Many executives say attending business school contributed to their career success. And according to admissions experts, job applicants with MBAs on their resumes stand out so much to employers that students don’t necessarily need to attend the most prestigious schools to reap significant professional benefits.
An MBA often serves as a gateway to business leadership positions, experts say, and management roles typically involve higher salaries than nonmanagement jobs.
Some business schools give students better odds of finding lucrative employment when they graduate. Experts say it’s important to investigate the quality of career services at programs of interest before making a final choice.
Due to inflation, the real value of MBA salaries is declining, the Graduate Management Admission Council noted in its July 2023 corporate recruiters survey.
Highest Average MBA Salary
Among the 124 ranked full-time MBA programs that reported salary data to U.S. News in an annual survey, the overall average base salary plus bonus paid to 2023 graduates was $128,997.
At the 10 MBA programs where grads received the highest compensation — all are among the top 15 highest-ranked programs in the 2024 U.S. News Best Business Schools rankings — the overall average base salary and signing bonus was $210,676, up more than $17,500 from the previous year’s top 10 programs.
Meanwhile, at the 10 ranked MBA programs where compensation is lowest, several of which are ranked in the bottom fourth of the full-time programs and listed with a ranking range, the average amounted to $62,159. However, that’s an increase of more than $8,600 from the same subset the previous year.
U.S. News data shows that grads of B-schools with the most sterling academic reputations are, in some cases, paid a salary and bonus more than triple that of grads of the lowest-ranked schools.
All 124 ranked business schools that supplied salary data to U.S. News reported an average base salary figure. The overall average base salary paid to 2023 graduates at those programs was $109,159.
However, several schools did not report individual bonus figures in addition to base salary. Among the 108 ranked schools that supplied signing bonus figures above $0, the average bonus was $22,776.
The Graduate School of Business at Stanford University in California reported the highest average starting salary for 2023 MBA graduates at $189,010. Among the 10 MBA programs where starting salary was the highest, the average amounted to $172,322, compared to an average of $59,748 at the bottom 10 programs.
[READ: 3 Factors to Help Find the MBA Program That’s Right for You.]
Of the 108 programs that reported signing bonus data for three or more graduates, the highest average amount went to graduates of the Miami Herbert Business School at the University of Miami in Florida, where graduates were awarded signing bonuses that averaged $83,400.
It’s possible to be paid an above-average salary and a below-average bonus, or vice versa. Further, some MBA graduates who find jobs do not get signing bonuses.
MBA recipients in the workforce are often eligible for performance bonuses if they meet certain targets, and they may also receive stock options.
Getting a High-Paying MBA Job Often Requires Patience
The B-schools where graduate pay is highest aren’t necessarily the ones where grads get hired the fastest.
Stanford’s graduate business school reported the highest average salary and bonus — $231,259 — for 2023 graduates. However, among all schools that provided data to U.S. News, 94 reported higher employment rates for their alumni within three months of graduation than Stanford, which had a three-month employment rate of 82.8%.
MBA grads don’t necessarily have to spend a significant amount of time searching for high-paying jobs. Five schools reported 90% or more of graduates were employed at graduation, and each school reported an average base salary and signing bonus of more than $105,000. The Wharton School at the University of Pennsylvania, tied with Stanford at No. 1 on the U.S. News Best Business Schools list, reported the second-highest salary and bonus package of any ranked MBA program for 2023 alumni — $213,772 — with a three-month employment rate of 94.2% that surpassed most other B-schools.
Highest MBA Employment Rates by Program
Two schools, the Labovitz School of Business and Economics at the University of Minnesota–Duluth and the College of Business Administration at the University of Detroit Mercy in Michigan, reported that all of their 2023 graduates found jobs within three months of graduation, with average base salaries between $60,000 and $75,000.
Among the 124 ranked full-time MBA programs that supplied three-month employment rate data to U.S. News, the average employment rate for 2023 graduates three months after graduation was 86.8%. But those rates varied widely, ranging from a high of 100% to a low of 44.9%.
On the high end, a total of 18 programs reported that 95% or more of their graduates were employed within three months. On the low end, 10 programs reported that fewer than 70% of their graduates were employed within three months, with two programs at 50% or lower.
A total of 37 schools reported that 80% or more of their graduates were employed at graduation. Graduates of Emory University’s Goizueta Business School in Georgia saw the highest employment rate at graduation — 91.6% — to go along with an average starting salary and signing bonus of $186,262, which ranked inside the top 25 for highest salary plus bonus.
On the low end, six programs reported an employment rate at graduation of less than 40%, with two reporting under 30%. But that isn’t necessarily bad news. For instance, despite just 39% of 2023 graduates being employed by graduation, the School of Business at Stevens Institute of Technology in New Jersey reported that 89.5% were employed within three months of graduation.
Capitalizing on the Career Benefits of an MBA
Recent grads say one way to maximize the benefits of an MBA program is to first consider career goals.
Having a firm sense of purpose allows prospective students to write MBA application essays that convey conviction and discipline. Admissions officers want to see proof that business school applicants are employable and have leadership potential, some experts say.
It’s also critical for MBA applicants to clearly explain why they hope to attend business school in the near future and describe the unique perspective they could bring to a class.
Alumni say business school offers an opportunity for students to advance in their current career path or switch professions. An MBA can pave the way not only for high-profile general management positions at multinational firms, but also for jobs someone might not immediately imagine when considering the degree, such as data analyst positions, leadership roles at technology companies or entrepreneurship positions.
Though MBA programs typically prefer to admit students who have work experience, some programs welcome recent college grads and allow students to gain work experience through B-school courses.
Searching for a business school? Get our complete rankings of Best Business Schools.
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MBAs That Best Lead to Employment, High Salaries originally appeared on usnews.com
Update 04/10/24: This article has been updated to reflect ranks and data from the 2024 U.S. News Best Business Schools rankings.
