Historically, adding a Masters of Business Administration (MBA) degree to your portfolio has had the reputation of increasing your salary. However, today with the burst of the housing bubble and the reorganization of many banks, the economy has been sent into a tailspin. So can an MBA graduate still expect to dramatically increase their salary?
That depends on the situation of the individual, such as the type of industry they are in, the company for which they are employed, and the prior skills they bring with them into the workforce. Attending an MBA school still has the potential to up your value and increase your personal bottom line, but it is not a guarantee. However, the economy has already begun to turn around, and many financial organizations are posting large profits again and have begun to recruit MBA graduates for a variety of positions. Not convinced? Let us look at the numbers.
Those that hold just a bachelor’s degree in business can be found in various areas of business: human resources, retail management, office administration, and operations management (and rarely in financial controlling, although it is possible). According to the Bureau of Labor Statistics, salaries for those with a BA in business hover in the lower to mid range of average annual salaries. Additionally, bonuses for individuals in these positions are not as common.
Now, when you add an MBA to the business bachelor’s degree, the overall averages change. In some cases, an MBA could help lead to a promotion, which in turn, could lead to a salary increase. MBA holders work in a variety of positions, including financial controllers, senior financial analysts, project managers, marketing directors, and of course as CFOs and CEOs. Salaries for these elite positions can be much higher than mid-level jobs.
What Factors Influence the MBA Degree Salary?
It is also important to note that this is only base salary and that MBA salaries can vary greatly. Many private corporations provide bonuses in addition to the base salary (depending on job performance, the state of the industry, and many other factors). When you include bonuses in the overall financial windfall that an MBA can help provide some graduates, suddenly you could be looking at a notable augmentation in income.
The MBA could be one way to advance your career. If you want to move up the corporate ladder and have the financial rewards that come with it, an MBA might be the way to go. Enroll in a campus or online MBA program today!