MBA Pay: The Influence of Relocating Abroad

Last Updated on January 2, 2024 by Robert C. Hoopes

Moving internationally after earning an MBA may have negative implications for pay prospects, according to a recent study conducted by professors from top business schools. The study, which collected survey data from 1,322 MBA graduates, found that those who moved internationally once or twice experienced less pay growth compared to their counterparts who stayed put.

However, the study also revealed an interesting trend among those who made more than four international moves, referred to as “Superglobals.” These individuals saw significantly higher pay growth, suggesting that multiple international moves may be advantageous for MBA graduates seeking financial advancement.

The authors of the study analyzed the participants’ career steps, countries worked in, and compensation at various stages of their jobs. Their findings challenge the commonly held belief that broader international experience always leads to higher compensation.

In addition to its impact on pay, the study also highlighted three main factors that MBA graduates should consider when deciding whether to move internationally for work: personal enrichment, professional opportunities, and pay. Personal enrichment emerged as the biggest benefit, offering exciting adventures, exploration, and cultural immersion.

On the other hand, professional opportunities can be more compelling abroad, offering chances for growth and learning that may not be available in one’s home country. However, if pay is the primary concern, the study suggests that staying put may be the best option to maximize compensation and financial stability.

While the study’s findings may not be fully representative of all MBA graduates, they do offer general implications for those contemplating international moves. The authors highlight the importance of considering individual priorities and goals when making the decision to move internationally.

In conclusion, MBA graduates considering international moves should carefully weigh the potential impact on their pay prospects. While moving once or twice may hamper pay growth, making multiple international moves could lead to significantly higher compensation. Ultimately, personal enrichment, professional opportunities, and pay should all be factored into the decision-making process.