The ROI of an MBA

The ROI of an MBA What Is the Value of an MBA? WHO PURSUES AN MBA? Business professionals Entrepreneurs who Professionals with Professionals who Anyone who is looking looking to advance want to start a degrees in other want to use their to improve their their careers-either business or manage disciplines who will use business knowledge strategic thinking in via internal promotion their existing business an MBA to move into and skills to make a order to make better or a new job-and more effectively management roles difference in the world decisions within their orofession-the MB skill set is applicable in contribute at a higher within their fields or level change industries altogether any industry PROGRAM OPTIONS' years O TRADITIONAL: On-campus, full-time, 2-year MBA program ONLINE: Online MBA program with flexible scheduling, typically 18 months to 3 years EXECUTIVE MBA: On-campus or online, part-time (nights/weekends), typically 1-2 years ACCELERATED: On-campus, 12-18 month intensive MBA program PART-TIME: On-campus, part-time (nights/weekends), typically 3 years WHY GET A MASTER OF BUSINESS ADMINISTRATION (MBA)? Business knowledge Leadership and management skills Networking Salary increase/promotion POTENTIAL BENEFITS SALARY DATA $90,000 $10,000 10% 2013 median starting annual 2013 bonus and additional base salary for full-time, compensation for Growth of MBA salaries two-year MBA graduates- full-time, two-year over the last decade? up from $86,700 in 2012? MBA graduates³ Upon graduation, the average percentage increase Previous work experience is also related in post-degree salary:* to salary increases:5 81% 53% For graduates with less than 120% For graduates of three years of work experience full-time, two-year MBA programs For graduates with three to 75% six years of experience For graduates of 46% For graduates with more than six years of work experience part-time MBA programs Average Salary Ranges for Graduates of Full-Time MBA Programs $100,000 $150,000 $200,000 $110-150,000: Salary range at the elite end of the MBA hiring market* $110-$130,00: Salary range offered by strategy consulting firms $90-$200,000: Salary range offered by investment banks HIGHER EMPLOYMENT RATES 16% Forecasted growth in MBA hiring rates for 20147 RETURN ON INVESTMENT Total compensation (salary, bonuses, Total cost (two years of forgone VS exercised stock options) in the first 5 compensation, tuition and required years after business school9 fees) of earning an a full-time MBA 5-YEAR Represents the net cumulative amount the typical alumni would have earned MBA GAIN: after five years by getting their MBA versus staying in their pre-MBA career TOP 15 SCHOOLS WITH THE BEST “5-YEAR MBA GAINIO YEARS TO TOTAL 5-YEAR PRE-MBA 2012 SCHOOL PAYBACK MBA GAIN ($) SALARY ($) SALARY ($) TUITION ($) 117,960 99,700 80,000 4.1 STANFORD 221,000 92,600 76,000 116,969 CHICAGO 3.7 200,000 126,576 79,600 80,000 4.0 HARVARD 205,000 ------------ 74,400 80,000 116,762 4.0 PENNSYLVANIA 205,000 116,085 73,100 73,000 NORTHWEST 3.8 176,000 121,080 71,000 72,000 DARTMOUTH 3.9 189,000 124,198 70,200 74,000 COLUMBIA 3.9 192,000 112,307 3.7 68,100 63,000 DUKE 152,000 117,790 59,000 59,000 3.8 CORNELL 155,000 68,000 61,000 112,588 MICHIGAN 3.7 153,000 105,678 3.7 67,100 60,000 UNC 141,000 119,640 66,600 70,000 4.0 MIT 185,000 3.8 66,100 65,000 11,638 UCLA 165,000 107,928 UC BERKELEY 4.0 65,400 71,000 175,000 113,800 3.8 64,700 67,000 VIRGINIA 158,000 STUDENT REFLECTIONS ON EARNING AN MBA Graduates report recouping:" 1/3 100% 2X Of their investment four Their investment ten Of their investment over years after graduation years after graduation the first year of work According to March 2014 GMAC data, MBA graduate respondents:" 70% 80% 90% 100% Rate the value of their degree highly 94% Have high degrees of job satisfaction 83% Rate their MBA as offering good to outstanding value compared to the total cost of their degree 94% Say they would recommend their MBA program to others 95% Are proud to have attended their MBA program 96% Business school alumni report that their MBA program was: 94% 90% 77% Personally rewarding Professionally rewarding Financially rewarding According to November 2013 GMAC data, 2013 MBA graduate respondents:? Rate the value of their degree 3 OUT OF 4 96% as outstanding, excellent or good and would recommend a Say they could not have obtained their job graduate management without their graduate business education education to others ONLINE PROGRAMS The return on investment for an on-campus MBA program proves to be substantial. Similarly, a high-quality online MBA program will reap the same benefits while also allowing you to continue to remain employed, save time and money commuting, and spend more time with your family. Online MBAS provide increased flexibility, with lower opportunity costs. MAJOR FACTORS DRIVING ONLINE BUSINESS EDUCATION Innovative technology allows face-to-face interaction and networking like never before Flexible programs appeal to busy working professionals Students can remain employed while pursuing their MBA With online classes, there's no need to relocate to attend a top-tier program Students can apply what they learn in class on the job the next day, gaining real-time results Less time commuting According to The Get Educated online MBA survey in fall 2011, the MBA is the #1 most popular online graduate degree. According to GMAC's 2012 Application Trends Survey:3 87% 1/3 9,000 The number of unique GMAT Online/distance MBA candidates examinees who sent score reports Online/distance MBA live in the same metropolitan to online/distance MBA programs candidates are domestic area of the school (2012)-up from 7,500 in 200814 SOURCES www.allbusinessschools.com/business-careers/article/length-of-mba-program www.poetsandquants.com/2013/11/18/mba-employment-a-whopping-95/ MBA@UNC www.topmba.com/sites/qs.topmba/fles/topmba.comjobs_salary_trends_report.pdf P52 www.poetsandquants.com/2012/05/30/the-mba-bump-how-much/ www.poetsandquants.com/2012/05/30/the-mba-bump-how-much/ UNC www.topmba.com/sites/qs.topmba/files/topmba.comjobs_salary_trends_report.pdf P14 LI www.topmba.com/sites/qs.topmba/files/topmba.comjobs_salary_trends_report.pdf P26 www.geteducated.com/career-oenter/detail/online-mba-facts KENAN-FLAGLER www.forbes.com/sites/kurtbadenhausen/2013/10/o9/the-best-business-schools-behind-the-numbers/ BUSINESS SCHOOL 10 www.forbes.com/business-schools/ 11 www.poetsandquants.com/2012/01/1/mba-still-worth-it-absolutely-say-alums/ OBizMedia www.poetsandquants.com/2014/03/17/the-mba-degree-is-it-really-worth-it/ Created by: 12 13 www.gmac.com/why-gmac/gmac-news/gmnews/2013/january-2013/whos%2opursulng%20an%20online%2omba.aspx