RUNNING HEAD: POST GRAD MBA OPPORTUNITIES 1

Post Grad MBA Opportunities

Coleman H. Sanders
Arizona State University
POST GRAD MBA OPPORTUNITIES 2
Introduction

The job market for business students with bachelors degrees is becoming increasingly more
competitive. Figures published in 2013 show that only 54% of business graduates with a
bachelors degree are employed immediately after graduation with a mean salary of
$39,000/yr. (Foster, 2013). Contrastingly, unemployment rates for business students with
graduates degrees is 3.7% lower than Bachelor degree holders and the mean salary is nearly
$83,000/yr. (Foster, 2013). Furthermore, according to a recent article in Forbes Magazine
entitled Grad School: Still Worth the Money?, MBA graduates earn the same amount in 20 years
as those with a Bachelor degree can earn after 40 years in the workforce (OConnor, 2012).


However, the cost of a Masters in Business Administration (MBA) can be quite substantial. The
average cost of a two year MBA program is around $80,000 depending on the rank and level of
program attended, and given that a recent business graduate has the potential to make
$39,000/yr. and the typical MBA program takes two years to complete, the opportunity cost for
not working two years in your mid-twenties is nearly $80,000 (OConner, 2012). Making the
total cost of an MBA approximately $160,000. Furthermore, this sum can be compounded for
many students due to the high interest rates associated with student loans.


For many the possibility of attending business school has been aided greatly by the increase in
online MBA programs. Yet not all MBAs are created equal, and some students may be better
served entering the job market and possibly pursuing an MBA later down the road. In fact,
many of the nations top MBA programs are only available to postgraduate students who have
3-5 years of professional work experience (Badenhausen & Settimi, 2013)


Therefore, the purpose of this document is to provide a comprehensive guide that students and
administrators can use to gain valuable information about the benefits and risks associated
with pursuing an MBA degree. The analysis in this document examines both the return on
investment possibilities associated with an MBA degree, as well as the employment rates and
salary statistics between: graduates with Bachelor vs. MBA degrees, MBA programs of differing
rank, and MBA degree programs both online and on campus

Employment and Salary Statistics

When making the decision whether or not to pursue a graduate business degree, students
should begin by considering their future goals and what they want to do with their degree. A
Master degree in business (MBA) offers students in-depth study into the theory and application
of business and management principles. Students who pursue an MBA are primarily looking to
advance their career and increase their salary potential. The following section will help provide
insight into: the differences in salary and employment between an MBA and a Bachelor degree,
POST GRAD MBA OPPORTUNITIES 3
$0.00
$25,000.00
$50,000.00
$75,000.00
$100,000.00
2008 2009 2010 2011 2012
Bachelor Degree MBA
70
75
80
85
90
95
100
2007 2008 2009 2010 2011
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Year of Graduation
Bachelor Degree
MBA
the differences in salary and employment amongst different MBA programs, and the
differences in salary and employment between online and traditional programs.

MBA vs. Bachelor
The following graph illustrates the substantial differences between the average starting salaries
for recent Bachelor and MBA graduates.





















*Source GMAC Corporate Recruiters Surveys

On average, an MBA graduate can expect to make between 70% to 100% percent more than
they would be able to make without the degree (Estrada, 2013). MBA graduates also show
higher levels of job placement after graduation as illustrated by the following chart which
shows percent of graduates employed within 6 months of graduation.









*U.S. Bureau of
Labor Statistics



POST GRAD MBA OPPORTUNITIES 4
Differences between MBA programs
The MBA program you choose is important because not all programs are created the same, nor
are they viewed the same by prospective employers. The school and program you choose
directly relates to the average expected salary upon graduation. The following graph illustrates
the differences in expected salary upon graduation.




















*http://www.admissionsconsultants.com

The program attended also greatly influences the possibility that you will receive a job offer
upon graduation (Spreen, 2013). While there is a lack of comprehensive data on the subject,
MBA programs are required to publish data regarding employment statistics for recent
graduating classes on their website. The higher ranked programs generally offer the greatest
combination of salary and job placement, however this isnt always the case, and it is always
best to thoroughly research a program that you consider attending.

