MBA degrees (master’s in business administration) have traditionally been seen as one of the most prestigious post-secondary degrees you can get.
And while the typical MBA program is all about preparing students for advanced leadership roles in business, or training people to handle the responsibilities of running their own business, often the reasons for taking on the additional schooling boils down to a much simpler desire. The overall perception, beyond the benefits of improved leadership skills and advanced employability, is that professionals with an MBA simply earn more than professionals with a Bachelor’s or other Master’s degree.
So do MBAs really make more? Statistics generally report that they do. Each year, a Global MBA Graduate Study is conducted on some 6,000 graduating MBAs entering or re-entering the work force. The 2006 class reported making approximately $61,000 per year before earning their MBA degree, and expects their post-MBA salary to jump up to approximately $86,000, an increase of about 41 percent.
In addition to the potential for more income, an MBA graduate also holds the credentials required to move into upper management. According to Quintessential Careers, 80 percent of executives said a graduate degree in business is still a key factor in consideration for senior management in most companies. An MBA also gives you negotiating power for not just salary and title, but for better overall balance in your life in regards to work hours. Another study, published in Management Science in March 2008, reported that I.T. professionals with MBAs earn 46 percent more each year than ones with Bachelor’s degrees, and 37 percent more than ones with any other Master’s degree.