Millennials: Should You Get an MBA?

Millennials: you either love them, hate them or are one of them. If you were born between 1980 and the mid-2000s, we’re talking about you! You’re the most recent age group to enter the workforce. Even more impressive, you represent one third of the total U.S. population.

Millennials are hard working, creative and unexcited about the status quo. In fact, they’ve been bucking the trends since the beginning. While that’s all well and good, it does make things interesting when it comes to the MBA. Everywhere you look you find more and more well-known examples of successful entrepreneurs who didn’t take the traditional school path (Elon Musk, Mark Zuckerberg, Steve Jobs). So what does that mean for the millennial?

Not everyone has what it takes to invent Facebook, create a smart phone or launch a rocket into space. If you’re hoping to join such prestigious company, you need to have skills that help you stand out. That’s where an MBA can be wildly helpful. But it may not be right for everyone.

To better understand the pros and cons of getting an MBA, we turned to James Brown, assistant director of admissions at the UIC Liautaud Graduate School of Business. Read on to get his take.

Millennial Concerns About the MBA

When talking to millennials about an MBA, there are a few common concerns that tend to come up each time. “The common themes are about fit and how an MBA will benefit them in their career. A lot of this has to do with where they are currently in their career,” revealed Brown. “Cost and time commitment are also topics. Students do not want to gain massive amounts of additional debt from education, so an affordable program is essential. Time commitment questions center around flexibility of programs, regarding class offerings and program completion time.”

For millennials who have these concerns, getting an MBA may not be the right move. The truth of the matter is that the typical MBA graduate can expect a salary around $76,000, and with an average debt of just over $50,000. If cost is a primary concern, that immediate ROI may not seem all that impressive.

Also, some firms, especially in the technology field, have gone on record saying they aren’t tremendously swayed by the MBA. Sheryl Sandberg, the COO of Facebook who holds an MBA from Harvard Business School, was quoted as saying, “While I got great value from my experience, MBAs are not necessary at Facebook, and I don’t believe they are important for working in the tech industry.” That said, several leading business schools, including NYU’s Stern School of Business and UT’s McComb School of Business, have recently shared that they are seeing significant upticks in hiring of MBAs by technology firms.

Why Millennials Should Get an MBA

Just because you have concerns about getting an MBA doesn’t mean it’s not worthwhile. There are numerous benefits to getting an MBA, and not all of those benefits have to do with salary or career placement. For many, the MBA is about making you a better business person. So, why should you get an MBA?

1. Relationships: The network that you’ll build during your MBA program is invaluable. The two years you’re at school will give you the opportunity to meet peers, professors and professionals from a wide variety of backgrounds and industries. Each of these relationships will provide you with a foundation for a secure future in the corporate world.
2. Skills: MBAs are better workers; it’s the nature of the degree. Getting your MBA will improve your work standards and help you develop an even stronger drive to succeed. An MBA also teaches you to meet impossible deadlines and to think strategically, so that you stand out compared to your peers.
3. Understanding: If you want to better understand how business interrelates, an MBA is your chance to increase your knowledge. In an MBA program, students are exposed to a wide range of classes including marketing, corporate finance, statistics and strategy, which prepare them to have a crucial impact at their future companies.
4. International Experience: In an increasingly global economy, it is important to understand how business works internationally. Almost 50 percent of MBAs are international students, which means that simply by virtue of being in the classroom, you’re exposed to different cultures and ethnicities that will help you do business on a global scale. Many MBA programs are also including required international components as part of the curriculum.

If the MBA benefits mentioned above sound like a good fit for you, when is it the right time to go back for your MBA? “For millennials who are three to four years into their career an MBA can be a good idea,” said Brown. “By this time, they have gained some good experience in a specific field and have gained expertise in a particular work culture. In many cases, they may be given more responsibilities that include managing a team and/or project. Having business and leadership knowledge from an MBA can help them succeed in this type of role.”

Why Millennials Shouldn’t Get an MBA

If the benefits mentioned above don’t convince you to get an MBA then perhaps it’s not the right fit for you. The truth is that an MBA isn’t for everyone, and it’s an especially bad idea if you don’t have a solid reason for getting one in the first place.

“Not having a solid understanding of how you intend to apply the MBA degree to your career is when it is not the right time to pursue the degree,” explained Brown. “An MBA is considered a management degree that gives you the tools and knowledge to manage resources, whether budgets or personnel. In many respects, the degree can be applied to many different industries and businesses. However, many employers may look to see if you have prior work experience in that field to combine with the MBA.”

Getting an MBA just because it seems like the “thing to do” is a recipe for disaster, but that’s not the only time it should be avoided. There are other things to consider:

1. Time: If you’re in a job that has a high salary and a high possibility of advancement, it’s probably not the right time to take two years off for your MBA. Going back to school full time means you lose out on two years’ worth of salary and experience. Many schools also offer executive MBA programs that let you work and go to school at the same time. Just keep in mind that choosing this option might mean foregoing the school you really want. It can also take away from other areas of your life since you’ll be attending school at night.
2. Relevance: An MBA education focuses on standard business skills. However, if you’re looking to enter a particular industry that requires a specific set of skills, an MBA might not be as helpful as you think. Make sure you understand what hiring managers are looking for in your industry, and then make the decision about the MBA.
3. Value: An MBA doesn’t last forever. After you get your degree, there will come a point, years down the road, when your MBA is less relevant to your field. Even if you have an MBA, most employers also want to know that you’ve kept up on current trends and practices, so you have to stay on the cutting edge with or without the MBA.

Choosing to pursue an advance degree is never a decision that should be made lightly. It’s a huge commitment that requires a lot of thought.

When it comes down to it, getting an MBA for the sake of saying that you have an MBA is not what it’s about. However, “an MBA combined with relative work experience can help give millennials a competitive advantage in the job market,” said Brown.

As long as you’ve done your research, talked to a career counselor and know exactly how an MBA will help your career, then we say, go for it.

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