What is an average MBA’s starting salary? This is frequently asked by several management students. So, along with the average MBA salary, let us discuss the factors which affect the salaries for candidates around the world in this article…
The number of students opting for management courses is rising at a very fast rate in almost all parts of the world. The main reason for this is the high average MBA starting salary and great advancement opportunities in multinational organizations. The average MBA salary is increasing in all the sectors due to the growing demand for these highly talented professionals. However, before we discuss the average salary for MBA graduates and average MBA internship salary, let us know about the scope for management education.
Scope for MBA Graduates in the Job Market
Management graduates and post graduates are usually preferred for high level positions, in small as well as large companies due to their ability to accept challenges and increase profits for the company by taking the right financial and strategic decisions. These graduates have high organizational skills, leadership skills, team building ability and a deep knowledge of their area of work which makes them successful in the tasks they undertake. The demand for MBA graduates is high in almost all sectors of the economy. The financial services sector, infrastructure sector, heavy industries and engineering sector, health care sector and hospitality sector are the areas where maximum MBA graduates find employment. The initial recruitment of candidates is in the junior management grade and with experience, they can easily earn senior management grades along with higher salaries. Generally, there is a trend among fresh MBA graduates to secure jobs as managers in the field of their basic degree. Now, in the next paragraph, let us take a look at the factors which greatly influence the average MBA graduate salary.
Factors Influencing MBA Salaries
The average MBA starting salary depends, to a large extent, on the institute from where you complete your graduation degree. Most education experts would suggest completing your MBA program from an ‘A rated’ college or university. Your salary and position will also depend on how well you can practically implement the concepts learned in your books. The next factor influencing average MBA salary is the location of the job. Whether it is a European country or an Asian country, those working in large and developed cities will earn more than their counterparts working in remote areas. Having said so, one should also note that the cost of living is quite high in large cities as compared to the smaller ones. The kind of employer you work for is also a deciding factor for your salary. Management graduates working for large corporations with varied business interests will earn more than those working in smaller enterprises.
Salaries for MBA Graduates
The average MBA starting salary for candidates passing out of premier institutions can be in the range of USD 115,000 to USD 130,000 per year. At the same time, the average MBA salary for those passing out of other business schools can be in the range of USD 75,000 to USD 90,000 per year. At this point, it is important to know that average MBA starting salary depends on how good the institute from which you pass out is and how much knowledge you acquire in your two years of course duration. The starting salaries for MBA students also depend on the growth of the economy of a country. During the times of economic recession, it was observed that these salaries had reduced considerably.
Management graduates working in the government sector can also expect high salaries in the range of USD 55,000 to USD 75,000 per year. MBA graduates working in the health care sector can easily make more than USD 100,000 per year, due to the fast growth in this sector around the world. On the upper side, the MBA graduate salaries can be in excess of USD 150,000 for those having an experience of more than seven years. With an experience of more than ten years, you can earn around USD 200,000 or more depending on your position and skill.
This was all about the average MBA starting salary and scope for management education. According to analysts, the demand for young and talented graduates in management will continue to rise. So, are you ready to take up this challenge?