Business Administration (BA) offers wide career options. The primary reason is because every organization in any industry needs administrators. These admins can help enhance the business processes for a higher rate of efficiency. Business administrators are often tasked to manage a team of people and oversee business procedures and solve problems as they come.
It can be stressful, but with the right competencies, this can be an area for maximum personal and professional growth. Business management or administration can also be a lucrative profession depending on a variety of factors. Knowing these factors will set you up for success if you know how to play them right. Here are four of the most common factors that influence business administration salary.
4 Factors that Influence Business Administration Salary
A candidate’s level of education is often a heavy determiner of the salary they receive. Fresh graduates with BA degrees will be offered lower salaries compared to those with a Master of Business Administration. Earning an MBA will usually take an additional one to two years and signifies one’s commitment to excellence in this career. A holder of MBA will have access to higher positions and will be eligible for promotion, thus the higher salary. For instance, a chief financial officer can have an annual salary of $240,000.
Business administration salary also depends on the industry you’re in. The industries that usually offer the highest starting rate for BA graduates are those that offer highly scientific, technical, and professional services. These types of organizations lack in-house human resources, making the demand for BA graduates higher. The average starting salary in these industries is $55,000 annually. The finance and insurance industries also offer the most positions and high salaries averaging to $ 51,000 per year. The education industry, on the other hand, offers the lowest annual salary which is an average of $44,500.
Those with more job experience will get higher salaries than entry-level employees. Employees with more experience are generally more knowledgeable and have more skills, so they can contribute more to the growth of the company. In this regard, getting internships or job experiences during college offers a huge advantage to fresh graduates. It will set them apart from their contemporaries since they will get more experience from the internships.
#4: Business School Rankings
Business school rankings have profound effects on a fresh graduate’s salary. Getting your MBA from high ranking universities like Harvard, Stanford, Wharton, Columbia, and Kellogg will give you more leverage in negotiating higher pay rates. For example, those in the consulting industry who got their MBAs can earn $135,000 annually from high-ranking business schools.
Having a career in business management offers many opportunities for one’s professional and personal growth, and one of the perks is the relatively high potential to have high salaries. Business administration salary depends on a number of factors including the level of education. Having a Master in Business Administration significantly increases one’s salary negotiating power, but business schools rankings can make it even higher. It’s highly important to consider these factors to get the most of one’s career.