If you have ever considered pursuing your MBA, you may have wondered whether it’s worth the effort. You know earning an MBA will help you advance your career, but it requires a commitment of both time and money. Will it be worth it? Here we examine how an MBA can increase your job opportunities, your rate of pay, and your potential for professional growth and upward mobility.
Earning an MBA will boost your income.
Not just a theory -- this is a fact! A 2016 survey by the Graduate Management Admission Council (GMAC) found that 90% of survey respondents reported that their MBA degree had boosted their earning power. But how much money might an MBA help you earn? In 2016, the median starting salary for new MBAs was $100,000, according to another survey by the GMAC.
But how much more?
A recent study by Forbes magazine found that post- MBA starting pay was up 50% over pre- MBA pay. This conclusion matches previous findings on MBA pay. Numerous studies conducted over the last two decades have also found a 50- 60% increase, suggesting that a 50% step-up in pay at graduation has been stable over time and across different schools surveyed (Forbes).
For example: Imagine that before earning your MBA your salary was $50,000 per year. After graduation from an MBA program you might expect to be offered a salary of $75,000 plus a bonus. That’s a 50% increase in pay!
What about after five years?
According to the Forbes study, five years after earning their MBA, fifth year pay was up 80% over post-MBA starting pay for full-time students. Again, this data is consistent with previous studies’ results, showing fifth year MBA pay increases of up to 80%.
Using the previous example, if you were paid $75,000 after graduation from an MBA program, you might look forward to earning 80% more, or $135,000, after five years on the job (Forbes).
So is it all worth it?
When Forbes asked the MBA graduates to reflect upon their choice to pursue an MBA, 94% said yes when asked if they would do it all over again. The respondents strongly agreed that their MBA degree was a good investment of time and money, and has provided them with wider career choices. Similarly, the respondents felt their MBA has helped provide faster salary growth, and felt they could not have done as well in their careers without an MBA (Forbes).
Pursuing an MBA is no easy choice, but if you are serious about developing your business capabilities, and intent upon progressing your professional career, it’s certain that an MBA will help you to achieve your goals. Consider National American University for your MBA program. The MBA program at National American University prepares graduates to be highly-competent, principled and innovative leaders in business and society. Using an MBA curriculum that is both relevant and applicable, NAU’s MBA program teaches analytical and practical skills in the areas of accounting, finance, economics, information systems, marketing, quantitative methods and leadership.
National American University’s MBA program is designed to accommodate the schedules of working professionals; this is why we offer a completely online MBA program. No GMAT is required for this program; the only requirement is a Bachelor's degree from an accredited institution of higher learning in the United States or from an international institution of higher learning recognized by the ministry of education or other appropriate government agency. Financial Aid is available for those who qualify, and NAU is proud to offer military benefits to our nation’s veterans. To learn more about National American University and our MBA program, visit national.edu or contact an advisor at (855) 448-2318.