If you’re an MBA aspirant, you must be curious to know about your earning potential. All across the globe, the starting salary is dependent on numerous factors. Here is some information about the same.
The allurement of corporate jobs, mind you, is quite irresistible to me. Possibly, due to the whopping salaries offered, and the glamor and glitz associated with corporate jobs. Swanky cars, luxury life, and dealing with the creme de la creme of management boards of iconic firms and companies seems no less than an achievement. And germinating in the deepest corner of my heart are seeds of entrepreneurship. Besides that, some portion of my existence craves to understand the tussle in the corporate world between money, power, and influence, for which it is infamous. Nevertheless, salary, the most popular parameter that attracts students to the MBA course, is my subject of discussion in this write-up.
Average Income Potential of an MBA Graduate
The business world has gone through an overhaul in the past couple of decades, thanks to the ever changing landscape of government trade laws, introduction of liberalization on a global scale, and betterment in bilateral/multilateral trade relations between developed and developing countries. As businesses have grown and matured, the need for MBAs has increased on an unprecedented scale. Management has become a buzz word today, and an MBA degree is regarded as the next best choice after a bachelor’s degree, to give a boost to any career. In fact, to be at managerial position in any organization, nowadays, either you require a management degree, or you must have years of work experience. Those who’re looking out for the starting salary for MBAs must understand that it depends on numerous factors, like:
- Your B-School Degree
- Area of Specialization
- Market and Economy Trends
- Your Working Location
Let’s know more about each of these parameters by discussing them further.
Your B-School Degree
The starting salary is mostly dependent on your B-school degree. An MBA from the famed Wharton Business School or from the topmost in B-school rankings, Harvard, will help you earn higher salaries than a degree from other MBA institutions. In fact, MBA salaries for graduates of the top business schools like Harvard, Stanford, Wharton, M.I.T., Kellogg and Michigan (Ross) are very high and ranges between USD 115,000 to USD 130,000 per year. But remember, reaching these elite institutions requires you to qualify their toughest exams, and, of course, the education loans, you may require to fund your MBA, is also very high.
Area of Specialization
Your area of specialization determines your salary structure. Nowadays, salaries in almost all industries are very competent, and so you don’t have to worry much. If you’re specializing in something very new, like the growing biotechnology management field, you may not find high salaries initially. Traditional MBA degrees in Finance, Banking, HR, Marketing, and Operations are still core management fields.
Market and Economy Trends
During economic recession, many banking executives lost their jobs. These were the MBAs from reputed institutes. Hence, market and economy trends are vital factors in determining the MBA average starting salary. Moreover, the average salary varies with work experience. In numerous countries, MBAs had no job due to a poor economic phase. You simply can’t ignore market factors when it comes to salaries.
Your Working Location
Whether you did your MBA from a European or American B-school, if your firm employs you to work in an Asian country, your salary will be at par with the cost of living in that country. Your employer will ensure that you’re being paid as per the industry standards.
As we can see, MBA starting salaries are generally decent. Even if you pass from an accredited B-school (but not internationally famous like the biggies) that is popular in your state or nation, you can have wonderful opportunity to earn anywhere between USD 60,000 to USD 100,000. The starting salary is just a glimpse of career opportunities in this field, and with hard work and diligence, one can earn make a very good career in this field.