LinkedIn Algo: Are Graduate Programs Worth It?

Paula Gonzalez, Drew Stephans, Erik Burger, Akshay Chilkapally, & Prajwal Prashanth

LinkedIn Algo: Are Graduate Programs Worth It?

MKTG 561 Consumer Behaviors

October 31, 2023

The University of Illinois Chicago

Drew Stephans Prajwal Chidri Prashanth Erik Burger

Risk & Reward: Are Graduate Programs Worth it???

Introduction

During adolescence and early adulthood, we are bombarded with a variety of decisions that alter and influence who we are and what life paths we pursue. It starts with simple choices like picking out what you will wear on your first day of school or whether skipping breakfast will negatively impact your daily routine. The older we get, the stakes associated with our decisions continue to grow and the illusory risk-to-reward scale becomes ever higher. The constant bombardment with propaganda, from media and peer influences, tells us to select a life partner, invest in business, save for retirement, pursue higher education, make a career choice based on interest as well as economic value, and exceedingly more. All these life-altering decisions are exhausting and may cause us to lose sight of what is worth the time, effort, and resources we funnel into these activities. Our society must dive into what is going to propel our lives in the direction we so desperately want or need to reach our ideal form of success.?

Although our definition of success is highly individualistic, humans are more alike than different sharing common interests, experiences, purposes, and goals. Many people would define success as the ability to afford a comfortable lifestyle, associated with specific social classes, or the ability to regain their time with a healthy work-life balance. At one point or another we’ve all been encouraged to pick a direction for ourselves which typically leads to a few options: go to college to pressure higher education/career paths, pressure trade/freelance work, or find another path to success usually through entrepreneurship. According to the online article, Student Loan Debt Statistics, published by Education Datastatistical analysis shows that student debt is well into the trillions of dollars and continues to grow among Americans. As of 2023, student debt is 1.766 trillion dollars and national student loan debt increased by 1.7% in the last quarter (Hanson, 2023). As more and more Americans pursue their dream through higher education, these statistics leave inquiring minds wondering: is higher education worth it? In the upcoming sections, we will discuss the rewards such as salary, work-life balance, and career progression associated with completion of higher education in business-related fields, which we hope, outweigh the risks including time, effort, and resources.?

Case Study A

In a case study conducted by Simona Torotcoi, researchers aim to explore the profound influence that pursuing a Master of Business Administration (MBA) program has on students' lives and their professional development. The research takes an in-depth look at how MBA programs impact students across various dimensions of human capital, providing a comprehensive understanding of how these programs transform their lives. The study reflects three main reasons for pursuing an MBA-related degree: educational capital, intrinsic value capital, and social-cultural capital.?

Educational capital is similar to the shaping proficiency of students. First is technical skills. MBA programs provide students with advanced technical skills, enabling them to analyze complex problems and make informed, data-driven decisions. These skills are invaluable in today's competitive business environment. Similarly, soft skills are learned within this program. Beyond technical knowledge, MBA students develop essential soft skills, such as effective communication, leadership, and the ability to work in teams. These skills are crucial in real-world business scenarios and significantly enhance their effectiveness in their professional roles. Lastly, students gain the leverage of strategic viewing. MBA programs offer a holistic perspective on business strategy. Graduates acquire a deep understanding of business language, which empowers them to view their organizations strategically, making them better decision-makers and leaders.

Intrinsic value capital can be described as developing the power of self-belief. Self-confidence is the first more valuable skill under this category. One of the standout effects of an MBA is the boost in self-confidence. This newfound self-assurance empowers students to pursue their career aspirations with determination and conviction, which is essential for success in the competitive job market. Along with this point comes career clarity and satisfaction. MBA programs guide students in gaining a clearer sense of their career goals. They find increased satisfaction in their professional lives, as they know which path they wish to follow and how to get there. Additionally, self-management skills are learned throughout the program. Graduates exhibit improved self-management skills, particularly in areas like stress management and time management. These abilities contribute to their overall well-being and professional productivity.

Attendees must develop the motivation to lead. MBA and similar business-related programs, not only equip students with leadership skills but also instill a strong motivation to lead. Graduates are motivated to take on challenging roles and exhibit the confidence to lead teams. Lastly, MBA education also influences the values that students hold. This can lead to a shift in priorities, where self-oriented values, such as personal competence and a strong public image, become more important, often more so for men than women.

Social-cultural capital is the development of networking and influences. The main gained network is professional networks within these higher education programs. MBA fosters an environment conducive to the exchange of professional experiences. Graduates develop valuable professional networks that extend beyond the classroom. These networks are essential for sharing insights and opportunities. In close relations, friendship networks in the MBA program are built. Students build strong friendship networks. However, there may be a tendency to connect with peers who share similar backgrounds or characteristics. Despite this, these networks often last beyond graduation. Following that is relationships with co-workers. MBA graduates tend to form robust relationships with co-workers. These relationships lead to better integration within their organizations, and they often work more cohesively with colleagues.

