US government data indicate that the Master of Business Administration (MBA) ranks among the most sought-after graduate degrees. Nearly one in four master's degrees conferred each year fall under the category of business and administration. The majority of those are MBAs.
The value of this degree is widely recognized. According to the 2022 Graduate Management Admission Council (GMAC) Prospective Students Survey, more than 4 in 5 candidates worldwide agree that a graduate business degree helps you stand out at work. More than half of prospective students believe that "employers value a graduate business degree more than work experience.
Why is the MBA such a valued and prestigious degree? Because it helps students acquire critical management skills and knowledge in operations, finance, marketing, business communications, leadership, information technology, human resources, data analytics, and planning. It provides hands-on training and networking opportunities with peers and potential employers, all while adding a respected credential to your résumé.
And it pays off. In 2022, MBAs earned an average starting salary of $115,000. Nearly 80 percent of MBA graduates agree that the degree has increased their lifelong earning potential. Two years after graduating, average salaries fall into the $133,000 to $145,000 range.
So, what skills does an MBA provide? This article answers that question and discusses the following:
An MBA can help you land managerial and executives rolesacross business functions and industries. It could help punch your ticket to the c-suite. although moving to the top of the organizational chart requires lots of effort and hard work. Just a degree, no matter how impressive, isn't enough to cut it on its own.
An MBA can unlock the door to more than just executive roles. It can also prepare you for success in entrepreneurship, intrapreneurship, and other business ventures.
The Harvard Business Review identifies these four reasons to get an MBA:
The U.S. Bureau of Labor Statistics (BLS) notes that management occupations (common among MBA graduates) earn an annual median wage of $102,450. While some management roles may accept candidates with a bachelor's degree, higher earning potential often comes with advanced education and preparedness derived from an MBA.
An MBA program equips prospective candidates with many skills applicable to various industries. We've outlined seven essential MBA skills that give you a leg up on the competition. From core coursework in accounting, finance, marketing, management, statistics, and operations to networking with your professors and classmates, the education and experiential learning gained from MBA programs can help lead you toward success.
MBA programs teach aspiring management, senior-level, and decision-making leaders essential leadership skills. The MBA program at Butler University includes a leadership course in its core curriculum. In addition, it offers a leadership concentration that includes the following course titles:
Leadership includes providing guidance, delegating responsibilities, boosting staff morale, and helping others understand a company's long-term vision. The GMAC survey indicates that candidates who prefer full-time MBA programs consider leadership one of the "must-have" core skills.
If you're already an executive or upper-level manager at your company, you may qualify for an Executive MBA program like the ones offered by Howard University, Georgetown University, Cornell University, and the University of Tennessee. Executive MBA programs typically admit candidates with at least 10 years professional experience. That experience should include significant managerial experience.
Analytics are useful in monitoring market movement, analyzing consumer habits, forecasting business trends, and problem-solving. While other analytic-heavy degrees explore big data (e.g., a Master of Science in Data Analytics or a Master of Science in Business Analytics), an MBA teaches analytic skills within the context of business administration and leadership, providing electives, concentrated tracks, or dual degree opportunities.
The Stevens Institute of Technology MBA program offers eight concentrations, including financial analytics and business intelligence and analytics. Coursework within these pathways concentrates on marketing analytics, supply chain analytics, social network analytics, risk management, data visualization, and other analytics or technology-focused courses.
Strategy and decision-making skills go hand-in-hand. Decision-making doesn't just mean jumping the gun and making a rash decision or telling people how things have to happen because "chief" is the first word of your job title. On the contrary, great leaders typically collaborate with department heads in accounting, finance, marketing, and operation to ensure any decision made is for the good of the company as a whole.
Decision-making, considered a soft skill, also has some hard skill elements that an MBA program can finesse. It may come naturally to some to take the initiative and develop solutions. Even then, an MBA can teach you how to implement decisions tactfully, ethically, and strategically. To build this skill set, MBA programs offer courses like Strategic Management, Legal and Ethical Operation of Business, or International Business Strategy.
Science, technology, engineering, and mathematics (STEM) are integral to every modern business. As a result, some schools have either blended STEM into their MBA programs, dedicated a concentrated pathway, or included course electives within their curricula. Below are some programs that have followed one of these models:
The Stevens Institute of Technology offers coursework that leverages analytics to improve decision-making at technology-driven companies across various industries. Potential career fields include marketing, finance, sales, and general or operations management, all of which can bring in six-figure salaries.
Businesses need professionals with deep expertise in their practice areas. Engineers, technicians, marketing professionals, operations managers, human resources leaders, accountants and financial analysts all contribute the vast array of skills and knowledge required to drive a successful business.
Businesses also need people who can aggregate the information provided by each of these experts, people who can contextualize and prioritize inputs to develop a vision for the company as a whole. MBA programs cultivate the big-picture thinking skills required to do this. By teaching managers and executives to understand and value data analysis, strategic cost analysis, managerial economics, and strategic management, MBA programs create tomorrow's effective business leaders.
The 2022 GMAC Corporate Recruiters Survey lists strong communications skills (73 percent), versatility (68 percent), and strategic thinking (66 percent) among the top reasons employers have confidence in business school graduates.
Communication skills, one of the most used and valuable skills, include both verbal and written aptitude. MBA programs include foundational coursework to help grow your interpersonal skills, including effective communication, leadership, collaboration, empathy, and active listening.
Relatively few MBA programs offer a communications concentration. However, dual degree programs blend these two disciplines, like the MBA/MA option at Johns Hopkins University. If you prefer to complete your MBA in a more timely fashion, pursue these types of foundational courses or electives:
Networking might overwhelm the introverted leader. However, closing business deals, launching your business from the ground up, or expanding your professional network requires making those connections. An MBA can help build your network in the following ways:
The MBA program at Southern Methodist University offers a course called Managing Your Career. It discusses building and leveraging a professional network, exploring career options, and finding a career focus.
While few courses can teach you exactly how to network, an MBA presents opportunities to put you in the same room with someone who might become a business partner or a mentor or give you a solid reference when seeking an executive role.
The decision whether to pursue an MBA on campus or in-person encompasses many variables. Consider the balance between synchronous and asynchronous content, types of electives and specializations offered, and flexibility for working professionals in each program on your short list. The asynchronous content offered by most online programs provides a self-paced option for students to access courses when most convenient. Synchronous content and immersive experiential learning may require students to adjust their schedules slightly. Such sessions are typically scheduled in the evening to accommodate busy professionals.
Many online MBA programs provide full-time, part-time, and accelerated learning options ranging from as little as one year to over three years to complete.
Today, nearly 50,000 students attend online MBA programs. That's a greater number than the total for full-time on-campus MBA students. More and more, part-time online MBAs are becoming the norm, and for understandable reasons: they are more convenient for professionals who want to continue working while they earn their degrees.
Online programs typically duplicate (or nearly duplicate) the content and standards of their host institution's on-campus programs, so there's no reason for employers not to value online degrees just as highly as those conferred by traditional programs. Where online excels is in convenience. For many students, the ability to study online is the difference between being able to pursue an MBA and not being able to.
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