What Can You Do with an MBA?
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An MBA can open the door to a new world of career opportunities.
It is one of the most sought-after degrees in the world, capable of changing the trajectory of your career and even moving you into an entirely new industry.
Because it is so highly valued by employers, MBA graduates tend to occupy senior and management positions in some of the world's best-known firms. Amazon, Microsoft, Google, and McKinsey are all major recruiters of MBA talent.
In this article, we're going to look at what an MBA gives you, and what you can do with it. We'll cover:
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Why an MBA is so valued by employers
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The key career benefits of an MBA
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The most popular MBA career paths
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How business schools support your job search
Let's take a look.
Why is an MBA so highly valued?
Although an MBA is nominally a business and management degree, the skills it teaches you go far beyond business.
MBA students study the key business fundamentals like marketing, management, and accounting. But you will also study concepts such as:
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Strategic thinking
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Communication
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Negotiation
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Adaptability
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Leadership
All of these MBA skills are high in-demand from employers. They can of course vary depending on the industry you're looking to work in and the size of your company. The COVID-19 pandemic also led to a shift in emphasis from employers, who started to prioritize graduates with technological and leadership skills.
Dan Black, global recruiting lead at Ernst & Young (EY), explains why recruiters increasingly value the MBA skillset: “Transformative leadership; dealing with uncertainty; being an inclusive leader; being comfortable with technology—these things have never been more important,” he says.
When you combine these skills with the professional network and opportunities for personal growth an MBA provides you with, it's easy to see why it is such a sought-after qualification. But what can all of this do for you and your career?
Key MBA career benefits
Boost your salary
According to the GMAC Alumni Perspectives Survey, 72% of students applied to business school to boost their salary. The same survey found that 79% of students believed a graduate management degree increased their earning power. And of all the business master's degrees, MBA graduates command the highest average salary: around US$120,000. Of the top 100 MBA programs in the world (according to the Financial Times), the average salary three years after graduation is US$158,680.
Of course, MBA salaries vary across region and school. Stanford MBA grads enjoy the world's highest average MBA salary within three years of graduating, at over US$222k. But even outside of the United States, you can earn a lot with an MBA. Graduates from IIM Ahmedabad in India can expect to earn around US$192K within three years, while graduates of the INSEAD MBA in France earn around US$188K on average.
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Move into management and leadership roles
An MBA also helps graduates advance into more senior roles within an organization. In fact, 77% of graduates agree that their MBA prepared them for leadership positions.
While a promotion may come with a higher salary, it's also a chance to have greater responsibility and autonomy over your work. By progressing to management positions, you can also make use of the interpersonal and leadership skills you'll pick up from your MBA.
Change career path
Many MBA students are career switchers, looking to use their MBA to pivot into a new industry or role, or start a career in a new country. Thirty percent of mba.com registrants apply to business school to get a job outside of their country of origin. And some students even make the so-called MBA “Triple Jump” - changing industry, job function, and location all at the same time.
Abhisekh Shah made a triple jump into venture capital after his MBA at HEC Paris. More than a third of HEC Paris MBA graduates do the same. “From day one, I immersed myself in activities relevant to private equity—internships, pitching competitions, MBA clubs. My MBA opened those doors to me,” he says.
Launch your own business
Do you need an MBA to become an entrepreneur? No, but it can certainly help. One quarter of MBA candidates told GMAC they have ambitions of starting their own company.
Most MBA programs offer electives in entrepreneurship, which give students the tools and knowledge they need to start a business. They also have access to business school accelerators and incubators, which can provide expertise, funding, and office space for early-stage startups.
Build your network
In your MBA class you'll meet a group of likeminded, driven individuals from across the world. Beyond your immediate cohort, you also enter into a vast global network of alumni who can give you help or advice when you need it.
Cesar Aya graduated from Oxford University's Saïd Business School in 2008 during the global financial crisis. He credits his MBA network for helping him navigate the crisis and take his career forward.
“Devote time to people that really know you, know who you are, what you have done, and who you can ask for help—for an endorsement, for getting a job, or introductions to someone who might invest in your idea,” he advises.
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Most popular MBA career paths
There are career opportunities and jobs for MBA graduates in almost every industry. You'll find MBA graduates in healthcare, consumer goods, real estate; in corporations, startups, and SMEs.
That being said, there are certainly some areas that MBA graduates favor over others.
Consulting
According to the GMAC Prospective Student Survey 2024, consulting is the most popular industry of choice for MBA graduates. More than half of respondents said they were planning to move into consulting after graduating.
Given the varied curriculum of MBA programs, it's no wonder why so many MBAs are drawn to consulting. Management consultants require a broad overview of how the different parts of a business work, and more importantly, how they all fit together.
a-and-masters-grads" target="_blank">MBA consultant salary at one of the Big Three consulting firms is US$165,000, with performance and signing bonuses adding up to US$70,000 on top of that.
“MBA programs are a tremendous source for talented, ambitious people. The skills you develop and the time to reflect on your professional goals during the program have consistently provided tremendously talented people for Bain & Company,” notes Keith Bevans, global head of consultant recruitment at Bain.
Finance
There's a generational gap when it comes to MBA students. While 43% of Gen Z intend to move into finance after graduating, that figure falls to 32% for millennials. However, finance still remains one of the most popular MBA industries.
Mergers and acquisitions (M&A), asset management, investment banking, venture capital, and private equity are all popular finance jobs for MBAs.
Top MBA employers in finance include JP Morgan and Goldman Sachs. These organizations demand graduates with strong leadership and analytical skills combined with financial knowledge. There's also demand for MBAs at alternative finance firms in fintech or in climate finance.
The highest-paying finance jobs include:
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Chief Financial Officer (CFO)
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VP of Finance
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Financial controller
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Accounting manager
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Financial analyst
Tech
Although consulting and finance were long seen as the two most popular industries for MBA graduates, in recent years tech has risen in popularity to form a new 'Big Three' of MBA industries. Around 45% of millennial b-school students intend to move into tech after graduating.
Big tech firms regularly hire MBAs in managerial or leadership positions. This goes all the way to the top: Google CEO Sundar Pichai, Amazon CEO Andy Jassy, Microsoft CEO Satya Nadella, Apple CEO Tim Cook, and Facebook COO Sheryl Sandberg all have MBAs.
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Jobs in tech are a good fit for MBA students. Amazon has a set of leadership principles—including thinking big, taking ownership of your work, learning and being curious—which align well with the soft skills you're taught during an MBA.
Applying for MBA jobs at business school
When you start your MBA, you may have clear goals and ideas of what you want to achieve, or you may need a little more guidance before focusing on a specific role or industry.
Business schools offer you plenty of assistance and advice on your job search, with dedicated MBA careers teams whose function is to facilitate connections with employers and strengthen your chances in job applications.
Networking and careers events form a significant part of this. Business schools invite MBA recruiters to deliver presentations and meet with you at careers fairs. They may also bring in alumni in certain industries to help give you advice targeting a specific job or company, to help you understand what you can do with an MBA.
“We organize more than 200 lectures, activities, and forums per year, inviting global MNC CEOs and professionals to share their stories of success and network with students,” Zion Cao, director of the Career Development Office at Fudan University School of Management, explains.
MBA careers teams also deliver personalized career mentoring. This involves mock interviews, self-assessments, and resume advice. They'll also help you align your goals and ambitions to the right sort of jobs and roles for you.
In short, career centers at business schools can unlock career opportunities that simply wouldn't be available normally.
Your career planning guide
If you're looking to progress your career with an MBA, but are unsure of what steps to take next or what MBA jobs might suit you best, check out our Career Planning Guide.