Alumni Survey: Is an MBA Still Worth the Investment?

Return on investment (ROI) is an important parameter also when it comes to MBA programs. “Regardless of whether we look at ROI from a business or an individual’s perspective: it’s about whether it makes sense economically. An MBA will be considered a success if it pays off (financially) and generates real added value for the graduates. In reality, both the rate of return and added value can have various dimensions. This is also confirmed by the results of our most recent alumni survey,” says Prof. Barbara Stöttinger, Dean of the WU Executive Academy.

Significant Salary Increase of Over 30% 

In addition to personal development and the opportunity to form a valuable professional network, an increase in income is another reason for people to go for an MBA. And the rise in salary of the surveyed alumni was impressive: on average, their salaries grew by 30% (36% in CEE countries) compared to what they had earned before the MBA. Across the various programs, the boost in salaries of Professional MBA graduates was most significant (+31%). A regional comparison showed the greatest benefit in graduates from Central and Eastern European countries (+36% in CEE).

“It is a common mistake to believe that completing an MBA will automatically translate into earning more money. Positive developments with regard to alumni’s careers and salaries are effects of their conscious efforts, resilience, and strong motivation. That said, a salary increase of 30% and more is certainly a great success that would have been unlikely without completing an MBA. Playful competition with fellow MBA students, growing together in the process of acquiring subject-specific and leadership skills, and the support alumni offer to each other in manifold professional challenges (job search, negotiations, etc.) are also key drivers behind graduates’ salary increases, “ says Martina Ernst, who was head of HR at an international organization before founding her own enterprise, SalaryNegotiations.

Career Turning Points: Kick-Starting Professional Change With an MBA

Even though most students are primarily interested in expanding their knowledge and network, the survey results clearly show that an MBA also fuels professional change: 76% (CEE: 72%) of the alumni survey’s respondents stated that they were able to steer their career in a new and positive direction, and 64% (CEE: 63%) reported having embarked on a new professional path while still completing the program or within a year of graduation. 47% (CEE: 46%) were promoted to a new position within their organizations, and 37% (CEE: 41%) changed employer. Among those who reported changes in their career, 49% (CEE: 67%) took on additional responsibilities, for 59% (CEE: 55%) the career step came with a higher salary, and 46% (CEE: 58%) stated that they were in charge of a larger budget than before their MBA studies.

The share of alumni who manage a team of 100 or more employees increased from 5% (CEE: 7%) before the MBA to 17% (CEE: 11%) at the time of the survey, and also the number of graduates in executive positions reveals a steep upward trend: +21% (CEE: +26%) of the alumni surveyed hold C-level positions as compared to 12% (CEE: 15%) before the MBA.

11% (CEE: 9%) of alumni used the skills acquired in the MBA to start their own company, either alone or together with fellow graduates, doubling the share of entrepreneurs among graduates compared to pre-MBA figures. 81% of them stated that they benefited greatly from the expertise, practical skills, and valuable contacts gained in the course of the MBA program when founding their enterprise.

The True Value of the Alumni Network

Among the numerous offers for alumni organized by the WU Executive Club, particularly career services (job search workshop, company visits), alumni events (career cafés/breakfasts, WU EA lounges, Female Leaders Network events, WU Ball, etc.) and the offers of the executive search partners (online LinkedIn lectures, etc.) were particularly popular. On average, 65% of respondents attended events organized as part of the guest speaker series, which take place in Vienna, Bucharest, and other CEE locations on a regular basis throughout the year.

For the first time, the survey included a question on respondents’ “willingness to help,” which has been growing ever since the establishment of the WU EA Connect online platform. The platform provides information about support offers alumni make available to other members of the community free of charge. These offers include sharing experiences from the MBA studies with prospective students, serving as a mentor for high potentials and less experienced executives, organizing a local alumni event, or acting as a hub manager. 

Betting on the Rright Career Network

The most important networks alumni use to further their careers are social networks such as LinkedIn (68%, CEE: 76%), friends and colleagues (63%, CEE: 63%), and executive search companies (52%, CEE: 59%). The online job platform WU EA Connect, founded only two years ago, is already used by an astonishing 20% (CEE: 24%) of graduates looking for career advancement opportunities. It thus seems that respondents particularly benefit from the four types of networks for which the WU Executive Club has greatly increased its information and career support offers in the past years.

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