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Engineering vs MBA with Engineering: The Pay Check debate!

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Are you thinking about getting an MBA after you finish your engineering degree? If you’re contemplating the benefits and disadvantages, check out this blog.

There has been a radical shift in the mindset of students when it comes to doing a professional course. Today, an MBA program is one of the most sought-after professional courses amongst students. Master of Business Administration MBA is one of the most popular postgraduate programs in India, popular among engineers post their bachelor’s degree. This preference bend amongst students can be attributed to the plethora of career opportunities that an MBA program offers. Add to it the increased chances of getting a job in some of the highest paying sectors in India and a management course stands out as a clear winner.

When students enrol for an MBA program, one of the things going at the back of their minds is the kind of jobs post-MBA would be up for grabs. What kinds of jobs are available to an MBA graduate? What will be the salary packages offered? Will my engineering degree act as leverage in securing a better job in MBA placements? These are just some of the questions that flood the mind of an MBA aspirant.

An MBA program is open for graduates from all streams, be it arts, science, commerce or even engineers. This is done to get a diverse pool of students in the batch, where students also get an opportunity to learn from each other. The curriculum also remains the same for all students of an MBA batch. However, at the time of placements, a few companies specifically recruit MBAs with an engineering degree. This is primarily because the job profiles being offered by these companies require the technical skills of an engineer combined with managerial skills.

A lot of times, the salary packages offered to MBAs with an engineering degree are higher than those being offered to arts, commerce or science graduates. Again, this is because an engineer comes with an additional technical skill set. Most companies want to recruit multi-skilled talents with niche domain skills along with management and leadership skills. Employing an MBA with an engineering degree saves the company the cost of additionally recruiting an engineer, especially if the job requires technical knowledge.

Specialization matters

Job profiles of MBA graduates mostly depend on their specializations during the management program. The salary of an MBA graduate is also based on specialization, and this trend has been going strong for the past few years. Let’s look at how the salary of an MBA graduate varies according to specializations.

MBA in Finance

An MBA Finance graduate can find job opportunities in the following domains:

Currently, the average salary of an MBA in Finance in India is approximately between 6-7 LPA. This can vary based on experience and knowledge. Under the finance specialization, the salary varies according to different job profiles. The average salary under some of these profiles is

Job Title

Salary Range

Average Salary

Financial Analyst

₹263k – ₹1m

₹530,990

Finance Manager

₹441k – ₹2m

₹1,007,027

Senior Business Analyst

₹487k – ₹2m

₹1,058,458

*source: payscale.com

MBA in Marketing

After completing an MBA in Marketing Management, an aspiring manager can easily be recruited in the following areas:

MBAs with a specialization in Marketing qualify for management and executive positions in a company. Technology has further augmented the job opportunities by adding new and innovative job profiles for MBA Marketing in Financial Services, IT Sector, and FMCG sector, to name a few. Currently, the average salary of an MBA in Marketing in India is approximately between 7-8 LPA. Under the marketing specialization, the salary varies according to different job profiles. The average salary under some of these profiles is:

Job Title

Salary Range

Average Salary

Marketing Manager

₹302k – ₹2m

₹729,106

Senior Marketing Manager

₹743k – ₹3m

₹1,758,224

Marketing Executive

₹101k – ₹850k

₹282,169

*source: payscale.com

MBA in Human Resource Management

HR professionals is now an integral part of all organizations. This increased traction across all parallels of the industry has made this specialization popular among MBA students. There are several employment opportunities for MBAs in HR in IT companies, law firms, retail and companies to list just a few of them. 

Currently, the average salary of an MBA HR in India is approximately between 5-6 LPA. The average yearly salary of an MBA HR Manager is Rs. 756,000, with a Senior HR Manager grossing close to Rs. 1,000,000 PA. Under the HR specialization, the salary varies according to different job profiles. The average salary under some of these profiles is

Job Title

Range

Average

Human Resources (HR) Manager

₹360k – ₹2m

₹821,669

Human Resources (HR) Generalist

₹198k – ₹979k

₹414,066

Human Resources (HR) Business Partner

₹443k – ₹2m

₹843,945

*source: payscale.com

MBA in Operations

MBA graduates in Operations Management are usually offered jobs in the product or service based units such as

The average salary of an MBA Operations Manager candidate is Rs. 802,000 per annum.

