Is an MBA worth it?
MBA programmes have always been thought to be a good move if you are looking to progress in your career or widen your career choices. But are they worth it?
Brady Colby
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A handful of trends in higher education, enrolment patterns and employment demands are converging, making it an unusually good time to consider a Master of Business degree (MBA). Which means that, if you’ve been thinking about, or have ever thought about getting your MBA, right now may be a good time to get started.
The first question most people ask when considering advanced education is about the benefits – is getting an MBA worth what it costs in time and money? According to our latest in-depth report on the MBA degree market, the answer is still yes.
Although it has fluctuated modestly over the past several years, people with an MBA still earn an average annual salary that’s a little more than $50,000 (£39,000) higher than someone with a bachelor’s degree only. Even if you’re in the middle of your career and you will have the MBA for 10 or 15 working years before considering retirement, the current MBA wage premium could add half a million dollars or more to your pay cheque in that time. And that’s the average – if you’re an older, more experienced worker, your salary is probably higher to start with, and the MBA bump could be worth even more.
The other value factor is job opportunity – does an MBA translate into more job options? Our research again says yes. Advanced educational attainment has correlated with higher rates of employment for a long time. And our research shows that, right now, the demand for MBAs among businesses and hiring principals is strengthening.
We found, for example, that job postings for MBAs have been growing since mid-2023 and hiring surveys also indicate an upward trend – all while the aggregate job market, and the job market for bachelor’s recipients specifically, is declining. From October 2023 to October 2024, we found that total job openings declined 10.8 per cent, while job postings seeking MBA degrees grew 35.6 per cent. Perhaps most significantly, our research indicates that this trend is likely to continue for at least the next few years.
But, what about getting started? As mentioned, now could be a good time to consider your MBA journey.
One reason that the timing may be right is that the number of available MBA programmes has grown rapidly in recent years. Most of these new programmes are online, offering students flexibility and convenience for starting, attending and finishing their degrees. In 2018, for example, there were 555 online MBA programmes. By 2023, that number had jumped to 732. This means there are more products on the shelves than there were just a few years ago.
Because of this increase in the number of available programmes, the average number of enrolments per programme has declined, even though overall MBA enrolment is increasing. More products, in other words, means fewer buyers of each brand, even though there are more overall shoppers in the aisles. This means that MBA providers may be lowering overall prices, making scholarships and discounts for applicants very competitive.
The competition among MBA programmes is especially acute for the growing number of online programmes. Not only is competition allowing prices to remain stable, it is also, in some cases, lowering the barriers to entry. Most online MBA degree programmes no longer require test scores from assessments such as the GRE or GMAT, which makes starting an MBA faster, less expensive and less stressful.
The consistent wage premium, increasing job demands, and price and enrolment pressures among schools make for a beneficial environment for pursuing an MBA. If an MBA is on your wish list, now is a great time to become a student again.
