MBA degree has emerged as change maker in grabbing higher placement packages across the world as prior to doing MBA the alumni from B-schools never thought of such high placements. On average, the total compensation package for an MBA from a good MBA college can range from a median of US$75,513 for an entry-level position upward to a median of US$440,122 in total compensation for a C-suite executive. Business school alumni earn 76 percent of their total compensation in base salary, on average. As they advance up the career ladder, a greater proportion of their compensation comes from non-salary sources such as bonuses – this has been revealed in a report released on March 1, 2017 by the Graduate Management Admission Council (GMAC)
MBA graduates got high placements
More than half of MBAs and alumni from the business schools are currently employed in an industry or job function they did not have experience in prior to entering business school. Findings from the Council’s 2017 Alumni Perspectives Survey show that 2 in 5 (39 percent) alumni currently work in an industry they hadn’t considered prior to starting business school; they learned of the opportunity while enrolled in a graduate business program,with 88 percent sharing that they are satisfied with their job and employer.
Sharing about the report, Sangeet Chowfla, president and CEO of GMAC said,“Year after year our research has shown that a graduate management education offers significant personal, professional and financial rewards. We’re now seeing strong evidence of how valuable the degree is with regard to changing careers.”
MBAs placed in diversified domains & roles
92% percent of MBAs who responded to the survey are currently employed. 8 in 10 overall (81%) worldwide are employed with a company and 11 percent are self-employed entrepreneurs.
The ratio of employment in products and services is 27%, technology-14%, and finance and accounting-11%. Although MBA alumni work across the spectrum of industries, their degree type often differentiates career paths. MBA alumni are more likely to work in technology, nonprofit and government, manufacturing, health care, energy, and utilities, compared with alumni holding non-MBA master’s degrees. Business master’s alumni, for example, are more likely to be found employed in finance, accounting and consulting industries.
The MBAs prefer diversified roles. As for job functions, MBA alumni are more likely to hold positions in marketing, sales, operations, logistics, and general management. Alumni of non-MBA business master’s degrees are more likely to work in finance, accounting, and human resource positions.
More than 4 in 5 alumni (86%) agree their MBA education prepared them for leadership positions. 85% are of the view that MBA education prepared them for their chosen career; 82% say that MBA increased their earnings power.
MBA course helped in Entrepreneurship
Most MBA alumni say that they delayed their entrepreneurial activities until after their MBA graduation was completed. In fact, 2 in 3 MBA alumni entrepreneurs began their business after graduation following employment at another company. One in 8 alumni entrepreneurs sought venture capital and 72 percent of these individuals received such funding. Half of the MBA alumni entrepreneurs say their university provided faculty guidance, experts from the community, and mentors to guide their entrepreneurial activities.
Good to do MBA: MBA Alumni Recommend
Most MBA alumni recommend their graduate business program to colleagues and friends. The overall Net Promoter Score—a customer loyalty metric—that business schools receive from their alumni is 47, which is greater than scores received in many sectors of the economy. Net Promoter Scores are positive for all graduate business programs, although differences by program type range from 22 for Master in Management programs to 62 for full-time two-year MBA programs. If offered the choice, more than 9 in 10 (92 percent) alumni would have pursued their graduate management education knowing what they know now.
“Graduate business programs expose students to a wide range of opportunities and provide alumni with access to a variety of career outcomes,” said Chowfla.
Alumni are unanimous that their MBA education helped prepare them for leadership positions, as well as enhanced their earnings potential and guided their career development. This is also reflected in their recommendation of a graduate management education to others.”
In fact, no other course as compact and short as MBA can make you earn millions. Doing MBA from a good B-school is a lucrative investment and it will not take more than 4 years to recoup your MBA costs after completion of the course.
The findings of the 2017 Alumni Perspectives Survey Report detail the education and career outcomes of nearly 15,000 graduate business alumni presenting 1,100 graduate business programs located around the world. The report highlights that the value proposition of an MBA degree is high regardless of graduation year or program type “Given the current pace of change in the economy and the workplace, candidates can be confident in the knowledge that a graduate management education can prepare them with the skills and flexibility they need to be in a better position to pivot and adapt their careers when opportunities present themselves and industries are disrupted” says Chowfla.
Graduate Management Admission Council is a nonprofit education organization of 220 leading graduate business schools from around the world and owner of the Graduate Management Admission Test (GMAT exam), used by more than 6,500 graduate business and management programs worldwide. GMAC is also the owner and administrator of the NMAT by GMAC exam, used for entrance into MBA/PGDM programs in NMIMS and other B-schools in India GMAC is based in Reston, Virginia, and has regional offices in London, New Delhi and Hong Kong. The GMAT exam is the standardized test designed expressly for graduate business and management programs worldwide. GMAT is continuously available at 630 test centers in 115 countries.
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