MBA starting salaries hit new record amid soaring resignation rates

Companies are eagerly trying to land the next batch of business graduates as the post-pandemic recovery gathers momentum. And with a shortage of available candidates and a heap of opportunities, MBAs are likely to witness an increase in their salaries, reported the Wall Street Journal.

The Wharton School of the University of Pennsylvania and the Booth School of Business, University of Chicago recently reported that the median salaries for MBA graduates increased by $5,000 for the 2021 batch.

Median salaries for the programme now stand at $155,000, a record high for Wharton. Over 99 percent of the graduate class received a job offer in Wharton as well. Fuqua School of Business, Duke University, also stated that the average salary for its MBA graduates increased by 4 percent when compared to last year, standing at $141,000.

“Everyone is in a bit of an arms race in terms of compensation,” Maryellen Reilly, Deputy Vice Dean of Wharton’s MBA programme told WSJ.

“MBAs have more diverse types of job opportunities than ever before,” added Sheryle Dirks, Associate Dean for Career Management at Fuqua.

As companies race to adapt to the post-pandemic economy, they face challenges such as broken supply chains, recovering logistics and operations, changing regulations and more. In such cases, recruiters are eager to onboard MBA graduates in greater numbers to help them navigate the current environment.

The Graduate Management Admission Council (GMAC), an international non-profit organisation of business schools, in its annual report stated that the hiring activity and salary for new MBA graduates are all set to return to 2020 levels. Average MBA salaries had hit an all-time high of $110,000 before the pandemic had hit.

The recent report by global advisory, broking and solutions company Willis Towers Watson highlighted that salaries India were all set to increase by 9.3 percent in 2022, from 8 percent in 2021. The increased payroll expenses are a result of Indian companies trying to reduce attrition rates and hold on to key talented personnel at a time where the job market favours the employee. MBA salaries from top institutions in India range from an average of Rs 10 lakh to Rs 28 lakh per annum.