One of the most popular reasons for pursuing a Master of Business Administration is the prospect of a lucrative career. Professionals who hold advanced business degrees are highly marketable, and the skills derived from a solid educational foundation in business will prove useful in any career path. Companies are always looking for talented dedicated business experts, and one of the best indications of this is an MBA. Professionals with an MBA are not only more appealing to potential employers, but will advance in their current careers, gaining access to higher level positions and earning better compensation.
Business School Reputation
While obtaining an MBA typically yields a higher salary, there are a variety of factors that determine that increase. One major aspect is the value of the degree as a function of the business school’s reputation. Companies consider the particular MBA program you attended when calculating compensation. Though many of the most renowned business schools tend to be more costly, a degree from a more prestigious school is likely to attract the attention of potential employers and increase the chances of greater earnings, thus yielding a higher return on investment. TopMBA.com
has compiled a list of some of the most prestigious business schools
in North America (as well as other regions) and provides information on the average starting salary of their graduates. Business Insider
condenses this list into the top 25 MBA Programs
with the highest starting salaries for graduates. Currently, Stanford University
stands at No. 1, with an average starting salary of $117,681. Harvard follows at $114,400. Additionally, GMAC’s Global Management Education Graduate Survey
shows that employees graduating from full-time programs expected a 73% increase in salary from what they were earning before.
The particular MBA program attended is not the only factor that accounts for salary. Most important is the industry in which you are employed. Working in finance, for example, is one of the most competitive sectors, but also amongst the highest paying. Additionally, the size and success of the company is crucial to determining salaries, as is the starting position. Luckily, MBA-holders often start in higher positions with greater pay.
Another factor in determining salary is the level of experience possessed prior to enrolling in an MBA program. Years of work experience in a high position at a well-known company within your sector can help secure a greater salary following the completion of an MBA program. Moreover, many companies sponsor their employees
in pursuing advanced degree, aiding them in funding and also offering them a better sense of how their continuing education will improve their career standing.
States and cities throughout the country have different average incomes based on their local economies. Typically, professionals working in urban areas make more than those in rural one. Where there are more people, there tend to be more opportunities for businesses, thus those companies are better able to pay their employees. Salaries are also affected by the local cost of living. Generally, compensation correlates with how much it costs to live in the local area, and, because the cost of living is so high in cities, urban professionals tend to earn more. For example: The average salary of an MBA graduate in New York is $88,695 whereas it is $67,450 in Florida