Salary benchmarking site Emolument.com analyzed the salary data of finance workers in London to evaluate how pay was affected by MBA qualifications.
The site used data from 1,650 front office banking employees based in London, comparing the salaries of those who gained an MBA to those who did not. At a time when competition for top jobs is tough, ambitious graduates are looking for any way to gain an advantage, and interest in MBA courses has increased as a result.
Seeking competitive advantage
“MBAs are a hot topic in tough economic times: instead of spending months seeking a new job, many will strive to boost their skills and networks with an extra qualification, looking to either reassess their career entirely or become a more desirable recruit. Either way, return on investment is at the forefront of anyone investigating MBA options, said Thomas Drewry, CEO of emolument.com.
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According to the data collected by emolument.com, MBAs give a clear benefit in terms of salary increases at Associate and VP level, with Associates who hold an MBA qualification earning $24,640 more per year, a pay gap which narrows to $10,780 at the VP level. The data would so far suggest that studying for an MBA pays off in the long run.
Intangible benefits of MBA programs
Further analysis shows that contrary to what you might think, non-MBA holders actually earn more as Directors and MDs. However the data would suggest that there are other benefits to studying for an MBA that aren’t purely financial.
For example, emolument.com claims that MBA graduates “show resilience when it comes to rising through the ranks and being promoted,” with the website claiming that this could be proven by the fact that 21% of MDs completed an MBA program compared to 10% of Associates.
A purely financial analysis of the benefits of MBA programs may lead prospective students to overlook the fact that their careers could be boosted in other ways, such as greater networking abilities or management skills.