An online MBA has long been seen as a reliable way to boost your career. But in 2025, with more people studying online than ever before, some prospective students may be asking: is an online MBA still a smart investment?
Recent data suggests that online MBAs are holding their value — and in some cases, offering strong returns. But outcomes can depend heavily on the program you choose.
A recent Graduate Management Admission Council (GMAC) survey in 2024 found that 66 percent of employers think in-person MBA graduates have stronger technical skills than online graduates.
About 73 percent also said in-person grads are better at leadership and communication.
Still, more than half of employers — 54 percent — said they see online and in-person degrees as equally valuable.
Views also vary by region. US employers tend to prefer in-person graduates, while employers in Asia are much more likely to see both types of degrees the same way.
Rising Awareness Of Benefits
For many business schools, the gap in perception between online and on-campus degrees is shrinking fast.
“Employers increasingly view online MBA graduates favorably,” says Kacie Jones, director of graduate recruiting and admissions at Gies College of Business in Illinois in the US.
“These programs attract seasoned professionals who demonstrate time management and self-discipline by juggling demanding schedules with rigorous academic pursuits.”
Jones adds that online students often come out stronger in digital skills too: “The online learning environment naturally enhances technological proficiency and comfort with virtual collaboration tools, skills that are essential in today’s digitally-driven workplaces.”
Stephen Rakas, executive director of the masters career center at Tepper School of Business at Carnegie Mellon University in Pittsburg, agrees.
“Recruiters know online MBA students receive the same rigorous curriculum as our full-time MBAs while simultaneously managing their current jobs, families and other commitments,” he states.
Rakas adds recruiters are often impressed by how quickly online students can apply classroom learning to real work.
Lucia Egea, vice dean at IE Business School in Spain, notes that the gap between online and in-person is closing quickly.
“Employers increasingly recognize that what matters is not the format, but the quality of the program and the capability of the graduate,” she stated.
At IE, she added, “many now see online graduates as more adaptable and digitally fluent — skills essential for leadership in 2025”.
When it comes to promotions, pay rises and job changes, online MBA graduates are seeing strong results.
“The careers of online MBA graduates are increasingly aligning with that of their on-campus peers,” says Jones.
At Gies Business, she reports, “online MBA learners report a 25 percent average pay increase during their program, and 62 percent received a promotion, job offer or new position during the program”.
Track Record Of Strong Results
At the University of Maryland’s Robert H. Smith School of Business, in the US, Kerry Kidwell-Slak, senior director of graduate career coaching, says outcomes are strong, especially for online MBA students who stay with their current employer.
“Graduates are able to quickly apply the lessons learned in the classroom in the workplace and their effort and knowledge is recognized,” she adds.
Tepper’s Rakas echoes this, “Whether they are seeking a promotion in their current role or moving into a completely different career path, our online MBAs are achieving successful outcomes.”
At IE Business School, results are even more striking.
“Online MBA graduates report an average salary of over $209,000 within three years, with a 45 percent salary increase,” says Egea.
Many students also successfully pivot into new industries or leadership roles, using the school’s career support and global alumni network.
For prospective students, the question remains: is an online MBA still worth the time, money and effort?
Most career experts say yes — but with some important caveats.
“The flexibility to pursue a rigorous business education without disrupting your current career or personal life is a major benefit,” says Jones at Gies.
She adds that online MBA students can often apply what they’re learning immediately at work, speeding up career advancement.
Kidwell-Slak at Maryland Smith points out that the return on investment depends heavily on how much a student puts into the experience.
“The value is often directly proportionate,” she says. Networking, engagement and skill-building are just as critical online as they are in a classroom.
At Tepper, the recent online MBA graduates report a 47 percent average salary increase from start to finish, says Meg Lukus, executive director of the program.
Lucia Egea at IE is equally clear: “A high-quality online MBA equips professionals with strategic, leadership and digital-collaboration skills that are directly aligned with how business operates today.”
The format might have changed. The value, for those who use it wisely, has not.
Seb Murray is a London-based freelance journalist and editor with several years’ experience in print and online media. He writes regularly for titles such as the Financial Times, the Guardian and the Evening Standard, as well as a plethora of education and corporate magazines and websites. He reports on issues facing the world’s top higher education institutions and online education providers.
