MBA Alumni – Doubled the Investment after 10 Years

The 2012 Alumni Perspectives GMAC report gives us insight into the real return on investment on MBA programs – Salary, Job Satisfaction and Current Employment.

Salary and Compensation:  According to the survey, the median Salary reported by Full-time MBA Alumni from 2000-11 was US$95,000, with additional compensation of $18,123. As expected, Executive MBAs earned the highest median salary, $ US$125,000 and the highest compensation of $ US$153,445. Part-time MBAs earned the lowest median Salary at US$91,000, with additional compensation of US$106,000.

Return on Investment: Ten years after graduation, MBA Alumni nearly doubled their return on investment. Within the first year of graduation, nearly 1/3rd of the investment on graduate degree were earned and the entire investment were earned in four years

Job Satisfaction: The real return on investment on your MBA degree is Job Satisfaction. It directly relates whether you have achieved your post-MBA goals. Interestingly, 36% of the survey participants said that passion (doing work that one enjoys) is the prime driver for Job Satisfaction followed by compensation (18%) and 15% recognition.

Want to know who were the least satisfied after their MBA program?

Alumni working in Entry-Level positions and those who were working in Information Technology or MIS jobs were the least satisfied.

Who are the happiest?

Alumni in General Management, Finance or Accounting and Consulting were more satisfied than alumni employed in in operations, logistics, human resources, marketing and sales positions. Overall, 80 percent of survey respondents felt very or somewhat satisfied with their current job

Current Employment: Alumni from 2000 have reported a high employment rate (90%) right from the beginning. Out of the 6% unemployed survey respondents, 47% cited lack of relevant industry or functional experience as the reason for not having a job.

Regional Employment Trends: US and Central Asian citizens have the highest employment rate - 95% and 94% respectively. Middle Eastern or African citizens have the lowest employment rate - 90%.

Employment Trends (Gender): Interestingly gender parity in Employment was contradicting the regional employment trends with 93% of men from Asia/Pacific region being currently employed against 84% women. Canadian citizens have the best Gender parity when it comes to Employment with 92% for men and 91% for women.

What is the real value of an MBA?
4 out of 5 alumni felt that Graduate Management Degree have given them great job stability in a weak economy. 9 out of 10 alumni felt that their Graduate Management education gave them the flexibility to choose current career path.

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