AJ Ansari is a Microsoft MVP and the COO at DSWi, a leading Microsoft Partner implementing ERP and BI solutions for SMBs and Mid-market.
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Congratulations. After years of hard work—and perhaps some partying—you are just months away from that coveted college degree. You have been talking to a career advisor, going to career fairs, meeting recruiters, filling out some job applications and doing your homework by looking at salary surveys.
Somewhere along the way, you learn from a salary survey or an advisor that candidates with graduate degrees can command higher salaries. Perhaps your university even has that perfect graduate program; or they may even offer a 4+1 path if you plan your courses just right. Just one more year and you not only have your bachelor's, but a master's too. Why wouldn’t you? You’ll hear professors and administrators telling you how hard it is to go back to school later.
For those looking to become the future business leaders, the decision looms: Should you get into the workforce or return for another year or two of graduate studies?
Finding Clarity
Before you decide, though, I recommend that you step away from all the noise and give yourself space to think clearly and objectively. The first thing you need to remember is that while universities are places of higher learning, they are also businesses. Regardless of whether it is a public, private or for-profit university, more enrolled students means higher revenue. The advice you’re getting from your advisor on the university’s payroll may not be as objective as you may think.
Ask yourself the following questions:
1. How will I finance the extra year or two? Am I getting a scholarship or a teaching/research assistant position that will lower or eliminate tuition costs?
2. How are the prevailing economic conditions? Is unemployment high? Do the current market conditions favor the employer or the prospective employee?
3. What is my opportunity cost for delaying the start of your career by a year or two?
Timing Your Move
In a down market when unemployment rates are high, it could actually be smarter to stay in college, especially if you’re not paying full price for that graduate degree program. If you’re also getting paid as a graduate assistant, it could be a no-brainer.
If you’re reading this article in the spring of 2024, unemployment rates in the U.S. are near historic lows, hovering just below 4%. This is an ideal market for job seekers given that there are more jobs on offer than people available to fill those vacancies. It also gives job seekers like you greater leverage to negotiate better compensation. (Note: if you’re not negotiating, you’re leaving money on the table.)
Are you really ready to sit this market out? The market can, and will change; it’s cyclic by nature. But what you don’t know is how long each cycle will last.
Discovering Your Fit
Aside from all the considerations listed above, there are two more you need to keep in mind:
1. Does your ideal job require a graduate degree?
2. What does your ideal employer look like?
Let’s explore two very different jobs for the first question: If your ideal job is professional sales, there are very few job listings where a master's degree is required. It’s far more likely that you’ll be required to have an understanding of a sales methodology, an industry, etc. And most businesses will invest in training you on these if you come with the right foundation (undergraduate degree) and soft skills.
But if your ideal job is a data scientist, then you may make a far better candidate with a master's degree than with a bachelor's. In fact, you may even struggle to get good job offers without a masters.
As for the second question, ask yourself if you’d be happier with the organizational culture of a small and medium business (SMB) or a large corporation. SMBs offer greater job stability, a relaxed culture and "family treatment," while corporations can offer better pay and benefits, and more room for advancement but are also quick to lay off workers when the going gets tough.
Also, here’s a little secret about employers: While larger corporations may reward you for having a graduate degree with higher pay or a fast-track path to management, most SMBs simply don’t care about that extra degree.
If anything, they may hesitate to hire you because they worry you’ll want a very high salary or out of concern that you’ll soon bolt for a larger corporation that will lure you with the big bucks. Know too, that if you’re a rising star with a bachelor's degree and your employer’s interests are better served by you having a graduate degree, corporate employers and even many SMBs will foot the bill fully or in part.
At the end of the day, there isn’t a one-size-fits-all answer to the question of whether you should get your master's or jump into the workforce as soon as you graduate.
There is one right answer for you, though, and I believe that you’ll see it clearly once you’ve taken the time to consider all the factors. Your future depends on it, so don’t take the decision lightly. You can thank me later.
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