The true value of online MBA remains one of the most hotly contested debates in the graduate business education world.
There is no disputing the fact that students desire flexibility. Look no further than the sheer number of students enrolling in online versus MBA programs: data from the Association to Advance Collegiate Business Schools (AACSB) suggests that the virtual learning option is outpacing traditional, in-person programs.
At the same time, a study by the Graduate Management Admission Council (GMAC) says that nearly half of candidates who want to get their graduate business degree think an in-person experience would actually be more valuable. Plus, none of the M7 schools—the ones that are considered to offer the best graduate business education in the country—offer a strictly online MBA program.
Nevertheless, for thousands of students an online MBA ticks all of the boxes, but does it do the same for potential employers? Here’s what you need to know.
Do recruiters care about your MBA format?
By and large, recruiters do not care about how you received an MBA—as long as it came from an accredited university. What matters most is why you pursued the degree and what skills you learned.
In part thanks to the world accepting hybrid work environments as the new norm, online MBAs can actually help individuals stand out to recruiters as someone who can thrive in at least a partially remote experience, says Clemens Kownatzki, associate dean of full- and part-time programs at Pepperdine University’s Graziadio Business School—home to the no. 17 best online MBA, according to Fortune’s ranking.
“In terms of format, there has also been a shift from simply ignoring online MBA programs who were deemed to be of much lower value to recognizing higher value MBA programs that can deliver an exceptional experience in an online or hybrid format,” Kownatzski explains.
This may all come as good news to students who worry about any lingering stigma associated with online education.
“A lot of schools now are only an online platform, so there’s not necessarily a need to put an indicator on your résumé of online versus in-person,” says Dionna Johnson Sallis, global talent acquisition consultant with Korn Ferry. What’s more, Sallis says many recruiters may avoid altogether the question of how the degree was obtained—since what matters more is how the potential job candidate will leverage that experience.
As important? How an MBA grad will fit in with a company’s culture. Amazon has hired candidates from more than 100 different MBA programs, according to a spokesperson for the company. “We value MBA students as they tend to fit well within our corporate culture—they are customer obsessed, risk-oriented, scrappy, and analytical,” the company said in a statement to Fortune. “Amazon firmly believes great talent is everywhere and considers students from all schools and formats during the recruitment process.”
Even if recruiters aren’t focusing on whether you completed your MBA online or in a classroom, they may have some questions for you about why you obtained the degree in the first place.
However, nearly half—44%—of US employers say in-person graduate management programs can provide students with stronger technical skills than online programs, and about two-thirds of them believe graduates of in-person programs are more likely to have stronger leadership and communication skills, according to GMAC’s Corporate Recruiters Survey 2024.
The survey adds that technology employers are most open to agreeing that online and in-person programs equally develop students’ technical, communication and leadership skills.
Pros and cons of an online MBA
Pros
- Flexibility: Learning from any institution can occur anywhere.
- Affordability: Programs are oftentimes cheaper online versus in-person.
- Growth in a digital environment: Many jobs nowadays are hybrid, so the skills you learn through an online degree are transferable.
Cons
- Less networking opportunities: Meeting peers in-person simply cannot be fully emulated in a virtual experience.
- Less time with your professors: Students cannot as easily ask a professor a question after class or quickly drop in their office.
- Less school spirit: You may not feel as bonded to your alma mater being a remote learner.
How does an online MBA fit into your career map?
Before applying to an MBA or any other advanced degree, Paul McDonald—former senior executive director at Robert Half—recommends potential applicants ask a pretty simple question: Why? Nailing down the reason in advance will help you with this immediate decision and others down the road.
“Are you proactively mapping out a career that requires an MBA, or are you running away from something and think it’s nice to have?” McDonald asks. If you don’t have a solid reason for pursuing an MBA, he says it’s important to research how the degree will advance your career—especially so you don’t risk incurring student-loan debt that will take years to pay off for a degree you don’t end up using.
While online MBAs are generally cheaper than the traditional, in-person experience, it can still be very expensive. For example, the total tuition for the online MBA at University of North Carolina–Chapel Hill (Kenan-Flagler)—the no. 3 best in the country, according to Fortune—is about $125,500.
This type of research and introspection will be important once it comes time to be recruited, according to McDonald. That’s because hiring managers will likely ask a mix of questions to measure a candidate’s critical skills. For example, a simple question like “Why did you choose that university?” can be very revealing, he says.
According to McDonald, a “bad” response might be, “It was close to the house.” Whereas a “good” response may be more along the lines of, “I have a mentor, and I met people at XYZ organization that went before me, and they helped work with me to decide this was a good way to go.”
These types of questions during the recruitment process will help a manager to assess your thought process for obtaining an MBA, your critical thinking skills—and ultimately your potential for advancement in a role, McDonald says. So it’s good to have your “why” thought out even before you press “submit” on your application, he adds.
How will the skills obtained in an MBA program advance your career?
There are, of course, differences between online and in-person MBA programs, but when it comes to the skills and experience obtained? “I don’t see a strong distinction, especially if we’re talking apples-to-apples in terms of programs,” Sallis says.
Prior to pursuing an MBA, Sallis recommends outlining the skills you want to develop in the program—and how that experience will advance your career. And remember: The degree alone may not increase your value in the job market. “It’s important to have a thought-out plan to ensure the value proposition of that goal pays out for you,” she adds.
Companies have gradually shifted from prioritizing shareholder value to focusing more on societal impact and sustainability, Kownatzski adds.
“Candidates that exhibit traditional skills with a mindset of balancing performance targets with sustainability are increasingly sought after,” Kownatzski tells Fortune. “MBA programs that can deliver such a mindset without compromising on rigor are favored.”
The takeaway: what recruiters really want to know about your MBA
Even before MBA classes begin, you will make a series of decisions that may matter less to a recruiter than you realize. For example, Sallis doesn’t ask candidates whether they attended school online versus in-person or full-time versus part-time because someone’s life situation (like having kids) might have been the reason—and it’s illegal to ask about your family status in a job interview, she notes. “As recruiters, it’s important to be cautious of how we ask certain questions around the ‘why’ for attending school,” she adds.
For McDonald, his primary focus when it comes to candidates with an MBA is whether they attended an accredited institution. From there, he’ll consider the program itself—how it adds dimension to a candidate’s qualifications and his own experience recruiting people from there. Finally, he’ll want to match a candidate’s skills and breadth of experience with what a company values, he adds.
But it’s equally important to have realistic expectations before pursuing an MBA and how it fits into your broader career goals. “Graduate degrees are important, but I don’t think they’re make-or-break, depending on the industry,” Sallis says. And because an MBA represents a significant investment of both time and money, you don’t want to take the decision lightly, McDonald says. “If you’re running to an MBA program because you have time right now, be careful and proactive with doing your research.”
Frequently asked questions
Do employers look down on online MBAs?
No, employers do not look down upon online MBAs. However, like any degree, students must be able to prove what skills they learned from the experience and how it applies to their own career goals.
Is an online MBA worth anything?
Yes, graduates of online MBAs are largely about to use their degree for career advancement, pivot, or entrepreneurial endeavors. The proof is in the numbers: for example, alumni of Carnegie Mellon (Tepper)’s program have median base salaries of $150,750, according to data submitted by the school to Fortune.
Is an online MBA a real MBA?
Yes, online MBAs from accredited universities have the same academic standing of traditional, in-person programs. Thousands of students each year are awarded online MBA degrees and are able to upgrade their career.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
