If you have given consideration to obtaining an MBA, you may be wondering if all of the hard work is really worth it and how much of a salary increase one can expect for becoming an MBA graduates. By reading the data found below, you can obtain an answer to this question.
The Salary Increase For MBA Graduates-A Brief Overview
As noted by Campus Explorer in their important article “How Much Will an MBA Increase My Salary?,” there are a plethora of factors that can determine what type of salary increase an MBA graduate will be able to garner. Some of those factors include:
The School’s Reputation
Generally, MBA graduates from learning institutions with great name recognition will garner higher salaries. The average annual salary for Harvard Business School 2010 graduates was $110,000.
Employers who are looking to hire new employees will consider how much work experience job candidates have. You may earn a degree from the same MBA program along with a peer, yet if she or he has more work experience than you do, the odds are in their favor.
Type of MBA Degree
There are a plethora of different MBA degrees, and you should select one that suits the type of career you’re attempting to cultivate. Some of the specialization areas include human resources, finance, accounting, and entrepreneurship. Generally, individuals who select a specialization will be able to command higher salaries.
Although merit (in the form of accumulated knowledge and experience) is a critical and perhaps primary factor in the job selection process, networking is also important. Specifically, individuals who take the time to attend career fairs and social events will often find that they are hired faster than those who do not. Additionally, individuals who develop strong networking skills often find that they are able to attain the jobs with more competitive pay.
Expected Salary Increase
GMAC produced a survey revealing the expected salary increases for individuals who earn an MBA and subsequently begin working within the specific sectors:
Products/Services: 59% increase
Nonprofit/Government: 45% increase
Technology: 35% increase
Manufacturing: 34% increase
Finance/Accounting: 34% increase
Health Care: 33% increase
Consulting: 32% increase
Energy/Utilities: 24% increase
Things to Consider
If you are interested in obtaining an increase in salary once you obtain your MBA and begin the job application process, you should know that there are several things you can do to increase your ability to gain employment quickly. First, you can consider completing an internship. Internships are valuable for many reasons, including the fact that they provide you with the type of knowledge and experience that prospective employers look for when reviewing resumes. Additionally, people who complete internships are often hired by the employer of the company or business where they worked.
In addition to considering the value of completing an internship, you should think about volunteering for a business organization. Doing so can be beneficial for many reasons, including the fact that it functions as a great networking tool. Oftentimes, you will be able to forge personal and/or professional relationships with individuals who will directly or indirectly help you get hired.
If you are thinking about obtaining an MBA in hopes of increasing your salary, you should note that this will likely happen. Now that you have some basic information regarding the expected salary increase for MBA graduates, you will be able to determine whether pursuing this educational path would be the appropriate investment for you.