A college degree is a critical step for most people who want to hold a competitive job in business, government, or technology. Without higher education, most people struggle to find gainful employment in most sectors. While some students stop at a Bachelor’s degree, others strive for more. In an effort to climb the ranks into upper level management positions, some choose to apply to graduate programs at business schools for their MBA.
MBA degrees have been around for decades, but only in recent years the MBA has become the most popular degree available for students seeking to excel their careers. MBAs are more popular than law degrees, perhaps because MBA degrees are flexible and practical. In short, an MBA can be the gateway to a successful career. Whether you’re seeking a job in the tech industry, in human resources management, or in generalized business, you can benefit from an MBA.
Before you can get an MBA, you must first know the benefits of this type of degree, what kind of skills you would learn if you were to seek your MBA, and what would be required of you if you decided to pursue this type of degree. Hundreds of thousands of people try to get their MBA every school year. If you decide that the MBA degree is right for you, it’s important to enroll in a respected, high-quality program. It’s not enough to have an MBA degree. The school you select and the experience that you have while you’re there will define who you are as a candidate for companies around the United States.
It’s important to study hard, make use of the time and excel in class. Perhaps even more than that, it’s important to immerse yourself in the MBA experience, meeting with corporate leaders and making connections with other students.
If you’re seeking an MBA degree, your first priority should be to research programs and identify which school or schools is right for you. MBA students need good grades in college, high test scores, and a stand-out application. Professional experience is also important. Most schools expect their students to be in the workforce for at least three to five years before they apply.
This time gives MBA candidates a perspective on real-world problems, industries that interest them, and gives them a chance to gain experience that would be valuable in school. Candidates with more interesting, unique or high-level experience are often perceived as candidates who have more to offer to an MBA program.
Are you ready to get an MBA? Do you want to make more money, advance your career, and excel to the upper levels of management in your industry? If so, your journey as an MBA student begins today. Below are 10 important facts about MBA degrees. The more you know about getting your MBA and what it takes to get your degree, the more prepared you’ll be when you start turning in applications to the schools of your choice.
1. MBA degrees are designed to prepare students for a career in business management
MBA stands for “Master in Business Administration.” This degree is designed to help students prepare for a career in business management. In fact, in many companies, an MBA is almost a pre-requisite for anyone seeking a C-level management position. Though a requirement for an MBA may not be written into the job description, candidates without an MBA may find themselves struggling to compete with those that do have such a degree.
During their time in school, students learn important skills and terms that will be prevalent in the workforce after they graduate, including leadership, marketing, finance, strategic thinking, human resources management, strategic thinking, time management and more. The MBA is a jumping-off point that enables graduates to excel in the workforce. Without the skills obtained while getting a masters degree, job candidates would be less prepared for the challenges facing executives in the work force.
An MBA is more than just a chance to learn about business, marketing and management. While in school, most students meet other future leaders and cultivate networks that can become helpful during their career search. They gain confidence in themselves and their judgement. In addition, students get choice internships that can lead to great career opportunities down the road.
2. MBA Salaries are outstanding
One of the reasons that many people seek an MBA degree is because of the high salary. An MBA degree is an investment. In 2017, the median starting salary for an MBA graduate was $110,000, nearly double that of people with a Bachelor’s degree from only a few years prior. Three years after graduation, MBAs from top business schools have a salary range between $150,000 and $185,000.
For the most desirable graduates, competitive businesses will bid above and beyond to recruit or make a hire, and many companies offer additional perks as well. Most employers will try to make their hiring package more attractive by offering performance-based bonuses, profit sharing, stock options or purchase plan and tuition reimbursement.
What determines an MBA’s salary and other benefits?
- School. Graduates from the best schools often get more competitive job offers, including better benefits and more perks than those from lesser ranked schools.
- Area of focus. Some of the most lucrative areas of focus include finance, IT and sales.
- Performance in school. Degree-holders who excelled in school are often more attractive to employers. Top-graduates in their class with excellent recommendations may attract better offers.
- Networking. MBA students who spend their time in school networking, making contacts and proving themselves to be stand-out candidates often find it easier to attract a high salary after graduation.
- Internships and experience. The more experience that an MBA student can achieve in the real world before graduating, the easier it becomes for them to secure a high-paying job after graduation.
3. MBA students are wholly employable
Most MBA students have little trouble securing a job upon graduation. After completing their degree, about 80% of MBA students have secured their first position (2). In fact, most large employers recruited specifically from the graduating classes of some of the top business schools in the country. This is true for many reasons.
