For Many Working Professionals, Master’s Programs Provide a Big Return-On-Investment
If you’re currently looking for a new job, you may have noticed that the job market is sketchy, or at least it seems to be. Despite a growing labor shortage, many professionals report that they’re having trouble finding high-quality jobs. According to Fast Company, this could be because the job market is shifting from a pandemic-era employee market to an employer’s market, meaning employers can afford to be pickier about who they hire. There’s also a lot of competition out there, and many professionals are trying to find ways to stand out in a crowd of highly qualified candidates. One way to do this is by going back to school. Today, more professionals than ever are investing in master’s degree programs in the hopes of improving their job prospects – but are these investments worth it?
To understand what makes a master’s degree worthwhile, it’s important to consider the return-on-investment (ROI) that master’s programs provide. ROI refers to the financial and nonfinancial benefits that help make one’s investment in higher education pay off over time. Understanding ROI gives context to why master’s programs have become such a popular choice for working professionals, especially in today’s job market.
Why So Many Professionals Are Going Back to School
In the United States, the number of professionals going back to school for a graduate degree has tripled since the 1970s. This increase is due, in part, to how many Americans are now graduating from college. Today, about a third of Americans are college graduates, up from 4.6% in the 1940s. Since more and more Americans are graduating from college, an undergraduate degree, while still valuable, is no longer quite the distinguishing credential it used to be. Increasingly, businesses are listing college degrees as a minimum requirement for entry-level positions.
Considering this, some experts have posited that master’s degrees have replaced bachelor’s degrees as employers’ preferred distinguishing credential. Indeed, jobs that require or prefer a master’s have become more common. According to some estimates, 27% of employers are recruiting candidates with master’s degrees for jobs that used to only require a bachelor’s.
Beyond making job candidates more competitive, going back to school is also about learning – by pursuing a master’s, professionals can learn new skills and become better at what they currently do. In today’s skills economy, investments in learning often have a big payoff, especially when the benefits are considered holistically.
Master’s degrees have replaced bachelor’s degrees as employers’ preferred distinguishing credential, providing competitive advantage, job stability and significant financial returns.
Understanding ROI and Master’s Degrees
Earning a master’s can benefit professionals in numerous ways, both long-term and short-term. When most people think of ROI, they think of financial benefits – higher starting salaries, better access to promotions and leadership positions, and pay raises. However, there are also non-financial benefits that come along with earning a master’s. Read on to learn more about the different kinds of value master’s degrees provide:
- Salary increases, promotions and other financial benefits.
When it comes to getting a return-on-investment, many professionals want to see their education pay off financially. Though financial gains like salary increases and promotions aren’t the only benefits of earning a master’s, they are often a big motivating factor in a person’s decision to go back to school. Generally speaking, earning a master’s does usually lead to a salary increase, though the percentage can vary based on the type of program and other factors. According to Harvard Business Review, professionals with a master’s degree can expect an average salary increase of around 25%, but some programs can increase one’s expected salary by up to 150%.
Census data for Purdue University shows consistent salary increases for professionals who earned online master’s degrees across a variety of disciplines. Overall, salary increases for graduates with master’s degrees ranged from 25% in communication and healthcare to over 73% in computer science and information technology.
An added financial benefit is that earning a master’s can help professionals negotiate for raises and promotions, which can benefit their career and earning potential over time. According to the Bureau of Labor Statistics, a master’s can be an important bargaining tool that can help professionals qualify for high-paying positions and give them more leverage in a competitive job market.
- Competitive advantage, employability and job stability
In addition to helping them earn raises and promotions, master’s degrees provide other job perks for working professionals – including increasing their competitive advantage, making them more employable, and increasing their job stability.
Research shows that earning a master’s can be an important stepping-stone for breaking into competitive, high-paying fields like healthcare and technology. According to the Higher Education Statistics Agency (HESA), master’s degree holders have a higher chance of ending up in a professional role than people who only have a bachelor’s degree. Master’s degree programs that provide technical career training and professional development opportunities, like Master of Health Administration and other management programs, are especially useful in this regard. Additionally, professionals looking to change careers can also benefit from earning a master’s.
Earning a master’s can also decrease one’s risk of unemployment and improve one’s job stability. Data from the Bureau of Labor Statistics (2023) shows that unemployment rates go down as educational attainment goes up. Professionals with just a high school diploma or GED have an average unemployment rate of 3.9%, while professionals with bachelor’s degrees have an unemployment rate of 2.2%, and professionals with master’s degrees have an unemployment rate of just 2%. Further, research from the Brookings Institute shows that professionals with master’s degrees are also less likely to lose their jobs during times of economic hardship (such as recessions and pandemics) than professionals with lower levels of education.
- Personal growth, soft skills and networking
While higher wages, better job stability and more promotion opportunities are reason enough to pursue a master’s degree, it’s also important to consider the lesser-known benefits of going back to school. Graduate school is challenging, and everyone pursuing a master’s is there to learn something – not just about their industries, but also about themselves.
By working through the hard problems that graduate school exposes them to, professionals get an opportunity to build a host of “soft skills” that can help them grow professionally and personally. These include time management, critical thinking and reflection, interpersonal communication, leadership, and collaboration. Regardless of what profession they’re in, all professionals can benefit from the experience of working in teams, collaborating on big projects, discussing issues in class, and managing big workloads. Plus, the soft skills that graduate school teaches can be a huge boon in the job market: employers are constantly looking for candidates who can demonstrate good time management, professionalism, communication skills and more.
Another lesser-known benefit of master’s programs is the networking opportunities that they provide. According to a LinkedIn survey, 85% of jobs are obtained through networking. In a graduate school environment, regardless of if you’re studying in-person or online, networking opportunities abound – you’re taking classes with other professionals and learning from industry and academic leaders who often have decades of experience. If you play your cards right, these connections can turn into job opportunities.
Purdue University’s Top-Ranked Online Master’s Programs
Purdue University, a global leader in providing innovative education opportunities, offers hundreds of online master’s programs in disciplines like engineering, education, technology, aviation, communication and more. Our programs are practical, affordable and career-focused so that professionals can get more return-on-investment. Learn more at our website.