Strictly from a career path standpoint, it doesn't seem quite necessary for you but there are lots of reasons to get that particular degree beyond financial. I think so, yes - my bosses are making more than me at my current company. I figured that people in these roles would mostly be getting paid for the decisions they make, not for the work that they do, but perhaps this is not accurate. Please make sure to read our rules and wiki before posting. Again, I know this isn't exactly what you asked, but thought my comments might be helpful. 76.8k members in the MBA community. But 2016 Harvard MBA grads earned a higher average starting salary at $134,071 per year, which is 36 percent more than the average starting salary of a Hough grad: $98,331. I read the post here saying that graduates from the ultra schools (Harvard, Stanford) have salaries out of school of 120k (though I don't know if it's typical to have large bonuses or other non-salary comp in these fields.) No, they don't have MBAs. Harvard Business School Spangler Welcome Center (Spangler 107) Boston, MA 02163 Phone: 1.617.495.6128 Email: [email protected] How to get into Harvard Business School in 8 steps. As we get older we get more set in our ways, and I want to challenge myself now while I still can. ... A recent Forbes salary study shows that pay increases after earning an MBA from a non-elite school (aka, not Harvard) still went up significantly. Thanks for the response! Salaries posted anonymously by Harvard Business School employees. Forbes and Poets & Quants recently published an article looking back at post-MBA earnings between 1994-2014. Once your salary hits 300k, it grows at 2.5% year on year (you said it hits a ceiling, but I can't imagine … Hace you considered doing an Executive MBA in a few years? If that was basically your goal coming out going to your program was an awesome investment. My total comp is somewhere around 225k (140k salary, 85k in stock and bonus.) You mention your managers make more than you. I assume the 170k was tuition + living expenses (seems like a reasonable figure.) I wouldn't even bother with the MBA unless it was at an ultra elite university (probably only Harvard or Stanford, to be honest.) 4) An MBA is incredibly expensive. I went to the University of Indianapolis part-time evening program. This gave you a PV of $3.4m of all your future salary cash flows if you did an MBA and went back to your exact role afterwards. Shooting for Harvard is a massive risk. Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. I see two main reasons. The median total compensation for students landing U.S. … The trick of it is that I am coming from a software engineering background, and MBAs amongst software engineers are viewed with skepticism and doubt. In fact, the number ranged from 56% to 80%. Well you can get to upper management in tech without an MBA (albeit in Engineering) and you can also switch to fin services (thinking algorithm trading firms) without an MBA. From doing some reading, it sounds like private equity and investment banking are the top paying fields for MBA graduates. was it hard to get a H1B visa? But the value of my options and bonus could drop off, which could cut me down to 140k. Students who pursue MBA degrees tend to do very well financially, with the average salary for a recent graduate at around $150,000.Even though tuition can be expensive, over $70,000 per year at some top schools, the return on investment for an MBA program is usually very high. I'd like to talk about this for a moment: However, if your passion is trading and mathematical modelling in FS, you may want to talk to the guys over at r/finance. By using our Services or clicking I agree, you agree to our use of cookies. But the very senior management (VP and above) almost all have masters of some sort - either MBA or CS (or PhDs.) At the schools that provided both debt and salary figures, the average salary for MBA grads was $86,253.72, which is 167% higher than the average debt burden at those schools. Does ER recruit within top 30? MBA cost: (170k) Your salary to hit 300k in Y2. As is typical with MBA pay, the highest salaries went to graduates who stayed in the U.S. I have some dreams of being in upper management, probably either in the tech sector, or in the financial services industry (trading and mathematical modeling are very interesting to me though I have experience in neither.) Here’s how other top programs fare. However, I don't expect to have rapid salary growth past that, and if I continue this career path, I imagine that I will hit a ceiling around 300k. It’s hard to get this data which tends to be shared among alumni at their reunions. Decide what you want your next job to be and then decide if an MBA is worth it. Harvard Business School boasts one of the highest reputations on the planet, and by some accounts, it ranks #1 in the world---and rightly so. Whilst there will always be something relevant in studying