Online vs. Traditional
Online universities have become a popular and viable way for students to attain an MBA.
Graduates are able to utilize their Bachelor degree and work while they take classes online,
allowing them to forego the lost wages other graduates endure when they enroll in full time
MBA programs. Yet while an online MBA may be similarly accredited, they dont necessarily
hold the same weight with employers as do traditional MBA programs (Whittaker, 2012). In
fact, recent employment statistics show that online MBA graduates can expect to raise their
salary by 26% after completing the program, while traditional 2 year MBA graduates can expect
a full 70% raise in their pre MBA salaries (Stillwell, 2011). The difference in salary can most
directly be attributed to fundamental differences within the programs. The lack of face-to-face
POST GRAD MBA OPPORTUNITIES 5
networking and team building exercises inherent within traditional programs are seen as
important fundamental aspects of an MBA, and employers tend to discredit online MBAs
accordingly (Stillwell, 2011). The full time MBA is more designed to help people move into
different careers, while the online MBA program is better suited for someone looking to
advance within their current career.

Return on investment. When considering whether or not to attend graduate business school
one of the most important considerations revolves around the possible return on investment.
For many students the thought of an additional two years in school and the associated lost
wages can seem too costly of a venture. However, in many cases the short term sacrifices can
lead to great future gains.


















*Courtesy of mbaalliance.com

The illustration above shows how a time sacrifice associated with a traditional MBA program
translates to large future gains that would have been previously inaccessible.

Conclusion
The decision whether or not to attend graduate business school is one that nearly all Bachelors
students face. For many, the added years of school and the corresponding financial burden can
be discouraging. However, the sacrifices associated with an MBA directly translate to dramatic
salary increases and considerable advantages in employment opportunities.

For those considering an MBA, the two main options are online or traditional on campus
programs. Traditional MBA programs have shown the greatest return on investment and best
suited for students with little work experience and who are looking to transition onto a new
POST GRAD MBA OPPORTUNITIES 6
career path. Online MBA programs are best suited for individuals who are employed after
graduation and are interested in expanding opportunities within their current career.

Perhaps the most persuasive information comes from a study conducted by the Graduate
Management Admission Council in 2013. The study asks MBA alumni and recent graduates
from top programs around the country if they would recommend their program and if they
would make the same decision to attend. The consensus was overwhelmingly positive and
showed that 96% percent of those surveyed would recommend their program to others, and
92% of alumni would still have pursued their degree knowing what they know now (Byrne,
2013).



















POST GRAD MBA OPPORTUNITIES 7
References
Badenhausen, K., & Settimi, C. (2013). The top MBA programs in the U.S. Retrieved from
http://www.forbes.com/business-schools/
Byrne, J. (2013). 2013 MBA Grad Employment: A Whopping 95%. Retrieved from
http://www.analystforum.com/forums/careers/91326460
Estrada, R. (2013). 2013 Corporate recruiters survey hiring report. Retrieved from
http://www.gmac.com/market-intelligence-and-research/research-library.aspx
Foster, G. (2013). The benefits of graduate education. NACE Journal September 2013. Retrieved
from http://www.naceweb.org/j092013/benefit-graduate-education.aspx
OConnor, S. (2012). Grad school: Still worth the money? Retrieved from
http://www.forbes.com/sites/shawnoconnor/2012/04/05/grad-school-still-worth-the-
money/
Spreen, T. (2013). Recent college graduates in the U.S. labor force: data from current population
survey. Retrieved from http://www.bls.gov/opub/mlr/2013/02/art1full.pdf
Whittaker, A. (2012). Are traditional MBA degrees worth it compared to traditional MBAs?
Retrieved from http://www.deseretnews.com/article/865554922/Are-online-MBA-
degrees-worth-it-compared-to-traditional-MBAs.html?pg=all