Ensure study options add up
WORKERS wanting to return to study in a bid to increase their salaries should first carefully research their return on investment.
With postgraduate studies costing anywhere from $30,000 to more than $80,000, Good Education Group product head Ross White said it paid to consider whether the extra study is worth it.
“Overall, early snapshots [of those who have completed postgraduate study] seem to suggest there is some value in it – the average starting salary for undergraduates is $56,000 but it’s $80,000 for postgraduates,’’ White said.
“When you look at business and management [courses], the starting salary for undergraduates is $53,000 but for postgraduates it’s $100,000.
“So that seems to support the theory that postgraduate study is really worth its weight – [the increase in salary] seems to be paying for (the course], if nothing else.’’
Dig deeper, however, and White said the statistics may be affected by several factors, including the type of course being studied.
For example, a Master of Business Administration often provides a substantial salary increase but this may inaccurately affect the salary statistics for graduates of other business programs.
“Postgraduate study is not a guaranteed ticket in and of itself.’’
Australian Institute of Business chief executive Joel Abraham agrees the actual salary increase from postgraduate study can vary dramatically. AIB recently introduced a return on investment calculator for prospective MBA students that takes into account their age, present salary and how many years they intend to keep working after completing their studies. “There’s a perception out there that the more qualified I become, the more likely I am to achieve higher financial returns,’’ Abraham said.
“That perception has always been very generalised ... we wanted to be able to quantify it.’’
Leigh Andrews, a telecommunications trainer, will study for an MBA next year after learning the qualification can allow him to increase his salary by a third within five years, and triple his income in the longer term. “[Doing the MBA] is about getting to where I want to go in my career but I would be lying if I said I hadn’t thought about the money as well,’’ he said.