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Vienna, Austria – In Germany, an expensive MBA rarely guarantees an increase in salary. However, it could still boost your career.

The majority of HR managers in Germany do not offer higher salaries to candidates that have completed degrees – not even an Executive MBA from a prestigious international business school. What really matters in salary negotiations are superior performance and a greater sphere of responsibility, not a piece of paper or letters after the name.

When a brand-new Executive MBA graduate proudly presents his fresh qualification to a Human Resources manager in Germany, s/he shouldn’t expect much more than a firm handshake and a sincere: “Congratulations on the degree – now you’ll be doing your job even better!”

In France, an MBA from one of the grandes écoles is a sure-fire golden ticket to a position in senior management. Conversely, in German-speaking countries, many HR managers consider an MBA to be an interesting addition to the resume, but not a necessary step on the career path, and certainly not a justification for a pay rise.

Some students embark on an Executive MBA with the expectation that head-hunters will be knocking on the door before the ink is dry on the diploma. They are usually disappointed; at best, an employer may support its employees’ education by offering time off and paying part of the high tuition fees. At worst, the management may consider an MBA to be the student’s private indulgence.

Looking outside the MBA, only a few professional study programmes – such as the specific courses taken by accountants and master craftsmen – led directly to significantly higher salaries and further career advancement.

However, in the end, an additional degree is worthwhile for the majority of graduates. Enhanced qualifications increase the chances of promotion and new opportunities. With increased confidence, many graduates are able to pursue interesting career trajectories that better suit them and their new qualifications, in the same company or elsewhere. On average, MBA graduates earn more than other graduates – but for the majority, the career boost does not come from the degree alone.

Conrad Pramböck is the Head of Compensation Consulting at Pedersen & Partners. Based in Vienna, Austria, he is responsible for consulting companies on all aspects of compensation, including providing companies with up-to-date market information on salary ranges and design of bonus systems across all industries and geographies. Prior to joining the firm, Mr. Pramböck held several senior positions in international consultancy firms. He started his career with a German Consultancy firm working in management consulting and later in the Compensation Consulting business unit based in Austria. For the following seven years he worked with one of the top Austrian Executive Search firms as the Head of Compensation Consulting. He was responsible for all international compensation consulting activities and developed and maintained an international compensation database in 40 countries.

Pedersen & Partners is a leading international Executive Search firm. We operate 56 wholly owned offices in 52 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com

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