Do you want to move into a higher level business position? Then you may be ready to earn a business management degree. With this in demand degree, you will have much greater salary and benefit possibilities, in a variety of industries. Whether you want to work in technology, healthcare or manufacturing, your business management skills will be highly sought after.
When you are considering this degree, you will obviously wonder the salary level you can expect in business management. This article details how the following factors will affect your pay:
- The level of business management degree you earn
- The type of business management career you choose
- Your years of work experience
- How large the company is
When you have this information, you will have a better understanding of the salary you can earn with a business management degree.
Level of Business Management Degree
Earning a master’s degree in business management – also known as an MBA degree – usually results in a higher salary than only a bachelor’s degree. According to Fortune magazine, MBA graduates can expect a raise over a bachelor’s degree of $45,000 on average. When you add up that higher salary over the course of a career, it can amount to hundreds of thousands of dollars.
If we look more closely at salary levels for specific occupations, it becomes clear there is a higher salary possibility with an advanced business management degree. According to Payscale.com, these are the average salaries for a professional with a bachelor’s degree in business management:
- Operations manager: $66,103
- Office manager: $45,258
- Director of operations: $86,174
- HR manager: $62,600
- Production supervisor $61,100
- Business analyst: $60,600
With a master’s degree in business management, Payscale.com shows the following salaries:
- Chief financial officer: $142,000
- Marketing manager: $76,300
- Operations manager: $75,200
- HR manager: $67,500
- Senior financial analyst: $79,400
- Financial analyst: $62,000
- Marketing director: $110,000
BLS data also reveals that the level of degree in business management can make a big salary difference. For instance, the salary data for the job of management analyst shows a range between $46,500 and $149,600. This is a very wide salary range that partially is explained by a difference of degree.
Types of Business Management Careers
The type of business management career you choose will have an impact on what you earn. Below are common career options for professionals who earn a business management degree.
A management analyst is often called a management consultant. This business management professional proposes new ways to improve the efficiency of a company. They provide tailored advice to managers about how to make their company more profitable.
Some management analysts may work for one company, but most are consultants who are on a temporary contract with an organization. Management analysts frequently specialize in certain areas. For example, they may focus on corporate restructuring or inventory management. Or, they may focus on an industry such as healthcare or telecommunications.
The Bureau of Labor Statistics reports the median salary for management analysts in 2016 was $81,300. The top top percent earned more than $149,000 per year. Salaries in the field varied as following by industry:
- Professional, scientific and technical services: $87,400
- Management of companies and enterprises: $82,800
- Finance and insurance: $80,200
- Government: $76,200
A financial manager is responsible for overseeing the financial health of a company. They typically make financial reports, direct investing actions, and devise innovative strategies and plans to ensure the long term financial health of a company.
The role of this manager in business management fields is changing as technology evolves. It now takes much less time to produce high quality financial reports. Years ao, the main responsibility of financial managers was to monitor finances for the firm. But today they do more in depth data analysis and provide advice to upper managers about how to increase profits.
There are many types of financial managers that you can become with a business management degree:
- Controller: Directs preparation of financial reports that give a summary of the financial position of the company.
- Treasurers and finance officers: Direct the company’s budget to meet financial goals.
- Credit manager: Provides oversight of the company’s credit situation.
- Risk manager: Control the level of financial risk to a company by using effective strategies to limit odds of financial loss.
Financial managers earned a median salary in 2016 of $121,000 with a range between $65,000 and $208,000. Salaries broke down as follows by industry:
- Professional, technical and scientific services: $142,000
- Management of companies and enterprises: $140,600
- Manufacturing: $121,000
- Finance and insurance: $117,800
- Government: $109,000
Chief Information Officer
In the 21st century, one of the key operational aspects of any company is its ability to build, maintain and upgrade its IT framework as technology and business needs evolve. This evolution usually involves much expense and requires a team of highly skilled technical professionals to work in harmony on company objectives. In large enough companies, these operations need to be managed by a high-level employee called the Chief Information Officer or CIO. (Payscale.com).
