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MBA Students Are Totally Deluded About How Much Money They'll Make
Business Insider ^ | 07/18/2013 | Max Nisen

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 ...


TOPICS: Business/Economy; Education; Society
KEYWORDS: college; mba; salaries

1 posted on 07/18/2013 8:22:44 AM PDT by SeekAndFind
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To: SeekAndFind

2 posted on 07/18/2013 8:23:37 AM PDT by SeekAndFind
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To: SeekAndFind

3 posted on 07/18/2013 8:24:02 AM PDT by SeekAndFind
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To: SeekAndFind

4 posted on 07/18/2013 8:24:31 AM PDT by SeekAndFind
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To: SeekAndFind

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.


5 posted on 07/18/2013 8:25:24 AM PDT by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: GenXteacher

6 posted on 07/18/2013 8:25:47 AM PDT by SeekAndFind
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To: SeekAndFind

Just learn Ruby or Java and make $80k with no college. Americans need to break free of the LIES of Big Education.


7 posted on 07/18/2013 8:26:33 AM PDT by montag813 (NO AMNESTY * ENFORCE THE LAW * http://StandWithArizona.com)
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To: SeekAndFind

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.


8 posted on 07/18/2013 8:27:37 AM PDT by Dilbert San Diego
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To: montag813

YEP...what YOU said....


9 posted on 07/18/2013 8:29:47 AM PDT by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: SeekAndFind
MBA graduates are also deluded about how much they destroyed from the nation's businesses wealth during the last 20 years.

Why buck a solid pillar of their legacy?

10 posted on 07/18/2013 8:32:41 AM PDT by blackdog (There is no such thing as healing, only a balance between destructive and constructive forces.)
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To: SeekAndFind

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.


11 posted on 07/18/2013 8:33:01 AM PDT by ctdonath2 (Making good people helpless doesn't make bad people harmless.)
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To: SeekAndFind

so....gather up all of our most deluded graduates, and put them in control of all the key levers in the economy. Swell!


12 posted on 07/18/2013 8:33:03 AM PDT by Buckeye McFrog
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To: montag813

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”.


13 posted on 07/18/2013 8:34:43 AM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Dilbert San Diego

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!!!


14 posted on 07/18/2013 8:35:49 AM PDT by Buckeye McFrog
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To: montag813

Any recommendations on starting with ruby?


15 posted on 07/18/2013 8:36:02 AM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: Dilbert San Diego

The trouble with MBAs is they think they know everything.

Real pains in the behind.


16 posted on 07/18/2013 8:36:21 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Dilbert San Diego
It is not their education and training so much as their attitudes. Yeah, I have an MBA. And yeah, it gives you training across a broader spectrum of business fields than an undergraduate degree in one of those specialties.

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.

17 posted on 07/18/2013 8:37:40 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: SeekAndFind

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.


18 posted on 07/18/2013 8:38:06 AM PDT by Gay State Conservative (The Civil Servants Are No Longer Servants...Or Civil.)
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To: SeekAndFind
Same for newly minted attorneys....
seeems.....
19 posted on 07/18/2013 8:38:57 AM PDT by Wings-n-Wind (The main things are the plain things!)
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To: GenXteacher
As one who has an MBA (among and assortment of 3 other undergraduate and graduate degrees) let this maxim be your guide to personal skills-set value pricing.

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.

FReegards!


20 posted on 07/18/2013 8:40:19 AM PDT by Agamemnon (Darwinism is the glue that holds liberalism together)
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To: SeekAndFind

A well known engineering rule is that a company’s potential for survival is inversely proportional to the number of MBAs on staff.


21 posted on 07/18/2013 8:40:22 AM PDT by Da Coyote
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To: ctdonath2

They sometimes overlook the obvious.


