Business people with graduate degrees agree: an advanced degree makes a difference. According to a 2022 Graduate Management Admission Council (GMAC) study, 84 percent of graduate management education (GME) graduates believe their degrees helped them achieve their professional goals; 87 percent report that the degree increased their employability; and 76 percent feel the degree prepared them for leadership roles.
About three-quarters of the same GME graduates say their graduate degrees increased their salary potential. The GMAC report “2023 Corporate Recruiters Survey” confirms their impressions: it reports a median starting salary of $125,000 for MBAs, compared with $75,000 for candidates with a bachelor’s degree only. That report concludes that, in most industries, “MBAs continue to be the most in-demand degree type.” If you are an aspiring business leader, a graduate business degree—like a Master of Business Administration (MBA)—can help you develop the leadership, management, and professional knowledge and skills required to advance your career.
You can earn this valued degree without relocating or leaving your current job. Top institutions, like University of Tennessee (UT), Knoxville, offer online MBA options that make it possible to complete your MBA remotely while continuing to work. Read on to learn more about how an MBA can bolster your career and salary prospects.
Boost Your Earning Potential With an Online MBA
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Exploring the MBA Salary Landscape in 2024
One way to determine how an MBA impacts earning potential is to compare professionals’ pre-MBA salaries with what they made after earning their degrees. According to Bloomberg Businessweek, 2022 graduates from a wide range of business schools saw an $85,000 increase over pre-MBA salaries. An MBA degree also offers other benefits. Corporate demand for MBA graduates is high; 92 percent of recruiters planned to hire MBA graduates in 2023, according to the GMAC 2022 Corporate Recruiters Survey.
Which careers pay the highest premium for MBAs? What follows is a summary of some industries where you can expect to earn the most with this graduate business degree,
Consulting
Consulting is a popular career choice among current and prospective MBA graduates. According to GMAC’s 2023 “Prospective Students Survey,” 47 percent of GME candidates hope to work in consulting after graduation.
Among recent graduates of top business schools, the average salary of MBA graduates working in consulting was $150,000 in 2022. Those working at top firms did even better: top consulting firms like Bain & Co., McKinsey Co., and Boston Consulting Group pay attractive starting salaries of more than $190,000 to top candidates. Those promoted to management or project leadership positions can earn as much as $220,000 annually within two to three years.
Finance
Earning an MBA can lead to diverse career opportunities and professional advancement within the finance sector. Potential job roles available to MBA graduates working in finance include financial manager, financial analyst, portfolio manager, compliance specialist, investment banker, corporate strategist, and financial controller. As an MBA graduate in the finance industry, you can expect to earn a starting salary of over $100,000.
Technology
Deloitte predicts that the tech sector is poised to rebound after several years of high inflation and elevated interest rates impeding growth. In this uncertain business environment, tech companies increasingly value the skills acquired in MBA programs: continuous learning, leadership, strategy, innovation, and decision-making. According to GMAC, tech companies often recruit MBA hires for strategy, product management, and business development roles.
Tech industry salaries vary by role. Innovation strategists earn $129,366 on average, while business development managers draw an average salary of around $135,000. Senior-level product managers can earn as much as $290,000 annually.
Healthcare
An MBA can help you qualify for various operational and management roles in healthcare. Possible jobs include hospital administrator, pharmaceutical project manager, marketing manager, and operations manager. In addition to traditional healthcare management roles, an MBA can help you get a job at healthcare tech startups requiring operational or project management expertise. Most MBA graduates in the healthcare industry earn more than $100,000 annually; some make as much as $250,000.
Retail
The nature of retail careers has changed significantly over the past few years, creating exciting opportunities for MBA graduates. According to industry publication “The Business of Fashion,” retail staff are increasingly expected to contribute across the value chain, with responsibilities like hosting in-store events and community experiences, offering service touchpoints for consumers’ educational and omnichannel needs, and managing distribution and online returns.
Accordingly, the industry needs highly skilled professionals to fill roles in e-commerce, digital marketing, and consumer analytics. MBA graduates are well-placed to fill this gap. Possible job roles for MBA graduates in retail include marketing manager, personnel manager, district manager, brand manager, business analyst, supply chain manager, merger and acquisition analyst, and product manager. MBA graduates in the retail industry earn an average yearly salary of $100,000.
What Factors Influence MBA Earning Potential?
Salary boosters include:
- Industry: As noted above, MBA graduates in some sectors (like consulting) earn more than others.
- Location: Where you live and work will affect your salary, influenced by factors such as the local economy and cost of living. For example, MBA salaries in Washington and New York are much higher than in Florida.
- Years of expertise: MBAs with more years of professional experience tend to earn higher salaries than their less-experienced counterparts. This presents another compelling argument for part-time online study: you can continue to work, and accrue work experience, while you earn your MBA.
Your interviewing skills and ability to negotiate with recruiters also play a significant role in determining your compensation.
How to Maximize Your Earning Power with an MBA
Not all MBA programs are created equal. The university you choose can have a significant impact on your future salary. When considering MBA programs, look for the following features that can help boost your salary potential:
- Networking opportunities: Networking with peers and the university’s broader alumni network can help you make the right connections to get your desired job (and salary). UT graduates, for example, join the university’s lifelong network of Volunteers committed to shaping, serving, and supporting one another.
- Mentoring: Faculty mentors can help you gain the skills to thrive in your chosen industry, giving you a competitive advantage in the job market.
Transform Your Career Potential with UT’s Online MBA
MBA programs train students in the core business functions and fundamentals necessary to lead effectively. They build competencies that businesses seek, typically leading to improved career options and higher incomes.
UT Haslam’s online MBA offers an interdisciplinary curriculum that provides an immersive experience focused on analytical tools, supply chain management, consulting, finance, entrepreneurship, and innovation. The program lays a foundation of essential business knowledge and leading technology skills that help students succeed across industries.
You can earn your Haslam MBA 100 percent online, so you don’t have to relocate or put your professional development on hold. The program is flexible, allowing you to learn at your own pace, but not impersonal; online students connect with Haslam faculty during interactive live lectures and remote office hours, and they engage with fellow students in class and during online study groups and group project meetings. When you graduate, you’ll join the global network of Volunteers, a community committed to supporting fellow alumni in their careers.
Contact an enrollment advisor today to learn more about the UT Haslam online MBA.