It’s Official – MBA Grads Earn More Money

Image provided courtesy of 401k (Flickr)

There are a variety of reasons why students choose to pursue an MBA.  Some want a career change, others may be hoping to develop their managerial skills, and still others may want to expand their professional network.  But most students would likely agree that they hope their MBA brings them a salary increase.  A recent article on Poets and Quants explored several years worth of salary statistics for a range of MBA students, and it offers some promising insights for current MBAs.

I highly recommend reading the article in its entirety (it’s only about two printed pages long).  There are several informative charts and graphs that go into detail explaining the salary bumps MBAs earned.  These salary increases were affected by the programs the students attended, their job status at graduation, the industries they worked in prior to and following graduation, and numerous demographic factors.  The following are a few highlights from the article I found particularly encouraging for MBA graduates:

  • The salary bump for 2012 MBA graduates is higher than it’s been in past years.  Graduates from full-time two-year programs and part-time programs experienced salary bumps 7-8% higher than graduates from the class of 2011.
  • Students who accepted a job offer through an MBA internship earned average salary increases of 84%, compared to students who continued working for their same employer or who accepted a job offer from a new employer upon graduating.
  • Newer employees earned higher percentage salary gains than senior-level employees or executives.  A big part of this has to do with the newer, less established employees’ lower starting salaries – it’s much easier for a business to offer a 50% pay increase when an employee is making $50,000 versus that same employee earning $200,000.
  • Internships were the most successful tactic used by MBA graduates to find a job, followed by school career services and school job boards (either on-campus or online).

For those of you that have graduated, I hope your MBA paid off (literally) and you earned a nice pay bump like those highlighted in this article.  For those of you graduating in the future, this information hopefully illustrates some of the monetary benefits of earning an MBA.

Here’s a quick article I read from a CSUF professor, John Bradley Jackson, Director of the Center for Entrepreneurship:

“Current and Future Startup Trends” – Professor Jackson hosted CSUF’s first business plan competition this past year, and is at the forefront of entrepreneurship efforts throughout Orange County.  This brief article lists some of the major entrepreneurial trends startups can expect to encounter in the future.

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