Salaries

Technology and innovations can produce high demands in certain sectors of the economy. Their impact can be remarkable. Over the course of a few years, an entire industry can take hold. Today, the demand for the information processing benefits of artificial intelligence innovations for businesses creates high salary opportunities for MBAs.

The selection of a job function can make a big difference in salary. For example, management-oriented MBAs may get higher paying jobs than employee training positions. While salaries for all MBA groups are high on a national scale, some categories have lower ranges than others. In some organizations, finance and management positions typically rank higher than human resources positions.

The Bureau of Labor Statistics (BLS) notes that location is a factor in salary for new and experienced MBAs (by state and region). California, New York, Illinois, Texas, and Pennsylvania are among the leading states when ranked by salaries for MBAs. Popular cities for MBA employment include New York City, Los Angeles, Chicago, Atlanta, Houston, and Boston.

Level of experience is a constant factor that affects salary. Today’s MBAs are not always fresh grads with little experience. MBA programs provide opportunities for real-world learning. The MBA also attracts many students with current careers and valuable experience. Online education works well for employed students and business owners. These groups often bring a wealth of practical experience to their studies for an MBA.

There may also be a large difference in each field between salaries in the public sector (government and some non-profits) and the private sector. When placed side by side, government positions often pay far less than their private sector counterparts. However, for many MBA graduates, public service is a reward that is as significant as salary and there are programs in place to forgive student loans for those who meet certain qualifications and stay in public service for a certain period of time.

Over the course of a ten-year period, the MBA programs at Stanford University and Harvard University have produced a return on investment ratio of more than 300%. The current salary averages for MBA graduates at these schools is above $125,000 per year. The demand for MBA’s in the marketplace can determine the amounts of pay offered to attract top talent. While all MBA fields have a level of demand that responds to that field’s needs, some fields have high levels of need relative to the supply. A supply-demand imbalance often occurs when economic trends, innovation, or technology creates some new demand or a sharp increase in an existing category.

MBAs with IT Management, Sales Management, Financial Management, Human Resources Management, and Management Analysis have ranked as the top five sub-fields for average salary. Each field has a strong job growth prospect as estimated by the BLS Occupation Outlook through 2026.

Today, innovation drives businesses to discover new ways to use large amounts of data. Advanced data analytics can find patterns and options that drive new levels of business success. The MBA fields in high demand in 2018 include those with some experience and education in artificial business intelligence. This new wave of software-based tools can examine complex data and suggest critical improvements.

The choice of college or university can affect the potential salary from an MBA degree. Employers may have preferences for certain schools when selecting MBA graduates. These preferences sometimes reflect views about the strength of faculty, institutional expertise, and the employer’s history.

The school can influence their MBA graduates’ salaries by the coursework, style of instruction, and concentrations offered. Coursework can develop a depth of knowledge in one or more areas that may be of particular importance to the employer’s business. The style of instruction can have a big impact on potential salary. Schools that emphasize hands-on experience, internships, and real-world projects prepare graduates for an immediate impact in the modern business environment.

Finally, the reputation of the school for excellence can influence salary. MBA’s from nationally or regionally prestigious schools can enhance a company’s ability to get and keep valuable clients and lines of business.

An MBA can set you on the career path to reach mid-level, senior level, and top executive positions. It provides higher pay than that commanded by similar employees that do not have an MBA. Business, financial, and sales occupations are among the leaders in wages for MBA holders. According to the BLS, these occupations reflect the most significant boost to salary and earnings for an MBA over those with lower levels of education. For example, securities, commodities, and financial services sales agents, as a class, had the highest wage premium. In these occupations, workers with master’s degrees had earnings 90% higher than those without a master’s degree. Many of the surveyed workers had an MBA degree.

An MBA is an enhancement for most jobs that ask for a bachelor’s degree. It is a requirement for many high-level and specialized positions that will not accept applicants with only a bachelor’s. The MBA opens career options that require far more time and experience to reach without the degree.

However, an MBA also requires an investment of time, energy, and money. Beyond salary, many students seek knowledge and skills that come with MBA training and concentrations. For the pure benefit of increased earning, many MBA fields support the decision on an economic basis. In these fields, the MBA repays the investment and far more.