Last week I had 3 prospective MBA students in my office asking about a quote from our MBA brochure that states “MBA graduates expect salaries more than 45% higher than candidates with an undergraduate degree alone.” They were curious about two things: (1) could they expect an immediate pay raise once they completed their MBA program; and (2) if not, what was my advice to them regarding their leveraging of their potential MBA into a higher salary?
“Well,” I started, “I hope you’re not thinking about entering our MBA program solely for the 45% pay bump!” There was some perceptible uncomfortable shifting that took place after I said this and I purposely let it sit on the table for a moment before forging ahead. “MBA programs have at least two distinct models. Model 1 is a day program where you are expected/required to be a full-time student and not be working a traditional job. Model 2 is a night or weekend program that is designed for working professionals, i.e., people who are working full-time. UHD is Model 2 all the way.”
“I will tell you this,” I continued. “Organizations don’t always immediately appreciate an educational upgrade particularly if the upgrade takes place during your employment tenure. In other words, organizations form perceptions about you based upon your qualifications and education when you are hired. These perceptions are not easily altered regardless of training and/or education you receive while on the job. Here’s some personal experience for you – when I entered my Ph.D. program, I was a “peon” graduate student. My dissertation chairman to this day still sees me as his graduate student without regard for my progress and accomplishments. It’s just human nature. My point is that new qualifications/education are usually best appreciated by those who meet you after the upgrade.”
“One last thing for you to consider,” I plowed ahead. “A couple of years ago, Robert Barro from Harvard and Jong-Wha Lee of the Asia Development Bank conducted an in-depth study on the ROI of a year of graduate school education. What they found was an average return of 17.9%. So while you’re thinking about that 45% raise, compare that 17.9% return to the ROI from investing in real estate, bonds, stocks or almost any other asset class.”
“You’re investing in yourself and the rewards of that investment will be with you for the rest of your life,” I finished.
They filed out quietly but I could see I had struck a chord….
