Editor's Note: Take a look at our featured best practice, Return on Training Investment (ROTI) (24-slide PowerPoint presentation). The concept of Return on Investment (ROI) originated in the Manufacturing sector, where it's simple to measure time and output. Next to adopt the concept was the Banking industry, where it is used consistently. ROI calculation is now a common feature in every type, industry, and function of [read more]
Also, if you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
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Many business owners have wondered whether their managers should pursue an MBA. An MBA degree will challenge the professional’s ability to think innovatively, adapt, and lead others effectively. These are all qualities a manager should possess to secure the company’s future profitability and growth.
In other words, employers should encourage their managers to obtain an MBA. However, this doesn’t mean their management team has to put their careers on hold. Here are the benefits you will reap when your managers pursue an MBA.
The Benefits Business Owners Receive When Managers Complete an MBA
Most employees see the value in an MBA. However, you need to understand the value it can provide to your organization.
Overall, it would make sense to motivate your managers to go for their MBA if you see them as an asset to your company. After all, most business leaders would rather promote their employees than hire someone from outside the company.
Here are a few sound reasons to encourage your managers to pursue their MBA.
1. A Broader Understanding of Business Functions
When your managers go for their MBA, they’ll understand how their department functions within the rest of the company. An MBA helps students learn about all the business aspects and how they work to create a functioning business.
In turn, your managers will develop unique insights about the organization overall. Plus, it will enable them to bring forth strategic thinking, which will drive your business forward.
2. Flexibility
Some employers might believe they’ll lose their best employees when they go for their MBA because it’s a full-time opportunity. However, that’s not always the case.
While traditional MBA programs are full-time, a specialized MBA offers more flexibility. Students can finish their degrees online without it affecting their schedule at work. Plus, it only takes one year to complete the program.
Other MBA programs also offer night classes. Flexible MBA programs make it easy for students to continue their studies while working. The responsibilities between education and work are fairly easy to maintain.
MBA students can attend classes outside of work hours, all while doing so at any time online.
3. MBA Students Become Problem Solvers
Throughout the curriculum, an MBA program will also train students to identify and solve problems. These programs provide in-depth management training plus finance, safety, compliance, human resources, and more.
MBAs also help students see the bigger picture of a company. As a result, MBA graduates will have the ability to uncover issues and develop strategies to overcome them. Their critical and innovative thinking will help your organization become more efficient at finding solutions to problems.
4. They’ll Enhance Management Skills
An MBA gives your managers time to advance their professional and managerial skills – such as critical analysis, leadership, and management techniques. These advanced skills will reflect well in their career progression because they’ll develop a business mindset and acquire holistic business approaches.
When they put these skills into practice, they will carry them throughout the company. In turn, this relieves you as they continue to delegate tasks and handle the daily business demands.
5. Retaining In-House Talent
Your managers will be more likely to stay with your company when you consistently give them room for growth. Given that the global workforce is experiencing the Great Resignation, it’s more important than ever for companies to retain talent.
One survey shows that 71% of employees desire to leave their current job because they see it as the only method to receive a raise.
An employer’s job is to recognize talent and maintain exceptional employees. Doing so keeps your talent from moving on to somewhere else – especially to competitors.
You could retain in-house talent by presenting your managers with the opportunity to pursue an MBA through a sponsorship program. A company willing to support its managers through the MBA also portrays a positive brand image.
6. Business Network Expansion
An MBA program attracts countless professionals to study each year. Therefore, your managers will gain invaluable business connections – whether a fellow tutor, a classmate, or a guest speaker.
With your managers expanding their business network, you have new connections to potential clients, partnerships, customers, and investors. Additionally, your managers may form even more business relationships with others if they are on a study abroad trip.
Therefore, there’s no limit to the contacts they could make within the campus. They’ll have opportunities to make connections from different cities and countries.
Is an MBA a Worthwhile Investment?
While an MBA can be a costly investment of over $100,000, your manager’s newfound skills will lead to a hefty ROI for your organization. That’s because an MBA employee can contribute the latest business strategies, which will benefit your company in the long run.
Additionally, your staff will work with a manager gaining solid management skills. Once they complete their MBA, your managers will be capable of streamlining your departments and boosting profitability by putting their skills to good use.
Will an MBA Add Value to Your Company?
An MBA was once a desirable asset for consulting and finance professionals. However, it’s become an important qualification for various positions at the management level.
All business educators, job candidates, and hiring managers agree that MBAs are highly valuable. Now industries such as nonprofits and health care require new hires to have MBAs.
Managers without an MBA typically climb the corporate ladder because they’ve mastered productivity. However, MBA graduates come in with fresh perspectives and can significantly improve business processes.
Motivate Your Managers to Pursue an MBA
As you can see, an MBA degree opens doors to various opportunities for your managers and your business. Whether you fund their education or support their decision, an MBA can be a huge step. Yet, it can propel your business forward and keep you ahead of your competitors.
Want to Achieve Excellence in Human Resource Management (HRM)?
Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.
This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.
This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.
Learn about our Human Resource Management (HRM) Best Practice Frameworks here.
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