Earning a Master of Business Administration (MBA) can be a career-enhancing option for young professionals. Many argue that it creates the opportunity for increased compensation and greater chances of promotion. However, the costs of an MBA, in both time and money, mean that some individuals might be better off considering alternatives to business school.
Key Takeaways
- An MBA can provide career flexibility for professionals who majored in liberal arts or engineering.
- Individuals may consider alternatives to business school because of the high cost and time associated with MBA programs.
- Large companies often provide management or leadership development programs tailored toward young professionals.
- Certificate programs such as CFAs, CPAs, and CMAs offer an alternative education to an MBA.
Should You Seek an Alternative to an MBA?
Companies look for employees who add value to their organizations, have the drive to work quickly and accurately, provide unique insights,and can manage and lead teams aligned with organizational goals. When determining alternatives to an MBA for career success, individuals can ask themselves:
- What will the company or business require to succeed?
- What skill sets are critical to grow within the organization?
- Is spending time and money on business school the only way to acquire these skills?
- What work experiences, training, and exposure can develop these skills?
Costs of an MBA
Graduates with an undergraduate in liberal arts or engineering can benefit from an MBA. Students commonly focus on the functions of an organization, such as marketing, strategy, operations, accounting, finance, and management.
However, business programs are costly, and students often rely on loans to pay for tuition. Studying part-time may allow students to keep working, though the program length will be longer than the usual term of two years.
Each individual's motivations, experiences, and personal and career objectives vary. But the dollars and time it takes to get an MBA have opportunity costs for all prospective applicants. For those who enjoy corporate life and envision future success, alternatives to an MBA exist.
The top MBA programs can cost between $55,000 and $120,000 annually, depending on the institution, scholarships, grants available,and program length.
Leadership Development Programs
These programs can focus on engineering, finance, and accountingor general development for future senior managers. Professionals are often rotated to various jobs to provide exposure to different aspects of the business.
A new financial analyst entering such a program may be placed in various departments such as audit, treasury, , financial planning, or investor relations. This experience can make the analyst a candidate manager, controller, or chief financial officer (CFO).
Changing Roles
An accountant may want to transition into marketing within a company and can network and look for opportunities in the marketing department. Attitude and a successful track record are often the deciding factors as to whether an applicant is selected for internal transition.
Experience on the job often provides an advantage over an accountant with an MBA who relies only on marketing classes. A classroom does not often provide the level of insight or the industry relationships gleaned through experience.
Certifications
While an MBA may often be too general to convey particular expertise in an area, becoming certified with a special designation can boost a career. Successfully passing all the requirements and exams can prove competence in the field of interest.
Managerial responsibilities also include financial planningand the handling of budgets and forecasts. Companies commonly pay for employees to obtain required certifications. Common programs for accounting and finance include:
- Chartered Financial Analyst (CFA)
- Certified Public Accountant (CPA)
- Certified Management Accountant (CMA)
- Certified Merger & Acquisition Advisor (CM&AA)
Executive Programs
Universities offer a variety of development programs for managers and executives that allow professionals to undertake training courses on-site at the employer. Executive programs and extension classes allow individuals to target areas where they want to improve and tailor learning according to their needs. These programs typically cover a wide variety of business topics, including:
- Negotiation skills
- Leadership
- Public speaking
- Strategy
- Marketing
What Are the Benefits of a Mentor?
Industry veterans provide invaluable insights and wisdom in a chosen field. New professionals should seize the opportunity and take their advice. Experienced feedback can save time, money, and energy when individuals are honing a career path.
What Can Employees Do Independently to Enhance Career Learning?
Industry associations, clubs, community organizations, alumni associations, and company-based groups often hold seminars and conferences to keep members abreast of the latest trends and benchmark practices.
What Is the Difference Between a University's Executive Courses and an MBA?
Many universities offer short-term management courses or certificates at a low cost. While they are not formal MBA programs, many focus on managerial processes like organizational learning and change management. For example, the Harvard Business School online offers a course called "Management Essentials," which lasts eight weeks for $1,750.
The Bottom Line
An MBA is a professional tool for those who require it for their career path. However, alternate on-the-job and independent learning opportunities can boost an individual's career and resume. Individuals should weigh the costs, time, and commitment required before deciding.
