Evaluating the Worth of a Masters in Management Degree

What is the expected payoff from a Masters in Management degree? This is an old question – but one that has taken on new significance with reports that sectors known for recruiting MiM graduates are putting the brakes on hiring. 

Consultancies, audit firms, and technology companies, among others, have all decreased recruitment activity in the past year. Given the news that the MiM job market may be slowing down, are prospective business school students asking more direct questions about expected returns from the degree?

“While the question on expected returns has always been central to the intent of enrolling in our programs, we have not observed any noticeable change recently,” says Thibault Seguret, director of the MiM program at INSEAD business school in France. “Enrolling in a degree is an investment in time, money, and effort, but ultimately also a means to an end. MiM students consider their education as a stepping stone to their career,” he adds. 

Importantly, he believes there are alternative metrics beyond salary increase that contribute to the overall ROI (return on investment) of an MiM. “I think looking at geographical mobility post-program could be an interesting metric, as well as the connectedness of any students towards the school and the alumni community. Both are less-often quantified values that most alumni from top schools report as the most impactful return on their investment,” Seguret says. 

He adds that INSEAD alumni say they can put no price tag on the lifelong friendships and connections they made during their MiM degree. 

“Alternatively, I think ROI could also be measured as a total cost comparable, factoring in living expenses and opportunity cost for each year of study, which is another argument in favor of one-year programs, where students can spend the second year already in their post-MIM position,” says Seguret. 

Beyond salary increase: ROI 

However, candidates are not solely motivated by financial returns, notes Tino Elgner, the director of master programs at ESMT Berlin business school. They also consider emotional aspects, such as the potential impact of their degree, the desired work-life balance, or the networking opportunities facilitated by the MiM program. 

“Consequently, the definition of ROI becomes more nuanced,” he says. To address this complexity, prospective MiM students are advised to engage in self-reflection to define their personal ROI and evaluate how a particular school or degree aligns with these criteria. 

Elgner says that prospective students, particularly those belonging to Gen Z, are even more curious and attentive when it comes to understanding or predicting the expected returns from a master’s program.

“This trend persists regardless of the prevailing job market conditions and is more pronounced compared to previous generations. Surrounded by an array of alternative credentials, they are naturally inclined to explore various paths to achieve their goals and actively compare these options in pursuit of the most effective one,” he adds. 

In other words, the question is not solely about the worthiness of pursuing a MiM degree given the current job market, but rather, it revolves around whether a specific degree from a particular school aligns with the individual’s plan and background, in comparison to other available options. 

The role of self-reflection and research

Elgner says: “This process involves conducting thorough research, reaching out to alumni, current students, professors, and career management departments, and critically assessing the various aspects of undertaking a MiM degree. Ultimately, it begins with a deep understanding of oneself.” 

Andrew Keating, academic director of the MiM at UCD Smurfit School in Ireland, agrees. “We encourage applicants to talk to alumni to get a sense of the program, opportunities and potential careers that arise from completing this degree,” he says. “From this, students can see that talk of a job market slowdown is not a major issue for graduates from our program. This is also reinforced by the very strong percentage of those employed after three months from graduation.” 

Beyond this, there are the intangibles to consider, such as the feel and ethos of the university and the MiM program in particular as well as the location and career and networking opportunities. The international exposure, student satisfaction and the backgrounds of their peers on the chosen program should be considered and discussed, according to UCD. 

Keating adds: “When looking at choosing a MiM degree, students should consider multiple aspects including the program itself, what courses it offers, the suitability and fit for their aspirations, what they will learn and if they will enjoy it. Students should also consider the reputation of the university or business school in the programme they are considering.”