Don’t Be A Sucker: How to Make Your MBA Pay Off
- No degree — not an even an MBA — is a golden ticket to career success anymore.
- But MBA alumni say the degree is definitely still worth it, if you know how to make it pay off.
- MBA holders say your success will come down to following these five crucial tips.
You’re not crazy if you’re questioning the value of an MBA right now.
A recent poll by Intelligent.com found that as of May 2023, MBA grads are struggling mightily on the job market, with nearly 70% reporting they had yet to line up a full-time job.
Even students who managed to land offers face an uncertain future, with major consulting firms like McKinsey & Company pushing starting dates for new hires.
What’s Going On?
For a long time, merely earning an MBA was the golden ticket to a successful career. It gave you a serious leg up on the job market and made you competitive for top leadership roles.
It was a choice you could count on to pay off.
But the employment climate has changed. Decisions about higher education, the job market, and career planning have become much less straightforward for prospective MBA students.
Hope for student loan forgiveness has largely evaporated while the average cost of an MBA has climbed to roughly $55,000.- Meanwhile, contraction in previously booming industries (like tech) has cooled demand for MBA hires.
- The rapid proliferation of artificial intelligence makes it impossible to guess what work will look like for MBA holders in the future, potentially lowering wages and replacing hundreds of millions of jobs.
Strategies to Make Your MBA Pay Off
To be clear: The overwhelming majority of business program alumni still say that earning an MBA is worth it — if you know how to make it pay off.
We asked MBA holders all over the country how to extract the most value from your MBA program and set yourself up for career success even in these strange, exciting times.
Here’s what you have to do.
1. Make It About Who You Know
Whether you are in an online or in-person program, MBA holders agree: The value of your degree is so much more than what you learn in class. It’s about who you meet while in school. You are investing in a network that can set the tone for your entire career.
“You won’t know which relationships might matter, so be open to connecting to everyone. Some of the best connections from my time in school did not look valuable or enticing on first glance.
The cranky classmate with whom I had nothing in common? He became my first business partner. The quiet accountant who was getting his MBA and never said anything? I reached out to him when my company grew and I needed an incredible tax firm. The somewhat goofy retired executive who guest-lectured in a finance class about the obscure start-up he was launching? I ended up helping him raise millions, changed professions to become his first employee, and built a company with him from the ground up as President and COO.”
2. Seek Out Experiential Learning
A degree is great. But employers really want self-sufficient hires who can hit the ground running.
“That’s why you should focus on experiential learning. While classroom education is important, practical experience is invaluable. Seek out programs that emphasize hands-on projects, internships, and consulting opportunities. These will not only enhance your skill set and make you more marketable to employers, but also provide valuable networking contacts along the way.”
― Kenneth Garcia, MBA
“Personally, I found that my MBA didn’t play so significant a role in my career journey. The truth is, employers often prioritize practical experience, problem-solving abilities, and a track record of success over academic credentials alone. In my nine years at a Fortune 50 company, no one ever inquired about my MBA — not even in my interviews. They asked about what I could do.
So while pursuing your MBA, focus on building practical skills that are in demand in the market. Get real-world experience that demonstrates your ability to add value.”
3. Differentiate Your Personal Brand
When you start applying for jobs, you need to be more than just another faceless MBA graduate tossing resumes into the internet void. You need to be an entire, distinct package that leaves an impression.
“Solely relying upon your degree for employment opportunities can lead to disappointment. So it is necessary for students to focus on differentiation. You should exploit the unique resources available during an MBA by cultivating exceptional skill sets in niche areas of expertise and by developing a powerful personal brand. Have a story to tell about relevant internship or work experiences and how you can apply learned concepts and strategies toward solving industry-related challenges.”
4. Pick the Right Industry
The highest-paying MBA concentrations include consulting, finance, and technology — though demand for MBA grads has recently slowed in some of those industries. MBA graduates say it’s important to decide ahead of time where your degree and your business passions will get the most traction.
“I believe MBAs are still a great investment for the right circumstances. What industry are you pursuing? While some industries — like tech — now place less value on MBAs, there are plenty that continue to seek out MBA holders, such as banking, finance, insurance, and consumer packaged goods.”
“In my opinion, the key is to choose an MBA concentration that resonates with you. It doesn’t necessarily have to be closely tied to your current field of work. For example, if you’re passionate about art, consider pursuing an MBA in art management. If you’re a food enthusiast, maybe an MBA in food business management is your calling. Your passion will drive you to learn more and excel, and that will shine through in your professional life.”
5. Get Ready to Make Your Own Way
Consider using what you learn in an MBA program to become your own boss, alumni say. Don’t wait for the perfect career to find you. Instead, build it yourself.
“My advice is to actually build or run a company. I have some classmates who complain that their MBA didn’t pay off. But they didn’t actually apply themselves or aspire to a position any better than a small business banker or executive assistant. The world doesn’t come looking for MBAs — you’ve got to go looking for your own business to master. Take a risk and get the reward, whether that means changing careers, taking a job that scares you, or building something of your own. You don’t win from the bleachers.”
― Sarah Kitlowski, Owner and Chief Development Officer, Glass House
“Making it through college is expensive. A graduate degree only adds more debt to the pile. I earned my MBA hoping to make more money, but once I made it to the marketplace, I discovered that was easier said than done. As of 2021, 21 million people in the US have a master’s degree — so it can be difficult to compete in a field crowded with your equals. I decided to make my MBA count by simply going into business for myself.”
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