Fortune ranks Harvard Business School as having the best full-time MBA program in the United States, and for good reason. Its program provides good jobs for MBA graduates, which ultimately places alumni “at the top of corporate America,” as we noted in our full-time MBA ranking methodology.
Harvard Business School MBA makes about $ 200,000 for new graduates these days
THROUGH Sydney lakeNovember 22, 2021, 20:58
Two students are seen leaving campus with luggage at Harvard University, as seen in July 2020. (Photo by Anik Rahman — NurPhoto / Getty Images)
Over the past five years, HBS has continued to see rising median salaries for its new graduates. On Monday, Harvard Business School announced that its class of 2021 graduates, on average, earned a base salary of $ 150,500, a signing bonus of $ 30,000 and a performance bonus of $ 37,000; that’s a base salary of $ 217,000 immediately upon earning an MBA from Harvard. This is also a 14.2% increase from 2017, when graduates earned an average total compensation of $ 190,000.
“The HBS class of 2021 suffered quite a bit of setback with the rapid changes to their internships in the summer of 2020, some of which were withdrawn entirely, others that were quickly transferred to all remotely,” Kristin Fitzpatrick, director general MBA career and professional development for HBS, said in a statement. “Despite the challenges of blended learning and a world that has changed forever, this class has managed to secure fabulous opportunities in 335 organizations around the world. “
The HBS class of 2020, on average, earned a base salary of $ 150,000, a signing bonus of $ 30,000 and $ 35,000, for a total amount of $ 215,000. So, despite the challenges posed by the pandemic, Harvard has always seen a slight increase in its MBA salary results for 2021 graduates.
Additionally, among HBS 2021 MBA graduates looking for a job, 96% received a job offer after graduation. Of those who graduated in 2020, only 90% received an offer. HBS graduated approximately 900 students, and of these, 74% were looking for employment after graduation. Students who were not looking for a job were either sponsored by the company or already employed (12% of the class) or starting their own business (8%).
What kind of careers do HBS graduates pursue
What hasn’t changed much over the past five years are the industries that HBS graduates pursue upon completion of the program. Consulting and technology remain the two main sectors, employing 23% and 19% of the HBS class of 2021, respectively. These percentages were almost identical in 2020.
Generally speaking, consulting and tech companies shell out the most money for MBA graduates, so it’s no surprise that HBS continues to see median base salaries rise for its new alumni. HBS doesn’t publish industry-specific salary figures, but data from other top business schools suggests graduates entering consulting earn well over $ 200,000 after graduation.
Boston Focus Group and McKinsey & Co., who are both consulting firms and major recruiters of HBS, pay an average base salary of $ 165,000 to new MBAs, according to Directorate consulted, a company that offers preparation and training to professionals entering the industry. BCG and McKinsey hires are also earning significant signing and performance bonuses, which can push their post-MBA salaries to nearly $ 240,000, according to a previous report by Fortune.
“Consulting companies expect a lot from their employees, and offering them bonuses is a way to motivate them to perform at the highest level” Don Lowman, main client partner and world leader of Korn Ferry‘s Global Total Rewards, previously said Fortune. Retention is also important, so bonuses will not only serve as an incentive to ‘perform well over the year but also to stay with the company so that they can earn extra pay for the hard work. that they have provided all year round, ”he adds.
Technician salaries for MBAs are also around 20 to 25% higher for MBA graduates than for undergraduate hires, Keith Feinberg, director of permanent employment services at Robert Half, previously said. Fortune. At other top business schools like Stanford University Graduate School of Business, MBA graduates who get into tech earn around $ 200,000 right after graduation.
Tech companies value MBA graduates because they bring diverse expertise, which can be a combination of accounting and finance, or courses in data science, programming, and supply chain. These specialized skills also translate into higher salaries, according to MBA employment experts.
Finally, HBS announced that 14 of its 2021 class have been selected for the school’s social enterprise program, Leadership researchers, which places students in leadership positions in nonprofit and public sector organizations for one year. Since 2001, 255 fellows have followed the program with 93 participating organizations. The organizations pay fellows a salary of $ 55,000 and HBS provides a grant of $ 55,000 over one year.
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