Is an Online MBA Worth It?

Employers used to question the value of online MBAs, but that’s changed. In many cases, online degrees are as respected as traditional ones.

Online MBAs are often cheaper and more flexible. Prices for online MBAs vary, but you can find more affordable programs that charge a few hundred dollars per credit. You also don’t have to leave your job and lose income while studying.

While some experts argue traditional MBAs have an edge due to prestige and in-person connections, the value of an MBA ultimately depends on its accreditation, school reputation, and career goals.

One of the first things most employers check or are aware of is a school’s accreditation. If your online MBA is from a school that isn’t accredited, employers may not take your online degree seriously.

Accreditation ensures that a program meets quality standards. There are two types of accreditation: institutional and programmatic accreditation.

Institutional accreditation checks a college’s mission, governance, and curriculum to ensure it meets quality educational standards. Programmatic accreditation focuses on a specific program within an institution, ensuring it meets industry standards.

The following agencies are the top three programmatic accreditors for MBA programs:

In the case of online MBAs, paying attention to institutional accreditation is usually the most important, especially if the MBA program doesn’t hold programmatic accreditation. It’s best to enroll in a school approved by one of the following institutional accrediting agencies:

Your school’s and MBA program’s reputation may be an important factor when employers look at your resume, according to Alexander Lowry, who previously oversaw hiring at a JP Morgan firm and now works in the private sector.

Lowry considered the following two questions while assessing candidates with online degrees:

Things got trickier when candidates had online MBA degrees from schools off their radar.

“If it’s a school that’s brand new to us, it’s an unknown,” Lowry said. “That’s not necessarily a mark in [the candidate’s] favor. We cannot know their quality until we’ve hired them.”

Many companies only target graduates from the top business schools in the country. Lowry said that’s because those schools have built reputations by consistently producing graduates who make a significant difference for the organizations they join.

But, Lowry said people shouldn’t be discouraged from getting an online MBA, even if it’s from a lesser-known school. An online MBA still meets the demand in other top-tier positions for candidates with advanced degrees.

“An online MBA checks that box the same way that a traditional on-campus program does,” he said. “Obtaining an MBA in whatever form — whether on-campus or online, whether full- or part-time, whether traditional or executive MBA — is a door-opening credential.”

Most online MBA students enroll in part-time programs to pay for school and continue working. Many employers even sponsor employees when they return to school since that training benefits the company, too.

But here’s the rub: Full-time grads may have the edge over part-time grads in the job market because they tend to have more flexibility after graduation.

“Major employers searching specifically for MBAs (rather than experienced professionals who happen to have an MBA) tend to focus their efforts on the full-time students,” said Scott Singer, president of Insider Career Strategies. “It’s easier to just invest recruitment dollars toward the full-timers who have fewer obstacles.”

An online MBA helps you build on existing skills, gain critical business knowledge, and increase self-confidence on the job. Like any degree, earning an online MBA doesn’t guarantee you’ll land your dream job.

Lowry believes that MBA students should keep their expectations in check unless they’re attending a prestigious business school. Expecting to land a job on Wall Street right after graduation may be too ambitious.

“Unless their school is well-known in the region or sector…it’s not a foregone conclusion they’ll land the job they desire,” Lowry said. “The MBA is a door-opening credential. People need to network like a pro to land successfully.”

Lowry emphasizes that MBA grads may not land their dream job immediately after finishing their degree. For example, you could begin at a top-tier regional investment firm and then transition to a top-tier Wall Street firm after building a network in the industry.

“That’s a fine career path,” Lowry said. “There are many ways to do it.”

Online MBAs are legitimate alternatives to traditional MBA programs. They’re cost-effective and can offer flexibility to students who continue to work while studying.

If you’re looking to advance your career but don’t have the time or ability to attend a traditional in-person program, an online MBA program may be the right option.

Remember that while an online MBA can open doors, landing the most desired positions may require additional networking and experience.