make extra money: 15 ways to make money from your computer
Get the First Chapter Free!
Join our online community and get the first chapter of the book Student Loan Solution absolutely FREE!
You bring up some great points DC. I got my MBA and really do not have a whole lot to show for it. I think some can think that an MBA is the road to riches and that they hand out six figure jobs when you walk across the stage. For many that simply is not true. I don’t know that you have to go to a top 10 school, but definitely a prestigious one in order to attain the full benefit of getting one. That said, I did learn a lot in the program I went through and am using quite a bit of it now in running our business.
I think it really depends on where you are at in your life. If you are just starting out then an MBA might not be worth the time and effort as you only really need an MBA when you want to progress into a higher role like management.
I was going to do an MBA, but I have decided to spend my time working on side income for 2 years. If I get no where then I will do my MBA, but if I start making some decent money I will probably continue with side income.
For me, an MBA is required for my job. When I was hired it was under the pretense that I would get my Finance MBA a couple of years later. I think it was worth it. Even if you don’t learn a WHOLE ton, the networking is great.
I was on the fence about it a few years ago, then decided to not pursue it. I realized that my job and the industry I want to be in is all about experience, not so much the paper that backs you up. It wouldn’t be beneficial compared to the cost. If my job were to pay for it, then it would be another story.
Great piece! As a recent grad myself, there are so many of my previous schoolmates that are going straight to Grad school. They have started to slowly realize it was a poor mistake, due to the fact that they are unsure of how their MBA or master’s degree will fit into their future. They have made a hash decision and have thusly regretted it. I have discussed with them that they jumped in it too quickly just to enhance their eligibility (and to postpone) their future employment.
I have been thinking myself of Grad School, but as you previously stated, will not attend unless I am accepted into a top school and receive some form of scholarship or grant.
I believe grad school is something that should be thought out and not an alternative to employment.
I am not sure it is worth it, but you would have to check how much it will cost you exactly (would your company cover some of that, etc) and how much you would earn then, which you should know for sure. I don’t regret taking mine since it was free but wouldn’t do it for $50K+. And going back to school 10 years after the last lecture?? ha! no thanks. A few friends took online MBAs, don’t know how good that is though but it was convenient.
One of my professors said that an MBA isn’t worth what they used to be. So many unaccredited schools are offering the programs and the job market is flooded with people who have them.
However, I still plan on getting one after I finish my Bachelors degree.
I don’t know much about MBAs, bf would be a better person to answer this question. But I do know in my field it’s impossible to get hired without a masters and if you’re not licensed you cannot continue to move up. I guess the whole MBA thing depends on what you want to do and if you actually need the degree or credentials to move up the ladder (and if you want to move up). There are several workers at my current company that have no interest in getting promoted, therefore have not gone back to get their masters.
You seem to have read my mind, DC. I have a post coming up about whether an advanced degree is worth the money. My husband is almost done with his second master’s degree, and I’ll share my opinion on that. Basically, unless you know it’s going to net you a good raise, I don’t know that I’d bother.
@Eyesonthedollar Looking forward to the post!
My husband has been job hunting for over a year and not having much luck. He just enrolled to a part time program and suddenly, with only “MBA student” on his résumé, he has had a ton of interviews. He is not expecting to gain much in the way of knowledge, but it seems that an MBA is the new essential credential much like a Bachelor’s degree used to be (and high school before that). Anyone who knows him couldn’t understand why he wasn’t getting interviews with the experience he has, but that seems to be a minimum requirement when times are tough. Employers can afford to be pickier now than they could when there was a shortage of good workers.
@Vanpoodle That’s great for him! Like I said, I’m “rethinking” my approach…I still may get my MBA but I’m not 99% sure like I was a couple years ago.
Did you know this site? it’s a very cool website http://adultvideopron.blogspot.com/
I got my MBA by from a non top 10 school. My employer paid the tuition, and I went to school at night.
Looking back at the long nights in class and the extra study, I would not make the same choice. Most of my young adult free time was lost to an endless grind. When I graduated I left my employer, and joined another company. None of my peers had an MBA. It worked out great, but I could have gotten much further along putting more energy into the occupation I already had.
People want performance more than a piece of paper.
I did mine part time in the evenings and would do it again. It’s helped me land jobs and keep jobs. Your point about networking is interesting. I met more full time career professionals that were also pursuing their MBA’s in the evenings. They were from a broader spectrum of the local corporate world that I otherwise would not have been able to meet.
I received my MBA back in 2007 and did the part-time night class thing and it was a great experience for me. The networking and discussions that happened during class with people that were a little older and already in their career path was a real highlight to the program. So I would actually make the argument that you will build more of a network with the part-time program than the full-time.
Plus, with a specialization in e-commerce, I could immediately implement what I was learning into my business.
I have been self-employed 31 years and am 59 years old and am starting my MBA from a small unknown school this week. I look forward to filling in the blanks in some areas and speaking to other business professionals about business and business problems. I just want to know more.