What’s the salary for an MBA graduate? MBA starting salary in Australia
Choosing to invest your money and time into an MBA can seem daunting. So why do over 20,000 Australians a year do it? There are many benefits to completing an MBA, such as developing a wider range of soft skills, a larger network and increased professional value. Whatever your reason is for undertaking an MBA, there’s no denying that a strong motivation for completing an MBA is a higher annual salary.
So just what is the salary for an MBA graduate? And how will this affect your annual earnings? Read on to discover the MBA starting salary in Australia.
What is the MBA starting salary in Australia?
In 2020, the Australian Government Department of Education, Skills and Employment released a Graduate Outcomes Survey detailing the full-time earnings of undergraduates and postgraduates. It found that working professionals without a postgraduate degree received a median salary of $64,000 per year, while those with a postgraduate degree in addition to their undergrad degree earned on average $98,000 per year.
Does an MBA increase your salary?
At AIB, we conducted the 2021 MBA Alumni Insights Survey. We found that not only did 73% of all MBA students receive a pay increase since beginning our MBA program, but another 74% increased their salary since graduating from our MBA. On average, this salary increase was $33,000.
And the salary benefits aren’t limited to Australia. The annual Financial Times Global MBA Rankings compares graduate salaries from all over the world. In 2021, it was discovered that graduates from top MBA programs achieved average salary increases of more than 100% compared to their pre-MBA salary.
Why do MBA graduates earn more?
MBA graduates earn more because they have versatile skill sets that are extremely attractive to employers and recruiters.
MBA graduates are leaders
According to Udemy, nearly half of all employees surveyed claimed that they’ve quit a job because of a bad manager. Good management ensures a low turnover rate and longevity. That’s why hiring managers often seek out potential candidates with strong leadership skills. An MBA teaches leadership skills that any company can benefit from.
MBA graduates are effective communicators
An effective communicator can build trust with employees and customers, improve team engagement and productivity and resolve issues effectively. An MBA can teach students how to communicate effectively with employees and customers.
MBA graduates can think critically
Critical thinkers are great at identifying new opportunities. An MBA graduate is taught how to identify, seek, or create new business opportunities, whether internal or external.
Employers will seek out strong critical thinkers who help their businesses make better decisions and well-formed opinions. They also help innovation and creativity – enabling their company to produce new products or innovative new services.
What influences an MBA graduate’s salary?
Many factors can affect your MBA starting salary in Australia, including your location and industry, but there are several advantages an MBA gives you that can help you achieve a higher salary.
Take advantage of your new network
Undertaking an MBA expands your professional network – which, in turn, can influence your starting salary and influence your career opportunities. Extending your network is not only important to build relationships that will last long after your studies are over, but is essential for community collaboration to discuss and challenge ideas in your industry.
AIB hosts a series of networking events – not only for AIB alumni and students but for any working professional interested in career development and growing their network. During these gatherings, attendees will forge new local connections, mingle with like-minded business individuals and grow their professional network.
Encourage your employer to understand an MBA’s value
Arrange a time with your manager to discuss the benefits an MBA will give you. After all, presenting your MBA to your employer is a powerful way to help them appreciate its value. Explain that an MBA has taught you a variety of soft skills, such as research and analysis, lateral thinking, communication and problem-solving.
Some employers, especially large corporations, can assume part or the entire cost of your MBA. Tell your employer that you want to study an online MBA with AIB, why you want to study and when you intend to start. Then focus on why the Fast-Track MBA is a worthwhile investment for you and your company.
Delivered online with continual updates, innovations and new releases, the Fast-Track MBA offers genuine flexibility, industry insights, practical skills and the support you need to achieve your goals in our fast-changing world. It’s created for people just like you.