Is the MBA still worth it?
“The MBA’s Who Can’t Find Jobs”
That was the title of a WSJ article, just two weeks into the new 2024, that sent ripples through the online spaces where MBA hopefuls gather.
But is business school still serving this purpose?
In the current reality, marked by relentless change, with a job market that in the last year has shifted to present massive hurdles for new graduates, does the MBA degree still retain its value and relevance?
First, let’s get one thing straight! This is not the first time the MBA degree has been questioned!
In every single decade for at least fifty years now, the MBA degree has encountered challenges, each prophesied by various thought leaders.
These pivotal moments, when the value of the MBA was put into question, were reported extensively in leading publications such as The New York Times as developments that could spell the the end of the MBAs rein.
In the late 1970s, the “MBA glitter” seemed to fade under the scrutiny of market realities.
By the 1980s, the degree “faced skepticism amid an economic downturn”.
In the 1990s, news about shrinking pools of candidates led to the public once again doubting the MBA’s value proposition.
As you can see, questioning whether the MBA is worth it is nothing new!
And yet, Harvard Business School alone continues to receive nearly 10,000 MBA applications every year – and accept merely 1 in 10 of the candidates.
If the MBA could read, it might quip in a style, attributable to Mark Twain, who is said to have read his own obituary, and then remark, “The reports of my death are greatly exaggerated.”
Does pursuing an MBA still hold its value?
Let’s peel back the layers, not with mere speculation or simply guided by emotions, but armed with data and expert insights.
Amidst heated discussions about the fluctuating job market, let’s focus on a pivotal aspect: the employer's perspective.
After all, the MBA is a means to an end.
If it’s expected to be a launchpad into a more lucrative career, then what do the hiring managers think of its value?
What are the skills that those in the driver's seat of hiring truly seek in their teams – now and in the future?
What are the competencies that stand out as crucial both today and tomorrow?
What do the MBA recruiters say?
In all the noise about how terrible the job market is right now, let’s see what those who do the hiring are saying. It’s important to consider their voice because it is a fundamental part of the answer of whether or not the MBA is still relevant.
To explore this angle, I used the Graduate Management Admissions Council 2023 Corporate Recruiters Survey. The survey represents the viewpoint of 1,028 respondents!!! All of them are corporate recruiters and 55% of them are from Global Fortune 500 companies.
So what did these corporate recruiters reveal?
First, recruiters shared that business schools are “largely on the right track to develop the skills GME graduates currently need in the workforce”!
Does this finding surprise you?
Key capabilities like interpersonal skills, communication, and strategy are still in very high demand!
In addition, employers anticipate that the workplace will look even more “global, hybrid, and dependent on different mediums of effective communication across cultures”.
The employers also offered a specific outlook on what skills are important now and will grow to be even more important in the future.
So let’s specifically look at the top right hand corner – the skills that employers say are important NOW and will continue to be important in the future.
These skills include General Business Functions, Decision-Making Processes, Data Analyses and Interpretation, Communication.
These are topics that are taught in a targeted and focused way in business school. And employers want us to know that they are important to master now and will grow in importance in the next years.
So here’s my advice for you as you decide whether or not you need an MBA.
A philosopher once said, “In a time of drastic change, it is the learners who inherit the FUTURE”
Of course, learning has never been and will never be exclusively available to business school classrooms or campuses. But the business school classrooms and campuses are still one of the places where that learning continues to happen in a structured, targeted, and effective manner. And that kind of learning and growth can make a difference.
MBA programs will remain relevant. The broad-based education in key business areas like finance, marketing, and strategy is essential for effective leadership and decision-making.
The emphasize on the development of soft skills such as communication, teamwork, and problem- solving, is imperative for successful management roles.
Networking opportunities provided by MBA programs connect students with a diverse professional community and help their career growth.
Hands-on learning experiences like internships and experiential learning align theoretical knowledge with real-world applications, addressing current business challenges.
However, like I already mentioned, there are alternatives to the traditional MBA.
Programs like the altMBA or the platform called Section are just two notable examples of great options for gaining knowledge and skills.
So how do YOU make a decision, especially in this turbulent job environment?
In the end, the most important MBA lesson might just be this: you need to understand your own values, ambitions, and the multitude of ways to achieve them.
Whether through formal education, relentless pursuit of your passions, or a combination of both, success is a very personal journey.
And if after reading this you want to explore if an MBA should be part of YOUR journey? Read “How to know if it’s your turn”!
Onwards and upwards,
Petia