Considering An MBA? Three Factors To Weigh

Before you commit to an MBA, it’s important to look at all the issues that come with it.

Tanya Hall, CEO of Greenleaf Book Group and contributor for Inc., recently discussed the key factors to consider before committing to an MBA.

FINANCES

It’s important to consider the financial investment you’ll be making with an MBA. Hall says prospective applicants should look at the cost of tuition and how they expect to pay for the degree.

“Depending on the business school and the academic pedigree, MBA tuition rates can be quite expensive,” Hall writes. “With the rising cost of tuition and the burden of financial aid and loans, taking on a graduate course load can leave students with a mountain of debt. Roles in areas such as finance may expect an MBA, but in other career areas, it may not elevate you enough to make sense financially.”

You may also want to look at employer sponsorship as a way to fund your MBA.

A recent study by Bloomberg Businessweek found that 35% of students who returned to work to their previous employer received at least 75% tuition coverage for their MBA. Of those who received tuition coverage, roughly 57% were employed by consulting companies, financial services companies, or the government.

OPPORTUNITY COST

In addition to your financial investment, an MBA will take time and energy.

Hall says it’s important to consider the opportunity cost of an MBA and what program makes sense to you.

“Standard MBAs take an average of two years to complete,” she writes. “Alternative options (online, weekend option, accelerated programs, etc.) may make the time investment shorter (or longer), but regardless, you’re looking at a hefty time commitment.”

During this time, it’s also important to consider your workload and commitments outside of school.

“Due to the challenging course load, many candidates opt-out of working full-time during graduate school so they can dedicate time to their studies and group projects,” Hall writes. “The downside is that they’re generally not earning relevant work experience. Factor in funds to buy books, energy to complete homework, and time spent away from family and friends to fully grasp the opportunity cost of acquiring an MBA.”

SKILLS GAINED

Experts say it’s critical for prospective applicants to know what they hope to use their degree to achieve.

For one, according to Hall, the classroom won’t always directly translate to the real world.

“A straight-A student who is a brilliant test-taker may not have the collaboration or networking skills to succeed in the business world,” Hall writes. “While MBA coursework often includes group projects and collaboration, it doesn’t replicate working across an org chart or under manic deadlines and changing priorities.”

Mark W. Nelson, the dean of Cornell University’s Samuel Curtis Johnson Graduate School of Management, says it’s important to take your career into consideration and determine how an MBA fits into that.

“Often candidates have a career progression in mind – ask whether people who have followed that path have been helped by an MBA,” Nelson tells US News. “Also, consider your personal opportunities for growth. What do you want to work on? Consider how an MBA would help you develop those capabilities.”

In the end, Hall says, the MBA is a personal choice that you will ultimately have to decide whether it’s worth it or not.

“Finding a balance between earning an MBA and gaining experience is certainly possible through part-time work, internships, and even volunteerism,” Hall writes. “Weigh all of the costs and tradeoffs, and consider reaching out to human resource experts in the career area you want to pursue to interview them about their thoughts on the value of an MBA. Take the long view and chart the course that’s best for you.”

Sources: Inc., US News, Bloomberg Businessweek