MBA is definitely worth the investment: Survey of MBA graduates
Post-graduate study is often a daunting decision to make. There are many things to consider before opting for an MBA, like – how much is it going to cost? Is it actually going to help you? Are you ready for the commitment and time it will require? These questions need to be considered before taking such a big step. The bottom line being – is an MBA worth all the effort, time, and money?
A recent survey conducted among 76 MBA graduates by AIMS Bangalore shows that it definitely is.
Why Choose an MBA?
As the chart indicates, the most popular reason for choosing to go for an MBA is that it creates a new, wider range of career opportunities. Encouragingly, only 10% of the post-graduates did it solely for a better financial future. This shows that doing an MBA is less about pursuing money and more about finding new & exciting job opportunities.
97% of the graduates chose to do the MBA course full time, while the remaining 3% did it part time or through distance learning. At 62%, a great majority of students graduated between the ages of 24 and 28, while 35% graduated between 18 and 23.
The most popular specialization amongst the students was Marketing, followed by Finance. 37% of the graduates came from a background in Engineering and 30% from Commerce. Only 22% completed a Bachelor in Management before doing their MBA.
When asked why they chose a particular school for their MBA, most had more than one consideration. The qualities they looked for in an MBA college included:
• the reputation of the school
• good teaching facilities
• teaching methods
• tuition and living costs
• salary of MBA graduates
• the career services record
• the published ranking position of the school
It’s been said that an MBA is rewarding because it eventually provides a return on the investment of pursuing one. The survey shows evidence of such a return in salaries offered to the students after graduation.
In answer to how students came up with the funds for an MBA, a whopping 69% said they looked to their parents for help while the remaining relied on savings and bank loans. What is promising is despite the fact that almost 60% of students had 0 years of work experience, 61% of them received and accepted job offers through placements that their institutes helped them secure.
Even though many were freshers, 43% of graduates had a salary offer of between 3-5 lakhs per annum, a sum more than enough to provide comfortable living. As more years of experience are gained, a raise is inevitable. In fact, 46% of those students who had some years of work experience under their belt received a salary hike between 30%-100% after completing their MBA. The survey shows that though the money goes into an MBA education, the resulting qualifications provide a good return.
Benefits of an MBA education
What else does an MBA education provide besides knowledge? An MBA also provides students with skills to function in the workplace. 39% of graduates used the expertise they gained through their MBA and put their managerial skills to use in the workplace. According to the survey, an MBA propels graduates into higher, managerial positions because of their skills and provides them with better pay, too.
The connections created through an MBA education is also a great advantage. 36% of students widened their contacts by meeting several other students working, while 25% connected with potential employers. The importance of alumni as allies should not be forgotten either – new students can learn a lot from old ones.
Together, the combination of advantages such as new career opportunities, a total return on the MBA investment and the benefit of a wider network of contacts lead a whole 75% of the graduates to say that an MBA is well worth the effort, time and money spent on pursuing it.