There are a number of schools which offer MBA programs and therefore it becomes increasingly important to get an MBA from a top-ranked business school rather than getting it from a lesser known school.
So what are the benefits of pursuing an MBA from a top-ranked business school?
The higher the rank of a business school, the more likely that its graduates will earn increased salary. For example, graduates from one of the top five schools in the Financial Times Global MBA ranking can expect, on average, to earn 50 to 70 percent more than the graduates from a school ranked near number 50. This salary gap increases significantly as one goes further down the ranking, to schools which are ranked near 100 or so that offer MBA programs.
2.MORE CAREER OPTIONS
If you are an MBA from a lesser known business schools, some job opportunities are almost out of your reach. Such jobs include investment banking, strategy consulting and private equity/venture capital. Well-known companies from these industries would never go to recruit MBA from a lesser known business school. These companies look to recruit the best and the smartest candidates and they know that such candidates are found at the world’s top-ranked business school.
The situation is same, although to a lesser extent, in other industries. Making it to a product manager position at the world’s leading technology companies typically requires that you have an MBA from a top-ranked business school.
This benefit almost speaks for itself. Having an MBA from Harvard Business School will help you get completely different reactions and impressions from the people you meet than having an MBA from a lesser known business school. Although reputation is related to other factors listed above, such as increased salary and working at Fortune 500 companies, the fact that you are a Harvard graduate will reflect that you have a great potential, to begin with.
4.EASIER TO SWITCH YOUR CAREER
Increased salary is the not the only benefit you get after graduating from a top business school. If you decide to change your career after completing the MBA program, the quality of your MBA is one of the key factors that help you determine whether you are able to change your career successfully. The network you generate – both personal as well as school alumni – during and after completing your MBA, will also be an important factor in your ability to switch your career. With a strong network willing to help you, your chances of finding a job in a different industry obviously become better.
5.ACCESS TO A LARGER NETWORK
Business Schools typically recruit the best and brightest, so presumably the alumni network will also be among the best and brightest and placed highly in their respective companies or build a venture of their own. Having access to such a network is possibly one of the biggest takeaways from an MBA. Not only does it help you in career search as stated earlier but also in various other ways in terms of sharing professional knowledge, business development, access to relevant contact and many other such benefits.
6.TOP QUALITY EDUCATION
Interestingly, this is the least acknowledged benefit of getting an MBA from a top-ranked business school. Top business schools draw highly accomplished professors whose teachings can change your life. Having a company of great professors as well as accomplished classmates give you the best possible education, something which lesser known schools can never match.
An MBA requires a large amount of money, time and effort. The tuition fee for a two-year program can be $100,000 or more, and the salary foregone can be $120,000 or more for than two years. Housing and food, books, computer hardware and software and other personal or miscellaneous expenses can add thousands more. The total cost of a two-year program from the United States is thus most probably be more than $250,000. A one-year MBA program may cost 60 to 70 percent of the two-year program cost, since one year program has higher annual tuition fee.
Is it worth spending such large sum to get an MBA? It is not that everyone becomes financially better off after getting an MBA. However, those who attend top-ranked MBA programs are very much likely to be. In other words, if you attend a top-ranked MBA program, you will never regret the experience.
The benefits are not only in the form of higher salary. You will also get more career options, increased confidence of performing in your new job well, higher security (irrespective of what happens, graduates from top business schools have a strong network to get the next job), and increased reputation. In addition, you will also realize that you have lived your life more intensely during your two years at business school, met the most interesting people and formed everlasting friendships there. It is therefore probably a mistake to view an MBA purely from a financial consideration, despite the large sum involved.
WHO RECRUITS MBA GRADUATES?
The traditional recruiters of MBAs are companies from management consulting, financial services and FMCG industries. They continue to be the biggest recruiters of MBA till date. The pattern in recent years, however, has been changing. Companies from technology, internet, e-commerce, and healthcare industries are recruiting in large numbers. Lots of graduates are taking up the entrepreneurship route also and starting their own firms. Government and non-profit organizations have also joined the list of recruiters. These entities prefer MBAs to those with master’s degree in public administration, public health, international relations, and so on. The mix of recruiters, however, varies from year to year depending upon the health of the industries/companies in a particular year.