Executive or short online MBA programs are not a new phenomenon but have found more buyers amid the pandemic. “After the pandemic, there has been a big change in the way EMBAs (online MBAs) are conducted and the quality of EMBAs has improved significantly,” said Mahesh Bhatt, Chief Business Officer – Consumer, Industrial and Remerging Vertical, TeamLease Services.
Eruditus is a platform that collaborates with elite management schools, IIMs and XLRIs in India and Ivy League colleges abroad to offer 6- or 9-month digital MBAs. Fees for such programs range from from 2 lakh 7 lakhs depending on the course. Some elite institutions in India, such as the Indian School of Business (ISB), offer their own short online managerial courses. 2-3 lakhs fee but available only for professionals with at least 10 years of work experience.
Stoa School is the latest player in the alternative online MBA space that caters to those looking for a career change and advancement in the startup ecosystem. It offers 6 months program at a fee of 2.5 lakhs. On completion of the course, it also helps the students to find jobs with partner startups. “We have tied up with around 150 startups. Post completion of the programme, as part of our career services, we connect right candidates with startups that have job opportunities,” said Aditya Kulkarni, Co-Founder, Stoa.
The common link between all these platforms is that their user base is mainly made up of working professionals who have a few years of work experience on their resume. These people are either looking for a career change or want to improve on their existing roles to reach senior managerial positions in the same industry. Experts say those who can’t afford a full-time MBA, which can cost anywhere 10 lakhs and 40 lakhs, and do not want to spend two years for college, opt for such courses.
see full image
“EMBA is best suited for working executives and people who are short on time and money,” Bhatt said.
Mint explains how alternative MBA certifications measure up to traditional MBA degrees in terms of earnings and employment prospects.
how to compare costs
Starting Fee for MBA Degree 10 lakhs. The cost of a degree from the sought-after IIM (Bangalore, Calcutta, Bangalore etc.) is approx. 23 lakh, while new IIMs charge 15-16 lakhs. Degrees at reputed private business schools like ISB and XLRI are relatively expensive 25 lakh and 45 lakhs respectively. This does not include expenses related to utility bills, food and other miscellaneous costs.
Of course, Tier-II and Tier-III colleges charge lesser fees 10-13 lakhs in fees, but they do not guarantee placement and average placement packages are also less 6-10 lakhs.
Here, obtaining an online MBA certificate may make more financial sense as the earning potential is almost the same at one-tenth of the cost. spend yourself 2-3 lakhs and can expect a huge increase. For example, according to Kulkarni, Stoa graduates have seen an average 72% increase in their compensation. “Usually, people have a salary package before joining Stoa 7-8 lakhs and after the completion of the course, it increases 13-14 lakh,” he said.
Learners in the Emeritus Impact Survey 2021-22, a subsidiary of Eruditus, said they received an average increase of 17% in their salaries after the completion of their courses.
The caveat in both the cases is that these candidates are not freshers and hence, prior work experience may also play a role in their career progression.
Since the fees for these courses are affordable, you may not need to take one education loan either. say, you have achieved 13 lakh package after studying from Tier-2 college and one 10 lakh education loan to be repaid. At a nominal interest rate of 8% and a repayment tenure of 5 years, you will have to pay roughly 2.4 lakhs annually for loans. Tax deductions are taken into account in this calculation, which one can claim on the interest paid for education loan.
Leaving a job for a two-year residential program also carries an opportunity cost because you quit your job and pay for two years.
employment prospects
Headhunters and recruitment agencies said that online MBAs get as much attention from recruiters as their counterparts with degrees. But, according to Sanjay Shetty, Director-Professional Search and Selection and Strategic Accounts, Randstad India, a fair comparison can be made only with Tier-2 or Tier-3 MBA colleges.
“Reputed colleges definitely have an advantage. They have a set path in the form of placements. If you exclude these select business schools, people with online MBA certifications are at no disadvantage to recruiters compared to those with degrees.”
Shetty said large corporates, consulting firms and multinationals still prefer to go through the traditional route of hiring management students through college placements for entry-level roles. “Some of these companies have global shared services and research centers in India, for which they go beyond degree holders from top business schools.”
Also, since these courses are unrecognized, they may not hold much relevance globally. However, certification affiliated with a college in other countries may open up employment opportunities in that country.