MBA - Many Benefits

Gone are the days of working up through the ranks from inspired mail clerk to company director. Even the once coveted undergraduate degree is now a requirement rather than a way to open doors. As staff look for that competitive edge they may very well turn to a Masters qualification. What will your response be when they seek company sponsorship? What are the costs and can they be justified?

The Masters in Business Administration (MBA) is considered a world-class management qualification. It signifies success, professionalism and breadth of experience. Whilst Executive MBAs require a minimum of 2–5 years work experience in a relevant field, they can be undertaken at a graduate level requiring no work experience.

An MBA can provide such benefits to the graduate as:

• Status and a competitive edge;
• Knowledge and skill development across a wide range of technical and leadership areas;
• Salary increases;
• Life-long learning; and
• Qualifications essential to progress within a company.

Of course, another outcome may be greater employment options. If their current position cannot evolve, MBAs may seek out employment with companies that will provide suitable remuneration for their new qualifications.

Benefits should, of course, be advantageous to the company as well. The up-skilling of staff, particularly those in senior management, helps to increase productivity and competitiveness. There should be less need for top-level recruits saving money in terms of advertising and recruitment, orientation and training programs. Close affiliations with business colleges, universities and their alumni can also provide valuable networking opportunities.

It is important, as a manager, to select an MBA candidate with care. What is their motivation for doing the course? Are they committed to the company or are they looking for a way to move on? Training courses are an expensive undertaking, both in terms of the financial outlay and time. The benefits can be high but you need to be certain of the risks.

In some cases short courses, single subjects or company run professional development may obtain the desired results.

Today, myriad universities and business colleges offer MBAs. They can be completed full-time; part-time; online; through distance learning, evening and weekend courses; or in intensive blocks such as week-long courses or summer schools. With these flexible learning options office interruptions can be minimised.

Online or e-learning courses are becoming increasingly popular. However, it would be unwise to dismiss the value of peer learning - personal dialogue rather than just the words on a page. Studying alongside peers provides insight into how to approach a situation. It can introduce new initiatives and solutions and provide lucrative networking opportunities.

Some institutions such as Deakin University are using pod casting and chat rooms as a way to address these issues. It allows students to ‘attend’ lectures at a time that suits them and the company they work for.

While encouraging your staff to embrace continual learning it would be wise to ask if they will be able to handle the course load. How long has it been since they engaged in academic study? Some MBA programs offer multiple exit points. A Graduate Certificate or Graduate Diploma can be completed allowing the Masters to be recommenced at a later date.

Flexibility is only one aspect to consider. Busy workloads and balancing day-to-day commitments will be very challenging for your employee. They will need company support and time allowances. This may be time off work for lectures or exams, a move from full to part time employment, or the payment of course and associated fees.

While long-term benefits should outweigh expenses, an MBA should not be taken lightly. The best idea is to research the options available. Considering company structures together with the student’s learning style, needs and circumstances will help in finding the most suitable service provider. In many MBAs it is possible to integrate a thesis or practical component of the course with the student’s current managerial role. This structure may allow for more immediate benefits.