Starting Salary After MBA
So all those who have nurtured the dream of pursuing an MBA abroad, or are contemplating the idea to begin with, would certainly want the answer to this question – what is the starting salary after an MBA? Job satisfaction and career growth are certainly two of the most important aspects that a professional would seek after an MBA abroad. However, if the return on investment is good, it provides professionals and their dreams a further push to take a step ahead.
Starting Salaries after an MBA Abroad
The average salary figures for graduates of most top MBA programs comes to around $120,000. Of course, there could be wide variance based on work experience (both quantity and quality). On an average, young executives with 0-5 years of experience, get a pay package of USD59,000 annually, as compared to USD99,000 for mid level executives (with 10+ years of experience). These figures also vary for professionals across different industries. Jobs in the Consulting, Finance and Technology industries are better paid than in other fields. For example, at Kellogg and Michigan Ross, the consulting industry comes in with a whopping US$140,000 average by way of median base salary (also matching the numbers seen at Harvard). Also, there is a rise in the median base salary from US$100,000 to US$125,000 for graduates opting for a career in Finance, Investment Banking, or Financial Services.
Moving to Europe, starting salary after an MBA from top business schools averages around USD 105,000 with an average sign in and performance bonus of USD 44,000. Top schools in Europe such as IMD, INSEAD, LBS, and HEC can often get their graduates lucrative job opportunities in fields like consulting, general management, business development. In terms of industries, financial services leads, followed, surprisingly, by e-commerce. According to the employment report of London Business School (LBS) for 2015, “The world is changing and our graduates are adapting with it. The number of students choosing careers in the technology and e-commerce sectors continued to rise, increasing to 20% of the class from 16% the previous year. Finance as a whole was similar to the previous year at 27% of the class; however, within the sector, the number of students choosing investment banking dropped from 12% to 8% while areas such as private equity and venture capital and diversified financial services picked up steam. Consulting remains the most attractive sector with one-third of the class choosing to work in the sector”.
Beyond Europe, Canada is increasingly a preferred destination for MBA graduates. With global organizations expanding their bases in cities like Toronto, Canada serves as a hub for attractive job opportunities for professionals aiming to advance their careers in finance, consulting and technology / telecommunications. Average pay packages for two of the top bschools range between USD100,000 to USD120,000 (very similar to those of US schools). This figure includes base salary, signing bonus and other guaranteed compensations. Apart from these, Canadian schools also of course attract a number of oil and gas professionals from around the world.
Moving to the Asian region, a top MBA from India would offer an average salary amount of USD33,000. However, the top figures vary at MBA programs like IIMA PGPX, where the maximum payouts are as high at USD200,000 (of course, these are more the exception than the rule). In Singapore, NUS business school had mean pay-outs close to USD60,000 with maximum being a whopping USD 130,200 offered by companies from the marketing, consulting, and finance domains. The PPP factor of course comes into play more strongly in emerging economies in Asia, so a comparatively lower salary (when converted to USD) can still go a long way in terms of standard of living.
Loan and Payback period
Most of the top MBA programs around the world cost anywhere between USD60,000 to USD100,000. How can one get a loan? What is the payback period? Should you get a loan from the country where you are pursuing an MBA or from your home country? For some, worry on how to finance your MBA in USA becomes a bigger issue than planning their career and deciding on how to make the most of the time they have. With proper planning and research, though, each of these concerns can be fully addressed. Funding your MBA is a critical part of deciding to go, so planning for it is important. Continue here, for Major Sources of student funding for MBA programs
*Sources: Payscale.com, Investopedia, Bschool Employment Reports
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