Many of you will have heard of the MBA spoken of in hushed reverent tones as people mingle in the corporate world. When it comes to salaries the MBA is like a golden goose. Is it really though? What is the truth? Will an MBA increase your salary?
Let’s look at known facts and statistics to answer this question.
Before you think about how much you will earn, you need to consider how much you will spend. On average, the price of an MBA in Australia is $50,000. However, you can find courses which may cost less.
As I am sure you are aware, an MBA salary can vary considerably from region to region and between industries.
Recent statistics gathered by the Graduate Management Admissions Council (GMAC) shows the high level of satisfaction and perceived value of their MBA course by business school graduates. They surveyed nearly 15,000 business school alumni from all over the world and a whopping 91% of respondents said their degree was professionally rewarding.
The survey interviewed students who graduated between 2007 and 2016. Results indicated that MBA graduates were commanding salaries (including bonuses) from USD $72,170 to $456,400. Respondents reported on “quantifiable benefits from their education, including high employment rates, post-degree salary growth, advancement in their careers, and the personal satisfaction of acquiring new skills and experience.”
How do these figures compare with your earnings now?
When comparing the survey results from the MBA graduates and those without the qualification the biggest difference is earning potential. The potential to reap big earnings with an MBA is significantly better than with the other programs.
Furthermore, outside of the USA, the Asia Pacific (AP) region has the highest percentage of companies (36%) who will give a new graduate bonus. The median bonus is $3,500 USD (about $4,700 AUD). If you are fortunate to find a job with an employer who pays one of these bonuses, the payment will cover a nice chunk of the cost of your course from the get-go.
The other good news for AP graduates is only 23% of companies plan to hire international candidates. So what is the primary reason AP companies are not looking for international candidates? Because they think they can find talent domestically This is the part where you come in!
Responses to the GMAC survey indicated the Healthcare industry will hire the most MBA graduates in 2018. The Healthcare industry is closely followed by Technology and Energy/ Utilities. Furthermore, the survey found in the AP region 77% of MBA’s will find a job placement in mid-level management positions, 30% will land senior level positions and 17% executive positions. This means once you do get hired, some rungs on the corporate ladder will remain, but you are well-positioned for career progression (and further salary increases).
In the AP region, we can see companies plan to hire MBA’s primarily for business development (80%). However, they also have a high demand for MBA’s in Data Analytics (74%), Finance (74%) and HR (74%).
Considering the most desired job function for MBA’s is in business development, let’s have a closer look at this job, and how the MBA can fast track your career and salary.
Quick Business Development Manager MBA salary case study
According to Payscale in Australia, a Business development manager, in a mid-level role, can expect to command a salary of AUS$89,000. They state an entry-level role gives a salary of around AUS$79,000. As an MBA graduate, you can hope or expect even, to skip the entry level role, meaning you can potentially negotiate a salary of AUS$89,000. Given you are expecting to pay around AUD $75,000 to AUD $90,000 for the course, I’d say that’s pretty good!
The statistics show demand remains high for graduates with an MBA, and companies are actively recruiting. Furthermore, the roles and level they are recruiting MBA’s for are mostly mid-level or higher. We can find evidence on Payscale and other resources which support the fact that salaries for these roles are high. Now before jumping the gun, there are a number of factors to consider including your initial salary, however, the proof is in the pudding and MBA graduates are seeing a very real return for their money and effort.