MBA ROI: 3 Ways an MBA Delivers a Return on Your Investment

Online MBA student typing on laptop
Online MBA student typing on laptop

Most experts agree: getting an education is making an investment in yourself. Students who are considering earning their master's in business administration online should also consider the MBA’s return on investment, or the MBA ROI.

Chances are that one of the many reasons you’re thinking about earning an MBA is for career (and salary) advancement. And, you’re not alone.

According to the “2014 Prospective Student Survey Report” from the Graduate Management Admissions Council (GMAC), “The primary motivations of today’s prospective business school students to pursue a graduate management education are consistent with the past: to increase job opportunities and increase salary potential.” Research suggests that those beliefs may well be true. Here are three ways that an MBA can yield a high ROI.


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1. An MBA can award as much as an 80% increase in salary.

Recent data from U.S. News and World Report shows that MBA graduates from accredited programs are likely to significantly increase their salaries within the first year of employment following graduate school. The study considered MBA students who graduated between the years of 2011 and 2016. These graduates’ average starting salary and bonus structure increased by 12.9 percent in the first year after graduation.

As this is twice the rate of inflation, those considering an MBA can safely assume that they’ll be able to manage their debt after graduation while still earning additional income

In similar research, Forbes reported that the average increase can be as much as 80% after five years across all age groups, meaning that a salary of $75,000 at graduation could be as much as $135,000 just five years later. These salary trends are not just confined to North America. In every continent, the pattern is repeated. Not only are MBA graduates highly valued across the globe, it could also be argued that the appeal of an MBA can be carried from country to country.

2. 77% of U.S. employers surveyed planned to hire MBA grads this year.

The good news doesn’t stop there. As well as expecting a higher salary, MBA graduates will find more opportunity to gain or change employment.

The 2019 GMAC Business School Hiring Report suggests that 77% of 949 U.S. employers surveyed intend to hire MBA graduates in 2019. Overseas, the percentage is even higher, with 87% of companies in Asia-Pacific planning to hire MBA graduates. Larger companies are more likely than smaller companies to bring in MBA talent, with more than 9 in 10 Fortune 100, 500 and for-profit, public companies planning on hiring recent MBA graduates in 2019.

3. Working toward an MBA allows students to broaden their network.

Most MBA students are aware of the higher salary and senior-level positions that they can acquire after graduation. Yet there are other, intangible benefits offered by an MBA, as well. According to Forbes, MBA students have opportunities to network with business professionals, as well as to form lasting relationships with other students.

These relationships are not only personally satisfying; they can also open doors to new opportunities within the business world, further increasing your ROI.

How to maximize the ROI of your MBA program

Not all MBA programs are created equaly, so to maximize your ROI it's important to choose the right school. Fees are important to weigh, but students should select schools using a consideration set that balances fees, their personal and professional goals, overall comfort with the program, and whether the program is “accredited,” that is, has been approved by a separate professional organization not affiliated with the school.

Consider the online MBA program at Spring Arbor University. There are five tailored MBA concentrations to suit your career aims and goals. The program is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. The program provides immediate real-world applications that will help you with your work from day one. And at just $725 per credit hour, you can complete your MBA for just $26,100 – an excellent value when you find that many online courses are between $35,000 and $50,000 to six figures.

The personal reward of achieving an MBA

One final benefit of completing an MBA is the sense of personal achievement that comes from investing your time in improving yourself and your career. The knowledge that you have moved yourself forward both professionally and personally is very rewarding.

If you would like to speak with an admissions advisor about the online MBA program at Spring Arbor University, call 1.844.621.0900.


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