Question on ROI in entry survey

I’m concerned that they would not know how to calculate the ROI. Different people may have different interpretations of it. What is your experience with other programs?

Hi Nicole,
We have a section on Return on Investment in the questionnaire that covers several aspects of ROI -- expectation of: payback period, new job responsibilities, promotion, job change inside current organization, job change outside of current organization, and salary/bonuses upon leaving the program.

We calculate ROI based on these estimations/expectations -- students do not make any calculations for ROI.

I have a difficulty coming up with the payback period. How do respondents know how to calculate that?
The payback period is an estimation of the number of months it will take to recover the cost of the MBA program. This is a common accounting metric that MBA students should understand and be able to calculate.

We have measured payback period for many years in our MBA Lifecycle Surveys and the statistic has proven reliable with stable and consistent results.

One of the advantages of payback period is that it is very simple to calculate. Two typical disadvantages of this metric is that it ignores money received after payback and doesn’t consider the future value of money. However, due to its consistency, these are less concerning for business school administrators looking to a full picture of return-on-investment (ROI).