Why are Online MBAs Respected by Employers?

By Dr Andrew Lancaster

Considering an online MBA? It may seem simple compared to traditional study—just log in during your free time and earn a degree. But is it really that easy?

The flexibility of online learning leads many to ask, "Are online MBAs respected?" Does the convenience come at the cost of how employers view your degree?

From my experience as a business owner and former recruiter, an MBA offers a career advantage, proving your dedication to becoming a better manager. The skills gained—leadership, analysis, critical thinking, and communication—are invaluable.

Respect comes whether you study online or attend in person, but the business school you choose still matters. "You get what you pay for" applies to online MBAs too.

Reasons Why an Online MBA Is Credible

What makes an online MBA worth it for many professionals is the ability to continue working full-time while studying part-time. But does this mode of study resonate equally with employers?

Our findings suggest that an online MBA receives a similar reception from employers as its traditional counterpart. Here are four compelling reasons why an MBA obtained online holds just as much credibility as an on-campus one.

1. Employers won't notice your MBA was online

Upon receiving your actual MBA degree - be it paper or digital - it doesn't flaunt "Online MBA" or "Online Degree" in glaring red letters. Your qualification simply reads "Master of Business Administration" or similar.

Typically, employers can't tell if an MBA has been acquired through online or in-person study. For example, most Australian universities that offer online MBAs also provide on-campus programs. You can secure your MBA from them either way, and there's no indication on your diploma concerning the mode of study.

According to the most recent education statistics, more MBA students in Australia study online than regularly attend a campus. There is general community acceptance that an online MBA is valid.

It's also standard to state on your CV or resume merely that you have an MBA from a particular university and graduated in a certain year. There is no expectation to specify whether it was completed online.

Even during a job interview, you have the discretion to discuss your qualifications. You might choose to highlight your online studies as a selling point to, for instance, illustrate how you adeptly balanced study with work. However, an alternative route is also available: to simply omit the fact that you were a distance learner.

2. You earned your degree the hard way

Studying for an online MBA? That's no walk in the park. You need discipline—loads of it.

Among the hardest parts of earning an MBA is just finding the motivation to study consistently. That aspect is even more difficult with online learning. You don't get the buzz of an in-person class, the sight of your teachers, or the camaraderie of classmates. Your motivation has to come from within, which makes earning your degree all the more impressive.

Think about it. In a physical classroom, you've got external motivators. Maybe it's competition with classmates or wanting to impress your tutor. Perhaps it's just staying engaged in class discussions. Online, you miss all that.

Sure, online courses try to bridge the gap. You've got emails, chat forums, online group work and such. But ultimately, earning an MBA online is all about self-drive. It shows you've got what it takes to get things done independently. That's a real accomplishment.

3. Business schools are mostly similar in employer minds

Whether you land a job or promotion isn’t usually determined by where you got your MBA. While an MBA from Wharton or London Business School might stand out, most recruiters don’t focus on the institution. An MBA from anywhere, whether it's UNE or UWA, still holds value.

Recruiters rarely check rankings; they focus more on your work history and references. Seeing an MBA on your resume matters, regardless of the university.

If your MBA is from an online-focused school, don't worry. Online MBAs are increasingly accepted. Be ready to discuss how your online experience benefits the role, though it may not even come up.

4. Respected universities run online MBA programs

If you want employers to value your MBA, choose a credible program. This generally means avoiding the cheapest options. A quality MBA can be affordable but won't come at rock-bottom prices.

Online MBAs offer value for money by saving about 30% on tuition through cost-effective delivery, larger classes, and digital trainers instead of high-salaried academics.

However, if a program is too cheap, it likely means corners have been cut. Support may be inconsistent, materials outdated, or technology old. In the U.S., weak accreditation could also be a problem.

Respected schools don’t offer bargain-basement MBAs. Investing more in a quality course enhances employer respect and provides a richer learning experience.

What Do Employers Think of An Online MBA?

Employers' attitudes toward online MBA programs have evolved significantly. Most now view online MBAs from reputable schools as credible and valuable, recognising that their rigour often matches in-person programs.

A Future Learn survey found that hiring managers appreciate the self-motivation and technical skills of online learners. 89% also believe online study will be more common in the future.

The growing acceptance of online MBAs is a positive development, especially for business administration. However, some hesitancy remains, particularly with for-profit institutions.

Not all hiring managers are familiar with online education. For larger firms, deciding who handles hiring for an online MBA graduate who’s also working can be complex. But graduates don’t need to mention their degree was online—employers will ask if they're interested.