Hundreds of thousands of people enroll annually in master of business administration (MBA) programs—each with their own unique motivations.
In a recent webinar, Patrick Mullane, executive director of Harvard Business School Online and HBS Executive Education, cautioned against pursuing a graduate degree for the wrong reasons.
"Unfortunately, for a lot of people—particularly people coming right out of undergrad—their motivation is, 'I don't know what else to do,'" Mullane said. "That's not a good motivation."
He also discouraged people from seeking a degree simply because they don't have a job or because they know others pursuing one.
If you're deciding whether to apply for an MBA, take the time to reflect on your goals. Regardless of your reasoning, your choice should be deliberate. Ask yourself, "What will earning an MBA help me achieve?"
To help spark your reflection, here are five reasons to pursue an MBA.
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1. I want to be an effective leader.
If you want to be an effective leader, an MBA can help you build the necessary skills.
These skills include:
- Emotional intelligence
- Strong communication
- Empowering others
- Self-awareness
- Financial literacy
- Resilience
- Integrated problem-solving
- Thoughtful decision-making
"Business leaders today need the skills to face integrated problems that span not only functions within a company, like engineering, supply chain, and human resources, but also big picture issues of macroeconomic conditions and geopolitics," says Vai Schierholtz, director of marketing for MBA Admissions at HBS. "An MBA will help you think about all those things when making decisions."
Related:What Do You Learn in Business School? 6 Skills You Could Gain
2. I want to increase my job prospects and earning potential.
With a new set of skills comes a new set of job prospects and the potential for increased compensation.
"There's a cost for you to go to business school, but the return on investment from a purely financial standpoint is compelling," Schierholtz says. "Especially when you factor in long-term career prospects, like earning potential and the ability to make an impact in an industry that's important to you, business school is a fantastic choice."
According to Statista, in 2021, 97 percent of surveyed companies hired MBA graduates, up from 80 percent in 2020 and 50 percent in 2009. The data for 2022 is on track to yield similar results, with a projected 92 percent of companies hiring MBA talent.
Not only are companies eager to hire MBA graduates, but may also be willing to pay them more. A recent survey by the Graduate Management Admissions Council (GMAC) reports that North American full-time MBA students received a 50 percent median compensation increase from pre-MBA to post-graduation: from $80,000 to $120,000.
While exact salary amounts vary by role and industry, an MBA can help accelerate your career.
3. I want to gain a big-picture perspective on the business world.
In the aforementioned webinar, Mullane asked Simeen Mohsen, senior managing director of HBS Online, about her motivations for pursuing an MBA.
Mohsen explained that, before earning her graduate degree, she worked at a management consulting firm where she gained exposure to various industries but limited insight into the types of challenges her clients faced.
She decided to pursue an MBA to gain the broader business perspective she felt was missing.
"After my MBA, I went back to the same consulting organization, and it was a very different perspective I had on the problems my clients were facing," Mohsen said. "I don't think I would have had the ability to step back and look at the broader business problem without those couple years of going through cases and thinking about things in different ways."
If you have specialized business skills and want to broaden your perspective, an MBA can help.
4. I want to pivot my career.
"A good reason to get an MBA is if you're trying to pivot your career," Mullane said in the webinar. "It provides an inflection point, particularly if you go to an in-residence, two-year program. You stop a job, meet a whole new network, and then recruiters come to campus and you have the opportunity to do something else. If you want to pivot your career, that's a great opportunity to do it."
Schierholtz notes that even if you think you might not want to switch careers, your time in business school could change that.
"People often come to business school with the hypothesis that they want to work in a specific industry," Schierholtz says. "Then, they learn something in business school—whether through academics, classmates, or professors—and they set a new path for their career."
Business school can help clarify your career goals and provide you with the tools and opportunities to make the switch.
5. I want to make an impact through business.
If you want to make an impact on the world through business, an MBA program can equip you with the perspective, skills, and network to do so.
"You get two years to reflect on what impact you want to make on the world," Schierholtz says. "Because you're exposed to so many ideas and so many people from different backgrounds, you leave the program feeling like you have a more developed sense of who you are, what's important to you, and what you want to prioritize in the future."
Whether your intended impact is as a business leader, entrepreneur, or innovator, your time in an MBA program can provide the opportunity to clarify your goals and the tools to help you execute them.
What's Holding You Back?
Equally as important as assessing your motivations is taking stock of the factors holding you back from pursuing a graduate degree. Ignoring these factors could lead to uncomfortable situations down the line.
Finances
One factor to consider is what Mullane called "the financial math." All things considered, can you afford to pursue a graduate degree at this time?
To help answer this question, determine your personal budget for paying for graduate school, making sure to account for the lost income associated with taking time off for a full-time MBA. Also, research how much you could earn post-graduation in your desired industry. Certain industries are more likely to provide a return on investment than others.
"Investigate the median salary of graduates by industry and compare that to what you'll pay earning the degree," Mullane wrote in an article for Forbes. "The overall median may be skewed by higher-paying sectors, so be sure to focus on the industry you're likely to enter upon graduation. Many people think education at any cost is worth it. It's not."
Preparedness
It's common to feel unprepared for the academic rigor and experience of graduate school, especially if it's been a while since you've been a student. If this applies to you, consider whether you're willing to put in the work beforehand to become better prepared.
Preparing for an MBA program doesn't need to be hard. It can include reading business news, listening to current events podcasts, or talking to friends or connections who've earned an MBA from your desired school.
If you want to bolster your resume, solidify foundational business skills, and get back into the student mindset, consider taking a business essentials course like HBS Online's Credential of Readiness (CORe).
"From a purely academic standpoint, I wish I had done more preparation before business school," Schierholtz says of his own MBA experience. "Taking something like HBS Online's CORe program that exposes you to core business fundamentals will pay dividends when you actually get in the classroom."
If the feeling of unpreparedness is holding you back, know there are ways to combat this roadblock.
Deciding What's Right for You
After taking stock of your goals, motivations, roadblocks, and potential solutions, the decision of whether to pursue an MBA is up to you. If your motivations align with those mentioned and you're willing to find solutions to any financial or preparedness barriers, an MBA could be right for you.
Mullane summed it up well: "Whatever your motivation, make sure it's deliberate."
Are you considering earning an MBA? Explore our three-course Credential of Readiness (CORe) program and download our free guide to preparing for business school.
