In general, obtaining a higher education is never a bad thing, especially if you decide to pursue a business-related program like an MBA. There are so many benefits to earning an MBA that makes the investment worth it, including increased self-confidence, transferable skills, strategic thinking skills, and above all opportunities for career growth that most commonly come with an increase in pay.
Though the average cost of tuition for a two-year MBA does exceed $60,000, according to Business Insider, obtaining an MBA is critical if you want to get to the top in the business world — or in other words, if you want to reach the maximum salary in your career.
Here’s everything you need to know about the financial rewards of earning an MBA.
What Is the Average Salary of an MBA Graduate?
The average salary for a person with an MBA varies. Some of the factors include the field of business the MBA graduate is working in. For example, there are some graduates who can earn twice as much as others with MBAs just based on where they’re working.
The website PayScale.com surveyed over 4,000 MBA graduates, two percent of those surveyed had less than one year of working experience are earning an average salary of $51,396 per year. The 33 percent of those surveyed had over 10 years of working experience and they are earning an average of approximately $99,000 per year.
It’s important to know that gender and location are other factors that determine the average salary. According to Investopedia, MBA graduates working in California are earning the highest wage with a median salary of $99,947 per year.
Business Because mentions that the average MBA graduate increases their salary by 77 percent after graduation. Therefore, the hefty price of an MBA program may be worth it in the end.
Top Ranked MBA Programs Based on Salary
According to U.S. News, there are some business schools where graduates have a better chance of obtaining employment with a significant salary increase. Of the 114 full-time MBA programs ranked, the overall salary reported was over $100,000.
Here are five of U.S. News top-ranked school in terms of salary compensation:
- Stanford University (CA) reported an average salary of $173,989.
- Harvard University (MA) reported an average salary of $167,148.
- University of Pennsylvania (Wharton) reported an average salary of $166,930.
- Columbia University (NY) reported an average salary of $162,824.
- University of Chicago (Booth) reported an average salary of $159,911.
Most Common MBA Careers and Salary
If you’re thinking about getting your MBA, it’s important to know that employers are currently seeking graduates with MBAs — and the demand keeps growing.
Chief Technology Officer
Average Salary: $147,070 per year
This job requires a person to manage the technology team of a business. They are the go-to person when it comes to establishing the company’s technical vision and they ensure that the technology team is adhering to all standards and codes. Most companies prefer to hire a candidate that has their MBA with a specialization in information technology management.
Computer and Information Systems Manager
Average Salary: $139,220 per year
This job requires a person to manage computer-related activities in the company, help to implement Internet and Intranet sites, and help to develop computer networks, among other job requirements.
Average Salary: $125,080 per year
Another job that commonly requires an MBA is a Financial Manager. This person’s job is to oversee their company’s financial activities and transactions, basically helping the company meet their fiscal goals.
Average Salary: There isn’t a salary cap for an investment banker, so it’s hard to determine the correct median salary.
Any person that goes into investment bank usually requires a strong educational background including having an MBA. The requirements of this job include helping individuals, companies, organizations, and government agencies make smart investments with their money.
Average Salary: $129,380 per year
Most employers are more likely to consider a candidate that has an MBA with a specialization in marketing. The role of a marketing manager is to help companies expand their brand to get into other markets to reach new customers, among other responsibilities.
Although obtaining an MBA is expensive, the rewards and career opportunities that come with having an MBA are worth every dollar spent. As such, it’s important to spend time researching business school programs as every program is different and you’ll want to find the best one that matches your career goals.
After completion of an MBA program, you are sure to see your career goal grow over the years. It’s not uncommon for an MBA graduate with ten years of working experience to earn a six-figure salary.
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