What Is the Expected Salary For a Person With Their Business MBA?
The Master of Business Administration (MBA) Degree has always been popular, largely due to the potential for very high salaries that comes with it. Despite the recent economic downturn, MBA graduates from top schools can still expect to earn six figure salaries right out of grad school; the average MBA graduate earns $92,000 annually. Such salaries are reflective of the value of that employers place on MBAs. Why is this particular degree considered one of the best to have? The answer is simple: MBA graduates can help their employers to make money.
The Value of MBAs to Employers
The rigor and discipline of an MBA program can help to improve the performance of a graduate and make them into an asset for their employer; this is according to Sara Zeltner, Vice President of Human Resources for New York Life. MBAs also cover a wide range of fields ranging from ethics and law to human resources. The best MBA programs also prepare students to work with a multicultural workforce and so are highly prized in large, multinational companies. The main benefit of the training received in a rigorous MBA program is that graduates usually have mastered the basics of business and need only to learn industry-specific details from their employer.
MBA Earnings by Industry
The amount that someone with an MBA degree can expect to earn is largely dictated by their MBA’s area of focus; these degrees are not universally paid the same. According to Monster.com, MBA earners in Finance can expect to get $121,000 per year in the middle of their career; this is the median pay. In the field of international business, the median salary is $116,000 in the middle of their graduate’s career, where as in marketing it is $113,000. An MBA with an technology concentration can be helpful for career advancement; the mid-career salary in that field is $106,000.
MBA Salaries Around the World
While MBA salaries have been stagnant in the US, they have increased greatly in the rest of the world. The increase in salary goes along with the increase in demand, which rose 15 percent in rest of the world in 2013. Hiring in the US only rose two percent over 2012 in North America. For example, the target salary of those with MBAs in Switzerland is $200,000; in the UK, they are expecting $153,000 after earning an MBA. According to Bloomberg Businessweek, the industries that are at the forefront of MBA hiring are:
• Consulting
• Technology
• General industry
However, it is expected that there will be a regional boom in hiring for those with MBAs in 2014. The increase in the hiring of MBAs (including in North America) may be as much as 16 percent.
There are many other factors that play a role in how much an MBA degree can improve a graduate’s earning power. These range from the graduate’s networking skills to their work experience prior to getting the degree. Each individual’s circumstances are different. However, an MBA program can greatly improve the graduate’s chances of earning more money while providing them with skills that are useful in almost every industry.
