You are unhappy with your salary. You're a graduate. And you wonder which industry will pay extraordinary salaries. This video is for you!
So, you're eager to explore where you can secure well-paid jobs, and the answer lies in understanding two critical dimensions. The first dimension revolves around the supply and demand balance, particularly from an HR perspective. Specialized roles in these fields command even higher pay, contributing to the overall prestige of business school salaries or MBA graduate salaries.
Another factor in supply and demand imbalances is experience. Additionally, jobs with high personal risk tend to offer better salaries, reflecting the diverse spectrum of business school salary potential.
Character traits also come into play, as well as looks and skills. Consider what makes you special and where you can find opportunities for better-than-average business school salaries or MBA graduate salaries. This leads us to the second dimension: the underlying industry that determines salary expectations. Industries dealing with significant transactions or large volumes tend to offer higher business school salaries or MBA graduate salaries.
Leading business schools provide employment reports, offering insights into the average MBA graduate salaries of graduates with 2 to 5 years of experience and an MBA degree. In the case of Columbia Business School's 2022 employment report, consulting stands out with 33% of graduates absorbed into this industry, earning a mean MBA graduate salary of $175,000 – a notable figure for those considering business school salaries or MBA graduate salaries in consulting.
Other lucrative industries include investment banking (15%) MBA salary, IT E-commerce (10%), wealth management (10%), private equity (5%), real estate (3-4%), venture capital MBA salary(3-4%), and a diverse range of other categories (3-4%). While the mean average MBA graduate salary in the "other" category is $130,000, there are hidden gems that may offer even higher MBA salaries with potentially less stress. It's crucial to explore business school salaries or MBA graduate salaries, especially those in private equity, investment banking, IT E-commerce and other high-paying industries so you can have real estate MBA salary, venture capital MBA salary, wealth management MBA salary and others.
However, not everyone may pursue an MBA, and that's perfectly fine. The key takeaway is that these industries also need accountants, graphics experts, researchers, and IT professionals, among others. So, if you excel in a particular skill set, consider applying directly to these companies for roles that may not be the highest-paid but still offer competitive business school salary compensation compared to other less prestigious positions.
Video transcript:
You are unhappy with your salary? Or you are a graduate wondering which industry will pay extraordinary salaries? Watch this video - it's for you.
One of the industries we'll be looking at is management consulting, and I'm Gabriel Goldbrain, who developed the Goldbrain Success Training, which helps graduates break into management consulting and earn $100,000 straight out of college. To find out more, go to my website, www.gabrielgoldbrain.com, but now let's get started.
So, where can you find well-paid jobs? There are basically two important dimensions we have to look at. The first dimension is the supply and demand balance on the HR, from an HR perspective. So, what does that mean? For instance, an imbalance could be created by education, which means there is only a limited number of persons having a certain education and the demand is high, so the salary has to go up. This is, for instance, the case for doctors, it's the case for computer scientists, and it's the case for lawyers. And if you look into specialized lawyers, and specialized doctors, and specialized computer scientists, like for instance AI computer scientists AI specialists, if you look for lawyers for banking law, so these are even higher paid. So qualification is one thing where you can find high salaries. Another thing for supply-demand imbalances is by experience. So, for instance, a CEO will be picked by experience. The same applies to top salesmen. There is the experience what makes them rare because they have been long in the market, have been long with a company, and that's why they qualify for these high-paying jobs. Another differentiating factor from a supply and demand balance is intelligence. So, for instance, a professor, not everyone can become a professor because a professor needs to be smart. They need to find out things, discover things no one has discovered before. Another factor could be risk-taking. For instance, being a coal miner, taking a high personal risk of injury will give you a better salary than maybe less risky jobs. If you have a lot of responsibility, like a manager or a pilot, you will get a higher salary. Sometimes supply-demand imbalances are created by character traits. Not everyone wants to become a tax advisor, not everyone can really sit there and analyze the numbers and be patient, doing things which a lot of people find boring and exhausting. So, that's also a differentiator. Other differentiators are by looks. Not everyone can become a model. Or differentiation may come by skills, like an artist who has a certain way to paint things which is unique, and things like a singer when you write songs which touch people in their heart. Not everyone can do that. And that's where you get the high-paid salaries. These are the dimensions in which you can see, okay, if you have something special, that results in a high-paying salary. So, think about what is special about you, what you can offer, and where you can find it to find a job which is paying you better than average. We pretty much covered the first dimension, the supply-demand dimension.
Now let's talk about the second dimension, which is the underlying industry which determines if you can expect a high salary. If you work in an industry where you handle big tickets, for instance, you're a salesman for airplanes, you're a salesman for real estate, you will earn more money than if you handle small value items. For instance, if you're selling spare parts for bicycles in a small town, you will not be able to make a lot of money, whereas if you sell very expensive ticket items, there will be enough margin to have better salaries for the salesman. It's just because the whole business is better, and therefore the business can afford to pay more. This is important to understand. The same applies for industries where you have large volumes. For instance, if you work for a multinational food producer, you will be able to get higher salaries than if you work at a local bakery, because there is such a big difference in volumes being sold and in overall profit which can be used to pay salaries, whereas the bakery has very limited in what they can pay. A multinational company, if they have decent margins, they can pay pretty decent salaries.