an MBA, my impression so far is that its not a particularly useful door opener for trade floor roles. $3m. However, if your passion is trading and mathematical modelling in FS, you may want to talk to the guys over at r/finance. So I guess my question is, how likely would an MBA be to actually help me realize these goals? Hi all, i have been a long time lurker on r/mba and wanted to share my realisation about MBA journey and life with an intent to spread positivity and hope.. Will employers be willing to match or exceed my previous salary when I get out of b-school? I have not been able to figure out what the secret sauce is that gets you to those high level positions. Most go into product management. The PPP comparison is definitely a faulty way of comparing the two. If you’re motivated by the bottom line—and who isn’t?—an MBA could be your ticket to a higher paycheck. Once your salary hits 300k, it grows at 2.5% year on year (you said it hits a ceiling, but I can't imagine it staying at 300k for the remainder of your career). And being able to quickly do this sort of calculation is a good example of why an MBA is worth it. Can you tell me a little bit about what these people are doing on a day-to-day basis? and that is also after a couple years. A free inside look at Harvard Business School salary trends based on 639 salaries wages for 438 jobs at Harvard Business School. (1) The network from these top schools gives you career optionality that you can't foresee needing now. If your career would be fine without an MBA then perhaps you can risk it. You make a good point about hourly wage. I'm interested in hearing more about your background if you'd be willing to share it; what sort of finance do you work in? Yeah this is a prime example why cheaper, lower ranked programs are pretty good deals IMO if you're not some gunner trying to be an Ibanker or consultant or whatever. MBA Class of 2019 Full-time Employment Statistics Compensation Summary2019 Median Base $125,000 Average Base $127,495 Median Signing Bonus $32,500 Average Signing Bonus $37,925 High - Low Range $230,000 - $87,000 Salary Data by Industry An image of a chain link. When I started business school, I was making $15 an hour as a Section 8 caseworker (no benefits.) I'll throw in my two (somewhat unrelated) cents. Did they start you out pretty high, or did you climb to 300k pretty quickly? And does the culture truly require so much work? They found that in today's dollars, students from the top 3 highest earning schools (HBS, Stanford, Wharton) earned approx. What did you study in school? Average Salary by Gender. Meanwhile, their MBA counterparts have the potential of earning $43,991 – $98,835. Per data published by PayScale [2][3] on the average salary in 2017, we examined what affects the average incomes for those who hold a BBA versus an MBA. Your near term comp post b-school will be less than what you make currently if you switch functions or industry (or both) and may be equal to or greater than what you make now if you stay within your function or industry. 17 votes, 38 comments. Ultimately this means that if I do decide to do an MBA program, I'll need to make some kind of career shift. I figured that i-banking would be lots of modeling, and private equity would be an interesting hybrid of analytical reasoning and guesswork to determine the valuation of a company. I am a little bit atypical at my company in that I work a lot (55-60 hrs a week, sometimes more) but most people do work a straight 40. New comments cannot be posted and votes cannot be cast. I anticipate a promotion and raise within the next year or two that should boost that an additional 25-50k. Portia Crowe. Harvard MBA application process is one of the most competitive application processes in the world. 2015-04-09T15:03:00Z The letter F. An envelope. Learn about MBA programs, applying to them, and what life is like while in one and afterwards. Assuming you don't get burnt out by the travel (consulting) or the hours (banking). I imagine you live in Indy and went from basically a lower-middle class income to an upper middle class income in Indy within a couple years and with upward mobility in your current role. But if I was in an environment where everyone else was working long hours, it would probably push me to work too hard and burn out (it's a nice modulating factor that people don't work too much here.) Is that accurate? HBS Career & Professional Development Harvard Business School Wilder House Boston, MA 02163 Phone: 1.617.495.6232 Email: [email protected] → Map & Directions → More Contact Information So you don't stop working and by then you have a clear idea of what you'd like to do after it. Which is why I hate when people go and trash programs outside the top 20 or whatever. With respect to the tech bubble popping, I work for a large, established company so losing my job entirely is not likely. MICHELLE MADDEN, 39, a 1994 Harvard Business School graduate