MBAs mean more now than they ever have. Both employers and employees are currently placing increased importance on business qualifications. Studying for an MBA is no walk in the park and certainly not a cheap exercise, so why are so many giving the MBA more than a second thought?

A 2004 US survey by mba.com revealed that 58% of graduates rated the overall value of their degree as 'outstanding' or 'excellent' and another 30% rate it as 'good'. Furthermore, mba.com found that recruiters believe MBAs are likely to improve not only their employees' ability to think analytically and strategically but also their leadership, quantitative skills and oral communication. So it seems to be more than just another piece of paper.

Professor Larry Smith, director of the University of New England's graduate school of business, says the MBA is not just a qualification but also a holistic learning package. "It is a unique study experience that combines structure and flexibility," he says. "So in a nutshell, the MBA is a highly relevant, practice-orientated qualification that helps develop the kinds of knowledge, skill, motivation, confidence and ways of thinking likely to enhance success."

Smith stresses that as business is changing so rapidly today, employers need staff that not only do their job but also have the confidence and effectiveness to create opportunities for the company. He says companies that have such staff will grow, prosper and be highly prized.

Kelly Jones from Macquarie University reiterates that with the current focus on "return on investment", MBA study can enhance your skill set. "Macquarie Graduate School of Management is renowned for delivering graduates with a practical orientation," Jones says. "Graduates have the ability to present, manage, work effectively in teams and communicate in a superior manner."

For some, the opportunities an MBA can present are like an awakening or the chance to heighten their business awareness.

Nick Greenhalgh, director of talent development consultancy Career Innovations, says an MBA demonstrates intellectual horsepower and requires the effort and discipline found in leaders. "It's like walking along a corridor you have walked down a thousand times before and now suddenly being able to see a whole set of new doors that you didn't know existed," says Greenhalgh of completing an MBA. "An MBA not only [allows you] to see these doors for the first time, but also gives you the opportunity to take a look inside each room - this I believe is the real value."

Greenhalgh adds that those who invest their time in an MBA display their ambitious intent and, therefore, often plug themselves into the leadership pipeline.

Sharon Williams, managing director of Taurus Marketing, says that if she had time she would be doing an MBA. "I think it's a practical degree - more business focused and practical," Williams says. "But I don't believe it makes a good employee. I don't think it's a prerequisite for an employee, but I do think it makes a more rounded business person."

Williams says that when hiring, she tends to look at what candidates have done outside of the educational system as well as their qualifications.

Better job, more pay?

Perhaps the biggest questions surrounding MBA study are 'will it guarantee me a better job?' and 'will I get more pay?'

"No qualification - except perhaps one in medicine in the current Australian context - can guarantee you a position or pay level," Smith says. "There is significant research, however, endorsing the increased range of opportunities available to employees who have completed an MBA."

Williams notes that MBA-qualified staff are not guaranteed of being recruited but disagrees about the pay. "I think there's every chance that you may be higher paid because of an MBA," she says.

"We're dealing with people who have to understand business, be incredibly practical, and deliver to deadlines and on a promise," Williams explains. "You need a good mix. Too much practical and not enough theory, and too much theory and not enough practical, I would be wary of."

Steve Grace, managing director of Fingerprint Consulting Services, believes an MBA is more of a stepping-stone or differentiator. "It doesn't guarantee those things at all," he says. It's a very cluttered market the further up you go because there are only a certain amount of senior people compared to those below them.

"It is a way of differentiating yourself and giving yourself a greater chance to move into more of a GM-type of role as opposed to a department head or something like that," Grace says.

One with the lot, please

MBAs are versatile. Taking on a program need not be a rigid experience that does not suit your career path. Many courses allow students to tailor their studies around individual needs.

"Universities offer tremendous opportunities for people to access an MBA and to pursue the learning opportunities that best suit their needs," Smith says. "All MBAs have a number of 'streams' that allow specialisation in a wide range of areas - within the broad ambit of business, administration and leadership."

Professor Geoffrey Durden of La Trobe University says choosing an MBA requires careful planning. "It is essential for prospective students to research well before committing to a particular MBA program," he says. "They differ in many ways."

Durden says that the Graduate School of Management's MBA for example, is a generalist program, covering all areas of management but offering focused streams at the same time. This appears to be a common format for MBAs.

Opportunity knocks

Grace says the bulk of people who study for an MBA are those who tend to come from a technical background. "They know their jobs inside out, but they don't have the broad experience of managing people and budgets. And when it comes to moving up the ladder, they don't have the ability to take that next step," he says.

Eliana Wong and Raechel Matthews work for Tower Australia and are also currently studying for their MBAs. Both are finding that incredible career and personal value is delivered through their studies.

"I think that an MBA assists in looking at business from the bigger picture," says Wong, a manager in client services. "It makes you better rounded and marketable, internally and externally. It definitely helps you understand each business unit better and enhances your strategic thinking skills."

Matthews, a communications specialist, agrees that the opportunities an MBA creates are significant. "The drawcard for the employee is that an MBA can differentiate their skill set from others," she says. "In addition to learning about alternative management theories, networking with like-minded individuals, and building practical tools, an MBA is a definite boost to a CV and demonstrates commitment, focus and drive."