The One Great Thing an MBA Does for You

The Personal MBA: Master the Art of Business lists the following as "the single benefit of business schools (getting an MBA)":

The one significant benefit that business schools do provide is better access to Fortune 50 recruiters, consulting firms, and investment banks via on-campus recruiting and alumni networks. Upon graduating from a top-tier business school, you'll find it much easier to get an interview with a corporate recruiter who works for a Fortune 50, investment bank, or consulting firm. The effect is strongest immediately after graduation, then largely wears out within three to five years. After that, you're on your own: hiring managers no longer care so much about where you went to school -- they care more about what you've accomplished since then.

Lots for me to comment here:

• This was written as if there's only an elite set of business schools that people attend and that other schools do not matter. Yes, if you want to work for a Fortune 50 company, a consulting firm, or an investment bank, then you probably need to get a top-tier MBA. But what about all the other great-paying jobs with wonderful companies? What if you "only" want to work for a Fortune 500 company? Or want to work in an industry other than consulting or investment banking (BTW, most people do want to work outside these industries)? There are tons of "other" schools (those out of the top 10) that can launch your career in a way that leads to a high income.  
• I agree that one big (the only? the biggest?) benefit to getting an MBA is that it will open doors for you. You will be able to interview for jobs that you would have no access to whatsoever without the degree. As such, it's important to know where you want to work (company or industry and field) before you decide where you go to school. Pick a university that has recruiters from your target company/job hiring people from it.
• I also agree that after awhile (I'm not sure if it's three to five years -- it's shorter in some cases and longer in some cases IMO) your experience counts for more than your education when looking for the next job. Future employers don't really care if you went to the best business school in the world as much as they care whether or not you can get the job they have done -- and done well. And the best indicator that you can do it well is what you've done in your other positions. This is why I always talk about having, recording, and promoting your accomplishments. They are the key to an ever-increasing income for you. (BTW, once I worked for a name-brand company in a well-thought-of position for my first job, no one cared where I went to school -- my experience was what got me hired and hired again for the rest of my career. But without the MBA I never would have had that initial job.)
• It's interesting to me that recruiters still place so much weight on hiring from certain business schools. It can't be because of what the students learn because much of what all business schools teach is not relevant to the real world of business IMO. It must be because recruiters want bright employees and they assume that a person had to be bright to get into and graduate from a specific school (in particular, a top-flight school.)

What's your take on these issues?

Comments

[Everyday Tips]

My husband and I both got MBAs from Michigan State. I don't think their B-school is considered 'top tier', but we both did fine with our degrees from State. However, maybe if our careers were just starting now as opposed to 20 years ago it would be different? I don't know.

[Tim @ Faith and Finance]

I got an MBA from a private, local unversity that is well respected in the area, but not so known in other places (Drury University). I don't think it will keep me from working in some lofty Fortune 500 company right away (many classmates are doing that right now), but I'd find more enjoyment working for myself.

If/when I can support myself with my own businesses, it won't really matter where my MBA came from (though I really like the school). I think experiences generally trump education - but education can certainly be a deciding factor when evaluating potential employees.

[Danielle]

Thank you for this post! It's timely for me, as I'm currently researching and applying to MBA programs.

[Rick]

I apologize for my previous, off-topic comment. I don't know what came over me. Feel free to remove it, FMF.