If you have ever considered attaining an MBA to further your education and experience within your chosen field, an important question has probably crossed your mind: Will getting my MBA get me more money at my job? By reading the information found below, you can attain an answer to this question and several others that pertain to the acquisition of the graduate degree.
Although defined broadly, an MBA (which stands for Masters of Business Administration) is basically a degree that involves the acquisition of knowledge and experience within the field of business. The purpose of the degree is to prepare students for positions in general or specific fields of management, such as in sectors like business, law, government, entertainment, education, health, and more. MBA’s also prepare students to pursue any entrepreneurial aspirations they may have.
The Value of the MBA
One of the central reasons that people opt to return to school in order to earn an MBA is to increase their income after graduation. The question is, how much of a salary increase can one expect? In short, each case will be different given that factors such as the school you attend as well as your job title will play a role in determining what type of salary increase you can expect to garner. Yet while there is no hard and fast rule regarding how much more pay you can demand post-graduation, the general rule is that the more education you have, the better your chances of commanding a pay increase. In addition to considering this basic principle, think about some other factors that can affect how much more money you can earn after graduation:
1. The Reputation of the Business School
As many job experts know, individuals who graduate from learning institutions with a higher ranking from reputable publications that offer commentary about the holistic quality of schools and colleges will generally earn more than those who graduate from less notable schools.
2. Work Experience
In addition to considering your educational background, employers juxtapose your attainment of an MBA to how much work experience you have. For example, if you graduate from an MBA program with a peer who has more work experience than you, your peer will likely receive a bigger salary than you.
3. The Type of MBA Degree
There are a variety of different MBA degrees available, including those that specialize in areas such as finance, entrepreneurship, accounting, and human resources. In general, the more specializations you have, the more money you will likely be able to earn.
An Important Summary
In addition to considering several factors that can determine how much money you earn after you obtain your MBA, it’s a good idea to consider some data submitted by the Graduate Management Admissions Council (GMAC) on the subject. The GMAC Reports that employees who plan to continue working for their current employer after earning their MBA can expect a 39% salary increase. The expected increases in salary following the attainment of the degree can differ based on employment sector:
•Energy/Utilities: 24% increase
•Consulting: 32% increase
•Health Care: 33% increase
•Finance/Accounting: 34% increase
•Manufacturing: 34% increase
•Technology: 35% increase
•Nonprofit/Government: 45% increase
•Products/Services: 59% increase
As made plain by the information listed above, individuals who attain an MBA in their career field of choice can expect to begin earning more money on their job afterwards. However, it is important to note that how much one can expect to earn is contingent upon a plethora of factors such as specialization, networking abilities, school ranking, and more. Now that you have a basic answer to the important question “Will getting my MBA get me more money at my job?,” you can decide whether pursuing the MBA would be the best decision for you.