Other influences include the professional image of MBA graduates. This is significantly enhanced through their education. This image is precious for women, as it helps reduce gender-related disadvantages in the workplace, making them more respected by their male colleagues. Lastly, prestige goes beyond the MBA degree itself, the prestige associated with having earned it from a renowned business school plays a pivotal role in elevating the career success of graduates. The reputation of the business school enhances the value of the MBA in the eyes of employers and colleagues.

Practical Implications

In terms of implications for individuals contemplating an MBA, it is important for individuals contemplating an MBA to understand the multifaceted benefits and long-term value that such a program can bring to both personal and professional growth. It is a transformative journey that extends far beyond acquiring a degree. Following that point, we will dive into the implications for organizations employing MBA graduates. Companies should recognize the added value that MBA-trained professionals bring to the table. However, they should also be aware that MBA graduates often have numerous career opportunities, and retention strategies may be required to keep them engaged and motivated. Lastly, we will discuss educational institutions offering MBA programs. Educational institutions offering MBA programs can use these research findings to improve the quality and relevance of their programs. This includes designing specific courses that directly contribute to students' skill development and focusing on practical learning experiences. Educational institutions should also ensure that they communicate the extensive benefits of an MBA program to prospective students. Highlighting the program's profound impact on human capital and long-term career growth is essential for attracting the right candidates.

Case Study B

The average (monetary) cost of an MBA in the United States is $61,800 throughout the program. If the cost of housing, food, healthcare, and other additional fees the total cost incurred is over $202,000. The average salary for an MBA graduate is $115,000. Now the question posed was: is the cost of graduate school worth it? There are definite yes and no answers to this question, but it depends on what field the student is in and what field they are going into. The consulting, food, investment management, private equity, and technology industries all saw average salary increases of over $35,000 for MBA graduates returning to those industries. Conversely, the accounting, hospitality, education, government, and law industries all saw average salaries increase by under $20,000 for MBA graduates in those fields. Additionally, the average MBA graduate has $75,000 in debt at the time of their graduation. So, although an MBA is a path to an increased salary, social mobility, and occupational prestige, the industry the student enters will be the major determinant in calculating how long the investment will take to be truly worth the monetary and opportunity costs.?

Practical Implications

In a study done by Business Because, they lay out additional benefits that go beyond just the monetary numbers. They found that additional benefits of the MBA program lay within the opportunities that it gives to its students. An MBA allows its graduates to change and enhance their jobs, industries, and locations with flexibility. The textbook, Consumer Behavior: Buying, Having, and Being, written by author Michael Solomon, reflects on the concept of social stratification which is the ranking of others in society. These rankings are determined by factors such as wealth, income, social status, and power (Solomon, 2019). Business-related programs are a critical component for individuals looking to increase their social hierarchy or regain access to their time. Additionally, the networking done with peers and teachers in various other industries is an opportunity that would otherwise be unavailable and could continue to pay dividends throughout the life of a career. These networks are key components in increasing social mobility into higher social classes. Furthermore, the actual skills learned throughout an MBA program aim to prepare its students for an ever-changing world with electives taught by experts in subjects such as AI, blockchain, and computer languages that are ever more common in the business world.?

Closing Discussion?

In summary, the impact of MBA programs transcends mere academic achievement. These programs are life-altering experiences that empower students to enrich their lives, both personally and professionally. MBA graduates are well-prepared to excel in their careers, armed with advanced skills, self-assurance, and influential networks. The prestige associated with prestigious business schools further enhances their career success, making them valuable assets in the competitive job market. An MBA program is more than just a degree; it is a journey of transformation that equips students with the skills, confidence, and networks needed to thrive in the dynamic world of business and beyond.

Appendix

Figure One: Starting salaries in MBA?

Figure Two: Bottom industries in MBA

Figure Three: Top industries in MBA

Works Cited?

Brook, Charlotte. “5 Ways to Maximize Your MBA ROI” March 10, 2023, https://www.businessbecause.com/news/mba-degree/8631/maximize-mba-roi?sponsored=university-of-washington-business-school-foster-school-of-business

Cook, Shannon. “Here’s Why an MBA is worth the Cost - According to Students and Grads” August 10, 2023 https://www.businessbecause.com/news/mba-cost/8912/why-mba-worth-cost

Flynn, Jack. “25 Educational MBA Statistics 2023”, March 28, 2023, https://www.zippia.com/advice/mba-statistics/#:~:text=To%20help%20you%20decide%2C%20here%20are%20some%20general,MBA%20textbooks%20cost%20between%20%241%2C000-%244%2C000.%20...%20More%20items

?Hanson, Melanie. “Student Loan Debt Statistics” August 20, 2023,? https://educationdata.org/student-loan-debt-statistics

Solomon, Michael (2019). Consumer Behavior: buying, having, being. PP. 439-466. Hoboken, NJ: Pearson.

Torotcoi, Simona. (2021). Bachelor’s and Master’s degrees: One and the same thing? A case study of implementing the degree system in Romania. Hungarian Educational Research Journal. 10. 401-415. 10.1556/063.2020.00037.?