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10 Benefits of Earning Your MBA Degree

May 7, 2021 3:14 pm0 commentsViews: 435

Many business professionals in almost every industry eventually consider earning their MBA, or Masters of Business Administration. Is it really worth it?

Many experts say that in most cases, earning your MBA is well worth it because it provides you will skills and knowledge that make you a better business person. There are the most important benefits:

#1 Higher Earnings

Research shows that the average salary for someone with an MBA is higher than someone with a bachelor’s degree. More specifically, you can expect in many cases that the starting post-MBA pay will be 50% higher than what you would earn with a bachelor’s according to the Graduate Management Admission Council (GMAC).

The salary benefits of an MBA did not stop there; GMAC further found that the value of the MBA was clear in the salary premiums that come with it. With a median salary of $115,000 among MBAs in 2020, they earned a full 75% more than business professionals who only held bachelor’s degrees. In areas like consulting, finance and tech, the difference was even more dramatic, with MBAs earning twice as much as their colleagues with bachelor’s degrees.

#2 More Career Opportunities

As you would expect, people with an MBA have a higher chance of getting an upper management position with a higher salary and more responsibility. In fact, estimates suggest that 70% of MBA graduates globally are upper level managers or board directors.

An MBA also has been determined to increase your job security, either with your company or in your industry. GMAC found that nearly 90% of firms stated that they plan to hire MBAs in 2021.

The MBA does not just give you more job security: It helps you to stand out in a crowded marketplace. Some job recruiters report that some of their corporate clients do not consider candidates who do not have an MBA.

Employers think that it serves as an effective way for them to vet candidates. If you graduate from a quality MBA program, it is a good bet that you are bringing serious business skills to the table.

#3 Better Business Network

A major benefit of going to business school is the networking connections you will develop. You will be associating with fellow students, professors and other business people who can serve as a way to further your career.

Also, you may need to do some type of internship in your MBA program. This gives you another opportunity to network, and possibly get your foot in the door for a full time position later.

If you are wondering which universities offer the most useful alumni for networking, The Economist does a yearly survey where students rank their schools’ networking opportunities. In 2014, The Economist survey stated that the following universities had the best networking:

  • Dartmouth College
  • Stanford University
  • University of Notre Dame
  • University of Virginia
  • University of Michigan
  • University of North Carolina

#4 Leadership Development

The best MBA programs give students exposure to the latest business research, as well as ample opportunities for professional leadership development. These MBA programs give you the skills to excel as a leader by focusing on these factors:

  • Theory and practice are in balance. Doing business research is valuable, but attend a university that offers plenty of chances to work on common business dilemmas that real world organizations have.
  • The best business research is based on real world scenarios. You will learn real world skills that give you the ability to make quality leadership decisions quickly.
  • Learn rhetorical skills. You will learn how to effectively communicate complex business ideas to people who may not have your level of business training.

#5 Project Management

More employers in many business fields today want leaders and managers who are proficient in project management. They want people who are skilled in time management, implementing strategic change and cost management. This finding is clear in Bureau of Labor Statistics figures showing project managers were highly valued, with a 75th percale salary of more than $104,000. According to the Project Management Institute, they made far more, earning a median annual salary of $116,00.

U.S. News and World Report found that found that executives valued project managers with high levels of diplomacy skills. So, there is definitely a wide opening available for a skilled MBA professional to come into an organization with excellent project management skills.

This unmet need in the business world has spurred some MBA programs in the US to offer specific training courses in project management. They encourage students to work on real business world problems and to create business plans for companies that could range from startups to Fortune 500 companies.

Some MBA programs also offer the opportunity to specialize your entire MBA program on developing project management skills.

#6 How to Make Decisions Based Upon the Numbers

A good MBA program will give you an excellent understanding of financial statements, accounting, and how you should make decisions confidently based upon the reports and the numbers.

Too many business owners make critical decisions without carefully reviewing the numbers. But a business professional with an MBA has the skills to make solid decisions based upon the underlying data.

#7 Strong Communication Skills

Good MBA schools teach their graduates to communicate effectively. This is critical in the business world, and the 2020 Corporate Recruiters Survey found that employers have great confidence that MBA programs produce employees who have the skills to be successful in their organization. That includes strong communication abilities in both verbal and written formats.

MBA schools work hard to teach students how speak, write, listen, interview and present well, and these skills will make you stand out from other candidates and employees.

#8 Collaboration

In most business situations, you will be working closely with colleagues to solve complicated business problems. Or you may be working with a large group of people from different departments on a large project. Doing this successfully requires you to collaborate with others well.

This is why most MBA programs today require students to complete several group or team projects. This interaction will teach you how to work with people who are very different from you, yet still get the mission accomplished.

#9 Prioritization

It is common at many companies to be given more tasks than you can reasonably handle. This makes it important to be able to prioritize tasks that are most critical to the success of the business. A good MBA program will also give you more than you can handle at times, and you need to learn how to balance it all.

Good MBA programs also will help to provide you with the discipline that you need to complete difficult tasks. Just because the job is difficult doesn’t mean that it is not important.

#10 Build Strong Reputation

In your business career, you will work with many people, but only a small number are really reliable resources you can rely on. A good MBA program will help you to learn how to complete quality work reliably, which is an extremely important skill and trait to possess.

The fact is that many people you may work with in business do not always give their best effort. If you are always giving your best effort and producing quality, you will find that that reputation will lead to many interesting business opportunities in your career.

With these 10 critical skills in your tool kit after MBA school, you will be well qualified for most upper managerial positions that come your way.

May 2020 Bureau of Labor Statistics salary and job growth figures for project managers represent national data, not school-specific information. Conditions in your area may vary. Data Accessed May 2021.