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A Master’s in Business can open the doors to greater responsibility at work and an increase in salary. Like any other degree or achievement it mostly depends on the effort you put into it and what you want to accomplish. Statistics definitely show people with a Master’s in Business, or an MBA, on average, have higher earning potential than someone with an undergraduate or lower degree.
Oh, the Difference a Master’s in Business Degree Can Make
Using data from the Bureau of Labor Statistics (BLS), careerinfonet.org graphs the additional earnings a person can expect as they increase their level of education. Those with a Master’s degree earn an average of $210 more per week over earners with a bachelor’s degree. That’s over an impressive $10,000 more per year. Persons with an MBA tend to advance into management positions. The BLS Current Employment Statistics released in October 2013 reported growth in jobs for professional and business services with over 8,000 new jobs in management.
See: Top 10 Best Online Masters in Business Administration Degree Programs
Location, Location, Location
Top executives in almost any industry most generally have a Master’s in Business. Many variables have to be deliberated when pay is considered. As in real estate, location is a huge factor in average salaries for those with an MBA. The BLS publishes collected data by state and metropolitan area. The top 5 paying states for top executives in May 2012 were Connecticut, Delaware, Rhode Island, North Carolina and California. The size of the corporation or business must also be considered. For example, Management of Companies and Enterprises designation is the industry with the highest levels of employment for top executives with an annual median salary of $210,120, but the second highest designation, Local Government (OES Designation), weighs in with a median salary of $110,000. The annual median salary was $165,080. The lowest 10% earned $75,160 or less and the top 10% earned more than $166,000. Experience and responsibilities are additional factors in determining salary levels.
In comparison to top executives, general and operations managers had a reported annual median salary of $94,400. The top 5 paying states in this category were New Jersey, Rhode Island, Connecticut, District of Columbia and Delaware. Pay for these states ranged from $140,160 up to $161,160. The same factors of location, experience and responsibilities have to be considered when looking at salary in this category.
A Master’s in Business is a Win-Win
The median annual wage for chief executives was $165,080 in May 2010. The median is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $75,160, and the top 10 percent earned more than $166,400.
The median annual wage for general and operations managers was $94,400 in May 2010. The lowest 10 percent earned less than $47,280, and the top 10 percent earned more than $166,400. Because the responsibilities of general and operations managers vary significantly among industries, earnings also tend to vary considerably. To illustrate the wide range of salary, Management of Companies and Enterprises has the highest level of employment with an annual median salary of $141,170. The third highest level, Restaurants and Other Eating Places, has a listed $73,080 salary. However, the top paying industry, Securities and Commodity Exchanges annual median salary compares at $199,020.
You can easily reach the conclusion that pursuing and earning an MBA will pay for itself in a short amount of time. The industry and location you choose to put your Master’s in Business into use will also be factors in your pay.