MBA in International Business

MBA Graduates in International business has a better chance of getting international job opportunities. This specialization gives them an edge over other specializations. International Business familiarizes a student with global market demands and business trends. Even entrepreneurs benefit from an MBA degree in this stream as it helps in business development and growth. According to Payscale, the average salary for an MBA in International business is Rs. 788,000 per annum.

Top jobs post MBA

Investment bankers help both private companies and the government in raising money in capital markets and provide financial advice. They are the ones handling mergers and acquisitions for a company and stay informed about great and safe investment options. A job in Investment banking is one of the highest-paid jobs you can get in India. MBA graduates who wish to pursue a career in this must choose their subjects with a focus on finance. The job comes with a lot of pressure, immense thrill and a fat paycheck. The salary of an entry-level investment banker is around Rs.680, 000 per year.

Financial Managers are trained personnel who solve cash flow problems and are mostly employed with financial institutions. They are business executives who are entrusted with monitoring the budget of a company and apportioning funds wisely. It is the job of a financial manager to decide where financial investments should be made to yield the highest and the safest returns.

Most top companies recruit MBA graduates as project managers whose work profile includes being involved in all aspects of a project. A project manager is responsible for planning, strategizing, making financial projections and building a team. The proper execution of a project depends on the competency of a project manager and since it involves managerial and leadership skills, MBA graduates are usually the first choice for this job. The average salary of an entry-level Project Management Manager is around Rs.160,000 per year.

MBA vs Engineer: The pay scale comparison

According to Universum India Talent Report 2019, the average salary expected by engineering graduates is nearly equal to that expected by MBA graduates. This report also says that while the expected remuneration of an IT graduate is ₹945,852, the salary expectations of an MBA graduate are at ₹924,660. If the salary expectations of Business and commerce students are taken into consideration, they have slightly lower expectations for their annual compensation of around ₹877,786.

However, as an engineer starts to climb the career ladder, the roles start to demand more leadership and management skills. This is where an MBA degree plays a great role. An engineer armed with an MBA degree stands to gain at all steps as compared to an engineer. Let’s see why an engineer makes a better manager:

Trainee engineers tackle a variety of projects with strict deadlines which encourages them to find innovative and efficient solutions.

Engineering and mathematics are closely linked and knowing your way around numbers prove to be a great asset in any organization.

Most companies are built on a digital platform and most engineers are not just comfortable but good with computers. Their technical skills help them adjust better to managerial roles, especially in engineering companies.

What matters the most is the problem-solving ability of a candidate. Both MBA graduates and engineering graduates can be equally skilled in this area. Engineers in top companies who are paid more than MBAs bring a particular technical skill set to the table. On the other hand, MBAs who are paid much more than engineering graduates possess great strategic/decision-making capability. However, while most engineers get a handsome salary package, successful business leaders who may or may not be armed with an engineering degree, often earn significantly more.

FAQs 

Because you have already earned your Bachelor’s degree, the difficulty level should not be a consideration while selecting a master’s programme. Your interests must be the decisive element in the programme. If you wish to continue your studies in the technical arena, you should pursue a M Tech; otherwise, an MBA will allow you to explore business-related topics.

M Tech and MBA are both postgraduate degrees with equivalent employment market worth. When it comes to who makes the most money, your job experience and talents are important. Because every sector requires an MBA, an MBA has a pay advantage.

MBA after MTech is a fantastic option for people looking to develop essential business and technical abilities while thriving in a competitive market. It will expand your job prospects and give you a better wage package.

The following are the top high-paying sectors you may explore by taking an MBA after completing your MTech:

To know more about MBA post engineering, visit – https://testing.pagalguy.com/cat/articles