‘paper value of an MBA might be overstated’

by Grace

“I think the paper value of an MBA might be overstated,” said Taft. “For it to be useful, it needs to form part of a wider package of skills and attributes, and more than a mere credential next to your name.”

John Taft is the Chairman of the Securities Industry and Financial Markets Association (SIFMA) and the CEO of RBC U.S. Wealth Management.  He is predicting more layoffs in the financial services industry next quarter, affecting even employees with expensive MBA degrees and years of experience.

Taft said on the job experience in the capacity to perform in the workplace is more important than whether or not you have your MBA.

His thoughts come as enrollment at the nation’s top business schools is growing—as well as online MBA programs that cost tends of thousands of dollars. In fact, Kenan-Flagler Business School at the University of North Carolina began its first ever online MBA program this month. Students have been shelling out $89,000 in tuition for it.

Even though an MBA degree will not necessarily protect your job or revitalize your salary, Taft acknowledges there is an argument supporting the usefulness of MBA degrees. He said they are often best used to reposition yourself and redirect your career.

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2 Comments to “‘paper value of an MBA might be overstated’”

  1. I went to grad school during the brutal recession of the early 80’s because I couldn’t find a job, but I did not choose an MBA program. I met lots of people who were in the MBA program, though. None of them were able to find MBA level jobs right when they graduated. I remember one girl who finally took a job as a bank teller. I assume the MBA helped her in her career down the road, but it wasn’t helpful during a recession.

    Those online MBA programs are jokes. I know someone whose company is paying for him to get an online MBA at Kaplan (big for-profit school). My friend freely admits that the program is worthless, and is only doing it because his company pays. Why would a company spend that kind of money, and Kaplan is very expensive, for something that adds so little?

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  2. The University of NC MBA is one of the top rated in the country, so their new program is being watched carefully to see if they are able to gain credibility. It should be interesting.

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