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MBA degree still pays off financially

MBA Market

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According to recently published research from career-finding platform Relish, the MBA still guarantees an increased salary after completion. Some candidates reported an increase of 50 per cent.

Does an MBA still pay off? Is it worth spending potentially 100,000 US-dollars or more for a business school, missing out on your salary and potentially putting your career on hold? Yes, according to Relish, a career-finding platform specific for MBAs, it is. The company has collected more than 11,000 self-reported salary data points from MBA students and graduates from schools like Chicago Booth, Harvard Business School, MIT Sloan, Stanford’s Graduate School of Business, and Northwestern Kellogg. They looked at the students before entering business school and after business school between 2009 and 2018. The results show that MBA salary on average increased by $ 36,742, a nearly 50 per cent growth from before. On average, users of the site reported a pre-MBA salary of $ 79,505 and an average post-MBA salary of $ 116,248.

“Before this analysis, we were confident that we would see a significant increase in salary, but the magnitude of that increase was surprising,” Zach Mayo, co-founder and director of product development at Relish told the US-website Poets and Quants. “In addition, the fact that consulting led the pack by a large margin was also a surprise, particularly with such a large sample size across a range of schools – a more than 50 per cent increase on one of the highest pre-MBA salaries we analysed.”

Overall the highest increases were noted from consulting, then food, beverage, and tobacco followed by investment management, private equity and technology. The lowest increases were recorded in the law industry, in government, education, hospitality and accounting.

In terms of job function, consulting also topped the survey with an increase of $ 45,327 followed by human resources, investment management, marketing and private equity.

 

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