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IS MBA WORTH

What's an MBA Really Worth?

Strangely, one group that seems to have no doubts about the MBA is the onemost at risk -- the students. Applications are at record levels again this year, and judging from Business 2.0's survey of the class of 2002, those who have the degreeview a rich, rewarding career as all but ensured. That assumption might be due for reexamination. To those who put themselves deep into hock believing that an MBAwould improve their lives, Pfeffer poses an unsettling question: "Before you did this,"he asks, "did you look at any data?"

The Master of Business Administration: Is the MBA Worth the Time, Effort, and Cost?

Are you a job-seeker who is looking for more responsibility and pay, seekingmore leverage in obtaining a work/life balance, or contemplating a move intomanagement -- and are considering returning to school to get your MBA? Or perhapsa job-seeker exploring changing careers by going back to school for your MBA? Or perhaps a consultant looking to add a credential to your dossier. Or perhaps a college junior or senior contemplating going straight through and obtaining your MBA rightafter your undergraduate degree?Regardless of your reasons, if you are contemplating attending graduateschool to obtain your MBA, you should read this article before you make your finaldecision. This article will take you through all the important issues you need tocontemplate before making your decision of whether -- and when -- to obtain your MBA.

What is an MBA?

It's a Master of Business Administration degree, granted after one to two yearsof graduate-level university study that provides training in the theory and practice of business management. The MBA is basically a document that certifies that you have ageneral competency in all the major functional management roles you'll find in themodern corporation. An MBA is a career accelerator across a number of industriesand MBA graduates can usually command higher salaries.

Ideal Time to Get MBA

When is the best time to enroll in an MBA program? The obvious answer is toenroll at a point in your career when the MBA is necessary to take your career to thenext level, but the choice is never that simple.For the college undergrad, the biggest question you need to ask yourself iswhy -- why are you interested in going straight through and getting your MBA rightafter your bachelor's degree? The top-ranked programs will not even admit you if youdon’t have at least several years of experience, and a freshly minted MBA with littleor no job experience is often in a much tougher job hunt than a recent college gradwith little or no job experience.For the job-seeker, the question about getting your MBA involves how asmuch as when. Will you keep working while earning your MBA in a part-time program or do you have the financial resources to quit your job and return to schoolfull-time? Will your current employer help finance your MBA? Do you need theMBA as part of a career change -- and if so, how are you going to do it?Finally, there is the question of the economy. Some people think it's a goodhedge to get an MBA during an economic slowdown -- a safe haven -- rather than facethe tough job market; however, when the economy is bad, even having an MBA is noguarantee of obtaining a lucrative job offer. The best advice? Talk to recruiters andMBA career placement counselors -- and read the current trends in magazines such asBusiness Week, Success, U.S. News and World Report.

MBA Enrollment Trends

The number of MBA degrees conferred annually has seen explosive growthover the last few decades, going from under 5,000 MBAs in 1960 to more than100,000 MBAs in 2000. Enrollment is also influenced by the economy, and as theeconomy turns toward a downturn, both recent grads and displaced workers head back to earn their MBAs.Because of the growing number of graduate business programs that confer more and more MBA degrees, the degree itself is not as special or highly-valued as inthe past. An MBA alone will not be the magic key to the door of career and job-hunting success.

Types of MBA

One of the questions you'll need to answer is whether you are interested in ageneral MBA, which is often shorter in duration, or a specialized MBA, which maytake longer but make you more marketable.Regardless of the type of MBA, the core topics you'll encounter include:AccountingQuantitative analysisEconomicsMarketingOrganizational behavior Specialized MBAs offer more advanced study in a particular area of business (such asmarketing) or a particular industry (such as higher education).Finally, you'll need to determine the value of the "name" of the program youare considering. If you are searching for a big push that fast tracks your career,snagging an MBA from one of the top schools in the country may be the ticket. But, if you're looking to simply get ahead and move your careers along, don't discount themany MBA programs that are unranked but that offer you the degree and value youneed.

MBA Costs -- and Returns

According to one salary guide, an MBA is worth about $10-30,000 a year over a bachelor’s degree, but the salary increase you could see may be much less -- or much more. Factors that can affect your salary include:

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Whether you stay with your current employer or seek a job with a newemployer.

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The amount of relevant experience you have for the job you are seeking.

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The reputation of the graduate school you attended.

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The type of job you are seeking -- and the level of supply/demand for workers.

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The industries where you are seeking a job.

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The location of the jobs you are seeking.But don't forget to factor in the costs as well, with the average cost of graduatestudy leading to an MBA at about $30,000. Tuition is about $50,000 at Wake ForestUniversity, one of the premier MBA programs, while closer to $12,000 at my school,Stetson University.