Is A One-Year MBA The Right Fit For You?

So, what’s the difference between a one-year and a two-year MBA program?  The answer is much more complex than 365 days. Four crucial differences are outlined below, which should all be carefully considered when determining the most appropriate program to pursue.

1. The cost

Less time spent in a program means less cost-of-living expenses and only one year of tuition to fund. If you’re looking for a high ROI based on both time and financial commitment, the one-year MBA is an excellent option.

Keep in mind, however, that just because the one-year MBA takes half the time, it won’t necessarily cost half the money. When calculated on a ‘cost-per-hour’ basis (believe it or not, a few of my fellow MBA students did indeed use this calculation to decide whether waking up for an 8am class was literally ‘worth their time’), one year MBAs are almost always marginally more expensive.

After factoring in an entire additional year’s salary, however, that increased cost is typically made up several times over.

2. The content

I like to think of the one-year MBA as diving straight into the deep end of a swimming pool, while a two-year MBA is metaphorically easing into the shallow end and taking time to get your feet wet, adjust to the temperature, and contemplate exactly what you are about to plunge yourself into.

One-year MBA programs typically do not waste time with an overview of the basics and instead jump into the deeper content within the first few weeks. This means students must either choose their areas of focus sooner or do a lot of research on the basics on their own.

Consider this when reflecting on your purpose for pursuing an MBA in the first place: career switchers may find more value in an extended exploratory phase, while those looking to advance at a more rapid pace may prefer one-year MBAs.

3. The jobs

An obvious difference between the two types of programs is that a two-year MBA requires students to be away from the workforce for double the amount of time. This means one year less salary, one year away from coveted promotion opportunities, and one year of potentially missing out on chances to build a long-term reputation in the workplace.

However, one critical benefit of the two-year MBA is that the course structure is literally built for pursuing a summer internship. Having an entire summer dedicated to trying your post-MBA position before fully committing can be instrumental for a person switching industries, changing geographies, or trying a new type of role.

Speaking from experience, I feel obligated to warn prospective students that they will likely have to do a lot of cold-calling and independent searching to even have a chance for an MBA internship if they are pursuing a one-year program. When weighing the two types of programs, consider what is more important to you: another year in a full-time position, or an opportunity to test the waters before diving into a new role?

4. The people

Having only one year to form bonds with classmates is both an upside and a downside to the one-year MBA. A massive benefit of earning an MBA is building relationships—both personal and professional—that will last long after graduation.

A two-year MBA offers the opportunity to cultivate those bonds gradually and meaningfully, with ample opportunity to find your crew and experiment with new groups along the way. By the last few months of your program, you’ll undoubtedly start to feel a sense of nostalgia for the memories you’ve made and develop a sense of tenderness for your classmates.

What surprised me about a one-year program, however, is that those inevitable warm fuzzy feelings started early—the intensity of the program, the sense of urgency in an accelerated timeframe, and the jam-packed schedule of a one-year MBA quickened the pace of the relationship-forming stage and lit a fire under students to reach out to each other proactively in ways they never would have if they had an entire year more to get to know each other.

While there was certainly less time to bond, there was a sense of camaraderie almost from the start in my one-year program. That feeling of community was special, and likely could not have been achieved in a longer program. andrea-oxford
There is no perfect MBA program and no definitive answer for which type of MBA structure is ‘better’; but there is absolutely an answer for which is best for you—the guidelines outlined here can help you start to discover it.

Rise of One-Year MBAs In The USA?

INSEAD's topping of the Financial Times Global MBA Rankings for the first time in 2016, showed the rising popularity and usefulness of the one-year MBA. 

Within the United States, the traditional, two-year full-time MBA program is still dominant. Five out of the Financial Times’ global top 10 are two-year MBA programs from the US – including Harvard Business School, where the MBA was first introduced over a century ago.

However, according to GMAC, applications to two-year MBA programs fell in 53% of US business schools in 2016. At the same time, 55% of one-year MBA programs reported an increase in domestic applicants.

Vishal Gaur, associate dean for MBA programs at Johnson at Cornell University is the only Ivy League school to offer a one-year MBA program. Its associate dean Vishal Gaur sees a gradual shift towards more elite schools offering one-year programs. 

Applications to the Johnson at Cornell’s two-year MBA remain stable, but applications to the one-year MBA have increased steadily, with the program upping its intake from 40 to over 70 students in a matter of years. 53% of students enrolled on Johnson at Cornell’s one-year MBA are international, compared to 33% on the two-year program – the one-year MBA is still more accepted internationally than it is in the US.

The one-year MBA program is aimed at more experienced professionals; those looking to advance their careers in the same industry rather than switch career track. The current class has an average age of 29, and an average of five years’ work experience between them.

But Shashi Matta, MBA program director at The Ohio State University’s Max M Fisher College of Business, says around 60% of the school’s MBA students get jobs out of their internships and that many employers consider a one-year program not intensive enough.

While some US business schools are still getting to grips with the one-year MBA, in Europe the shorter MBA format has brought schools significant success. According to GMAC, 74% of full-time one-year MBA programs in Europe reported growing application volumes in 2016.

Michelle Sisto, MBA program director at France’s EDHEC Business School, says she’s seen a sharp increase in MBA applicants from the US in particular. The two-year investment in the US can cost upwards of $300-to-400,000 dollars including opportunity cost. 

For more information see BusinessBecause.