The job of the CIO is to make all the major decisions about the company’s IT framework. It is the task of the CIO to make the final calls on selecting and buying IT equipment. The CIO also needs to determine how to efficiently install the new systems, when it should be upgraded and how to integrate new technology into the company’s overall operations.
The average CIO salary is $155,351, with a range between $90,500 and $247,000.
Professionals interested in the CIO career track would be wise to explore graduate level courses in business management, computer science, and information technology. Most employers want to see a professional with a minimum of five years of related work experience as a technology manager.
Health Information Manager
A health information manager has the vital roles in ensuring patient safety, legal compliance and cost efficiency in medical care facilities. A HIM professional must maintain complex, large databases containing patient information and treatment information. This manager must effectively manage this system that contains important medical information, which may include medical records, personal patient information, diagnostic records, lab results, and internal hospital information.
The HIM manager must ensure that all medical and health data is accurate, secure and in full compliance with the organization’s ethical standards and patient privacy regulations. This manager also collects information from patients, doctors and insurance companies. This data must be accurately entered into health information systems, and safeguards must be executed to make sure that only proper personnel has access to this important information.
A health information manager frequently provides oversight to a team of information professionals to create information collection protocols and then oversee the execution. Because of these important duties, the HIM must have excellent organizational and communications skills with strong leadership abilities. The manager also should have a good understanding of HIPAA, JCAGO and other relevant compliance standards. (Payscale.com).
To qualify for this business and health management role, you should have a at least three years of experience in medical records, and having a master’s degree in health information, hospital administration or even an MBA in healthcare management is a big plus.
The median salary for this position is $55,100, with a range between $38,000 and $81,000.
Business Operations Manager
The business operations manager is to go-to person in a business. They assist various departments in the organization to coordinate and meet company goals. Every business needs to have good business operations managers, whether the company is large or small, no matter the industry. The job includes hiring workers, negotiating company contracts, working with the budget, and understanding overall business operations.
The business operations manager also makes important strategic decisions about what customers are more likely to buy and create corporate policies that assist the staff to operate in an efficient manner. Duties for this manager will vary widely and will depend upon the firm’s needs. Operations is the heart of most large and small companies, according to industry insiders, and it is this manager that sees to it that the job the organization needs done is done. (USNews.com).
Most business operations managers have at least a bachelor’s degree in business, and most have an MBA, with some specializing in operations management or supply chain management.
The median salary for business operations managers is $100,400, with the 75th percentile earning $156,000.
A market analyst or market research analyst studies market conditions to examine possible sales of a product or service. They assist companies to understand the products people desire, who will purchase them and at what price. Marketing analysts and market research analysts gather data and do research to assist companies to market products or services. They frequently collect data about consumer demographics, needs, preferences and buying habits. They also obtain data and information using many methods: interviews, questionnaires, market analysis surveys, public opinion polls and reviews of literature.
The job outlook for marketing analysts is strong, with 23% job growth expected through 2026. (BLS.gov). Employment growth should be driven by the greater use of data and market research in all sectors of business. These workers will be needed to help to better understand the wants and needs of customers and to measure the effectiveness of business strategies and marketing.
The median wage in this field is $63,200, with the top 10% earning more than $122,000.
A financial analyst offers guidance to businesses and individuals that make investment decisions. They are responsible for assessing the performance of stocks and bonds, and also many types of investments. They typically work in banks, pension funds, mutual funds, securities companies, and related businesses. Financial analysts also are called securities analysts and investment analysts. These workers can be divided into buy side and sell side analysts. Buy side analysts are responsible for developing wise investment strategies for firms that have high levels of money to invest. Sell side analysts provide advice to financial service agents who market stocks, bonds and related investments.
This job area will see solid growth in the next decade, with 11% growth expected through 2026, which is faster than average. There is a growing number of financial products and there is higher need for deep knowledge of geographic regions, which will lead to robust job growth.
The median salary for financial analysts is $84,300, with the top 10% earning more than $165,000 per year. (BLS.gov).
