The cost of getting an online MBA to improve career prospects | Biden News

Executive or short online MBA programs are not a new phenomenon, but they have found more interest in the midst of the pandemic. “There has been a major change in the way EMBAs (online MBAs) are conducted post-pandemic and the quality of EMBAs has improved tremendously with greater company participation in designing courses, tailor-made for industry,” said Mahesh Bhatt, chief business officer – consumer vertical, industry, and incorporation, TeamLease Services.

Eruditus is one of the platforms collaborating with elite management schools, such as IIM and XLRI in India and Ivy league colleges abroad, to offer a 6 or 9 month digital MBA. The costs for the program range from 2 lakhs for 7 lakhs, depending on the course. Some elite institutes in India, such as the Indian School of Business (ISB), offer their own short online managerial courses for Costs 2-3 lakhs but is only available to professionals with a minimum of 10 years work experience.

Stoa School is the newest player in the alternative online MBA space catering to people seeking career transition and advancement in the startup ecosystem. Offers a 6 month program at a cost of 2.5 million. After completing the course, it also helps students find work with partner startups. “We have partnerships with around 150 startups. After the program is complete, as part of our career services, we connect the right candidates with startups with job openings,” said Aditya Kulkarni, co-founder of Stoa.

The common link between all these platforms is that their user base is mostly made up of working professionals with several years of work experience on their resume. These individuals are seeking a career transition or to upgrade skills in their existing roles to move up to senior managerial positions within the same industry. Experts say people who can’t afford a full-time MBA, which can cost between 10 lakhs and 40 lakhs, and didn’t want to commit two years to college choosing such a course.

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“The EMBA is best suited for working executives and those with limited time and money,” says Bhatt.

Mint explains how alternative MBA certifications compare to traditional MBA degrees in terms of income and job prospects.

How do the costs compare

Costs for an MBA start from 10 lakhs. The degree cost of the IIM sought (Bangalore, Calcutta, Bangalore etc) is approx 23 lakhs, while the newer IIIM costs 15-16 million. Degrees at prestigious private business schools, such as ISB and XLRI, are relatively expensive in 25 lakhs and 45 lakhs, each. This does not include costs related to electricity bills, meals and other expenses.

Of course, tier-II and tier-III colleges are cheaper in 10-13 lakhs in fees, but they don’t guarantee placement and the average placement package is also lower in 6-10 million.

Here, getting an online MBA certificate may make more financial sense as the earning potential is about as much as a tenth of the cost. you just spent 2-3 lakhs and can expect a sizeable increase. For example, Stoa graduates saw an average 72% increase in their compensation, according to Kulkarni. “Normally, the person before joining the Stoa had a payment plan 7-8 lakhs and after the course is over, go up to 13-14 lakhs,” he said.

Emeritus, a subsidiary of Eruditus, students in the 2021-22 Emeritus Impact Survey said they received an average 17% increase in their salary after completing their course.

The caveat in both cases is that these candidates are no fresher and hence, previous work experience may also play a role in their career advancement.

Since the cost of these courses is affordable, you may also not need to take out an education loan. Say, you have pocketed Packages of 13 lakhs after studying from a tier-2 college and having 10 lakh education loans to pay. At a modest 8% interest rate and a 5 year repayment term, you’ll pay roughly 2.4 lakhs per year for loans. This calculation has taken into account the tax deductions that a person can claim on interest paid on education loans.

Leaving a job for a two-year residential program also carries an opportunity cost when you quit your job and forego two years of pay.

Job prospects

Headhunters and recruitment agencies say that those with online MBA degrees get as much attention from recruiters as their peers with degrees. However, a fair comparison can only be made with tier-2 or tier-3 MBA colleges, according to Sanjay Shetty, director – professional search and selection and strategic accounts, Randstad India.

“Reputed universities definitely have advantages. They have a defined route in the form of placement. If you rule out these elite business schools of choice, people with online MBA certifications are not at a disadvantage with recruiters compared to those with degrees.”

Shetty added that large corporations, consulting firms and multinational corporations still prefer to go the traditional route of recruiting management students through college placements for entry-level roles. “Some of these companies have global shared services and research centers in India that they see surpassing degree holders from leading business schools.”

Also, because these courses are not accredited, they may not have much global relevance. However, certification that is affiliated with a university in another country can open up job opportunities in that country.