Business School Grads Still Command a Hefty Premium
By Liz Wheeler
Despite the recession, companies are still hiring, and paying those with graduate education much higher salaries than those with only undergraduate degrees.
Employers continue to place a high premium on people with an MBA or other graduate management degrees, even as they sharply curtail plans to hire new business school graduates in response to the deep global recession, according to research from the Graduate Management Admission Council® (GMAC).
Recruiters said they expect to hire an average of six new MBAs in 2009, down from the average of 12 they hired last year. But employers also reported that when they do hire MBAs, they plan to pay them nearly twice as much as people with only an undergraduate education, on average. Employers also plan to offer higher average starting salaries to MBAs than to people with other graduate management degrees, such as a master's in finance.
"The fundamentals have not changed. Corporations continue to value the MBA, and they continue to pursue people with the unique mix of skills and talents that characterize business school graduates," said Dave Wilson, president and CEO of GMAC. "But just as employers across the economic spectrum have had to take a wait-and-see approach to their hiring plans this year, firms that hire business school graduates have been compelled to retrench in response to the downturn."
Despite the challenging job market, a sizable number of MBAs have been able to line up employment months before finishing their degrees this year. Half of all new full-time MBA graduates who participated in the 2009 GMAC Global Management Education Graduate Survey said they landed at least one job offer before graduation. On average, these graduates had 1.9 job offers and expect to earn 66 percent more money after earning their MBA than they did prior to starting school.
So, are you considering going back to school? Rumor has it the recession's depths have been reached, and we're swimming back to the economic surface instead of further into the abyss. Going back to school might be a great idea, both financially and time-wise, especially if you've been laid off and are exhausted from job hunting with no success.
Many are familiar with the traditional on-campus classes with the two semesters a year structure. For many of us no longer in our 20s, that isn't necessarily a feasible option. However, three other options have been gaining popularity and garnering more respect: distance learning, intensive courses blended with online classes, and adult education programs with one night a week courses.
Distance learning might be for you if you're intrinsically motivated and are able to meet deadlines without someone looking over your shoulder. You also need to be able to focus which might mean heading to the local library to use their peace-and-quiet and free wi-fi to do the courses. And, you have to be okay knowing you're missing out on the people-to-people aspect the traditional classroom would provide.
Intensive courses require you to be on a campus' location for a one or two-week course once a year. During the rest of the year, you complete online coursework or practicum from your home location. This might mean emailing in papers to your professor, completing tests online, or chatting asynchronously with other peers completing the same coursework.
Another option offered is a one-night a week program where you sit in class for about four hours one night a week. This format allows you to complete a master's degree in less than two years while still keeping your day job.
If you're concerned about the time commitment and whether you can weather going back to school, you can break into the rhythm easily by enrolling in a certificate program. Many trade associations and reputable companies offer these as a way for you to get continuing education to hone your skills in a particular area while still having a life.
In 2008, The Bob Pike Group began partnering with the University of Minnesota for a Train the Trainer certificate. Over a period of up to two years, you take three required courses and one elective designed to help you gain a wide scope of training skills, understand adult learning theory, and develop and practice presentation skills. Awarded by the U of M's College of Continuing Education, the certificate has a certain amount of prestige because of the excellent reputation the school has in the corporate world in the Twin Cities. You also receive continuing education units (CEUs).
If you're interested in more information on The Bob Pike Group Train-the-Trainer certificate in partnership with the University of Minnesota, click here or call 612-624-4000.
If you want to explore accredited graduate school options, click here. 
