The dawn of a new decade presents the ideal opportunity to take stock of where you’ve been and where you’re going. You spend much of your life at work, so your job is a good place to begin your assessment. If you’re seeking an opportunity to increase your salary, a Master of Business Administration (MBA) is a sound investment. A Wall Street Journal survey found that 75 percent of MBA graduates switch careers, and that doing so can double their salary. An MBA sets you apart from an increasingly crowded and competitive applicant pool. There’s no real limit on what you can do with an MBA, because this specialized training can open doors in just about every field.
This option isn’t for everyone, though. Like any other degree program, you need a clear understanding of your career goals. An MBA is not magic. You’ll need to work hard, then pursue the right career upon graduation. But if you’re interested in business, aspire to a life in management, or hope to one day become an industry leader, you can do a lot with an MBA—while earning a lot more.
A master’s degree increases average earnings and reduces unemployment no matter which field you choose. According to 2018 data from the U.S. Bureau of Labor Statistics, master’s degree holders had median weekly earnings of $1,434, compared to $1,198 with a bachelor’s degree. That’s an annual earnings increase of $12,272. People with master’s degrees also benefit from lower unemployment.
An MBA is not just any master’s degree. The data suggest that earnings are substantially higher with this training, compared to many other graduate degrees. According to the Bureau of Labor Statistics, people who work in securities, commodities, and finance consistently have higher wages. Those with a master’s degree, particularly an MBA, can earn as much as 90 percent more than their peers. The National Association of Colleges and Employers projects that, immediately after graduation, MBA graduates earn $25,000 more than students who graduate from bachelor’s-level business programs.
A person’s salary depends heavily on the industry they choose. According to U.S. News, the highest earnings are in consulting, an area in which class of 2018 graduates earn an average of $130,656. Even graduates in the lowest earning group, however, can still earn more than those with bachelor’s degrees. The 2018 graduates who chose careers in the nonprofit sector had average earnings of $57,553.
A person’s early career earnings are a major predictor of lifetime earnings. When your starting salary is higher, percentage-based raises may also be higher. This allows your earnings to snowball over time, producing progressively more money as you advance in your career.
Like any other degree, an MBA is not a magic key to higher earnings. Your career trajectory, job satisfaction, and lifetime earnings depend on a lot of hard work and some luck. So you shouldn’t choose an MBA if you don’t have a clear career path in mind. Some things to think about before enrolling in an MBA program include:
Some questions you can ask yourself as you weigh your options include:
An MBA opens many doors. Because your degree offers training in management, leadership, and business, you’ll gain skills that are valuable in virtually any industry. For example, a nonprofit worker might use their training to streamline operations and make better use of the organization’s limited funds, while a teacher might found an educational startup. Almost every industry needs managers, and some companies require an MBA to enter the upper echelons of management. So if you like your current role, you might be able to stay in the same industry, or even with the same company—just with more status and higher pay.
What if you’re looking for a career change? Some of the most popular jobs you can do with an MBA include:
Getting the most out of your MBA degree begins with choosing the right program. Some questions to ask yourself as you compare schools include:
At SNU, we know our graduates will lead tomorrow’s businesses. We take seriously our duty to develop the next generation of leaders. From day one, you’ll get exceptional training from the most respected leaders in business. We’re here for you. We’d love to talk to you about your career options. Contact us to explore whether one of our cutting-edge MBA programs offers a path to fulfilling your dreams.