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 – 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.
5 Tips to Be a Better Business Manager
So you have earned your business management degree and are getting experience in the industry.
Below are some tips to ensure your management career is more productive:
- Choose the best people: As a business manager, you only will be as strong as the people on your team. Be very careful as you select workers to join your project team in terms of personality and skills.
- Motivate people: People do things because they want to and they want to get something out of it. This is the same at work. People do high level work for good pay and promotions. To be a good motivator for your team, determine what they want the most and give that to them when they do good work.
- Build an effective team: People need to work together on projects to accomplish business objectives. Workers cannot all do their own thing on a project and expect it to be successful. You need to be able to encourage everyone on the team to work together.
- Lead: Motivating your project team is not worth much unless you give it good direction. Motivation only works when there is a definable goal and you lead the team to it.
- Manage money: Companies must make a profit to stay in business. This means making more money than you spend. You can assist the company and its employees by being effective at managing its money.
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
Business Management Job Titles
- Health Information Management Manager
- Management Analyst
- Management Consultant
- Business Operations Manager
- Business Development Manager
- Business Intelligence Manager
- Chief Financial Officer
- Chief Information Officer
- Chief Marketing Officer
- Chief Medical Officer
- Chief Technology Officer
- Finance Director
- Finance Manager
- Finance Officer
- Financial Advisor
- Financial Analyst
- Marketing Analyst
- Marketing Communications Manager
- Marketing Coordinator
- Marketing Executive
- Logistics Manager
- Human Resources Manager
- Investment Analyst
- Investment Banker
- Investment Consultant
- Investment Manager
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 fro 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