Will Doing An MBA Improve My Salary?
Posted July 12, 2018, by Emily Garbutt
The moment you saw the price of the MBA, your thoughts drifted away from your career. You thought of the holidays you could take for the same sum or the kitchen refit you have been dreaming of. Before dismissing your long-term career prospects, why not investigate the MBA salary effect? If you graduate, will your salary increase, and by how much?
The MBA Salary Effect
Committing to studying for an MBA is a big step. You will need funds, time, and determination. Why take the course then? After all, there is no guarantees the course will increase your salary or land you the dream job you have had your eye on. Or even cinch the investments you need for your startup.
As Theodore Roosevelt once said…
Graduating from the MBA can have a significant effect on the outcomes of your future. We call it the MBA salary effect.
By not even giving consideration to the course, you are missing an opportunity. You miss the chance to experience something worth doing and to achieve something worth having.
Let's explore the MBA salary effect and how the qualification can improve your bottom line.
Who Values MBA's the most?
Across industries, graduates who have an MBA under their belt are sought after and valued. Corporations across all industries know MBA graduates are the cream of the crop. Even if they didn't graduate from the top school at the top of their class, candidates are seen to have valuable knowledge, skills, and the proven determination.
Local and global businesses are well aware of just how much MBA graduates can contribute to the success of the organisation. More and more employers are hiring MBA holders, "once the mark of finance and consulting professionals, the MBA degree is now considered a key qualification for many positions at a broad range of employers. Hiring managers, business educators and job candidates all agree an MBA is valuable – and it's not just about finance and accounting anymore. Sectors such as healthcare and nonprofits now hire MBAs, too."
How Much MBAs Cost Vs Return
Around thirty universities in Australia have an MBA on offer for students. The cost varies from $29,700 to $121,800. While this might sound like a hefty fee for an MBA in Australia, there are funding options available to assist. There are government loan schemes, as well as payment plan options and even scholarship programs to help fund your MBA. Make sure you speak to your chosen provider about what funding options are available to you.
Forbes compiles a list every two years of the top two-year international business schools for MBA's. Then, they write to 17,000 graduates, who completed their degree five years before the survey. From the responses, they measure the cost of the degree and the increase in salary for the graduates – the results speak for themselves
A 2016 global Alumni Perspectives Survey of postgraduate business program alumni found high levels of personal, professional and financial satisfaction and employment; 92 per cent were employed and 93 per cent said they would repeat the experience if given the choice.
Another study of over 14,000 MBA graduates from around the world undertaken by the Graduate Management Admission Council (GMAC), reported that participants stated they were highly satisfied with their financial return. “According to the study, MBA graduates also recouped their investment more quickly by earning higher salaries. Graduates of full-time one-year MBAs, along with part-time, online and Executive MBAs, paid for their course in two-and-a-half years on average. Full-time two-year MBA graduates took three-and-a-half years.”
Furthermore, according to the QS TopMBA Jobs & Salary Trends Report for 2018 Australia pays their MBA graduates better than most places in the world. Australia ranks 5th in the world and leads the way in Asia-Pacific with an average MBA salary of $98,400. This means Australia is one of the best places in the world to invest your time and money towards achieving an MBA, especially if you plan to work locally afterwards.
Is An MBA Worth It Then?
Now, this doesn't mean every school will see the exact same return for every student. Everyone's initial pre-salary and after salary will differ. Furthermore, the cost of the course varies. As we all know, economics plays a role in outcomes as well.
Nevertheless, from the statistics, one thing is for certain. We can get a good clear picture of how people's salaries have improved post-MBA.
MBA graduates are seeing a very real return for their time and effort. And this includes those graduating from Australian business schools.
Now think of all the holidays and kitchen refits you could enjoy with your increased salary!
MBA salary effect, here you come…