22 posted on 07/18/2013 8:40:44 AM PDT by Eric in the Ozarks (NRA Life Member)
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To: Wings-n-Wind

law students have been delusional for decades.

that is why incompetent lawyers get gov jobs. (see corey see law professors see judges)


23 posted on 07/18/2013 8:41:38 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: montag813

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


24 posted on 07/18/2013 8:42:24 AM PDT by Mr. K (There are lies, damned lies, statistics, and democrat talking points.)
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To: SeekAndFind

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.


25 posted on 07/18/2013 8:44:37 AM PDT by centurion316
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To: SeekAndFind

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.


26 posted on 07/18/2013 8:45:41 AM PDT by the OlLine Rebel (Common sense is an uncommon virtue./Technological progress cannot be legislated.)
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To: montag813

I have found that a lot of IT people (and programmers are part of that) are self-taught.


27 posted on 07/18/2013 8:52:10 AM PDT by Cyber Liberty (Justice for Trayvon: Dig up his body and shoot him again.)
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To: Eric in the Ozarks

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.


28 posted on 07/18/2013 8:52:30 AM PDT by Buckeye McFrog
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To: SeekAndFind

Looks like the MBA grads in Kazakhstan are bipolar from their 2012 to 2013 change in perception.


29 posted on 07/18/2013 8:57:04 AM PDT by iacovatx (Conservatism is the political center--it is not "right" of center)
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To: SeekAndFind

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.


30 posted on 07/18/2013 9:06:21 AM PDT by iacovatx (Conservatism is the political center--it is not "right" of center)
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To: driftdiver
The trouble with MBAs is they think they know everything.

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.

31 posted on 07/18/2013 9:10:06 AM PDT by aimhigh (Guns do not kill people. Abortion kills people.)
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To: iacovatx
I appreciate your analogy and appreciate your observations.

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.

32 posted on 07/18/2013 9:42:15 AM PDT by fireman15 (Check your facts before making ignorant statements.)
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To: SeekAndFind

MBA’s are generally deluded about everything. Corporate Weasel Degree Program.


33 posted on 07/18/2013 9:46:35 AM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: SeekAndFind
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 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.

Regards,

34 posted on 07/18/2013 9:47:53 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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To: SeekAndFind

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?


35 posted on 07/18/2013 9:50:18 AM PDT by kevkrom (It's not "immigration reform", it's an "amnesty bill". Take back the language!)
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To: SeekAndFind

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.


36 posted on 07/18/2013 9:51:37 AM PDT by pikachu (After Monday and Tuesday, even the calender goes W T F !)
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To: alexander_busek

“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.


37 posted on 07/18/2013 9:52:54 AM PDT by kevkrom (It's not "immigration reform", it's an "amnesty bill". Take back the language!)
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To: Mr. K

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.


38 posted on 07/18/2013 9:58:06 AM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: SeekAndFind

Ping.


39 posted on 07/18/2013 9:58:42 AM PDT by KevinB (A country that would elect Barack Obama president twice is no longer worth fighting for.)
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To: fireman15

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.


40 posted on 07/18/2013 9:58:53 AM PDT by fireman15 (Check your facts before making ignorant statements.)
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To: SeekAndFind

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.” :)


41 posted on 07/18/2013 9:59:26 AM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: kevkrom

Thanks for the clarification. Yes, “increase” can be used here.

Regards,


42 posted on 07/18/2013 10:04:07 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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To: blackdog

The lawyers in politics and government are more to blame.


43 posted on 07/18/2013 10:36:30 AM PDT by 9YearLurker
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To: fireman15
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 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.

44 posted on 07/18/2013 11:38:29 AM PDT by John O (God Save America (Please))
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To: fireman15

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!


45 posted on 07/18/2013 12:09:26 PM PDT by Desparado
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To: GenXteacher

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.


46 posted on 07/18/2013 12:27:33 PM PDT by lulu16 (May the Good Lord take a liking to you!)
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To: Desparado
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!

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 Martin’s 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.

47 posted on 07/18/2013 6:33:24 PM PDT by fireman15 (Check your facts before making ignorant statements.)
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