Skip to comments.MBA Students Are Totally Deluded About How Much Money They'll Make
Posted on 07/18/2013 8:22:44 AM PDT by SeekAndFind
Many would-be MBAs expect a salary after graduation that's far in excess of what they can hope for. The average US MBA student expects to earn $140,000 on graduating, a 240% increase from the average current pre-enrollment salary of $58,000, according to a survey by QS TopMBA.com,
The reality? Payscale puts the median for grads with 4 or less years of experience at $55,779, and $71,920 for those with 5-9 years.
Graduates of top schools can usually still expect 6 figures.
MBA salaries have been flat for some time now as graduates price themselves out of many industries, traditionally lucrative banks slash pay, and startups grow increasingly skeptical. Expected salary has gone down slightly from last year, but it's still extremely high.
Students expect a salary that only students from the top schools in the country get close to. In fact, even Harvard and Stanford only reach $140,000 if you add the average bonus on top of salary. Since the survey includes students from the full spectrum of programs, these expectations are far out of step with reality.
Students outside the US have even higher expectations, with prospective Indian MBAs expecting a 469% increase, and South Africans, a 387% bump.
Here's the report's chart of what incoming MBAs expect around the world:
(Excerpt) Read more at businessinsider.com ...
To recent MBS graduates: Here’s the deal, kid. It is a sheet of paper that gives you a chance, nothing more. It is up to you to make something of it, and you are not guaranteed to succeed. Now go and work hard.
Just learn Ruby or Java and make $80k with no college. Americans need to break free of the LIES of Big Education.
Well, what can you say? The market determines what an MBA is worth, as it does for so many other categories of employee.
Anecdotal evidence among people I know in the business world, is that they don’t like to hire MBAs. They don’t think their education and training gives them any greater management skills than those with just a bachelor’s in some business related field.
YEP...what YOU said....
Why buck a solid pillar of their legacy?
You’d think someone who studied business would, in the process, learn enough about business to predict how much businesses will pay for someone with a degree in business.
so....gather up all of our most deluded graduates, and put them in control of all the key levers in the economy. Swell!
Or NOT pay for it by going the unconventional route: download the bootleg Lynda videos or Youtube. One of our graphic designer kids here in Hollywood did just that. His reply is “paying for an education is for suckers”.
An acquaintance of mine has a nephew who graduated with an MBA from a better-than-average name school.
Despite this he spent almost a year looking. Finally got an offer, but was about to turn it down because it was on the West Coast and was for “only $73,000” !!!
His uncle whacked the kid upside the head and told him “what, are you NUTS?? TAKE IT!!!
Any recommendations on starting with ruby?
The trouble with MBAs is they think they know everything.
Real pains in the behind.
But unless you are some extraordinary hotshot headed for one of the few top slots in the existing corporate world or, even less likely, have a great idea for your own start-up, most of us settle into a fairly specialized field anyway or, like me, become enough of a generalist that we are in charge of several broad functions in a smaller organization.
Apart from medical school,pharmacy school’s the place to be.Kids just graduating are getting $80K/yr.The only downside is that you could have a lousy work schedule,particularly at first.
The firm or client which employs you does so and understands your value to their organization on the basis of one of two simple realities:
(1) Whether you make them a boat load of money, or
(2) Whether you save them a boat load of money.
Staff enhancements and reductions routinely follow this maxim.
Advice: add skills sets and education to yourself which in turn add real value to your employer.
Anything else is, as you say, just a piece of paper.
A well known engineering rule is that a company’s potential for survival is inversely proportional to the number of MBAs on staff.
They sometimes overlook the obvious.
law students have been delusional for decades.
that is why incompetent lawyers get gov jobs. (see corey see law professors see judges)
I am telling my kids the same thing
YOu can learn C# almost on your own, and with a couple of years experiecne doing it you can EASILY get $80K.
Go to college for computer science and learn theory and computer systems engineering and you can go up to 100-150K
I make more than that because I ALSO went to college for physics so when they ask me to program an accelerometer or thermal calibration software program I understand the physics involved.
But 80K is a darn good salary
Once upon a time, MBA’s were rare and were hard to get. The supply of MBA graduates was much lower than the demand. They demanded and were paid good money.
Fast forward to today: MBA’s are a dime a dozen, and the schools that offer them range from world class to fly by night criminal operations. Most programs are part time night school variety. So, plenty of supply against a much lower demand. Excepting a handful of top B-schools, salaries are about where they used to be with a BSBA.
When I went to school lots of my peers were under the delusion they would get rich as engineers.
Luckily I didn’t think so. Only that it’s the only real genuinely useful bachelor’s degree, so it pays. Just not richly.
I have found that a lot of IT people (and programmers are part of that) are self-taught.
I think the real problem is groupthink. They are trained to follow a template. They have problems dealing with dynamic business conditions in the real world.
Looks like the MBA grads in Kazakhstan are bipolar from their 2012 to 2013 change in perception.
An MBA was once a relatively rare degree that provided experienced engineers and technical experts a foundation of knowledge that would enable them to succeed as managers as they moved up. Sort of like taking the successful combat soldier and moving him up to the officer role, it is a whole different challenge.
