In the world of graduate education, there’s a saying that undergraduate college choices are about the 3 P’s: Price, Proximity, and Prestige. For MBA candidates, we propose a new framework: the 3 R’s – Reputation, Recruiting, and Return on Investment.
Future MBA candidates are inherently more outcomes-focused than undergraduate students. While personal growth remains important, the emphasis includes tangible benefits and measurable results. The fundamental question for future MBA candidates is: Why invest two years and over $100,000 in an MBA program?
Reputation
Reputation is a collective measure encompassing rankings, results, brand recognition, and other key indicators of institutional excellence. Texas McCombs has solidified its position as a top 20 MBA program with impressive national recognition by U.S. News and World Report in 2024:
- #7 Working Professional MBA
- #16 Full-Time MBA
- #15 Executive MBA
But our story goes beyond rankings. We are powered by the University of Texas at Austin brand – a name that resonates globally. The burnt orange of the Texas Longhorns is more than a color; it’s a symbol of excellence that transcends state lines and continents. When people hear “UT,” they instantly connect it with the motto “What starts here changes the world.”
Wherever you go – from the bustling streets of New York to the tech hubs of Silicon Valley, from international business centers in Tokyo to emerging markets in São Paulo – you’ll find that the University of Texas needs no introduction. Our reputation precedes us, speaking volumes about the caliber of education and the potential of our graduates.
These rankings represent our commitment to delivering an exceptional graduate management education across multiple MBA formats, reflecting our academic rigor, innovative curriculum, and consistent performance in preparing business leaders who are ready to make a global impact.
Recruiting
The McCombs MBA is not just about what you learn, but how we help you leverage that learning in the job market. Our recruiting ecosystem is designed to be a powerful career accelerator that goes beyond traditional placement services.
We’ve cultivated a robust network that connects students with over 420 unique employers annually. Our career support is a holistic journey that begins with deep personal exploration and extends to strategic career placement.
Our dedicated Career Education & Coaching team provides end-to-end support that transforms your professional potential:
- A full-time coaching team of eleven professionals entirely dedicated to student success
- Specialized part-time coaches with expertise across various industries, including the most common MBA paths like consulting, tech, and finance, along with specialized paths in industries like energy, private equity, venture capital, healthcare, and manufacturing
- Comprehensive support that spans from self-assessment and market exploration to interviewing and offer negotiation
“The numbers tell a powerful story about our commitment to student success,” Sarah Nathan, Managing Director, MBA Career Education & Coaching said. “In the past year alone, our dedicated career team has conducted over 1,200 individual coaching appointments, supported more than 550 actively job-seeking students, and provided upwards of 200 hours of drop-in coaching sessions across our MBA programs. But what these numbers really represent is our personalized approach – each interaction is an opportunity to help a student refine their career strategy, prepare for crucial interviews, or navigate important decisions. We’re not just helping students find jobs; we’re partnering with them to launch careers.”
Our approach is meticulously designed to support your unique career journey, meaning we offer personalized strength and interest assessments, exploration of diverse industries, functions, and employers, tactical skill development, and specialized preparation programs, technical and consulting case interview training, targeted support for veterans, and industry-specific networking strategies. This comprehensive approach translates into tangible results, with 78.7% of Full-Time MBA Class of 2024 graduates securing positions through school-facilitated sources.
Recruiting Trends
The past three to five years have been a remarkable period of transformation in the job market, and McCombs MBA graduates have emerged as resilient and adaptable professionals. The post-COVID landscape brought an unprecedented demand for top MBA talent, presenting our graduates with exceptional opportunities.
While national MBA hiring has experienced some softening, particularly in consulting and technology due to interest rate changes and other economy-wide factors, McCombs graduates have been strategically positioned to thrive. The Texas business ecosystem has been a critical differentiator, with the state consistently outpacing national job growth and creating dynamic opportunities across multiple industries.
The job market has witnessed a fascinating shift, with a surge of high-paying roles emerging in operations, energy, financial services, and banking – a trend highlighted in the Wall Street Journal’s “Y’all Street” feature about Texas’s burgeoning financial hub.
The Texas Advantage
The Texas business landscape offers unique opportunities that set our graduates apart. With incredibly strong job growth, the state has become a powerhouse for industries including:
- Banking and financial services in the Dallas area
- Energy sectors in Houston and Austin
- Manufacturing and aerospace in Central Texas
- Technology in Austin
A distinctive benefit is that salaries in Texas frequently match those in higher cost-of-living areas, accelerating the payback period for our MBA investment. The robust job market means our alumni are not just finding jobs – they’re thriving. Large companies are drawn to our central hiring departments because of the McCombs brand, while our alumni in leadership positions actively prioritize hiring fellow Longhorns.
