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.
Average MBA Starting Salaries and Compensation Packages
|Region||Average MBA salary (annual)|
|Africa & Middle East||$88,700|
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 and Finance continue to be the sought-after MBA recruitment sectors. However, IT/Computer Services firms are also increasing their demand for MBA hires.
If you thought that MBA Salaries in USA were the highest, you’d be wrong. Singapore ($137K) is the highest with Australia ($123K), France ($124K), and UK ($120K), among the other top contenders. USA MBA average salaries ($130K) is the second highest. But the demand for MBAs is still the highest in the USA. 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).
India is among the top 20 major MBA markets, however, MBA salaries in India are among the lower ones in the salary trends report, at an average of about $57K, including the average bonus.
Read Salary increase after MBA
Average MBA Salary in USA & Western Europe
|Industry Sector||Average Salary||Growth in MBA Jobs 2015/16|
|Construction / Property||$120,300||16%|
|Consulting / Professional Services||$88,500||14%|
|Media/Entertainment & Arts||$86,500||9%|
|Pharma/Biotech & Healthcare||$99,200||13%|
Source: QS TopMBA.com Jobs & Salary Trends Report 2016/17 (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 (Are MBAs really overpaid?) 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