Is an MBA Worth it for HR? A Guide for Startups

Ah, the allure of having those three letters on a résumé: MBA.

There’s a widespread narrative that people with advanced degrees earn more money and are more likely to be hired for senior positions. There’s also the gravitas of saying you studied at fill-in-the-blank brand-name University.

I don’t know how the myth got started that earning an MBA equips you for startup life. But let’s get this straight now: it is a myth.

Startups play by different rules. Large companies can afford a bad hire or a drawn-out learning curve — startups can’t. On a small, scrappy team, every hire counts. Setting people up to succeed isn’t just HR’s job; it’s a survival skill for your business.

In this article, I’ll share what I’ve learned from decades in HR to help you weigh the pros and cons of an MBA, and show you what actually matters for building a career in startup HR.

What an MBA Does (and Doesn’t) Teach You

Let’s be clear: getting an MBA in HR can open doors.

An MBA provides exposure to the language of business, strategic frameworks, and possibly even a strong network that transforms a career. And yes, those three letters may still influence hiring managers or help boost a salary on paper.

But in startup HR, there are tradeoffs. Having an MBA is no silver bullet. It’s one tool, not the whole toolbox. Keep reading to explore the pros and cons of having an MBA.

Pros to Getting an MBA: Yes, There Are Upsides

An MBA does offer some real advantages, but be sure you understand how they translate (or don’t) to the startup grind. The benefits of pursuing an MBA include:

• Exposure to how business works: You’ll learn about the core principles and levers of success essential to any business. You’ll pick up strategy models, organizational theory, and financial know-how.
• Possibility of higher pay: In many corporate settings, an MBA can lead to a higher salary band. ** ** A Graduate Management Admissions Council survey projected the median starting salary for MBA graduates at U.S. companies to be $120,000 — about $30,000 higher than for experienced, direct-from-industry hires and $50,000 higher than for candidates with only a bachelor’s degree.
• Career change opportunities: An MBA can help you pivot into HR from another field and open doors to higher-level roles such as HR Manager, HR Consultant, or Compensation Specialist. Your studies can also cultivate valuable, transferable skills for other people-focused, technical industries like law, teaching, and healthcare, offering the possibility to move beyond HR and business altogether.
• Networking: The built-in alumni network and access to professors, guest speakers, and classmates can open unexpected career doors. This is especially significant at top-tier institutions, whether that’s the Ivy League or another “brand-name” school.

The Cons of Getting an MBA: Some Lessons Can’t Be Learned in a Classroom

The MBA can give you a foundation, but the day-to-day demands of startup HR often require instincts and skills you can only hone in the trenches and through specialized frameworks.

Startups can be chaotic and unpredictable. Coursework is structured and generally doesn’t feature the pressures of operating within an early-stage business.

The downsides of an MBA include:

• Lack of real-world setting: Startups rarely behave like the scenarios you’ll encounter in business school simulations. An MBA won’t teach you how to raise capital, weather economic storms, or navigate industry disruptions that could threaten your startup’s survival. Nor will it prepare you for the roll-up-your-sleeves responsibilities central to most startup HR roles, such as payroll, compliance, recruitment, onboarding, and culture-building.
• An MBA won’t teach you everything — especially when it comes to people: MBA programs tend to focus on strategy, leadership, finance, and operations, but often overlook the “people” side of business. Paycor estimates that people account for 50%–80% of a company’s expenses, while internal team problems cause 20%–25% of companies to fail.
• Staying relevant: Course materials can quickly fall out of date. The startup world often shifts in response to new technologies like AI or evolving workforce demands. That means what you learn in class can lag behind the market, especially in today’s fast-changing business environment.
• You won’t get specialized training for HR: To truly succeed in HR, you need specialized playbooks from other learning sources like the SHRM Competency Model (people, workplace, and organization pillars), the AIHR Competency Model (shaping HR pros with broad skills and a specialty), and the 4C Model of HRM (commitment, competence, congruence, and cost-effectiveness). This will give you the HR-specific knowledge you’ll need to succeed beyond MBA business fundamentals.

Can an MBA open doors? Sure, you bet. But opened doors don’t prepare you for business directions that change on a dime, 25% increases (or reductions) in headcount, or shifting priorities within a company. Next, I’ll share what can actually prepare you for startup life.

Professional Experience and Skills That Move The Needle in Startup HR

In the startup world, HR professionals are expected to be both strategic and tactical — sometimes in the same hour!

The most successful HR leaders in early-stage companies aren’t the ones with the fanciest credentials; they’re the ones who can move fast, communicate clearly, and foster trust while building systems from scratch.

Here’s what really matters when working in a startup:

• Comfort with chaos
• Technical acumen
• An eye for talent

Let’s examine each of these in more detail!

Comfort with Chaos

Startups often say they want agile, adaptable employees. In practice, that means thriving when nothing is set in stone and you have to build the plane as you fly it.

In early-stage startups, HR must roll with constant change: systems are being built, policies are evolving, and priorities can shift daily. This work involves creating processes, shaping culture, and building teams from the ground up. It’s about being resourceful, making decisions with incomplete information, and juggling multiple urgent priorities—all while keeping the business’s most critical needs in focus.

HR is also one of the organization’s most visible faces, especially early on. From presenting the company to prospective hires to keeping leadership and investors informed, clear communication is essential. Because HR touches every department, collaboration across different personalities and roles is crucial. Strong relationships not only keep daily operations running smoothly but also build buy-in, support a positive work environment, and help shape the startup’s culture from the ground up.

Technical Acumen

HR roles in startups demand a wide-ranging skill set — from hands-on execution to tech fluency and sound judgment. A successful startup HR professional combines strategic thinking with practical know-how.

This often involves wearing many hats. One moment, it may mean managing recruitment and onboarding. In the next moment, it could be payroll, performance reviews, or employee engagement programs.

Technology is a force multiplier in this work. From HRIS systems to recruiting platforms, familiarity with the right tools is essential for efficiency, accuracy, and seamless internal communication.

HR professionals also manage highly sensitive information, including salaries and personal employee matters. Supporting teams through conflict resolution, terminations, and upholding both legal and cultural standards requires not just emotional intelligence and active listening, but also discretion and a thorough understanding of laws and internal policies.

An Eye for Top Talent and Good Culture Fit

Recruiting, developing, and retaining the right people requires a deep understanding of the company’s direction and priorities.

HR professionals translate business goals into smart talent strategies, ensuring that each hire moves the company forward. Staying close to leadership and connecting business objectives to hiring decisions is essential for building a team that thrives today and scales for the future (explore this in greater depth with my guide on hiring, which includes how to perform a needs analysis and build an ideal candidate profile).

Startups can’t afford bad hires, and HR is the first line of defense in shaping a strong, effective workforce. HR must know how each team functions and how to engage candidates in the interview process.

Hiring exceptional people is just the beginning; keeping them engaged and growing is equally critical. Top HR leaders create opportunities for learning and development, equipping employees with the tools and skills to succeed while fostering sustainable growth for both individuals and the company.

Especially in Startups, It’s Experience over Credentials. Download the Free Startup HR Survival Guide

The fastest way to build an HR career isn’t by adding letters to a résumé — it’s by thriving in the chaos and learning how to make order from it.

Want an extra boost? My Startup HR Guide gives you a front row seat to what startup HR is really like. In this free guide, you’ll discover:

• How HR can drive growth and shape company culture
• The skills and leadership styles that matter most in early-stage companies
• How to evolve your role as the company scales
• Common pitfalls and how to avoid them

Fill out the form below to access the free Startup HR Survival Guide and start building the experience that will make you a sought-after, well-rounded HR leader.