MBA students learn to solve business problems and think outside the box. While they’re in school, they’re exposed to theories and critical information that can help them in a corporate environment. Finally, MBA students come pre-introduced to the corporate culture. The period of adjustment for an MBA student is far less than the period of adjustment for a non-MBA student. They’re ready to work as soon as they’re hired, with little training or hand-holding.
This makes MBA students more valuable than non-MBA students. Finally, the MBA degree is transferrable to a variety of industries and businesses. MBA students have a place in virtually all areas of industry, though the majority of students find themselves pursuing careers in one of three areas: marketing and sales, finance and accounting and general management.
Students who have identified a specific industry where they would like to work after graduation can increase the chances of finding a position in that industry by seeking a related internship and taking classes that focus on their particular areas of interest. Some schools have specialized programs that enable students to zero in on specific positions.
4. Preparation for admittance to an MBA program is essential
Preparing for an MBA degree is a multi-faceted process that begins with obtaining a bachelor’s degree. Students who want to advance to higher level degrees must begin by excelling in their first four years of college. MBA programs look just as much at what happens after school as during school, but it’s important to get good grades, take the right classes and take advantage of the best opportunities possible. Business classes may help, but are not essential.
After graduating with a bachelor’s degree, most MBA programs expect their candidates to get a job and advance their career. Many of the best MBA programs look for students who have made significant contributions to their organization. People in the workforce who have shown leadership, risen to the challenge and who have excelled in their workplaces are the most stand-out candidates.
Good communication skills and leadership skills are important as well. Therefore, university recruiters scrutinize the information provided in resumes, on applications and in application essays. Math skills are important for MBA students, so good test scores (GMAT) and good grades in an undergraduate setting can help bolster a student’s application.
In addition, recruiters also look for what they call soft skills. Soft skills can take many forms but are generally described as anything that is not an academic in nature. Soft skills include difficult to define characteristics like emotional intelligence, people skills, initiative, warmth of character and flexibility. These skills are an important part of finding success in a corporate environment. Soft skills make it easier to get a job after business school, and therefore are prized among business school recruiters.
Anyone who wants to get their MBA can increase the chances that they’ll be admitted to the school of their choice by improving their soft skills. Most people have opportunities every day to work on their emotional intelligence and people skills, which can go a long way to getting into a good MBA program.
5. MBA degrees can vary in length, depending on the program
A traditional MBA program takes about two years. This is a full-time program that requires the student to dedicate themselves to school and study throughout the school year. In these programs, most students take the summer to work an internship and gain experience in the real world. Traditional MBA programs give students enough time to get to know others in their cohort. These programs focus heavily on networking. Academically and intellectually, traditional MBA programs are rigorous and demanding. Upon graduation, students are ready to meet the challenges of the workplace.
Accelerated MBA programs take only one year. Students continue school through the summer (without accepting an interneship), and study on weekends. Not all schools offer such an MBA program, and the intensity of the course load may vary. There are advantages and disadvantages of accelerated MBA degrees that make this type of program not right for everyone. Some students prefer the accelerated degree because they can’t afford to be without a salary for very long. Other students prefer the traditional MBA program because they want the full experience, including all of the network and internship opportunities, rather than an accelerated and condensed experience.
Executive MBA degrees vary in length. Students going through these programs also have full-time jobs, and often their employer pays part or all of their tuition. In these programs, students attend classes periodically and study in between. The length of time that students take in these programs depends on the program and also the pace at which the student can take classes.
6. MBA programs can help entrepreneurs and future executives
MBA programs can help people who have different career goals. Some people choose to get an MBA because they want to become a corporate executive or a C-level executive, while others enter an MBA program to become an entrepreneur. Some programs aim to help students in one track more than another, though most programs offer classes that provide assistance with both tracks.
MBA programs prepare students for both tracks by teaching them skills such as strategic thinking, management, leadership, finance and of course, entrepreneurship. The networking skills that students gain when getting an MBA degree can also be crucial for both paths (executive leadership and entrepreneurship).
While students benefit greatly from the math skills they develop in class, the networking skills are an even greater asset. Networking can help graduates get a job. Networking also helps recent MBA graduates to get the help they need when starting their own company. With their networking abilities, company founders and entrepreneurs can find investors, partners and even the best staff people.
For those who choose to become an executive of an established company rather than starting their own company, the MBA program can lead to contacts in the industry that could result in immediate job placement after graduation.
7. MBA costs vary
MBA costs can vary by quite a bit, depending on the program, the school, whether the student must travel out of their area, and other factors. Many MBA programs charge approximately $40,000 annually as a base price for enrolling in the program (4). In addition, books and boarding may cost a further $20,000. Multiplied by two, this can lead a cost of over $120,000 over the course of a two year program.