Top recruiting partners including Amazon, Bain & Company, Boston Consulting Group, Dell, Deloitte, EY Parthenon, Kearney, McKinsey & Company, Microsoft, PepsiCo, PwC Strategy&, and Walmart actively seek McCombs talent, recognizing the exceptional preparation and skills our program develops.
Return on Investment
When considering an MBA investment, sophisticated candidates think like investors – they want to understand the quantifiable returns. We approach ROI with the same analytical rigor we teach in our finance courses.
The financial value of an MBA can be measured using two key metrics: Net Present Value (NPV) and Internal Rate of Return (IRR). NPV indicates the value created by your investment in today’s dollars, while IRR shows your annual percentage return. When directly comparing two mutually exclusive investment alternatives (such as pursuing an MBA vs. not pursuing an MBA), we can calculate the incremental NPV and IRR to determine which alternative is better, financially.
Using current data from our 2024 graduating class and typical career trajectories, here’s what the investment in a Full-Time MBA looks like (don’t worry – these assumed values can be changed if others apply):
- Average Pre-MBA Salary: $90,000
- Pre-MBA annual increase in Salary: 5%
- Pre-MBA tax bracket: 25%
- Post-MBA Starting Salary (based on average 2024 numbers): $150,000
- MBA Signing Bonus (based on average 2024 numbers): $30,000
- Post-MBA annual increase in Salary: 7%
- MBA tax bracket: 30%
- Tuition: $100,000
- Additional Expenses: $30,000
- MBA Internship income: $25,000
Using these inputs and assuming a discount rate of 6% (implying that you could earn 6% annually on funds if you don’t invest them in an MBA), over a typical 35-year career, your MBA generates:
- Incremental NPV (over not pursuing NPV): $1.56 million in additional value
- Incremental IRR: 21% annual return
Thus, your initial $130,000 investment in an MBA more than pays for itself over time in absolute dollars and it also generates a very attractive incremental rate of return.
We’ve provided a template you can use to plug in your own numbers and see your potential returns. These tools will help you make an informed decision about your MBA investment.
Intrinsic Value
Of course, the true value of an MBA extends far beyond financial metrics. Beyond the impressive salary increase and career acceleration, students experience a profound personal transformation. The MBA journey cultivates increased self-confidence, transferable skills like advanced project management and strategic negotiation, and a deeper understanding of personal strengths and career goals. Students develop enhanced relationship management, learn to challenge assumptions and gain the courage to ask critical questions that shape their professional trajectory.
The real magic happens in the relationships and personal growth. Graduates build a rich network of unique, ambitious professionals from varied backgrounds, creating lifelong connections that inspire and challenge them. They expand their worldview, develop greater social and cultural awareness, and discover an enhanced ability to contribute to community causes. As the saying goes, “You are the product of the five people you spend the most time with” – and an MBA surrounds you with innovative, driven individuals who push you to reimagine your potential, transforming the experience from a mere degree into a life-changing journey of personal and professional development.
The Numbers Tell a Compelling Story
The McCombs MBA is more than an educational investment – it’s a transformative financial strategy. Our data reveals a powerful narrative of opportunity, with an average starting salary of $150,000 plus a $3,000 signing bonus, Full-Time MBA graduates see a 67% increase from typical pre-MBA salaries. Over a 35-year career, this translates to an additional $1.56 million in value, with an impressive 21% annual return on investment.
We’re committed to making this investment accessible through multiple funding pathways. Approximately 75% of Full-Time MBA students receive scholarship offers ranging from $5,000 to full tuition. For those exploring additional financial support, federal loans offer fixed interest rates with flexible terms, and our financial services team provides comprehensive guidance on employer sponsorship, military funding, and external scholarship opportunities.
The true ROI of a McCombs MBA extends beyond dollars and cents. While the financial numbers are compelling, the real value lies in the combination of our three R’s: the doors opened by our reputation, the opportunities created through our recruiting relationships, and the demonstrated return on investment. Your MBA is not just an expense, but a strategic investment in your most important asset: yourself.
Ready to get started on your MBA journey? Visit Texas McCombs MBA to learn more about our programs, application components, deadlines, and upcoming events, or take a peek into student life on Instagram. Please reach out to the MBA Admissions Team with any questions.