The proliferation of MBA students who don’t have the background or experience is one problem with the supply of MBA’s. Another is oversupply. There is also a problem in the content of MBA education that occurs at all the schools with which I am familiar. That content is created by professors who themselves have little to no familiarity with business or managing. The result is an overemphasis, in my opinion, on social responsibility, social issues, ethics education that doesn’t get to the ethics problems of business, and an underemphasis on the nuts and bolts of managing and decision making.
I can think of one MBA program that only admits engineers with strong experience. The starting salaries for their grads are well into the six figures.
When I left my last job, 68 MBA applicants applied to replace me. (I don't have an MBA). Universities should require MBA students to start their own business to get their degree.
One of our daughters recently graduated with an accounting degree. She first got an “associates” degree at a Community College and has been working in an accounting position for the past few years while she finished her “bachelor's” at a local University.
When we went to her graduation recently... I was a little shocked at the number of what sounded like unmarketable degrees being handed out in relation to the number of degrees which seemed to be related to a marketable skill. It has probably always been that way, but it was more notable in this poor economy.
I wondered how the “kids” who spent a bunch of money on a “social justice” degree were going to make a living outside of the legal or educational community. Nearly every person who spoke was advocating for some type of radical leftist cause. The student who gave the primary graduation speech was introduced as having done the most to advocate for some trans-gender cause. She had received some type of worthless social justice degree but was going on to law school.
It appeared to me that more than half of the degrees being awarded by the highly subsidized State University had little relationship to any marketable skill.
MBA’s are generally deluded about everything. Corporate Weasel Degree Program.
The expected salary of $140,000 is 2.4 times as high as the actual salary of $58,000.
In other words, the expected salary is 1.4 times (140%) higher than the actual salary.
The expected salary does not represent any "increase" over the actual salary. The use of the word "increase" in this context is erroneous.
Doesn’t the fact that they’re so deluded over their potential worth prove that they’d be poor analysts for any company that hires them?
It’s been that way since the 1980s when I earned my MBA. Sadly a few of my classmates were prepping to take over family businesses and surpassed even these inflated figures.
“current pre-enrollment salary of $58,000”, as in, they’re currently making (those not going straight to MBA from undergrad) an average of $58,000 before the MBA program. An average of $140,000 would be a 140% increase over their previous salary.
Yeah, 80K, in the right location and with a number of years development experience. Been there, done that. I now teach C#, Java, and database courses as full time faculty at a small to medium-size university and at this school which designs its 4 year and degree completion degree programs for non-traditional and continuing students I see a lot of talented developers with lots of experience in my classes. Most companies are pushing for a minimum B.S. these days to move up or even stay employed. A lot of this seems to come from the easy availability of H1Bs whose abilities are often greatly overestimated. I have a lot of international students as well and some are good, many not so much. At some point in time a formalized degree usually becomes imperative.
As a side note. One of our engineer friends daughters who we like a lot and sometimes house sits for us... spent several years earning a degree with no relationship to a marketable skill. She is nearly 30 and still lives with her parents and works serving coffee at Starbucks. It seems to be a very common situation these days.
It may sound insensitive, but... my wife said it was too bad that they didn’t send her off to “fat camp” before she went to college. If she had lost about 40 pounds she could have been an attractive catch for an engineering or MBA student and could have still gotten her “social justice” degree. Isn’t that what “social justice” degrees used to be for?
As I said she is a very nice girl and we like her alot. We feel bad for her, because she is someone who feels frustrated with how her life has been going. She thought that she would have her own family by now.
When people ask me if I am interested in going back to school I always answer: “If I need an MBA, I’ll hire one.” :)
Thanks for the clarification. Yes, “increase” can be used here.
The lawyers in politics and government are more to blame.
When I went to college many years ago it was general knowledge that many of the ladies were looking for their MRS degree. And why not. Where else would they be surrounded by so many men who were going to make good money (for the most part)
Of course we didn't have all the useless degrees they do now. "Gender studies" etc. and the girls knew to stay away from the faggots who took social justice type degrees.
A woman who wants a family has got to focus on getting her family first. By the time she graduates college and gets established in a career, the guys she'd be interested in are already married or looking for someone college aged. Why marry an old, fat woman when you can get a young slim women to train up right?
Yes they should go to school, it's good to have a fall back plan after all, but if they want a family, family must come first.
A friend’s daughter got a degree in “Women’s Studies” a few years ago from Univ Florida. And said she was going to Law School. I didn’t think she could get into a law school with that degree, but lo and behold, she not only went to Law School but graduated and is now working for an regional Circuit Judge and is making a pretty good salary. Go Figure!
My husband is a guest lecturer at the Eller School of Business, which is suppose to be tops in its field, here at University of Arizona, and whenever I accompany him for their “speed dating” business pitches, I am astonished how little they know or are prepared. A guy selling fedoras at the Saugus Swapmeet has it more together.
What makes me really mad, is the university is trying to match up junk science projects with government grants. There is lots of corruption here. And to compound matters, (or maybe it is all for the best) kids leave town with their shiny new MBAs and don’t look back.
Those types of degrees can work out for teaching, lawyer related fields, government bureaucrats, and a job where the employer wants some proof that you were capable of getting more than a high school diploma. Considering Trayvon Martins friend, Rachel Jeantel who can't read or write in cursive still got a 3.00 average in high school... can you really blame them?
Unfortunately, government bureaucrats, lawyers, and these days many public school teachers are combined arguably one a tremendous drag on the rest of our society.