Career ROI: When education pays off – and when it doesn’t

In recent years, the business world has developed a noticeable tendency towards the accumulation of academic qualifications. Employees increasingly seek additional certifications and credentials to strengthen their résumés and broaden their skill sets.

The result is a more competitive marketplace, shaped by the growing volume of qualifications pursued in the hope of career advancement and skills development, encompassing both technical and soft skills.

This raises an important question about the real return on investment (ROI) that graduates derive from their studies. While salary progression is often regarded as the primary indicator of ROI, it represents only one dimension of value.

ROI can also be understood through non-monetary considerations, including time investment, opportunity cost, professional mobility, access to leadership pathways and long-term relevance within an evolving labour market.

When time becomes the hidden cost of education

As industries evolve at speed, the duration required to complete a qualification may become a barrier for new entrants seeking to establish themselves and secure a foothold in the marketplace. This challenge applies equally to experienced professionals aiming to reposition or redirect their careers.

Programmers, for example, may choose to explore new terrain by completing short courses in a new programming language rather than committing to a three-year bachelor’s degree.

This approach allows them to enter the field sooner, gain practical experience and study in manageable segments. Conversely, others may favour a full bachelor’s degree, viewing it as a more comprehensive pathway that develops broader competencies.

This route is often regarded as better preparation for functioning effectively in complex organisational environments, particularly within large, global corporations where a three-year degree remains a prerequisite for employment.

Different qualifications, different career leverage

The cost of pursuing any qualification extends beyond financial considerations. Time and cognitive capacity are finite, and most individuals can realistically focus on only one programme at a time if it is to be completed successfully. Selecting one qualification therefore involves forgoing others.

For this reason, prospective students must carefully evaluate their study options and make informed decisions aligned to their personal circumstances, professional goals and future priorities.

Another influential factor lies in access to leadership competencies, which are often embedded within graduate attributes developed by institutions such as business schools through carefully designed teaching and learning outcomes.

There are many considerations when selecting a qualification, but one of the most significant is the individual’s current position relative to where they aspire to be.

A recent matriculant may consider a bachelor’s degree, diploma or higher certificate as an entry point.

Those who have already completed undergraduate study may opt for postgraduate education to deepen expertise or enhance strategic capability.

Each qualification offers distinct benefits, and these must be weighed against constraints such as time, cost and effort. While it is well established that graduates in South Africa earn, on average, significantly more than non-graduates, it remains important to examine the different qualification pathways and the varied forms of career progression they enable.

From credentials to leadership capital

A more prestigious qualification, such as a Master of Business Administration (MBA), can open access to senior leadership opportunities. Many MBA graduates report advancing into management or executive roles within a relatively short period after completing their studies.

One contributing factor may be the MBA’s integrated curriculum, which emphasises the application and synthesis of business and commercial knowledge, strengthening advanced leadership, problem-solving and critical thinking capabilities.

The Doctor of Business Administration (DBA), by contrast, is designed to cultivate deep research expertise and advanced strategic thinking. Holding a doctoral qualification can confer credibility and influence within both corporate and academic environments, alongside the professional standing associated with the doctoral title.

International mobility also warrants consideration when assessing educational ROI. Certain qualifications, particularly the MBA, enjoy strong global recognition.

This recognition can enable graduates to pursue international career opportunities and relocate in search of broader professional exposure and financial reward.

Longevity remains one of the most critical ROI considerations. Prospective students should reflect on how relevant their chosen qualification, and the associated knowledge and skills, are likely to remain within their industry. Ideally, a qualification should provide a robust foundation that supports ongoing development and sustained competitiveness.

The questions every strategic student should ask

Before applying, students would benefit from reflecting on several key questions. Foremost among these is how the qualification will challenge and develop them, both personally and professionally.

They should also consider what problems the qualification is intended to solve. Will it support career advancement, enhance professional credibility, fulfil compliance requirements, or enable reinvention?

Equally important is the broader cost of study in terms of time, stress, energy and potential impacts on work performance. Personal and family sacrifices during the period of study must also be taken into account.

Timing therefore plays a critical role, particularly when considered alongside life stage, professional responsibilities and personal commitments.

Students should also determine how they will define success upon completion. For some, success may be passing all modules at the first attempt. For others, it may involve graduating with distinction or completing the programme within a specific timeframe.

Choosing education that sustains career momentum

While tertiary education can significantly accelerate career progression, prospective students must assess their current circumstances alongside their long-term aspirations when selecting a qualification.

The right qualification, chosen at the right time, can act as a powerful lever for advancement. Conversely, a poorly aligned choice may quietly undermine momentum and motivation.

Ultimately, students must conduct thorough research into the wide range of tertiary qualifications available and make considered, well-informed decisions about their educational pathways.

Ravin Baburam is an academic at Regent Business School.

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