Business Intelligence Manager
A business intelligence manager is in charge of providing good data solutions that relate to business strategies in an organization. They lead a group of business analysts that use many statistical methodologies to solve complex business problems and boost profitability. Business intelligence managers must perform business assessments and risk analysis every week, month or quarter. They also prepare business intelligence reports and collect intelligence data to make proper conclusions on best business practices. They also present findings and progress to important executives from various company teams.
To become a business intelligence manager, you should have highly advanced problem solving and analytical skills, as well as an MBA in most cases. Some MBA programs offer specialties in business intelligence. You also should have good knowledge of current industry practices, such as measured profitability approaches.
The average salary for business intelligence managers is $101,300. (Payscale.com).
An investment manager is a business professional who is responsible for buying and selling investments in a portfolio. This profession also can involving finance, budgeting and banking roles. The business management professional also should have a good background on taxation. (Investopedia.com).
Proper investment management is designed to meet the exact investment goals for the investor, which can be an individual or a company. There are various types of investment managers; a certified financial planner usually develops an overall financial plan for investors that accounts for income, expenses and future cash needs into consideration as they plan a portfolio. This occupation also can encompass the role of financial advisor, and this could have you working in the role of stockbroker, as well.
Business management professionals who want to be investment managers should have a finance degree or MBA with a speciality in finance. The average salary in this field is $92,800. (Investopedia.com).
A logistics manager is responsible for analyzing and coordinating the supply chain for an organization. This is the system that moves products from the supplier or manufacturer to the customer. They are responsible for managing the life cycle of a product. The life cycle includes how the product is acquired, allocated and delivered. Logisticians and logistics managers oversee purchasing, transportation, inventory and warehousing. They also may direct how goods, people or supplies are moved, which can include regular consumer goods, military supplies and personnel.
A logistics manager should have a bachelor’s in business management, and an MBA with a concentration in supply chain management can be helpful. The median salary in this field is $74,500. (BLS.gov).
How many years of work experience you have in business management typically has a strong effect on salary. According to Payscale.com, your years of work experience will affect your rate of pay for the role of management analyst:
- An entry level management consultant with under five years of experience earns a salary of $78,000.
- The same worker with five to 10 years of experience earns a salary of $107,000.
- A more experienced management consultant with 10 to 20 years of experience will earn a salary of $132,000.
- The most experienced management consultant with more than 20 years of experience will earn a salary of $155,000.
Where You Went to School
Another significant factor in what your business management salary is will be where you went to school. While it is true that more elite schools cost more, you will usually have a higher salary than a lesser-known school. Below are the average starting salaries for MBA graduates in 2017, according to US News and World Report:
- Stanford University: $140,553
- Harvard University: $134,000
- MIT: $125,000
- University of Virginia: $122,800
- University of California Berkeley: $122,000
- Duke University: $121,200
- New York University: $120,900
- University of Michigan: $119,900
- Yale University: $119,100
- Carnegie Mellon University: $117,700
- Emory University: $116,600
- University of North Carolina: $111,900
Size of Company
The salary level you earn with a business management degree also depends upon the size of the company. The bigger the company, the generally more responsibility you shoulder, and the higher the pay.
For example, Glassdoor.com reports the following salaries for business development managers at large, well known companies:
- Cisco: $146,000
- Hewlett Packard: $134,300
- Microsoft: $127,000
- American Express: $78,000
- IBM: $139,500
- Intel: $132,000
For smaller, less known companies, the salaries for business development managers are generally lower:
- Gartner: $57,900
- HCL America: $84,000
- United Technologies Corporation: $84,800
- Advantage Sales and Marketing: $55,902
For the most part, people who want to enjoy the highest salaries in business management should consider working for larger corporations.
As the US economy is growing strongly, business management is a very exciting and rewarding career to ender. If you plan your business management career carefully by following this guide, you will be able to boost your salary in this popular field.
- MBA Graduates Starting Salary. (2016). Retrieved from http://fortune.com/2015/05/19/mba-graduates-starting-salary/
- Business Management Salary. (n.d.). Retrieved from https://www.payscale.com/research/US/Degree=Bachelor%27s_Degree%2C_Business_Management/Salary
- Management Analyst Salary. (2017, Oct.). Retrieved from https://www.bls.gov/ooh/business-and-financial/management-analysts.htm