You know why you want an MBA: more knowledge, the chance for advancement, higher pay, an expanded network. All great reasons. But why are employers looking for professionals with an MBA? Better yet, are they? Do employers care about an MBA?
Do employers value an MBA?
The quick answer is yes.
An MBA on your resume helps you stand out and shows employers that, in addition to your other attributes, you have knowledge, leadership skills, and an interest in making an impact. Add a specialty into the mix, like finance, business analytics, or entrepreneurship, and you are telling your potential future employer, “I’m ready to go today.”
But why do employers want an MBA? According to Forbes, “For employers, hiring MBAs means bringing in well-rounded people who are generally ambitious, analytical, data-driven, and people-focused. The general management background gives MBAs a strong foundation for building and leading within organizations.”1
The benefits of MBA degree to a company mean you can hit the ground running. Instead of requiring years of experience to get up to speed, MBA graduates can get started now.
Do employers look at MBA grades?
There are a number of qualities employers look at when reviewing your qualifications. They will check your school to make sure you are graduating from an institution accredited by the Association to Advance Collegiate Schools of Business (AACSB).
They will review your area of expertise (like finance or entrepreneurship). They will review your resumé to see what types of experience or internships you may have had. And yes, they will review your GPA.
While not necessarily a deal-breaker, for some large companies with more formal hiring processes, grades do matter. Some companies have a minimum GPA requirement for applicants to pass the first round in hiring, including Royal Dutch Shell (3.5), USAA (3.2), and GE (3.0).2 However, for most companies, an MBA credential from an accredited school is enough to satisfy their hiring requirements.
If grades aren't the be-all and end-all, do companies care where you get your MBA? According to David Fritzinger, Chief Information Officer at Nystrom, absolutely:
“One hundred percent. When I’m looking at an MBA degree, it needs to be from a school that’s accredited and recognized.”
Sarah Woods, Chief Operating Officer at DockYard, Inc., agrees:
“This is something that's taken into consideration. The rigor of the program is paramount to the value placed on the degree earned there.”
What skills does an MBA give you?
Companies are looking to hire people with MBAs. They are looking for employees who can make an immediate impact, who already have the skills to think strategically and lead a team, a division, or a whole corporation.
In addition to the benefits of an MBA to a company, is an MBA actually helpful to you? If you want to grow your skills, the answer is yes. You will have in-demand skills that increase your job outlook—skills an MBA teaches you like motivation, leadership, strategic thinking, and decision-making.
During your time at school, you will also have the opportunity to expand your network and build relationships, which can pay dividends for a lifetime. With your degree in hand, you can look forward to increased compensation over that of an undergrad degree.
How much should an MBA increase my salary?
Companies are actively searching for MBA degree-holders. If you have an MBA, what can you expect in return? First, an increased income. An MBA degree typically brings with it an MBA-level salary.
According to a 2024 survey of corporate recruiters, the Graduate Management Admissions Council projected that MBA graduates working at US companies would earn a median annual salary of $120,000 in 2024. Non-MBA degree holders were projected to earn much less: $69,320 for bachelor’s degree holders.3
Based on these numbers, employers are willing to pay extra for an MBA. If you are an existing employee, they also may be willing to send you to school, paying for your education to earn your degree.
If you are still asking “Why should I get an MBA?” or “Why would a company pay for an MBA?”, remember: companies want employees who can think strategically, be leaders, and play an active role in business success.
Why do employers want an MBA? Because an MBA offers all that and more. It might be time to speak to your employer and share the Iowa MBA Employer Guide with your supervisor to start a conversation about your continuing education.
Interested in learning more about Iowa’s top-ranked, part-time MBA?
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Still have questions?
Q: What specific skills do employers look for in MBA graduates?
A: Employers are looking for a variety of skills in MBA grads, including:
- Leadership and team management
- Analytical and critical thinking
- Strong communication and interpersonal skills
- Strategic planning and problem-solving abilities
- Financial acumen and data-driven decision-making
Hear from a University of Iowa expert on this topic.
Q: How does an MBA increase my earning potential?
A: An MBA can significantly enhance your earning potential due to:
- Access to higher-level job positions
- Increased demand for MBA graduates in various industries
- Opportunities for salary negotiations based on advanced qualifications
- Networking opportunities that can lead to lucrative job offers
Q: What industries value MBA degrees the most?
A: Several industries highly value MBA degrees, including:
- Finance and Banking
- Consulting
- Technology and IT
- Healthcare Management
- Marketing and Sales
- Insurance
Q: How can I leverage my MBA during job interviews?
A: To leverage your MBA in job interviews:
- Highlight specific projects or case studies from your program
- Discuss your leadership experiences and teamwork skills
- Demonstrate your understanding of industry trends
- Emphasize your problem-solving abilities with real-world examples
- Speak to the reputation and rankings of your program
Q: What are the best ways to network while pursuing an MBA?
A: Effective networking during your MBA can be achieved through:
- Joining professional organizations and clubs
- Attending industry conferences and seminars
- Utilizing alumni networks for mentorship
- Enthusiastic participation in group projects and classroom conversations
Q: How does an MBA program enhance my leadership skills?
A: An MBA program enhances leadership skills by:
- Providing coursework on management theories and practices
- Encouraging group projects and collaborative learning
- Offering opportunities for public speaking and presentations
- Involving case studies that require strategic leadership decisions
- The Iowa MBA program offers a concentration in leadership to further grow these skills.
Q: What are the long-term career benefits of earning an MBA?
A: Long-term career benefits of an MBA include:
- Greater job stability and security
- Increased opportunities for advancement
- Higher lifetime earnings compared to non-MBA holders
- Enhanced professional reputation and credibility
Q: Are there alternative qualifications to consider instead of an MBA?
A: Yes, alternatives to consider include:
Sources
- Nell Derick Debevoise. “Have Employers Lost Faith In Business School?” Forbes, September 2021.
- M. Preston Leavitt. “What your MBA GPA really says about you.” Linkedin, October 2015.
- “Corporate Recruiters Survey 2024 Summary Report.” Graduate Management Admission Council, June 2023.