Does It Matter Where You Get Your MBA? What Employers Really Think

If you've ever wondered if it matters where you get your MBA, you're not alone. The prospect of taking time off from work and loans for tuition can intimidate even the most ambitious MBA applicants. You want to get a good return on your degree, and it's important to understand how your soon-to-be alma mater plays into this equation.

Conventional wisdom suggests that elite business schools have better outcomes than lower-ranked programs. The reality is far more nuanced. Modern employers increasingly value skills, experience, and cultural fit. But it's important to remember that factors such as your target industry, prior experience, and where you live can all play into your post-grad employment opportunities.

Read on to learn more about what hiring managers actually think about MBA programs.

What Hiring Managers Think About MBA Programs

It turns out U.S. News World & Report isn't the end-all be-all to how hiring managers perceive MBA programs. In fact, hiring managers increasingly assess business schools on the useful skills they impart rather than any notion of prestige.¹

Does MBA school matter to recruiters? Many recruiters report that they focus primarily on factors such as proven capabilities and relevant experience when evaluating candidates. A recent survey² found that employers prioritize strategic thinking, analytical skills, and adaptability.

Industries Where Prestige Plays a Bigger Role

Certain industries do still emphasize perceived MBA prestige. These industries include:

• Investment banking
• Private equity
• Management consulting, especially for more prestigious firms such as McKinsey, Bain & Company, and Boston Consulting Group

If you want to work for top firms in these industries, you might consider attending a so-called "target school." Target schools maintain close relationships with firms in these industries for recruiting purposes.

On the flipside, many companies outside of those industries display considerably more flexibility in their hiring practice. Companies across industries tend to prioritize factors such as experience and past career success as more important when hiring MBA graduates.

How Networking and Location Affect Career Outcomes

Strong alumni networks and strategic geographic positioning can significantly impact your career outcomes. In fact, if you want to work and live in a specific city, you're often better off passing on a higher-ranked program in favor of a local school. In other words, the best place to get an MBA is usually in the city where you want to work and at a school that has strong connections within the industry you want to work in.

MBA programs in major business hubs such as New York, Los Angeles, Chicago, and Seattle offer strong advantages to students by offering close proximity to desirable employers. You'll also have access to networking events and internship opportunities that can shape the course of your career. You'll benefit from easy access to industry professionals and recruitment events you might not find elsewhere.

Alumni networks offer ongoing career support that lasts far beyond graduation. As an MBA grad, you'll have the opportunity to take advantage of these connections five, 10, and even 20 years down the line.

Does Where You Get Your MBA Matter for Salary Potential?

More than your alma mater, high starting salaries are often driven by entry into certain select career fields, such as private equity, investment banking, and consulting.

For those attending less rarefied fields, starting salaries may be lower starting out, but you can still expect to earn a healthy living once you're further along in your career. The average MBA graduate earns about $165,000 per year.³ This average reflects the premium that accrues to seasoned professionals who also benefit from this credential.

Factors such as alumni services, career services, and where you live can all play into your post-graduation compensation, as well. Students from programs located in economically well-off areas–like Seattle–often command higher starting salaries than those living in more economically subdued areas.

Choosing the Right MBA Program for Your Goals

To find the right MBA for your needs, it's important to assess each prospective program holistically. Evaluating schools for fit with your career goals is the most important step to take when selecting your program. But other factors such as cultural fit, curriculum quality, and location should also play into your decision.

Do you thrive in small class environments, or are you better off in larger group settings? Does your learning style align with a Socratic seminar style of learning, or do you learn better with asynchronous online classes? Considering these factors will help you select a program tailored to your needs.

An online program offers several benefits over traditional programs, such as increased flexibility, a more diverse cohort, and the ability to keep your job while you study.

Make the Most of Your Career With an Online MBA From Seattle U

Seattle University's online MBA program offers an unparalleled combination of flexibility and quality. Gain access to Seattle's hot job market and thriving tech scene with Seattle U's extensive local alumni network and deep connections built up over decades.

Get in touch with an admissions outreach advisor today to learn more about how Seattle U's online MBA can accelerate your career by connecting you to key roles in the Puget Sound's premier businesses.