New study: MBA degree gives the best ROI

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New study reveals record demand for MBAs
New study reveals record demand for MBAs

Are you an MBA? Your average global 10-year ROI is $390,751.

-Latest research reveals record demand for MBA graduates
-Huge demand for MBA graduates in China and India

Masters in Business Administration or the MBA is not just a degree. Latest research shows that the world’s most portable management qualification offers a sound return on investment (ROI) too.

QS Quacquarelli Symonds, global higher education analysts and career advice specialists, recently released the QS TopMBA.com Jobs & Salary Trends Report 2018 .

Since 1990, QS has carried out an annual survey of MBA employers across the globe, to identify trends in international MBA salaries and recruitment. The insights provided by those who actively recruit MBA holders form the basis of this report.

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The 2018 edition is based on responses from 3,463 employers across the globe who shared information on current and future MBA hiring and salary levels.

Nunzio Quacquarelli, CEO, QS Quacquarelli Symonds says: “Based on QS’s longitudinal research of MBA demand, there are more jobs for MBA graduates in the world today than at any previous time in history. In fact, QS data suggests that an explosion of demand for MBAs in India and China, combined with growing recognition of the qualification in Europe, means there are perhaps three times as many MBA jobs today as there were in the lead-up to the 2007 financial crash.”

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Key Global Findings

  • 13% growth in global MBA demand in 2017 means we are at record levels of MBA demand  over 3 times the level before the 2017 financial crisis. Asia leads the way globally in growth of MBA demand, up 18% year on year in terms of reported MBA jobs, with demand in the US up 10% year on year, and demand in Europe also up 10% year on year – the best year in a decade for MBA demand growth.
  • MBA salaries in USA have jumped, with average compensation in the US hitting over $120,000 for MBAs compared to $110,000 previously. USA salaries have now overtaken those in Australia, which are steady at $116,000.
  • MBA salaries in Europe are growing strongly, led by Switzerland with the highest global MBA compensation average of $140,000. Compensation for MBA holders in the UK averages $122,000.
  • Japan has the highest MBA compensation in Asia at $108,000.
  • US dominates in terms of highest salaries, with 19 of the world’s top-20 schools in this indicator. Stanford is number one at $140,600. Global average is $79,829 ($89,037 in North America, $73,271 in Europe, $63,948 in Asia-Pacific).

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MBA Return on Investment

There is a growing desire among prospective MBAs to be able to estimate the return they can expect on their business school investment and to have a clearer view of placement results across schools. This report attempts to help applicants better understand the value of the full-time MBA degree, as well as differences in ROI across countries, the differences between individual schools and also the differences between the full-time MBA and other specialist business Master’s.

Quacquarelli explains: “We have calculated the average return on investment and payback period achieved by graduates of 200 full-time MBA programs, which shows that good returns can be had at almost, though not all, of these schools. To calculate payback period, we looked at tuition fees plus incremental living costs, salary foregone while studying, set against salary plus bonus achieved upon graduation.”

Fast facts

  • Average global 10-year ROI of an MBA is $390,751. Stanford offers world’s best by some way, at $1,023,150. Imperial’s is the best in Europe at $870,200, and HKU’s ROI is the best among Asia-Pacific institutions ($845,350).
  • Average global payback time is 51 months. Europe offers quickest return (39 months compared to 55 in North America); UK fares particularly well.
  • North America also best for salary uplift, with an average of 74%. Europe and Asia-Pacific are 57% and 56% respectively.

Quacquarelli also announced that on 28th November they are releasing a new suite of business schools rankings which will allow aspiring business people worldwide to identify the best business schools for getting a job or becoming an entrepreneur.

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