Private colleges and universities tend to be much more costly than state schools, and budget-conscious students can save money by choosing their program wisely. Students who choose to attend a traditional, full-time MBA program should also take into consideration the cost of their lost wages while they’re at school. For a person who is earning $50,000 per year in the work force, leaving a job for two years costs around $100,000. Though these costs may be considered reasonable when taking into consideration that getting an MBA can result in an 80% increase in salary after graduation (5).
Potential MBA students who want to manage or minimize their costs can also do so by pursuing an executive MBA degree. Since an executive MBA style degree allows the student to continue working while pursuing their degree, and sometimes companies pay for their employees to enroll in these programs, executive MBA programs tend to be much more affordable for the student.
8. Many programs take either GRE or GMAT test scores
Students who want to get into graduate school usually need to take a test to prove competence. The GMAT is the test that students take to get into an MBA program. The GMAT is divided into two sections, verbal and quantitative. They’re graded separately and then combined for an overall score called the composite score, which can range between 200 and 800.
Students who only want to get into an MBA program can take the GMAT for the admissions process. Many students take months to study for the GMAT to improve their score. There are several study books, guides and programs that can help students prepare for the GMAT.
The GRE is not as widely accepted by business schools as the GMAT, however most business schools will now accept it. Some students choose to take the GRE instead of the GMAT because they have not yet decided if they will choose to get their MBA or another type of degree. However, some students find the GRE to be more difficult. For students who know for sure their plan is to get an MBA, the safest course of action is to take the GMAT.
9. MBA degrees are useful in a variety of industries
One of the main drivers that lead students to get an MBA is the flexibility of the degree. Whereas some other degrees are very specific to only a few industries, MBAs are useful across many. Upon graduation, job candidates with an MBA can get a job in a variety of fields, most commonly finance, operations, supply chain management, health industry, accounting, and in regulatory fields.
Ultimately, this means that students who pursue their MBA don’t have to know when they start their degree what they plan to do with it, nor are they locked into one field once they accept their first position after their degree. With an MBA degree, students can go on to have varied and diverse careers, or may choose to enter other areas of study that can lead them down paths that they never anticipated. And, because the MBA degree gives students the information they need to start their own company, they may find themselves as a founder of an organization or company when that was never their plan before.
In this way, the MBA degree is a kind of jumping off point, enabling students to pursue areas of interest well after they’ve left school. By learning about management, strategy, finance, leadership, management, marketing and more, students are able to apply their degree to nearly any kind of job available.
10. Many major companies will pay for promising execs to get an MBA
Many of the Fortune 100 companies will pay for their most promising employees to get an MBA. This reduces the financial burden on the student and enables them to focus entirely upon their studies. It can also be a better experience for candidates to have the support of their employer while pursuing an MBA. Working and going to school at the same time can be very difficult, and homework can take time away from work. Employers are more likely to understand the constraints of their employees if they’re paying for the MBA program.
People who would like their employer to pay for their MBA degree should seek a position with a company that provides such a benefit. Many companies make this information public knowledge to help them attract the best and brightest people. Students who are interested in getting an MBA while working a full time job can look for positions with large, successful companies in the country.
It is often the most promising employees and hardest working that are able to get their degree through their employer. Those who would like their employer to pay for their degree should first focus on advancing their career and working hard for their company.
Thinking about an MBA Degree? A Few Take Aways
An MBA degree can be your start to a long and successful career. If you graduated from your Bachelor’s degree several years ago and have been moderately successful in your industry since that time, this may be the right time to go back to school. There’s much to know about getting an MBA degree, including:
- Traditional MBA programs take two years, but can take as little as one year in an accelerated program.
- Prospective students can take the GMAT or GRE to get into programs of their choice.
- People who graduate with an MBA can see a salary increase of 80% or more upon graduating.
- Most programs seek students who have real-world experience, prioritizing upper level or management experience.
- MBA programs teach students important skills like finance, accounting, networking, marketing, entrepreneurship, strategy and leadership.
- During their time in skill, students develop a network of contacts that can help them in the workforce.
Are you thinking about getting an MBA? If so, now is the time to start exploring programs, studying for the GRE or GMAT and brushing up on your interviewing skills. MBA recruiters look for people who have good interviewing skills, who have been motivated to further their career, and who have clear answers to their interviewing questions. If you would like to pursue an MBA degree, prepare yourself mentally and emotionally. The road to getting this type of degree can be long and may take time, but if you make an organized effort, you may be successful. Get started as soon as possible preparing for the rigorous application process.
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