In my post titled The Value of an MBA, I detailed the huge impact my MBA had on my earning power. But not everyone needs the degree to earn big bucks. Here are a couple of comments from readers that confirm this statement:
This is a really interesting series of comments! It captures a thought process that I struggled with about 20 years ago. I started and dropped two different MBA programs (employer paid for, of course) because each time I was involved in projects that were all consuming for those employers. (My background: undergrad from a backwater state school, engineering discipline)
Now I sure do not want to discourage anyone from pursing an MBA. If you really want to learn something specific that a good school offers in their MBA program, by all means grab it. However, please pay attention to how you can manipulate statistics, Forbes included, into showing a direct correlation between having an MBA and a higher salary. There is an off chance that the people who are motivated enough to get an MBA are also the highest motivated, smartest, whatever, working folks who would have earned great promotions and raises by applying themselves at the companies they worked for, regardless of MBA status.
I feel like I've done ok with just a bachelors; I'm mid-forties and will take home something like $300k by the end of this year, from a large corporation. I even like my job!
$300,000 is not bad for a person in their mid-forties. ;-)
And having a job you love is worth a lot.
Here's another comment:
I have had a great career run early in life and have been very lucky. I have a BS & Masters in Engineering and currently work as a Site Director for a factory overseas in Asia. I am 33 and earning about $260,000 per year including housing allowance.
I'd like to get an MBA but it seems like I'd be losing too much money per year by not working and that I would be making a lateral move afterwards at best.
What I'm getting out of this is that engineering is the way to go if you don't get an MBA. Seems like these two are doing well without the advanced degree.
I'm not that smart. All the geeky, brainy, engineering guys at my school who carried around their HP calculators and did complicated math problems for fun were way above my thought level. So I went into business and it worked out for me. Your mileage may vary. ;-)
Seriously, I'm a big believer in the MBA -- if you like business and want to make it your career. The degree will open doors for you to get a good starting job at a good company -- and from then on, it's up to you to manage your career for maximum impact.
I have an engineering degree and would be interested in hearing what these two do and how they got there. If you guys read this, do tell!
Posted by: Eric | October 04, 2006 at 05:15 PM
Eric,
I have a pretty varied career... worked in Engineering, Customer Service, Operations, Quality and now General Management. I've worked for 5 companies in 12 years although it was never my plan to do this from the start... and there is a compelling story behind each move.
I've always tried to add value to every organization (think of having a quantifable savings to the company worth at least 10X your salary per year) and continue to take on more responsibility. I also picked up a Six Sigma Black belt, not a bad move for your career.
Every time I was offered to switch jobs I wouldn't do it unless it was a 30-40% improvement... one job was a 100% increase! If I look at my base salary growth over the past 10 years, it has been at exactly 20% year on year. Now I know this is not sustainable unless you can continue to add more value... the air gets pretty thin at the top! I guess my next step in my career is to ultimately become a CEO / COO or run my own business. But if you follow the advice that for a given industry take the job that pays the most and then over-deliver and gain more responsibility... then repeat the cycle you should be on a nice trajectory. Of course it helps if you really enjoy what you do so I've been lucky there.
I have to agree that actual mileage may vary. Best of luck to you.
-Newbie.
Posted by: Newbie | October 05, 2006 at 01:42 AM
Great post.
Keep us posted when you get a CEO gig. Good luck.
Posted by: Keith Cash | October 09, 2006 at 08:57 AM
I have a dead-end menial job and earn the Oregon minimum wage of $7.50 per hour. I have a worthless liberal arts degree (law school wannabe who couldn't afford law school), a pile of student loan debt, and no hope.
Posted by: Hopeless | October 10, 2006 at 06:21 AM
Hope is not a method, anyway. So I wouldn't worry about that one. I guess your situation illustrates that education alone does not entitle a person to anything. You either earn it, or you don't. I would take skills and strong work ethic over an advanced degree (by itself) any day!
Posted by: Skott | October 10, 2006 at 03:09 PM
A strong work ethic isn't worth much if you have a menial dead-end job. I've worked since I started shoveling driveways when I was ten. I work pretty hard today, and my co-workers (three of whom also have college degrees) also work pretty hard. Having skills means you can make lots of money without working hard; lacking skills pretty much relegates you to hard toil for low wages.
Posted by: Hopeless | October 11, 2006 at 08:05 AM
I must have missed something. My liberal arts degree didn't train me to do what I do, but earning it taught me how to do the following: think analytically; solve problems; complete tasks on time; work with people; and, do more than the minimum. What, really, is keeping you from getting a better job?
Posted by: Skott | October 12, 2006 at 11:59 AM