This article is sponsored by SMP Business.
A split-second Google search of “the purpose of education” generates 960 million results, suggesting that the subject remains as interesting today as it was to Greek philosophers centuries ago. The relatively recent explosion of specialized master’s in business degrees is contributing a great deal to the ongoing discussions...
Within academia, many institutions are wrestling with the emergence of specialized master’s degrees, particularly in business disciplines. Since these programs are situated dangerously far to one end of the “utility spectrum”, they may even be characterized by some as training rather than education. Many segments of the hiring marketplace are similarly challenged to understand and adapt to a relatively new breed of job-seekers, who are equipped with a great depth of knowledge, but typically with little experience.
The increased options provided by a growing number of specialized business degrees are also challenging student understanding and decision-making. In part due to the business focus of many of these programs, but also due to general scrutiny of the rising cost of education, there is significant interest in interpreting the value of these degrees.
Assessing ROI when choosing a specialized master’s in business
All education can be considered to be a general investment in personal and/or professional development. In the case of specialized master’s degrees, however, the anticipated return on investment (ROI) should be an intentional part of the program search and decision-making process. As a prospective student, you are preparing to invest your time and resources, including the associated opportunity cost of more school rather than work – so what ROI can you reasonably expect from your specialized business degree?
The following considerations are based on the advice of admission directors at business schools working together in the consortium Specialized Master’s Programs in Business (SMPB).
1. How will you define success?
It is very difficult to evaluate the ROI if you don’t start with an understanding of desired outcomes. While it may be easy to give quick answers such as “a job in accounting”, or “a job in the financial services industry”, such vagueness doesn’t contribute much when assessing value (or program fit). And while you can choose or be caused to change your mind in the job search process, your future satisfaction starts with a sufficiently developed concept of what you consider to be your career goals following graduation. To pin down a more specific idea of the ROI you want, consider the following:
- Type of organization
- Starting position and salary
- Geographic preferences
- Future career progression paths
2. How successful are past graduates of the program?
- If past performance is the best indicator of future performance, then you should value an understanding of the success of program graduates. Here you can look at:
- Placement rates – ideally refined sufficiently to categories of students with whom you identify
- Salary and benefits – again, ideally specific enough to be applicable to yourself
- Career development experience – how does the program support student pursuit of hiring? This could include alumni /professional networking events and services, interview preparation, etc.
- Possibly most important, how satisfied are graduates with their initial hiring after graduation?
3. Assess yourself – reality check time!
Program representatives can and should help you to decide whether your interests match with their program characteristics and experiences. In the end, however, you will succeed in acquiring that dream job because you are fully prepared to take advantage of the opportunities that exist. From start to finish, therefore, your business degree ROI assessment must include a realistic self-assessment.
Every investment comes with risks, and a specialized master’s in business is no different. Only serious consideration of your own goals and potential, combined with intentional research on as many programs as possible, will allow you to manage the investment that you are preparing to make and the associated risk you are prepared to take.
This article is sponsored by SMP Business, a consortium of business schools offering personal advice for those considering a specialized master’s in business.
