Why a student thinks ROI of MBA in terms of only a job?

Why a student thinks ROI of MBA in terms of only a job?

MBA is among the most sought after degrees in India, and an MBA graduate is seen as a highly competent professional with a big pay-check. However, most students enrolling for the degree programme look only into what is called the ROI or the “Return on Investment” from the future job opportunities. Let’s have a look why such is the case.

Operational Edge of MBA

Most corporates around the world require employees who not only are qualified enough to carry out the job, but are also acquainted with larger business tactics and its nitty-gritties. Regardless of whatever industry or field a person might want to work in, be it government or private sector, or fields of finance, marketing, etc. an overall operational excellence that an MBA degree provides is highly sought after by the employers everywhere. This is one of the primary reasons why people want to pursue MBA degrees.


Let’s face it, majority of the highest paying jobs around the world are managerial in nature and require professionals with an MBA degree. It is the big salaries and the comfortable lifestyle that draws most people into this programme.

For these reasons, the money paid for tuition fee is not seen as a cost but as an investment. Furthermore, various studies have shown that on an average that the money invested into an MBA programme can be recouped by a job in a time span of four year. This period is further shortened in cases where the current employer undertakes to pay the tuition fee for the course.

Costly Degree

Considered a primary aspect that people factor in before pursuing an MBA degree is the tuition fee involved. Majority of the reputed management institutes in India charge humongous amounts as fees for their management programmes. In India for example, an MBA degree with the most prestigious management schools such as IIMs can cost you anywhere between 9 lakhs to 20 lakhs.

It is for this reason that most of the aspirants resort to funding their studies by taking student loans. Apart from the loan amount, several lending establishments also charge a greater interest rate in light of the job prospects that might be available to an average graduate. Hence, student loans are often seen as a burden which needs to be paid off as soon as possible.

So why the Job?

To repay these loans, the most evident option for an MBA graduate is to take corporate jobs which provide them enough reimbursement for recouping their investment. Though there are several avenues available for the management graduates, most of them are within the corporate sector.

A miniscule amount of such graduates opt for entrepreneurship and launch their own businesses, which often requires huge starting capital.

The investment on education can be paid off faster by the salary of an executive in banking or finance sector, rather than an emerging entrepreneur or from a person working in a non-profit sector.

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