Resources for MBA Programs

Business Guide to MBA Programs

MBA programs are designed to equip individuals with the knowledge and skills necessary to make it in the business world. The information that students obtain while pursuing this degree will allow them to manage businesses globally. Many entrepreneurs decide to obtain an MBA degree to increase their business knowledge. It is also common for business owners to pay tuition for employees seeking this degree. MBA degrees are among the most sought-after degrees in the world, and thousands of students worldwide pursue this degree yearly. There are a range of benefits that individuals who graduate from MBA programs can look forward to; however, there are also many factors that individuals who want to obtain an MBA should consider.

Benefits

Your business will benefit greatly from giving your employees the chance to take part in MBA programs.

Development of business expertise

MBA programs will offer an extra advantage to those staff members who have little or no previous business experience. By offering these employees the chance to earn an MBA degree, you will also increase their knowledge in business administration. The United Network of Help with Masters of Business Administration believes that any person looking to succeed in the business industry should enroll in an MBA program.

Improve management skills

The knowledge your employees will gain by completing an MBA program will help them develop important management skills, which will benefit your business by ensuring that employees are confident when dealing with real management situations. It will also improve how they handle problems and work out resolutions. An MBA program will also give your staff members a better understanding of the key responsibilities within your business.

Advantage over the competition

Giving certain employees the chance to take part in an MBA program will ensure your business ends up with highly qualified staff. This immediately gives you an advantage over your competition. People with MBA degrees are highly sought after, and many large companies only consider hiring MBA applicants for upper management jobs. According to the University of Iowa, around 90 percent of MBA graduates are offered employment within three months of graduating. Your customers will also benefit from your employees’ qualifications and knowledge.

Networking opportunities

Taking part in an MBA program offers students the opportunity to network extensively. In addition to making their own contacts and creating their own networks, your staff members are likely to bring in customer referrals. MBA programs are a great way for your employees to make connections and ultimately bring more customers to your business.

Staff loyalty

Educational opportunities are a good incentive for employees to stay and build a career with your company. By offering your best employees the chance to take part in MBA programs, you will ensure your best staff members stay with your company and do not move to the competition.

Pitfalls

Cost of the programs

MBA programs are expensive, and you will need to factor this cost into your budget. While the qualifications, experience and contacts your staff members gain from completing an MBA program are a major plus, the cost of the program can take a chunk out of a company’s training budget.

Risk of staff moving to the competition

Companies looking to fill management roles will usually look for candidates who have MBA degrees. Many business owners are willing to pay large salaries to the right people to get them to work for their companies. Therefore, before placing staff members in an MBA program, you will need to consider the possibility that you may foot the cost for the program only to have your employee leave for a better paying job.

Possible reduced quality of service

If you do decide to place members of your staff in an MBA program, it is only fair that you allow them time to successfully complete it. This means that they must take time away from work to attend class, study and complete assignments. This can have a negative effect on your business, at least until you have new staff members trained. You may find that customers or other companies are less inclined to work with new employees, and these customers and clients may decide to take their business elsewhere.

Increase in training and salary costs

Once your chosen staff members have completed their MBA programs, you will need to ensure that their wages reflect their new qualifications. Many large companies in the business industry offer a variety of benefits and incentives to employees with MBA degrees. To keep up with the industry standard, you will need to restructure your pay scale. Ongoing training for staff members taking over the previous roles of your MBA staff will also need to be factored into your company’s budget.

Pricing

According to CNN Money, the MBA job market has made a comeback. Graduates of MBA programs in the United States have a base salary of over $90,000, and many individuals who graduated from full-time MBA programs reported a 73 percent increase in their base salaries. The cost to obtain an MBA degree can be quite high, but many individuals are willing to pay it because of the financial benefits that obtaining this degree provides.

Obtaining an MBA can cost students between $8,000 and $100,000 or more. Many of the top business schools in the nation charge over $60,000 yearly for tuition and fees. Some private schools charge over $120,000 for executive MBA (EMBA) programs. At a city or state school, you can expect to pay an average of $15,000 per year to obtain an MBA degree.

Conclusion

The quality of education that individuals pursuing MBA degrees receive solely depends on the educational institution they choose. While there are quite a few programs that do not fully equip students to operate effectively in the business world, there are countless programs that do. It is important for students to be very selective when deciding where to obtain their education. Business owners who are looking for MBA graduates to fill management positions are generally interested in where the applicants received their education, and this can affect their hiring decisions. It is important to make an informed choice before choosing a school, which is why applicants should thoroughly research the MBA programs that interest them before making their choices.