There are many reasons that students choose to begin their journey to obtain a Master's of Business Administration degree. For some, gaining networking opportunities and increasing the likelihood of future promotions is what brings them back to the classroom. For others, the goal is to increase the chances of earning a higher pay rate. As it turns out, investing in a solidly accredited MBA program can help both full time students and working professionals achieve all of these goals.
Job location plays an interesting role in early career pay for MBA graduates. For instance, the average early pay for MBA graduates in the state of Florida is $58,641 versus New York where the average starting salaries are $75,846. The location of New York alone can affect the potential salary, and in this case impact it by almost $20,000.
Research shows that one of the most important aspects affecting the average pay of MBA graduates is the quality and notability of the program itself. For instance, the top New York MBA programs produce graduates with average early-career salaries ranging from $49,900 to $117,000. While there are many great MBA programs in New York, there are multiple factors that contribute to this difference in early pay, including accreditation, prestige, and curriculum.
Accreditation is a factor that can affect an MBA brand, and thus affect the brand of the MBA graduate. Looking for an MBA program with the prestigious AACSB Accreditation is one way of knowing that the business degree is held to the highest standards in business education, and thus has a high level of prestige. Another important consideration for postgraduate pay is the amount of hands on experience students are given throughout the course of the program. Inc.com created a list of the 15 Most Innovative MBA Programs. It is no surprise that this list includes many schools with the highest paying graduates in the industry.
For many degrees, a concentration area or emphasis is simply a topic that a student would like to learn more about. However, for MBA students an in demand specialization can make a crucial difference in both job opportunities and potential career pay. According to PayScale, the six highest paying MBA concentrations are Strategy, General & Strategic Management, Entrepreneurship, Corporate Finance, Finance & Economics, and Finance. Within these concentrations the average early-career pay ranges from $66,700 for those graduating with an MBA in Finance & Economics to $96,200 for graduates in the field of Strategy. Although these are both exceptional salaries, $29,500 is definitely something to consider as you choose your area of specialization. The University of Rochester, in Rochester, New York, offers an MBA program with multiple concentrations, including Competitive and Organizational Strategy.
Choosing to build on your education is something that will always show positive returns. However, there are very few degrees that can boast an almost immediate pay increase upon completion. According to a study conducted by Forbes, students who completed their MBA saw an average of 50% increase over their pre-MBA salaries. Within this same study Forbes also noted an astounding 80% increase in pay by the end of the graduates 5th year post-MBA. It is important to note, there is no magic number of what an MBA graduate will earn in the state of New York, but MBA graduates can gain great potential for new and advanced opportunities in a career of business and management.