Hi-Fella Insights

Maximizing Your MBA: Factors that Impact Graduate Salaries

Introduction

An MBA degree is a popular choice for many professionals looking to advance their careers and increase their earning potential. However, the average salary for MBA graduates varies depending on location, industry, and work experience. In this article, we will provide insights into the average salaries of MBA graduates, factors influencing these salaries, and the industries and roles that offer higher earning potential.

Overview of the Average Salaries of MBA Graduates Globally and Regionally

According to mba.com, the average salary for MBA graduates in the US is projected to be $115,000 in 2021. 

However, the average salary for MBA graduates in the Asia Pacific region is lower, at around $45,000 per year. 

In Africa, an MBA graduate can expect a starting salary of $35,000.

The average MBA salaries in the Middle East and Latin America are $30,000 and $25,000, respectively.

Factors Influencing MBA Salaries

The average salary of MBA graduates varies depending on the industry, location, school attended, and years of work experience. Other factors such as experience and skills are also important in determining one’s salary. The industries with the highest average starting salaries are consulting ($147,178), financial services ($138,834), technology ($128,442), and health care ($116,250) – e-gmat.

Data on the Industries and Roles that Typically Offer Higher Earning Potential for MBA Holders

MBA graduates can earn a salary that is three times higher than those with only a bachelor’s degree. The compensation premium is even more apparent for Fortune 100 companies and the big-three industries that hire MBA graduates – consulting, finance, and technology. Graduates who stay in consulting and finance after their degree could see their salary approach $200,000.

The average salary for MBA graduates has been increasing over time. According to a 2021 corporate recruiters survey from the Graduate Management Admissions Council (GMAC), the median starting salary for MBA graduates at US companies was projected to be $115,000. 

The National Association of Colleges and Employers (NACE) Winter 2021 Salary Survey projected a lower average MBA starting salary of $87,966. US News & World Report calculated an average starting salary for the class of 2021 to be $95,370 base salary and $105,684 including bonuses. 

The Forté Foundation’s analysis of 2020 MBA salaries found that graduates earned a more generous average between $133,511 and $144,956 within two years of leaving their program.

Conclusion

In conclusion, an MBA degree can lead to higher salaries, but other factors such as experience and skills are also important in determining one’s salary. The industries with the highest average starting salaries are consulting, financial services, technology, and health care. MBA graduates can earn a salary that is three times higher than those with only a bachelor’s degree. The average salary for MBA graduates has been increasing over time.