How an MBA Degree Impacts Salary Growth?

The popularity of management programs has significantly risen in the past few years. This can be attributed to the fact that getting an MBA degree considerably boosts your chances of employability. A study from Statista shows that employability among MBA graduates in 2024 stands at 71%. But why does an MBA heighten your chances of employability?

An MBA degree provides you with industry-relevant knowledge, better management skills, and greater exposure to the business world, which can help you navigate the job market better. These advantages give MBA holders a decided advantage over non-MBA holders. Employers tend to prefer MBA graduates over their non-MBA counterparts for these very reasons, even offering them higher packages.

Let’s explore in detail the MBA salary trends compared to non-MBA holders to gain a comprehensive insight into the advantages of the former.

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Factors Influencing Salary Growth

The average MBA salary in India ranges between ₹6 LPA to ₹23 LPA . Compared to that, the average monthly wage of urban Indians is ₹ 20,030. However, these numbers are tentative, depending on several factors. For example, for MBA graduates, the salary varies based on location, industry, seniority or prior work experience.

1. Location

Your employment location has a huge impact on your salary. Areas with a higher cost of living always see better pay than places with lower living expenses. Domestic economies dictate spending and consequent savings, and salary ranges are fixed at par with that.

2. Industry

Certain MBA specializations and their corresponding industries have significantly higher pay than others. For example, if you have an MBA in Consulting or Finance, you would receive an exponentially bigger compensation than, say, if you were in Human Resources or Marketing. This disparity can occur for a lot of reasons. Industries like finance or consulting always see higher profit margins, which influence pay.

3. Enhanced Skills

Additionally, if you belong to these industries, you have honed a specialized set of skills above primary skills like effective communication. You’ve thus channeled yourself to become the employee equivalent of a Swiss knife ninja, and it warrants a higher paycheck.

4. Prior Work Experience

It goes without saying that if you have prior work experience along with an MBA, your remuneration would be considerably higher than if you were a fresher with an MBA.

The reason being if you’re fresher, companies have to spend significant time and resources training you so that you perform well. However, if you’re an experienced professional, you can hit the ground running. You can be an asset to your organization rather than just another resource. Hence, your financial perks will be better than freshers.

For non-MBA graduates, the salary depends on your job role. For example, if you work in tech as a data scientist, your monthly salary can be as high as ₹14.4 LPA. But if non-tech is your niche, your salary can average between ₹4-7 LPA, depending on your job title.

Let’s explore in detail the salary structures of top professionals with and without an MBA to get a clearer understanding of how pay varies.

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Salary Trends: MBA v/s Non-MBA

MBA Compensation Patterns by Specialization:

Finance

Job Role	Average Salary
Financial Analyst	₹6 LPA
Management Consultant	₹27 LPA
Investment Banker	₹17 LPA

Operations

Job Role	Average Salary
Operations Manager	₹10.8 LPA
Logistics Manager	₹9.7 LPA
Supply Chain Manager	₹14.1 LPA

Marketing

Job Role	Average Salary
Marketing Manager	₹12.3 LPA
Sales Manager	₹6.9 LPA
Brand Manager	₹18 LPA

Human Resources

Job Role	Average Salary
Talent Acquisition Manager	₹13.5 LPA
Human Resource Manager	₹10.9 LPA
Human Resource Generalist/ Compensation Manager	₹21 LPA

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Non-MBA Compensation Structures:

Job Role	Average Salary
Software Developer/Engineer	₹8.4 LPA
Chartered Accountant	₹10.8 LPA
Civil Engineer	₹4.5 LPA
Mechanical Engineer	₹4.5 LPA
Nurse	₹4.1 LPA
Lawyer	₹4.8 LPA
Graphic Designer	₹3.9 LPA

While these figures are relative to industry type, work experience, and location, these are the usual compensation trends seen among non-MBA graduates. Barring tech-related job roles, the compensation for the rest of the professions is almost half the MBA salary.

An MBA can uniformly increase your salary, regardless of your discipline. For example, if you’re a nurse, you can pursue an MBA in Healthcare Management to improve your salary range. If you’re a software developer, you can further augment your salary with an MBA in Information Technology.

Conclusion

Today, MBAs have become a go-to option for fresh graduates looking to boost career growth and salary. However, many debate the opportunity costs of a full-time two-year MBA program. Apart from financial investment, it requires a two-year commitment away from the job market, which many perceive as a risky endeavor.

Amity Online, though, offers a versatile opportunity. Its virtual learning format helps you level up your skills anytime, anywhere, under the mentorship of a world-class faculty. You don’t need to take a break from your career and dog-ear a few years separately for an MBA. If you feel you’re missing out on networking opportunities, there are provisions for offline experiences as well. For example, campus orientations.

So, what are you waiting for? Explore the limitless possibilities that Amity Online provides and get yourself job-ready in no time!

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