In today’s competitive business world, salaries for business management professionals vary greatly depending on a number of factors. From education and experience to industry and location, there are a variety of elements that can impact how much you make as a business manager. In this article, we’ll take a closer look at some of the key factors that determine business management salaries and how you can work to maximize your earning potential.
Education and Experience
Education and experience are two of the most important factors that determine business management salaries. Most business management positions require a minimum of a bachelor’s degree, although some employers may require a master’s degree or higher. Additionally, the more experience you have in the field, the more you can expect to make.
For example, according to PayScale, the average salary for a business manager with less than one year of experience is around $48,000 per year. However, with 10-19 years of experience, that salary jumps to around $82,000 per year. And with over 20 years of experience, business managers can expect to make upwards of $100,000 per year.
It’s important to note, however, that experience alone is not enough to maximize your earning potential in business management. Continuing education, such as earning an MBA or other advanced degree, can also help you command a higher salary.
Industry
The industry you work in can also have a significant impact on your business management salary. For example, according to the Bureau of Labor Statistics (BLS), the median annual wage for management occupations was $109,760 in May 2020. However, the median annual wage for management occupations in the finance and insurance industry was $135,900, while the median annual wage for management occupations in the healthcare and social assistance industry was $100,940.
Other industries that typically offer higher salaries for business management professionals include technology, consulting, and energy. These industries are known for being highly competitive and fast-paced, which often translates to higher salaries for employees.
Location
Location is another key factor that can impact business management salaries. In general, salaries tend to be higher in large metropolitan areas where the cost of living is higher. For example, the BLS reports that the highest-paying metropolitan areas for management occupations in May 2020 were San Francisco-Oakland-Hayward, CA ($169,710), Bridgeport-Stamford-Norwalk, CT ($163,710), and New York-Newark-Jersey City, NY-NJ-PA ($163,110).
However, it’s important to note that location isn’t the only factor that impacts cost of living. For example, a business manager in a small town may have a lower salary than a business manager in a large city, but their cost of living may also be significantly lower. This means that even though they may make less money, their overall quality of life may be higher.
Negotiation
Finally, it’s important to note that negotiation skills can also impact your business management salary. Many employers are willing to negotiate salaries with qualified candidates, so it’s important to do your research and come prepared to negotiate.
One key tip for negotiating your salary is to have a clear understanding of your value in the marketplace. This means researching average salaries for your position in your industry and location, as well as considering your education and experience. You can use this information to make a compelling case for why you deserve a higher salary.
Another important tip is to be confident and assertive in your negotiations. While it can be uncomfortable to ask for more money, remember that you are worth it and that you have worked hard to get where you are. Practice your negotiation skills with a friend or family member before going into a salary negotiation so that you feel confident and prepared.