Over a quarter of all master’s degrees awarded in the United States each year are for business. A large portion of these advanced degrees are MBAs, mostly because of the perceived value and security an MBA can offer.
MBA programs utilize the case-study approach when teaching business methods; this forces students to work together to solve real-life business problems and promotes the kinds of skills businesses are looking for in their recruits.
Your business can profit from hiring an MBA graduate in many ways. Here’s the short list of reasons why:
1. MBA Students Learn Leadership skills
The more academic experience a person has after high school, the better their leadership skills become. There is a definite difference between being a boss and being a leader, and that difference affects company culture and employee morale. An MBA provides leadership training that can be effective in team-building and other corporate situations.
2. Once Onboard, an MBA Grad Will Stay Longer and Become More Valuable to the Company
One of the key elements of longevity with a company is the amount of education an employee has. Widener University President James T. Harris, III, points out, “Hiring an MBA graduate is a good way to decrease the ‘‘revolving door’’ syndrome many companies face with less-educated employees. Students who graduate from our programs are more likely to stay with their companies over time. Long-term employees are an asset to a company because, among other things, they indicate to the outside world, including customers, stability and reliability.”
3. It Shows a Company’s Commitment to Quality
Brand managers understand that how consumers perceive a company’s brand will strongly influence their purchasing decisions. When customers interact with a company’s sales, customer service, or other departments where MBA graduates are involved, they benefit from the higher skill set and are more positive about the service and product brand.
4. MBAs Have the Ability to Think Critically
Ninety percent of the in-demand jobs created since 2010 require critical thinking skills. Critical thinking is an integral part of an MBA program. Critical thinking has been defined as the ability to look at any given business situation without emotion, gather the facts objectively, get feedback from all the people involved, and then generate an optimal solution.
Any business manager or supervisor will tell you that they prefer to have solutions presented to them, rather than just problems. If you ask an employee without critical thinking skills how your company can increase profits, they’ll likely say, “Find more customers?”—and leave it at that. Ask an MBA graduate the same question, and you can expect a detailed analysis of the problem and specific suggestions on how to find additional customers and other options for increased revenue.
5. They Are Trained to Accept Delegated Authority and Tasks to Produce Results
Of course, if your corporate culture is one of micromanagement, then delegating authority will be unpleasant for you. However, having people around who can be trusted with decision-making and achieving result-based goals relieves upper management of the quotidian demands of business, freeing them up to pursue the big picture agenda that ultimately leads to an increased ROI. Constant delegation also builds a backup pool of experienced and trained employees who can give a company a real competitive edge.
6. They Are the Obvious Choice for In-House Promotion
To replace a mid-level employee that jumps ship, it can cost as much as 150 percent of his or her annual salary. This can be a huge expense, as well as a huge headache. This obviously is not the case when an in-house promotion occurs because there is no need to advertise extensively or interview constantly. Someone with an MBA has already proven that he or she has the discipline and determination to stick with it. And there is no need to go to the expense of a hiring bonus!
