Do you want to increase your salary through an MBA? We’ll navigate through trends, industry insights, and top schools that can turbocharge MBA graduates’ earning potential.
As professionals contemplate the ROI of an MBA degree, most aim for a salary boost or a career shift. Time and time again, evidence demonstrates this to be a wise move. According to the 2023 GMAC Corporate Recruiters Survey, the median starting salary for MBA roles in 2023 was projected at an impressive $125,000.
However, getting an MBA requires a significant investment.
Let’s take the INSEAD MBA fee as an example. The tuition fee is approximately $105,000. Upon graduating, the average salary is $103,000, so graduates earn a salary roughly equalling their tuition costs. Of course, the tuition fee is only paid once, while their salaries should increase over the rest of their career.
In the US, MBA graduates earn about $50,000 more annually than those with solely a bachelor’s degree. There, the significance of an MBA salary boost and enhanced career trajectory is backed by impressive salaries from top business school alums.
In 2022, these MBA institutions produced graduates who achieved the highest average starting salaries and bonuses. All of them are in the US.
Among the institutions shaping high earners, Harvard and Stanford emerge as frontrunners for Both boast an average MBA salary nearing $200,000.
Besides compensation, a signing bonus is offered by employers to attract esteemed MBA graduates. It is an incentive and a gesture to alleviate the associated MBA costs.
An analysis covering over a decade of signing bonus data from 115 business schools uncovered notable patterns across different business school tiers.
From 2016 to 2019, top-tier schools experienced a 16.5% bonus hike, a consistent upward trajectory in average signing bonuses. Notably, between 2013 and 2022, lower-tiered schools saw the highest increase, with a 63% boost in average signing bonuses.
Signing bonuses amplify the overall first-year compensation for MBA graduates, especially from elite institutions. For example, a Stanford graduate received a $1 million signing bonus, as documented in the school’s 2021 employment report.
These high-average salaries and bonuses can be used as reference points to set expectations and goals. However, more factors determine earnings, such as the industry and one’s situation.
Although an MBA degree can significantly boost earnings, especially with bonuses, the industry of employment influences compensation. Let’s look at a selection of the most common sectors for MBA graduates.
Firms like McKinsey, BCG, and Bain offer MBA graduates base salaries nearing $200,000. Moreover, bonuses can push the annual pay up by $30,000 or more.
Roles such as hedge fund manager or investment banker command starting salaries above $100,000. For some, like Harvard MBA grads, combined salaries and bonuses can reach close to $400,000 in their inaugural year.
Despite upheavals in the sector, tech roles in strategy, product management, and business development remain attractive. MBA graduates at Stanford, for instance, report median salaries close to $164,000.
This sector is consistent in six-figure MBA salaries. Graduates entering this sector, like those from Tuck Business School, can earn between $118,000 and $185,000.
Despite economic uncertainties, the upward trend in MBA salaries underscores the degree’s lasting value. So, Is an MBA an anchor in turbulent economies?
The comprehensive curriculum of an MBA program ensures that graduates are well-prepared to work in a variety of sectors, which is particularly beneficial during times of industry-specific disruptions.
An MBA offers versatile leadership skills, leading to significant salary advantages. Given the changing business landscape, securing an MBA can be a strategic move, offering professionals an edge in adaptability and earnings.
Learn more about pursuing an MBA program by talking to an MBA ambassador today.
