Is an MBA Still Worth It in 2025?

KEY TAKEAWAYS

Once upon a time, an MBA degree, especially from a top university, was considered a golden ticket. Is it still as shiny as it was now?

The idea behind an MBA used to be very simple: You invest the time and money in a prestigious graduate degree in business and doors would fly open to high-paying jobs and leadership roles in business, finance or technology. But that’s no longer the singular case today. Today’s landscape demands professionals who can bridge tech-driven solutions with human-centric leadership. As a result, mobile-first, flexible MBA programs are transforming to meet these challenges, integrating technological fluency with strategic thinking.

Many top companies, including Google, Meta and IBM, don’t require a university degree at all anymore, let alone an MBA. The skills taught in traditional business programs are increasingly seen as outdated, and employers are shifting their focus to creativity, adaptability and real-world experience.

Is The Value of an MBA Declining?

Many of the skills taught in business school aren’t as relevant as they once were. What’s missing? Essential skills like interviewing, selling, networking and managing personal finances. In the end, it can be argued that many MBA programs aren’t teaching students how to actually start and run a company, let alone how to make the most of the modern job market.

Enrolling in a full-time MBA also means years of lost wages and a tuition bill that easily tops $100,000 at the best schools. That’s a steep price for an education that isn’t keeping up with industry demands. According to some reports, more than a dozen top-tier MBA programs are having their worst job placement outcomes in recent memory.

Benefits of Earning an MBA

With all that being said, having an MBA can still very much be a respectable credential to add to your resume. It signals a high-value skill set that many hiring managers look for in employees.

Salary and job outlook

Earning your MBA can qualify you for higher salaries and more job opportunities. According to a 2024 survey of corporate recruiters, the Graduate Management Admissions Council (GMAC) projected that MBA graduates working at US companies would earn a median annual salary of $120,000 in 2024. The GMAC projected non-MBA degree holders to earn much less: $69,320 for bachelor’s degree holders.

Additionally, hiring projections remain strong. Another GMAC report found that 86 percent of 2022 MBA graduates were employed upon graduation, a 6 percent increase from the 2021 class. Your anticipated post-MBA starting salary can fluctuate based on factors such as industry, location, years of experience, and school attended.

In-demand skills

Because of the rigorous coursework typical of many MBA programs, employers often recognize a common set of transferable skills that graduates acquire through their higher education experience. The top valued skills of MBA graduates include interpersonal skills, motivation and leadership, strategy and innovation, decision making, and strategic and systems skills.

To many employers, an MBA degree validates that you possess these desired skills and are prepared to use these skills to succeed in higher-level business positions.

Career resources and networking opportunities

MBA faculty and staff are invested in their students’ success. Your success will hopefully help attract future students with similar potential to succeed, whether that’s through positive employment reports or reflected in their program ranking. As such, many programs incorporate career resources and networking opportunities into their offerings.

These services, such as on-campus recruitment fairs or executive coaching, can help lead to more lucrative career options. Similarly, MBA programs with strong alumni networks may offer direct points of contact within companies hiring around the world.