An MBA is a large investment, no matter which school you attend. A question that sits on all candidates’ minds is what will be my ROI and how can I maximize my MBA to work for me?
MBA Director Rhoda Davidson discusses this question to help future International MBA students have a better understanding what to expect after they graduate from emlyon business school.
What is the return on investment for your full-time MBA students (cost of attendance versus average salary)?
To put a concrete figure on this, the ROI (return on investment) is somewhere between 35-60%, which translates into a payback time for most graduates of between two to four years, depending on the level of post-MBA salary increase. These figures include living expenses. Three things to bear in mind with these calculations. Firstly, graduates that are using their MBA to change industry sector can expect to earn less initially as they may accept to take a more junior positions in order to gain access to the new sector. Secondly, graduates who gain jobs in Europe, North America, and increasingly China, earn higher salaries. Thirdly, graduates who choose to set up their own businesses tend to receive lower salaries post-graduation with the promise of higher pay-outs depending on their commercial success.
What might the longer-term payoff look like?
Longer term payoffs are further career advancement with higher salary and lifetime earners, accompanied by more status and credibility in your organization. As your life plan progresses your status allows you to achieve more for society and humanity.
What sources of funding do you offer MBA students to help them with course fees and other costs? What are the main reasons students tell you they are pursing the MBA?
emlyon offers a wide variety of guaranteed scholarships to female applicants, first applicants from a specific country, applicants with high GMAT scores and other criteria. Some participants manage to gain local scholarships or government loans e.g. FAFSA in the US, or take a loan with a private company such as Prodigy Finance that specializes in loans for MBAs. The main reasons that our participants take an MBA is to accelerate their corporate career and fast-track their transition to senior management, or to change industry sector, or to gain the opportunity to find a position in a European country. Some graduates decide to set up their own company and use the MBA as a spring board for to help them accelerate this process.
Is it all about making money or are there other ways to judge the ROI?
To quote one of our Lebanese participants, Elie Maaloui, who now works for Nissan in Paris, “What you gain from the program is not only monetary; it is a network, a new way of thinking, tools to better yourself, and the confidence to take risks in life and your career.”
Many of our graduates report similar sentiments. We see that an MBA which places a strong emphasis on leadership development, helps high potential managers to uncover and become much more certain about their career direction. This allows them in turn to make better choices about the types of jobs that they will find fulfilling.
Any other ways MBAs can maximise their ROI?
Alumni report that during times of organizational change, such as re-organizations or the arrival of new senior executives, the MBA with its emphasis on developing a holistic business view provided them with a way to proactively identify and rapidly seize new opportunities.