Graduating from Carroll School of Management is a great resume-builder for BC undergrads heading into the workforce. However, as BC students and other undergrads nationwide consider what to do post-graduation, many contemplate putting off the job hunt in favor of obtaining their Masters in Business Administration. Is there a benefit to obtaining an MBA first? The answer, like the economy itself, changes depending on the situation.
As the job hunt starts up for juniors and seniors, there is still a push to gain more knowledge before being thrown into the workforce. Furthermore, in suffering economies, extending time in school has traditionally been one way to avoid the job search that never ends. However, an MBA is no longer a guarantee to get a better job, or even to a job at all. In 1960, there were about 5,000 MBAs awarded in this country. In 2000, there were over 100,000. This explosion in the number of degrees awarded means that while MBAs are still important in the business world, they are no longer a guarantee to one’s dream job.
There are many factors to consider when thinking about applying to graduate school. Especially in today’s economy, the primary consideration is cost. Elite MBA programs, such as the University of Chicago’s program, can cost over $100,000 for the complete program. Essentially, excluding oneself from the workforce for two years while also creating even greater debt can be a strike against immediately leaving the undergraduate world to receive an MBA.
Another consideration is the school itself. The benefits of a big name school are certainly greater than lesser-known programs, even if the cost is steeper. The top-ranked graduate programs might just be the leg-up students will need to stand out from the increasing number of MBA students. Still, acceptance into these programs is increasingly difficult as competition among graduating seniors intensifies.
Despite the downsides, the benefits are apparent for those students who do obtain their MBA. Most studies and surveys show that employees who have their MBA make, on average, between $10,000 and $30,000 more annually than those without it. For a young adult starting out, such an incentive can be substantial.
In today’s economy, and with a struggling job market, deciding to get an MBA is a difficult choice. The benefits include a potentially large salary increase, better job opportunities, and a better chance of rising up quickly in the workforce. However, are these outweighed by the cost and time spent away from the workforce? It’s difficult to say. In a country where debt is a huge issue, it might be beneficial to gain some work experience before working toward an MBA. An incentive for that route is that some companies will pay for their employees to obtain their MBAs once they’ve established themselves within that company.
Clearly, there are benefits both to entering straight into the workforce and obtaining a degree from an established and respected program. The most important thing for BC business undergrads to remember is that they must keep an open mind – eliminating one option too quickly could eliminate a plethora of future opportunities.
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