Should you choose a job over an MBA?

With many schools favoring experienced candidates, working for a few years before getting into an MBA will increase your returns from an MBA degree.

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Many Indian business schools have been admitting most of the candidates with zero or very low wok experience. The scenario is changing fast with many of the top school favoring experienced candidates over freshers.

MBA straight out of college

In some cases candidates find it much easier to go for an MBA straight out of undergraduate college.

  • The important benefit of doing MBA early on is that the formal education gets over by the age of 23-24 years. These students are very young when they get into managerial positions in prestigious companies.
  • They start enjoying the benefits of an MBA such as higher salary and better position right from the beginning.
  • Another important point is that if they want to pursue a PhD in a particular field, they can work in job for a few years and then for a doctorate.
  • Some recruiters like investment banks and consulting firms prefer younger candidates. Young MBAs are better prepared for a very grueling schedule in such organizations and are ready to work for 14-16 hours every day.
  • As these candidates do not have any work experience they are ready to work in any industry at the entry level position. So for example an engineer can easily get into finance company post MBA.
  • These candidates also get ample of time to study for the MBA entrance exam.

Let's now look at some disadvantages of early MBA

  • You get into an MBA with a very vague idea of what an MBA is, why do you need one, where do you want to work after MBA, etc.
  • If you get into a sector that you do not like, it becomes difficult to make a career shift. E.g. let us say that a candidate gets into IT field after completing engineering and MBA. If he wants to move from IT to finance after two years, his options are limited.

MBA after a few years of work-experience

  • Work experience gives a really good understanding of the industry. The students can decide if she wants to work in that industry. They are also very clear about which functions IT, Finance, Marketing etc. appeal to her. They are also aware of their weaknesses and strengths. They enter the MBA program with a clearer picture of how they want to work on their weaknesses.
  • Some schools prefer experience candidates. E.g. ISB Hyderabad insists that students should have at least 2 years of wok-experience.
  • They also have a better understanding of their short term and long term goals.
  • Experienced candidates draw higher salary on an average as compared to candidates with no work experience.
  • Experienced candidates can understand the application of MBA concepts to real-world problems easily. This makes the class discussion more interesting and insightful.
  • If you do not want to work in the same industry, MBA gives an opportunity to experienced candidates to make a career shift.
  • Having worked in an industry, experienced candidates bring with them a network of professionals from that industry.

Let's now look at some disadvantages of early MBA

  • Students earn MBA degree after a few years of experience which means they have to work in the industry at lower position and less pay for a few years.
  • MBA for experienced candidates proves to be costlier as he needs to leave his job which essentially means lost salary for duration of MBA. As the salary that experienced candidates earn is more than fresher the opportunity cost in this case is more.
  • Experienced candidates got for an MBA when they are already looking up to personal commitments like marriage or children. This increases their responsibility and they need to take into the financial needs of the family before they go for an MBA.

Thus there are positive and negative aspects of both the approaches. Choose the one which fits your aspirations and current situation.