As per the 2018 QS TopMBA report, 2017 reported a 13% increase in MBA hiring with USA paying average MBA salary of $102,100 (a dip from last year) and Europe offering $85,500 (up from last year). In other continents, Australia remains a lucrative employer almost matching USA with a package of $98,400. India remains behind with packages of $66,500.
How much does an average MBA earn in USA, Europe and India?
Let us see the compensation trends by functions and industry (src: QS TopMBA.com).
Average MBA Salary Levels by Region for 2016-17 period
| Region | Avg Salary | Avg Total Compensation |
|---|---|---|
| Africa & Middle East | $78,200 | $90,700 |
| Asia-Pacific | $71,300 | $85,900 |
| Eastern Europe & Central Asia | $57,000 | $69,100 |
| Latin America | $62,500 | $75,900 |
| US & Canada | $98,900 | $116,300 |
| Western Europe | $85,500 | $101,300 |
Average MBA Salary Levels by Countries of interest for 2016-17 period
| Country | MBA Salary | Total Compensation |
|---|---|---|
| United States | $102,100 | $120,900 |
| UK | $92,400 | $122,900 |
| India | $66,500 | $76,300 |
| Australia | $98,400 | $116,200 |
| Canada | $99,800 | $111,100 |
| Switzerland | $123,500 | $140,900 |
Next, let us look at MBA Hiring by Industries
| Industry | %MBAs Hired | Avg MBA Salary |
|---|---|---|
| Technology | 13% | $89,633 |
| Finance | 5% | $97,100 |
| Consulting | 11% | $90,900 |
| Other | 15% | $89,675 |
What does it mean?
The growth in ‘Other’ sector points to Millenials opting for diverse roles after MBA including Entrepreneurship in non traditional industries.
Studying the older reports of MBA salaries, I see overall a flat or even dip in average salaries in last 3-4 years. The higher salaries in North America and Western Europe and Australia hover just around the six-figure mark (variation pointing out to the volatile bonuses). Bonuses form almost 20% of the compensations and come in form of signing and performance-related bonuses.
MBA hiring in traditional sectors such as Finance and Consulting, unsurprisingly, sees slower growth but packages remain high. While USA and Western Europe saw the highest (35%) hiring in Technology sector, Asia Pacific saw 25% hiring in Others and 16% in Consulting. Finance has been big in Latin America (20%).
Among other worth-noting trends:
- Employers want more from MBA hires in terms of leadership and interpersonal skills.
- Greatest proportion of employers look for 3-5 or 1-3 years’ experience level.
Summary
To summarize, MBAs continue to command six figure average salaries for traditional roles in Finance, and Consulting. Technology hiring is on a rise in mature markets but the overall employment and salary growth that was expected 3-4 years ago has not delivered. While MBA will remain a solid career option, don’t expect the frenzy seen in early part of this century.
What do you think? Has this encouraged you or discouraged from your MBA plans?
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