PAYS TO CHOOSE WISELY
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 says it pays 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 says.
“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 says 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,” White says.
“Do your own research – if an institute is making claims about what graduates from their courses are doing (earning), then they should be able to quantify it.’’
Australian Institute of Business chief executive Joel Abraham agrees the actual salary increase of postgraduate study can vary dramatically.
AIB recently introduced a return on investment calculator for prospective MBA students that takes into account their age, current salary and how many years they intend to work 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 says.
“That perception has always been very generalised.
“People were doing their calculations, but it was always back of the envelope type stuff.
“We wanted to be able to quantify it.
“The scientific rigour of the ROI Calculator is very exciting.’’
Leigh Andrews, a telecommunications trainer, will study an MBA next year after learning the qualification can see him increase his salary by a third within five years, and triple his income in the longer term.
“(Doing the MBA) is about career progression and 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 side,’’ he says.