MBA Starting Salary Statistics for 2023
If you’re starting to feel a bit stagnant in your current job or if the allure of leadership roles is piquing your interest, it might be a sign you’re ready for a change. Getting your Masters in Business Administration is a smart investment to expand your options. But before you start seriously considering MBA programs, you’ll likely have questions about what your average starting salary will look like following graduation.
An MBA can be an excellent catalyst for leveling up in your current role and you can certainly expect your pay to reflect your new level of responsibility. You might also be considering an entirely different field of work. With an MBA, you’ll have much more power in negotiating your salary, despite a lack of experience in your new chosen field.
Regardless of your reason or industry, obtaining your MBA is an excellent way to increase your earning potential and these salary statistics will help to paint a clear picture.
How Much Can You Increase Your Salary After an MBA?
In a recent survey of nearly 5,000 alumni from a wide range of MBA programs, an overwhelming majority of participants reported a positive return on their investment of a graduate management education (MBA). These alumni also report a high level of satisfaction with the outcomes of their education.
- Nearly nine out of 10 participants feel that their education increased their employability.
- Four out of five participants agree that having an MBA has increased their earning power.
- One in three participants in the study reported that their annual salary increased from $50,000-$100,000 to over $100,000, with 12 percent reporting that their salary jumped from less than $50,000 to over $100,000.
- Over a lifetime, an individual with an MBA has the potential to earn up to $3 million more than someone with only a bachelor’s degree.
This survey isn’t the only one reporting this data, either. Numerous studies show that in a majority of scenarios, having an MBA comes with a considerable increase in earning potential. However, it is important to note that individual experiences do vary and a number of factors come into play when determining salary.
While there are salary increases as an MBA alumni, have you considered the bonuses when seeking employment? Because of your career choice, you may receive job offers with a signing bonus. The average signing bonus is 10 percent of a person’s income. This is additional compensation that may be paid in its entirety at once, or over time.
A performance bonus is another avenue for additional compensation. Performance bonuses are earned by reaching goals, and exceeding goals within the company you choose to work for. It is important to note that not all companies will offer this type of bonus. However, bonuses are a great way to boost the average MBA salary.
What is the Average Salary for MBA Graduates?
For MBA graduates who are fresh out of school, recent data shows that companies in the United States offer a median base salary of $115,000 – and it only goes up from there. After two years of employment, one study found that the average salary for MBA graduates is between $133,000 and $145,000. After three to five years of work, salaries can range from $151,000 to $172,000.
Earning your MBA won’t just increase your salary. While the initial boost in pay is notable, MBA holders tend to receive more frequent pay increases and annual bonuses are often paid out at higher rates as well. People working in these higher-ranking roles also have access to a variety of means by which they can supplement their salary. Through avenues like performance bonuses, profit sharing and stock options, your annual income can get quite the boost beyond just your salary.
For those without an MBA, salary statistics differ significantly. While the median base salary for job candidates with an MBA is about $115,000, the median offer for a candidate who only has a bachelor’s degree is around $75,000. In their first year of work, employees who don’t have an MBA may make nearly $50,000 less than employees with an MBA.
Why are MBA Degree Salaries Higher?
MBA graduates serve as serious assets to their company, which is reflected in their higher annual salaries. MBA programs equip graduates with a set of high-level skills in communication and strategic thinking – both of which are vital for success in today’s market. Companies seek out candidates with these skill sets, as these individuals have greater potential to bring a positive impact to the company’s profits. Approximately 90 percent of recruiters feel that MBA programs leave students well-prepared for success in their organizations.
With these valuable skills, MBA graduates are able to access a vast number of high paying positions. One increasingly sought-after option is consulting. In a consulting role, individuals are able to offer their skills to multiple businesses, opening up further opportunities for pursuing higher compensation through consultant fees. MBA programs also provide graduates with leadership, confidence, and countless other soft skills needed for success in management roles. With this history of success, MBA graduates are able to advance faster in their current career paths and grow their paychecks.
While MBA salaries are notably higher than salaries for individuals with a bachelor’s degree, there are a multitude of factors that come into play when determining one’s annual pay. Job location, industry, and the overall economic climate all play a significant role. Along with these aspects, some personal factors are at play as well. For example, the school you earned your MBA from and the skills gained from previous experiences can impact your earnings.
Why Choose Crummer?
Whether you’re just starting to consider MBA programs or you’ve had your sights set on obtaining your MBA for years, the Crummer Graduate School of Business is the perfect place to further your business education. With a variety of programs to choose from, you’re guaranteed to find an option that fits into your busy lifestyle.
More seasoned professionals can opt for the weekends-only Executive MBA or the Professional MBA track, featuring weeknight evening courses. For students who recently graduated from college or career switchers with less work experience, the Early Advantage MBA will provide you with the knowledge and skills needed for success in a high-paying position. This program was even ranked by Forbes Magazine as the number #1 MBA program in the state of Florida. If flexibility is a deciding factor in achieving an MBA, the Flex MBA program may fit your needs. Classes for this program are a mix of in-person and online, meaning 55% of the courses must be in-person while the remaining 45% of classes can be taken online.
No matter which program you choose, you’ll be able to dive deep into your business education with smaller class sizes and supportive staff. Services like the in-house Career Resource Center ensure you’re ready to take on life outside of the classroom as well. No matter where you are in your career, Crummer can provide you with the education you need to get ahead.