An MBA is more than a degree. It’s a sign, a billboard that says you have what it takes. It tells employers you have put in the time to learn the skills their organizations need—the knowledge that you can make key decisions, think strategically, and lead a team toward business success.

According to worldwide employment site Indeed.com,¹ there are 11 reasons why an MBA is important for business.

Here are five of our favorites:

• An MBA can increase job prospects. Instead of big fish in a small pond, think big fish in a bigger pond. You’re graduating with the smarts and skills to do amazing things. When you graduate with your MBA, there’s a very good chance you’ll qualify for more and better roles.
• An MBA also allows you to venture down a new career path. Maybe you’re stuck in a career rut, or you can’t seem to break through that ceiling, glass or otherwise. An MBA can help you transition to a new career path regardless of your experience level or previous work history.
• Okay, maybe for you it is about the Benjamins. If so, an MBA can increase your earning potential. We will get more specific later, but MBA graduates typically enjoy higher salaries and can earn substantial signing bonuses. 
• With all the talk of layoffs, downsizing, and budget tightening, an MBA can provide job security and help make your career future-proof. The knowledge, skills, and expertise you gain by getting an MBA can result in greater job security with your employer and within your industry. 
• Last, we all want respect from our colleagues. An MBA helps garner that respect and improves your credibility. Yes, your experience and your work, day-in and day-out, sets you up for success, but an MBA and all that comes with it gives you added credibility as an expert in your field.

Let’s talk specifics. What skills does an MBA give you?

What are your goals in life and how is an MBA going to help? If you’re looking to build a career in business, an MBA gives you the skills recruiters are looking for, which are also the specific skills you need to set yourself up for success. According to MBA.com,² the core curriculum of MBA courses typically includes:

An MBA degree can help you personally...

Think internal growth and the development of:

• Communication and networking skills. Your professional life often comes down to connections—who you know (and who they know). Networking skills you learn during your MBA can pay huge dividends down the road, helping you meet more people and build a referral base. That network of referrers can become future employers or clients that become integral to your career success.
• Leadership skills. Some people are born leaders. Others are made along the way. Your time online, on campus, and in the classroom is when leadership and entrepreneurial skills can be learned, nurtured, and refined through teaching, education, and collaboration. These are skills that will last a lifetime.
• Adaptability. How will you handle change? What will you do when something new comes your way? Studying for your MBA gives you valuable experience learning new subjects and techniques that you may not have received during your earlier education.
• Blue-sky thinking. You may not think of creativity when you hear “MBA,” but your graduate work often leans on strategic and creative thinking as a means of finding innovative business solutions in both your day-to-day work and during times of crisis. This kind of “big” thinking puts you in demand.

Skills, hidden benefits, personal growth... anything else? Oh yes, a salary.

The skills and benefits an MBA offers will have a profound effect on your future. But you also need to pay bills. You are probably asking, “What about pay? Will an MBA increase my salary?”

If you believe the numbers (and you should), yes it will.

Whether the increase is large or small, an MBA should give your salary a boost. According to the 2025 Coursera Salary Guide,⁴ MBA salaries get a boost of anywhere from 7% to 32%, depending on your industry.  Not only that MBA graduates earn up to $50k more annually than those with a bachelor’s degree alone.

Let’s break it down by industry.

Iowa MBA graduates report an average salary increase of 34% post-graduation (around $17k), while over 57% get promoted.

In the long run, does getting an MBA pay off?

According to the Graduate Management Admission Council,⁹ yes. In a recent survey, they reference that the median starting salary for a recent MBA graduate can reach $120,000. That’s nearly double the average MBA cost of $60,410.⁷ Depending on where you earn your MBA and where you work, the degree could show ROI within a year of graduation.