Return on Investment of an MBA: The Long-Term Benefits



21 September, 2023

Return on Investment of an MBA: The Long-Term Benefits

Do you know when the first MBA programme started in India?

According to Business Today, management education started as a post-graduate diploma in the 1950s. Eventually, the economic liberalisation in the 1990s gave a significant boost to this field of education. Today, it has become one of the most prestigious degrees all over the world. Especially in India, an MBA degree holds a prestigious place in the business sphere.

“In India, an MBA degree is viewed as a ticket to success in the corporate world”, says Associate Vice President of Technopak Advisors, Purnendu Kumar as highlighted in an article by QS University Rankings. Especially, in the past few decades, with India’s rise as an economic superpower, the demand for management professionals has grown tremendously. In fact, having an MBA in your profile opens a plethora of opportunities for you on a global level.

J Philip, in a report published in Sage Journals, mentioned that India has the maximum number of management schools compared to any other country. Approximately 1,000 MBA equivalent graduate degrees are offered in open & distance mode by Indira Gandhi National Open University, the AIMA and other universities. Throughout the years, we have seen various shifts in the MBA marketplace. For instance, once the MBA programmes received more enrolments from fresh graduates, but gradually, the trends changed and candidates started to prefer acquiring a few years of work experience before going for MBA. The distance education programmes have further facilitated the students to continue with their work while studying.

Talking about the changes in curriculum, all the MBA programmes were structured around general management and business principles. Whereas now, they are spread across various specialisations from IT, healthcare, and construction to engineering. As per a report by AACSB, many business schools have already added and some are planning to add specialisations like cybersecurity in their courses.

If the MBA degree structure is changing globally at such an accelerated pace, there must be something beneficial for a student, right? Well, that depends on various factors including the reason you chose this degree for, from which institution you are pursuing an MBA or the choice of specialisation. Also, the package you are able to pull off after the degree. In an interview with CNBC, when asked whether an MBA is worth it, Martin Van Der Werf, the director of editorial and education at Georgetown University Center, responded, “Yes, it’s almost always worth pursuing”.

You must be wondering, what makes this degree so popular that almost everyone is pursuing it. Not only fresh graduates but corporate executives as well are opting for it! In this blog, let’s analyse how this degree can benefit you.

How will an MBA Degree Benefit You?

benefits of an MBA degree

Honing your hard & soft skills, and attaining a deep understanding of global management practices remain the most fundamental thing that you achieve with an MBA degree. Here are a few benefits that ensure the best return on investment in an MBA:

1. Wider & Better Job Prospects

If you are a working professional, you may have experienced limited career prospects while looking for a job change. One of the reasons can be the lack of diverse skills and low management aptitude. With an MBA, employers will know that along with taking care of the basic requirements of your job, you are also well-equipped to understand the core business needs.

As a fresh graduate, an MBA degree helps you in securing a mid-senior position or higher salary package at the start of your professional journey which usually takes years of experience. In addition to this, given the numerous specialisation options available in MBA programmes, you can enhance your niche skills and acquire the knowledge of business administration at the same time. For those of you who are looking to accelerate your career growth, a distance or online MBA programme is less time-consuming and cost-efficient as well. You can continue to work while studying.

Related: Top 10 MBA Job Opportunities to Explore

2. Higher Salary

If you are stuck at one pay scale for a long or have been receiving minimal increments, it is the right time for you to pursue an MBA. Along with the expansion of job prospects, with an MBA, you can expect a significant increase in your salary. The hike will depend on the job location, the company and the industry you are working in.

3. Allows You to Transition to a New Career Path

Most of the candidates get confused about how to have a smooth transition in their careers. This is where an MBA degree can prove to be a lifesaver. Let us take an example here. Even though you may not have the experience of working in the healthcare sector, with a management education or an MBA degree, you can easily secure a place in the hospital administration division. To be precise, MBA specialisations like healthcare management will give you the advantage to carve your path into the healthcare industry. With countless distance MBA programmes, it has become convenient to transition to another profession.

Related: Why an Online MBA is a Game Changer for Professionals

4. Ensures Your Expertise

Let’s say there’s a civil engineer working in the industry for 4-5 years who intends to reach a higher management position. As there are several streams in the civil engineering sector as well; to reach a higher role, it is crucial to follow a particular specialised area which interests him the most. With a general master’s programme in his desired specialisation, he can surely gain expertise in one niche, but getting a job in a management position will again take a long time. In such a case, getting an MBA degree with the appropriate specialisation will benefit him in developing his expertise and securing management position also.

5. Adds a Star to Your Credibility

Having industry experience shows your proficiency in your field which definitely holds high value. When an MBA degree is combined with your existing skills, your candidature appears more credible. This is why almost every well-known business professional possesses an MBA qualification along with technical knowledge. Owing to this reason, you must have seen many working professionals pursue executive or distance MBA programmes.

5. Develops a Global Mindset

Another benefit of an MBA programme is developing a global perspective of your industry. With the internationalisation of higher education and the global context of MBA programmes, you can understand the international marketplace. Learning with case studies and solving real-world business challenges familiarises you with the business practices adopted worldwide, thereby expanding your career prospects.

Types of MBA Programmes

Compared to how MBA programmes were carried a few decades back, the curriculum and pattern has changed significantly. With the changing market needs, the MBA programmes have evolved to be more flexible and practical-based. Depending on your needs and convenience, you can choose different formats of MBA courses.

Here, we have listed different types of MBA programmes you can choose from:

1. Full-Time MBA

This is a traditional format offering both one-year and two-year programmes. Like any other master’s programme, you will have to attend classes full-time, without holding onto any other equipment. Depending on the course structure and your needs, you can choose either one.

2. Part-Time MBA

Compared to full-time MBA, the part-time format is more flexible as it gives you the freedom to continue with your job while studying. As most of the candidates are in their late 20s or 30s, the part-time MBA format won’t restrict the applicant from fulfilling other commitments.

3. Executive MBA

These courses are specifically designed for working professionals with more than 5 years of industry experience. The EMBA programmes are designed in a way to add more levels to your existing knowledge base and elevate your career. These programmes are generally conducted on weekends or online modes and unlike traditional MBA, these are fast paced programmes.

4. Online MBA

With the changing atmosphere of the education sector, online degree programmes have become immensely popular. They are more convenient, flexible, and cost-effective. From top ranking public institutions to private universities, you can find online MBA programmes in almost every university. You might be worrying about its credibility in the job market! In today’s scenario, online MBA courses are at par with regular courses, so they are equally accepted by employers.

5. Distance MBA

In distance mode you get a combination of both online and offline study modes. Traditionally, in distance MBA programmes, you can study at your own pace and are only required to visit campus for exams. Now, distance programmes offer you convenient delivery formats through online modes and flexible options. In a flexible schedule, you get to attend classes on weekends and receive study materials via mail or post. Compared to other formats, distance MBA programmes are much more economical.


When you plan for higher studies, you are told to think twice before making the decision. That’s true! After all, you will have to make a huge investment in terms of money and time. While an MBA degree is widely known to enhance your job prospects and lead you towards a higher rank in the corporate world, it rests upon various factors like the choice of college, format and specialisation as well. According to recent trends, candidates prefer acquiring industry exposure first and then benefit from flexible learning modes such as distance MBA programmes while working. Therefore, depending on your profile and requirements, you should choose the right MBA programme to avail the maximum return on investment.

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