But enough said for today on the theory. Today we will look into industries which require smart and hardworking people, which have all of these underlying economics which allow pretty good or exceptional salaries. So, where can we now find information about jobs for the hardworking smart people, which means persons with an exceptional CV, with exceptional grades? It's easy. We look at leading business schools. To which industries will graduates of these MBA business schools go and work, and most importantly, what salaries do the graduates get in these industries on average or in the mean when they have like 2 to 5 years of working experience and a one or two-year MBA degree? This information can be found in the business school's employment reports. These reports are generated from surveys of their graduates among their graduates and published every year. And you get all the details you want because these reports are an excellent marketing tool for these business schools because they demonstrate how well-paid jobs their graduates get.
I used Columbia Business School's employment report for the year 2022 as it can be considered as representative for the other business schools, which are not much different when it comes to the industries to which the graduates apply and work for. The skyscraper chart which you see on this slide is sorted by the percentage of graduates being absorbed by an industry.
So, the leftmost industry is consulting, where most of the graduates are being absorbed, which means they are working in this industry. So, 33% of graduates, so about one-third of Columbia Business School, they work in the consulting industry, and they earn a pretty decent salary. So, the mean salary a graduate gets from a consulting firm, the base salary, the annual base salary is $175,000 , which means half of the graduates earn less, and the other half of the graduates earn more, which go to that industry.
Fifteen percent of graduates work in investment banking, that means in banks, they're doing mergers and acquisitions, they're issuing bonds and related things.
About 10% of graduates work in IT or e-commerce companies. The base salary is a little bit lower with a mean of $145,000 US, and these are companies like Google, Facebook, Apple, big tech, and related companies, salesforce.com, and all of these big companies where they take usually manager or director roles.
Also, about 10% go into wealth management. This means publicly traded funds, family offices which manage the wealth of rich families, or they just go into banks doing the same thing.
Only about 5% make it into private equity. The base salaries are with $162,000 in the mean, which are a little bit lower than consulting, but this kind of business can be even more rewarding as they have bonuses which are tied to their success, to their performance. What is private equity about? This is about buying and selling established businesses and therefore usually you have to be in such a firm for a decade or even more, but then it can be really, really profitable and paying extraordinary returns to these candidates.
About 3 to 4% will end up in real estate, which are kind of bigger funds making investments in real estate. Salaries are pretty decent still, the mean salary is with $150,000 US, so also a very interesting industry, but nowadays with the raised interest rate it can be difficult in this market environment, but maybe it's the right time to start because then you will get incentives like in private equities 5 to 10 years down the road for the investments you were participating in.
Another 3 to 4% go into venture capital, which is investing into startups like when Google was young, when Facebook was young, those companies are backed by venture capital investors. It's a very risky asset class, but if you manage to get into one of the leading funds it can pay off big time, but it's hard to get in and you need a long time until you get your returns because these companies first need to grow and it can take a decade until the companies mature and you get returns for the investments you were able to participate in.
Then we have the other category, which is quite a mixed bag of industries, so we will find a variety of different well-paying jobs in there. And if you're interested in the details, you should look into the salary report of the MBA schools because there you find all the names of the companies which hired graduates from these business schools. So, this will give you a good insight into the other category if you're interested. And don't let yourself be scared of by the mean average salary of $130,000 because you will find pearls in the other segment as well, maybe even paying more than the consulting firms and having less stress, but it's more individual and you need to work on it to find out which kind of jobs these could be and if they fit your profile.
Not everyone listening to this video will make it into a business school and do an MBA and qualify for the $175,000 jobs. So, what can you learn from this video? It's important to understand that in these industries, they will also need accountants, they will need persons who do graphics, they will need researchers, they will need IT guys. And believe me, they will pay you way above average. So, get your CV to these companies if you want to work for them because I think you will have a better living because they can pay more. If you're a good IT guy, if you're a good accountant, if you're good at something what they need, it may be well worthwhile to apply to these companies for a job which is maybe not the best paid in the company, but it's probably still a pretty, pretty good job compared to other jobs which have less prestigious clients or less money being involved. If you have any ideas for well-paying industries, let the community know down below in the comments because everyone will value nice industries to work in where you have supply-demand imbalances or where you handle big amounts of money, big ticket items, because these are jobs where you get paid well.
I want to recommend two videos to you. The first video is about why rich parents send their children to business school, and the second video is about how you break into consulting and earn a $100,000 straight out of college. Subscribe to my channel and like my video. Thanks for watching.
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