Believe it or not, no other course as compact and short as MBA can make you earn US$ 2.5 million as cumulative median cumulative salary over a period of 20 years. This is exactly has been found by GMAC in its Alumni Survey. Doing MBA from a good B-school is a lucrative investment and it will not take more than 4 years to recoup your MBA costs after completion of the course, is the outcome of GMAC Alumni Survey report published on February 23, 2016.
The return on investment, or ROI, of a full-time 2 year MBA fluctuates in accordance with prevailing economic conditions. However it has remained positive three years after graduation in 19 of the past 20 years, says the findings in the Graduate Management Admission Council’s (GMAC) 2016 Alumni Perspectives Survey Report. Further illustrating the value of the MBA, the alumni, on average are of the view that they recoup their business school investment within 4 years after graduation depending on the type of program attended.
Out of the 14,000 odd alumni surveyed, 93% said their education was personally rewarding while 89% think it is professionally and 75% say it is financially rewarding too. More than 4 in 5 alumni expressed satisfaction with their education.
All the alumni who were surveyed, agree that MBA contributed a lot to boost their career. 81% feel that MBA was instrumental to increase their salary substantially; 80% find that MBA prepared them for leadership roles; 74% find that MBA offered quicker advancement in career and 70% are of the view that doing MBA helped them to improve their network.
MBA: Gateway to financial rewards
GMAC’s survey shows the dollar value that an MBA degree can bring. Business school alumni earn a median of US$2.5 million in cumulative base salary over 20 years following completion of MBA programme. This is a half-million dollars more in median cumulative base salary than they would earn if they did not go to business school and had consistently earned 5 percent annual salary increases, and a million dollars more than if they did not go to business school and had consistently earned 3 percent annual salary increases.
MBA women care more for degree
Survey findings also reveal that women highly value their graduate management education with 96 percent rating their degree as a good to outstanding value. They tend to receive an initial boost in salary post-degree that is similar to men - US$20,000 on average. The gender pay gap persists among business school alumni; most likely a continuation of the trend of lower salaries that women earned prior to entering business school.
MBA unfolds greater Employment opportunities
MBA degree unfolds more employment opportunities in a variety of industries and job functions. They also help elevate many alumni to higher job levels in their organizations. Approximately 3 in 4 alumni (73 percent) say their degree resulted in faster career advancement. 68% of alumni are satisfied with their current job and employer. Satisfaction and total hours worked weekly both tend to increase as alumni move up the corporate ladder.
93% alumni say they would pursue their graduate management education again. In addition, alumni are extremely likely to recommend their program to peers. Overall, the net promoter score, or NPS-a widely used metric of customer loyalty- is strong among graduates of all types of business programs. The NPS among all graduate business programs combined is plus 45 on the net promoter scale. (An NPS higher than 0 is considered good; an NPS of plus 50 is excellent.)
MBA enhances Personal well being
Business schools enable students to develop the knowledge, skills and abilities that in turn enhance their personal well-being. Two in 3 (65 percent) survey respondents noted improved job satisfaction and 50 percent believed business school prepared them for managing work-life balance.
“The findings of this survey are further evidence that a graduate management education delivers strong personal, professional and financial value to alumni,” added Bob Alig. “The ROI numbers illustrate that a business degree is an efficient investment in terms of recouping costs and an effective asset for accelerating alumni careers.”
GMAC conducted the Alumni Perspectives Survey in October and November 2015. The 14,279 alumni who participated in this survey represent more than 275 graduate business programs at 70 universities in 20 locations worldwide that partnered with GMAC in this study.
Graduate Management Admission Council is a nonprofit education organization of 213 leading graduate business schools from around the world and owner of the Graduate Management Admission Test (GMAT exam), now celebrating its 60th year and used by more than 6,100 graduate business and management programs worldwide. GMAC is also the owner and administrator of the NMAT by GMAC exam, used for entrance into MBA/PGDM programs in NMIMS and other B-schools in India GMAC is based in Reston, Virginia, and has regional offices in London, New Delhi and Hong Kong. The GMAT exam is the standardized test designed expressly for graduate business and management programs worldwide. GMAT is continuously available at 630 test centers in 115 countries.
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