Earlier we wrote about MBA Jobs in USA, India and other countries. Now we move on to the part that most MBA students are most interested in – post MBA salaries, pay-scales and compensation packages. The QS TopMBA report on jobs and salaries reveals some intriguing facts and trends about MBA salary in USA, India and other countries.
|Region||Average MBA salary (annual)|
The basic trend so far has been that North America and Europe have been lagging behind the emerging markets on the MBA salary growth parameter. However, in absolute terms the salaries offered in these regions are still high.
The icing on the cake has come in the form of bonuses (almost 20% of the overall compensation). This includes sign-on bonuses (helps take off some of the education loan pressures) as well as performance related end-of-the-year bonuses.
The average payback period has been between 2 to 5 years.
Consulting salaries in USA and Europe have been in the $110,000 to $130,000 range.
In contrast, the investment banking salary range has been much wider, from $90,000 to $200,000
If you thought that MBA Salaries in USA were the highest, you’d be wrong. Australia ($133K) tops the charts, with Switzerland ($130K), Denmark ($121K), UK ($106K) and France ($101K) making up the next 4. USA MBA average salaries ($98K) are the 6th highest. But that’s not so bad, as the MBA is still valued the most in America. You’ll get the widest range of MBA job offers here. Another aspect to consider is that there were lesser respondents from the other countries (so easier to skew the numbers).
Among the 20 major markets, MBA salaries in India are the lowest, even after excluding the low (under $30,000) salaries offered by Indian companies and MNCs that recruit MBA graduates with low/no experience.
|Industry Sector||Average Salary||Average Bonus||Total|
|Aerospace / Defence||$76K||$3K||$79K|
|Construction / Property||$97K||$8K||$105K|
|Consulting / Professional Services||$89K||$15K||$104K|
|Electronics / High Technology||$93K||$12K||$104K|
|Financial Services / Banking||$95K||$12K||$107K|
|IT / Computer Services||$93K||$14K||$106K|
|Manufacturing / Engineering||$83K||$13K||$96K|
|Media / Entertainment||$84K||$16K||$100K|
|Mining / Metals||$140K||$52K||$191K|
|Healthcare / Pharmaceuticals||$100K||$23K||$123K|
|Public Sector / Govt. / Nonprofit||$82K||$8K||$90K|
|Recruitment / HR services||$87K||$9K||$96K|
|Transportation / Distribution||$85K||$9K||$95K|
|Travel / Leisure / Hospitality||$79K||$4K||$83K|
Source: QS TopMBA.com Jobs & Salary Trends Report 2013/14 (www.topmba.com)
The other trend over the last decade has been in the area of salary equalisation. This means that the difference in MBA salaries across geographies is reducing i.e. you could work for an MNC in India (hoping the Indian talent with international credentials and perspectives will help to increase their domestic footprint) and still get a significantly higher post MBA salary compared to what the local employers might offer.
However, the number of MNC jobs in home countries that pay very high salaries (closer to the $100,000 average in USA) is still quite small. [Read this related post: Highest paying jobs in India]
The reason is that there’s an abundant supply of local MBAs (from lower tier institutions) who are willing to work for a fraction of the salary. So it’s difficult for many MNCs to justify paying a premium to the top international B-school grads.
The key message from recruiters to new MBA graduates is to avoid getting too obsessed with the post MBA salary and look at establishing credibility within the organisation first, gaining new skills and build a long term career plan.
Apart from these short term salaries, read this article on how much you can expect to earn in the long run: Average MBA salaries after 10 – 20 years for USA and Canadian business school grads