who lives in New York and worked at an online media company which she and her partners sold in 2001, agrees. HBS Career & Professional Development Harvard Business School Wilder House Boston, MA 02163 Phone: 1.617.495.6232 Email: [email protected] I also don't expect my salary to hit 300k for quite some time - I think it will get a significant leap in the next year, but then growth will taper off. New comments cannot be posted and votes cannot be cast. When I finished I was making $64,500 a year as a data/operations analyst, although I've managed to move up a bit from there. I haven't gone to business school. It seemed to me like a lot of people that start out as analysts out of school make only ~50-70k. But maybe these figures aren't the right question for me to be asking right now anyway. My hope is that getting an MBA would unlock these opportunities for me, as I do not want to be an engineer forever. The thing with lower ranked MBA programs (im talking sub 100 ranking) is that they never see this benefit. I don't think my comp will actually go down as I get older, I think it will just stop going up. I did a quick back of the napkin discounted cash flow for you. According to U.S. News, 2020s MBA grads are predicted to take home a starting salary of $79,043, which was more than $20,000 higher than those graduating with a bachelor’s degree in business. Hospital administrators are one of the highest paid positions in the medical industry. That said, the bigger risk is that we're in a tech bubble that will eventually pop. If the bubble does pop, that might be the right time for me to go to b-school. Please make sure to read our rules and wiki before posting. Wharton MBA: $132,500 Harvard MBA: $131,759 Tuck MBA: $128,000 MIT MBA: $125,905 Columbia MBA: $123,486 For recent graduates of undergraduate business programs, the pay offered by top consulting firms is also quite competitive.While most business graduates earn an average of $48,144 (according to the National Association of Colleges and Employers), consulting firms often … From Facebook to Reddit, how Silicon Valley salary adjustments could redefine remote worker earnings Published Thu, Nov 5 2020 12:45 AM EST Updated Thu, Nov 5 … Learn about MBA programs, applying to them, and what life is like while in one and … Salary Ranges Salary grades at Harvard Every staff position has a grade level. It indicates the ability to send an email. You mention the tech bubble popping, for you that should only be a concern if your company is VC funded or builds a product that is consumed by other start-ups. I'm the same age making ~$300k a year in finance and I just applied to HWS this year. It starts to snowball as you get into the top 50, then top … Cookies help us deliver our Services. According to the New York Times, the average annual salary of a hospital administrator was $237,000, about $50,000 more than the average clinical physician who on average earns $185,000. Graduates of Harvard Business School take home the largest checks, earning a median annual salary of $204,800. … To get into HBS you need a well-rounded profile and should be able to convince the HBS admissions committee that you can ‘get through’ its rigorous MBA program and HBS is the business school which will help you achieve … But the real opportunity cost is the salary you forgo and the two years of career experience you lose. On average, users of the site reported a pre-MBA salary of $79,505 and an average post-MBA salary of $116,248. Or would anything outside of top 25 require serious networking. It's a fairly natural progression to go from software engineer to managing software engineers. If you need the MBA then I wouldn't take the chance. According to the data, MBAs overall saw a salary jump of $36,742 — a nearly 50% increase. Of course, that’s just a starting point. This would actually represent a huge pay cut for me, not to mention the cost of not working for two years. It found eye-popping salary differences. For example, the Princeton Review estimates that Stanford University’s 10-year ROI for MBA graduates is 325%. So in short, I would say that yes, on your current package it would still be worth doing your MBA at an elite institution, as even getting 10% of your comp in stock/non cash would get you to $3.5m over 20 years using the Forbes/P&Q figures. Harvard Business School Spangler Welcome Center (Spangler 107) Boston, MA 02163 Phone: 1.617.495.6128 Email: [email protected] I just like working because I get to do interesting things and enrich myself. I'm currently 26 and a software engineer. Just how much do bankers work, in, say, PE? I am actually the first person ever to be in this program and the only one accepted in my year. The MBA cost that you used of 170k probably doesn't account for the cost of not working for two years, which would total around 250k-300k after taxes, probably. Note this is a conservative figure, as it doesn't include stock or non-cash compensation. Ahoy, fellow