Think Beyond A Great Salary To Measure The ROI Of Your MBA


mba roi

Obtaining an MBA can be a lengthy and costly venture and it is important that your investment generates a strong return. While tangible returns in the form of a higher salary are easily quantified, the non-tangible returns are also worth considering.

Financial returns remain the biggest factor in quantifying the ROI of an MBA, especially when some programs costing up to $81,400.

The Financial Times 2016 ranking shows MBA graduates from Australian business schools achieved between a 58% and 72% increase in their salaries three years after graduating, compared to their pre-study income. These kinds of salaries help recoup the cost of the MBA course after a four-year period depending on the type of program.

Findings from the Graduate Management Admission Council’s (GMAC) 2016 Alumni Perspectives Survey Report published earlier this year found that a business school alumni’s base salary, accumulated over 20 years after graduating, reached into the millions of dollars – a much greater median cumulative base salary than if they did not go to business school.

But having an MBA can mean much more than a higher salary and long term financial gain, according to CS Technology Managing Director Simon Abela, who received his MBA IN 2011 from Macquarie Graduate School of Management.

Having an MBA can also guarantee lifelong personal and career investment, based on the technical knowledge one can obtain during the study process. An MBA is the key to an arsenal of valuable skills in business, leadership, decision-making and problem solving. These skills will always remain useful assets even as the business environment shifts over time.

“An Australian MBA is a strong asset providing returns many times the original investment,” he said. “On the global stage the Australian MBA is proving itself to be a worthwhile alternative investment that is increasingly moving towards becoming a mainstream asset.”

Simon took an in-depth look at the ROI of his degree in a detailed LinkedIn post earlier this year.

Abela says MBA holders also gain the benefit of a newfound social and business status, which can help personal relationships and nurture potential business opportunities.

“The community available to graduates provides a network of like-minded alumni that includes CEOs, directors and senior managers who appreciate the opportunity to develop business opportunities with others and can relate to their journey.”

The MBA itself holds title, and coming out the other end of MBA studies means that title commands more respect from colleagues and can potentially lead to career progression or brand new career opportunities, as well as the added stature of the MBA name against business ventures and decisions.

Ben Ready
Ben Ready founded MBA News in 2014 and is the Managing Editor. He is a former business and finance journalist with Australian Associated Press (AAP) and Dow Jones Newswires in London. Ben completed his MBA in 2012 and was awarded the QUT GMAA Entrepreneurship Prize. He is also the founder and Managing Director of RGC Media & Mktng (