What you need to know before you enroll.

If you are thinking of enrolling in an EMBA programme, sooner or later you will need to tackle a familiar topic: money. Tuition fees, living expenses, affordability, financing, and return on investment. The list is long.

This complexity is deceptive, though. Investing, at its core, involves deploying capital (and in this case, time) toward projects that are expected to generate a positive return over time. At the end of the day, it’s up to you to figure out if the EMBA is worth the investment.

In the following sections, we will explore cost and ROI figures, along with some financing advice.

The price of knowledge

When considering the cost of pursuing an EMBA programme, it becomes evident that there are notable variations depending on the geographical region. By examining the data, it is clear that Europe and China offer more affordable options compared to the United States.

In Europe, esteemed institutions such as HEC Paris (France), IE Business School (Spain), and ESCP Business School (France) provide Executive MBA programmes at relatively lower costs. For instance, HEC Paris Executive MBA is priced at USD 104,000, while IE Business School offers its programme at USD 92,704. Furthermore, ESCP Business School sets its Executive MBA cost at USD 79,430. At the same time, the EMBA at CEIBS (China) costs USD 105,000.

In the United States, EMBA tuition fees hover around USD 200,000. Notable examples include the Kellogg/HKUST Business School programme, which requires an investment of USD 184,000. The prestigious MIT Sloan EMBA comes with a price tag of USD 197,000, while the Yale School of Management charges USD 208,500 for its programme. There are, of course, more affordable options. The average cost of a US EMBA is USD 126,500, according to cost data compiled by Poets&Quants.  

Rate of return

A discussion about the cost of EMBA programmes would be incomplete without considering the associated return on investment (ROI), although it can be challenging to calculate. This is because the ROI depends on the career outcomes that individuals have yet to achieve – such as pay raises, promotions, or career switches that an EMBA could potentially facilitate.

The latest research conducted by the Executive MBA Council (EMBAC) highlights the significant impact of an EMBA on compensation. Findings from the 2022 EMBAC Student Exit Survey indicate that respondents experienced an average increase of 17.7% in salary, inclusive of bonuses, upon graduating from the programme. This increase in compensation surpasses the average cost of the degree, which rose by 2.5% during the same period.

Additionally, the survey revealed that students observed a substantial rise in their average compensation throughout their EMBA journey. At the start of their programmes, respondents reported an average compensation of USD 231,143, which rose to USD 272,160 upon programme completion. This progression in compensation represents a significant leap from the previous year, where the average compensation started at USD 166,549 and culminated at USD 190,989.

It's important to acknowledge that ROI is not measured solely in terms of monetary gain. EMBA gains extend beyond financial return and include intangible benefits such as enhanced leadership skills, expanded professional networks, and increased marketability. The programme offers opportunities for personal and professional growth, providing professionals with the tools to tackle complex business challenges and make strategic decisions. Additionally, the prestige and credibility associated with an EMBA can open doors to new career opportunities and provide a sense of fulfilment and accomplishment.

Solving the financing challenge

Once you are convinced of the value of the EMBA for your professional and personal growth, it’s time to think about financing. There are various ways to cover the cost of an EMBA. It is also possible to combine different funding methods. Self-funding is always an option if you have enough savings. Postgraduate loans are another possibility. Scholarships and bursaries are also available for some programmes, but bear in mind that competition is intense. Employer MBA sponsorships are also common. However, convincing your boss to finance your EMBA requires serious preparation and well-reasoned arguments backing your request.

Employer sponsorship

While not universal, employer sponsorship is relatively common for EMBA candidates. Many companies recognise the value of investing in their employees' professional development and view sponsoring an EMBA as a strategic investment in their workforce.

To secure financial assistance from your employer, however, you need to do some work. You could probably explain at length how the EMBA will add value to your professional and personal development. However, this time it’s not about you. The main question you need to answer in your EMBA sponsorship pitch is how the degree will improve and benefit the company. Build your arguments with your employer in mind, first and foremost. Think about how the EMBA will help you to add valuable additional skills to the workforce and how this will help the company financially. How will your colleagues benefit from the knowledge and skills you acquired during your studies? Are you willing to share your expertise?

To answer these questions, you need to be very familiar with the nuts and bolts of the programme of your choice. Know everything about the curriculum, learning methodology, specific events and activities, career paths typically taken by alumni, and employment statistics. Your overall performance at the company should work in your favour, too. In your pitch to your boss, you should be able to highlight your positive impact on your company, preferably substantiating your claims with facts and figures. To quote Kaplan: “It is very difficult to convince your employer to sponsor your studies if you haven’t demonstrated your value as an employee.”

Beware the strings attached

If your company agrees to cover your tuition or even a larger portion of the costs, you will be asked to sign a sponsorship contract. Read the document carefully to ensure that there are no parts that you disagree with. One of the most important clauses in such documents is the period for which you commit to staying with the company after obtaining the degree. Employers stipulate such provisions in order to protect their interest and avoid a potential scenario in which they fund an employee’s degree only to see them leave for another company shortly after graduation.   

It’s up to you to decide what time commitment is reasonable. Admissions consultant Stacy Blackman advises: “Because sponsorship often comes with an obligation to return to the company after you complete your degree, take a step back and assess whether you’re absolutely confident you want to return. Breaking such an agreement after you earn the degree can lead to not only strained relationships with former colleagues, but also a mountain of unforeseen debt.”

Addressing the financial aspects when selecting an EMBA programme may not always be an easy task, but it is essential and warrants careful consideration. By taking the financial factor into account, you can make a well-informed decision that enhances your career prospects.