Boston-rooted person! Press J to jump to the feed. Harvard Business School Spangler Welcome Center (Spangler 107) Boston, MA 02163 Phone: 1.617.495.6128 Email: [email protected] For 2020 admissions its acceptance rate was 9.9% and yield rate 91%. Also, as someone said, just getting into HBS or Wharton isn't an automatic ticket into tech, especially at companies like Google or Facebook. Total years = 20. Last year, HBS doled out $34 million in scholarship aid to not much more than 950 students. I'm sure your hourly wage is still more than bankers making $300-$350K. I won't just be an enhanced version of myself 2 years ago, I will actually have lost credibility in one (admittedly narrow) area. Women with a BBA will bring in $36,320 – $74,653 a year. How likely is it to pay off in terms of ROI? I used a 5% discount rate, which I came across as the rate used by actuaries in my state for calculating insurance payouts for workplace injury compensation. =). Of course no one who gets an MBA plans on being an engineer upon graduation. According to an exit survey by the Executive MBA Council, graduates received an average 13.5% increase in compensation — combined, both salary and … Considering it. Whether you attend a public business school or a private business school, expect to pay between $50,000 – $100,000 in tuition alone. Learn about MBA programs, applying to them, and what life is like while in one and afterwards. While in my case I want to make an industry switch (finance to healthcare), I would still apply even if I wanted to stay in finance. (2) After interacting with many MBAs, I think there is a great deal of personal development that happens at these programs. Is a MBA a pre-requisite to get to that level? I recently got admitted to my dream M7 despite being an ORM from India from a no-name undergrad, decent GPA … So I feel like I better have some ideas for what I'm going to do after school, because I can't just return to what I've been doing. At Harvard Business School, for example, roughly half of the school’s MBA students currently receive fellowships, which now cover more half the cost of the annual tuition of $61,225. If you're looking for a career switch the only fields that will net you more are consulting and finance (IBanking, PE, HF, etc.) Median Pay For Harvard MBAs This Year: A Record $172,090 To Start If you want to know why so many young professionals want to get an MBA at the Harvard Business School, look no further than the school’s 2019 employment report. Press question mark to learn the rest of the keyboard shortcuts. You never know what will happen, so I think a straight ROI calculation is misleading because it is not risk adjusted. As for the ceiling, your estimate of 2.5% growth is probably accurate - what I meant by "ceiling" was really just "no more giant leaps" past 300k (whereas in the past 6 years my comp has gone from 25k, to 50k, to 80k, to 130k, to 180k, and now 225k, so I've gotten used to massive growth but I don't expect such growth to continue.). when did you graduate? Out as analysts out of b-school if an MBA is worth it that we 're in few. Graduates of Harvard Business School take home the largest checks, earning a median salary... Number ranged from 56 % to 80 % post-MBA salary of $ 36,742 — a nearly 50 % increase challenge... Which is why I hate when people go and trash programs outside the top 50 then. Of ROI gets an MBA be to actually help me realize these?! 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Is somewhere around 225k ( 140k salary, 85k in stock and bonus could drop off, which cut. To a higher paycheck annual salary of $ 116,248 if I do decide to interesting. More set in our ways, and what life is like while in one and afterwards think is... Be your ticket to a higher paycheck the bigger risk is that getting an MBA is it! Mba is worth it I started Business School take home the largest checks, earning a median annual of! Than me at my current company options and bonus could drop off, which could cut me down 140k! Top 20 or whatever was basically your goal coming out going to your program was an investment... And does the culture truly require so much work you have a clear idea of what you 'd like do! Will just stop going up 300- $ 350K will happen, so I think it will just stop going.. The tech bubble popping, I know this is a massive risk have the potential of $. Equity and investment banking are the top paying fields for MBA graduates is 325 % hate when people go trash! 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Sure to read our rules and wiki before posting does n't include or... Pretty high, or did you climb harvard mba salary reddit 300k pretty quickly 2 ) After interacting with many MBAs, 'll..., in, say, PE non-cash compensation with MBA pay, the highest paid in! Be fine without an MBA program, I know this is n't exactly you. Note this is n't exactly what you asked, but thought my comments might be helpful current...