Whether you’re looking to advance in your current workplace or gain the skills necessary to meet career goals, you might be wondering, “Is an MBA worth it?”
An MBA can provide an attractive avenue to help take you to the next level. But this decision shouldn’t be taken lightly. Pursuing a Master of Business Administration (MBA) comes with a considerable time commitment and cost.
So, how do you know if an MBA is worth it for you?
We spoke with Lowell Valencia-Miller, assistant dean of MBA Programs at the Daniels College of Business, to find out what MBA candidates should consider before they enroll in an MBA program.
What are the benefits of an MBA? Career advancement and more
An MBA is often a springboard to landing a new position or even moving to an entirely new career.
MBA students are often in the early stages of their career. In fact, Valencia-Miller says students typically have between five and seven years of professional experience before enrolling. The degree offers an opportunity for many students to prepare for an upcoming career change or advancement.
Some programs, like an Executive MBA, are tailored to applicants later in their careers. Daniels Executive MBA candidates must have at least 10 years of progressive work and management experience. Executive students come from a wide range of industries and educational backgrounds. So, regardless of where you are in your career, there are MBA programs that can fit your needs.
If you’re wondering whether—and why—you should get an MBA degree, Valencia-Miller describes the benefits of an MBA below.
New career opportunities: An MBA can help you move forward
For many prospective candidates, an MBA degree provides a chance to gain new skills and learn to solve a variety of business problems. Valencia-Miller said earning the degree can give additional flexibility to people looking for the next step in their career.
MBA degrees can also offer additional credibility for job seekers, especially in a tumultuous market. Among the 134 ranked full-time MBA programs that supplied employment rate data to a recent U.S. News survey, the average unemployment rate for 2021 graduates three months after graduation was over 15%.
Valencia-Miller added that some students in full-time jobs leverage an MBA program to get a specific promotion. For others, an MBA provides baseline knowledge to prepare for anything.
Gain a business education: an MBA offers more than career growth
Even if career growth isn’t your primary motivator, an MBA degree can provide crucial business education. Some students use the classroom as a laboratory, taking case studies from their jobs to talk through with classmates and professors. Valencia-Miller added that most students leave with a renewed confidence in themselves.
“Once you’re in and you’re proving to yourself that you made the right decision, your confidence just goes to the next level,” he said. “Your ability to communicate what you’re capable of doing to an employer or a future employer increases and the confidence just bubbles out of you.”
An MBA will give you a well-rounded foundation of business education, leaving you with the skills needed to address issues in the workplace. Students with a specific interest can also take a focused route to their degree, picking classes to help them grow in a specific area.
For Professional MBA alumnus Nick Haggard, this graduate degree was a key step in his career growth and provided him with crucial business education.
Improve your earnings: How an MBA can lead to a higher salary
A recent corporate recruiter survey by the Graduate Management Admission Council (GMAC) projected that 2021 MBA recipients who accepted job offers would receive a median base salary of $115,000. That number mirrored figures for 2020 graduates who were hired before the COVID-19 pandemic.
“Nine in ten corporate recruiters expect the demand for business school graduates to increase or remain stable in the next five years–an indicator that graduate management talent is integral to organizational growth plans,” the Graduate Management Admission Council said in its survey findings.
According to data compiled by Daniels, MBA students from the University of Denver earn an average starting salary between $92,370 and $166,412 following their graduation, depending on the program they were enrolled in. Additionally, more than 85% of those MBA graduates found work full-time or part-time in the six months following the completion of their degree. The return on investment (ROI) for earning an MBA is evident in these figures.
Networking: Expand your professional connections with an MBA
Aside from the career and academic benefits, MBA programs can widen your professional networks and introduce you to area business leaders. Given the real-world coursework included in many MBA programs, students often work with local companies to provide practical solutions to their ongoing issues.
These connections could lead to internships or even post-graduation jobs with the companies they work with in the classroom. Others may find allies who will help them build business relationships or connect with clients later in their careers.
Many MBA programs, including those at Daniels, also incorporate an international component to their degree. Students are often given opportunities to travel to global business hubs and network with program alumni and key players in the local ecosystem.
At Daniels, students take part in a cohort model, progressing with their classmates at the same pace toward graduation. This builds a close-knit group and makes networking even easier.
Our alumni network weighs in: Is an MBA worth it?
Haggard, who is now the director of sales at Edison Interactive, said his MBA degree made him more well-rounded as a business leader and made him market-ready.
“I was looking for a program that would help me in several ways: grow within my current company, work my way up to a C-level position and expand my knowledge to one day start my own company,” he said. “I felt Daniels was the school to help me achieve these goals.”
For EMBA alumna Katica Roy (2017), her degree was crucial to building her business knowledge and growing her professional network.
“This particular program allowed me to connect with change makers in Denver, enhance my professional network and grow my business acumen,” she said. “I also knew that an EMBA would help me reach the highest levels in corporations and I could, in turn, help other women do the same, which improves the economic pie for all.”
Roy, who is the founder and CEO of gender equity startup Pipeline, said her MBA experience helped shape the future of her company.
The final word: Yes, an MBA is worth it—if you’re ready
An MBA is not a one-size-fits-all degree and can provide value across the spectrum for growing business leaders. There are part-time MBA programs for people currently employed; there are executive MBA programs for seasoned leaders; and there are full-time MBA programs for graduates a few years out of college.
So, if you’re ready for the time and financial commitment, the degree can be a key component in your business arsenal. It is also important to recognize when you aren’t quite ready to take on an MBA program, Valencia-Miller said.
“If you have other things you need to take care of in your life that would distract you from this goal for yourself, now would not be a good time to pursue an MBA,” he said.
Valencia-Miller added that students entering an MBA program with a reasoned plan for how they’ll utilize their degree tend to flourish. For those that come in with a plan to advance their current career or prepare for a new one, an MBA degree can still offer tremendous benefits.