Doing an MBA is expensive and represents a big investment for most people. Not surprisingly, knowing the payback time of such an investment can be of the utmost importance. Although I already posted something about the payback time, I really didn’t elaborate too much on salaries. Yes, I know, shame on me!
The post-MBA salary is very important to understand whether this is a worthwhile investment and I get many questions on this, so it’s about time I write something about it!
If you look at the career outcome stats posted on the MBA website, you’ll see that the average salary is around £55.000. After taking the Management Science course, you’ll surely understand any average hides a lot of information, so what does this really mean and what is reasonable to expect after graduation?
Salaries after graduation will vary a lot and so will the type of packages offered. It depends mostly on industry and location. I would say the two areas paying the most are consulting and banking. In these areas, it’s possible to get offers that go from £55.000 up to £90.000, depending on the consultancy name. Top consulting companies tend to reward their employees well, but only a few students will end up landing those top jobs and in most cases you’ll end up giving up your personal and family life.
The industry pays slightly less, but again, it’s highly variable. But these are the ones around the £55.000 mark. Some slightly above, others slightly below. In some well-known companies salaries can be very competitive and be almost at the level of consulting and banking. Usually not-for-profit is around £45.000 to £60.000, depending on the role.
Of course there are other things to have into account when choosing a job, such as sign-on bonus (a common practice in the UK…really makes me feel like a football player!), performance bonuses and other perks.
In terms of region, I’m still under the impression the UK has the highest salaries, following by Germany and the US.
All and all, this means if you land the average package, you should be able to pay your MBA in around 2 years, especially if you get a nice sign-on and annual bonus.