MBA Salary and Job Trends in Latin America

By Pavel Kantorek Updated Apr 30, 2016

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Introduction
A watershed year for MBA employment
MBA salary: Latin America closes the gap
MBA jobs by industry

MBA Salary and Job Trends in Latin America

In recent years, the MBA can truly have been said to have arrived in Latin America, both in terms of MBA salary and employer demand. According to the 2012/13 QS TopMBA.com Jobs & Salary Trends Report, based on a survey of 3,305 actively hiring MBA employers (33% of which were based in Latin America), demand for MBAs rose by 14% in 2012 across the region and is predicted to have risen further in 2013.

No fewer than three nations in the region are in the world’s top 10 in terms of the volume of opportunities, with Mexico leading the way in sixth, followed by Argentina in seventh, and Brazil in eight. Perhaps this is to be expected, given the strident growth of Brazil on the world stage, and the propensity of multinational firms to base their Latin American operations in Mexico and Argentina (primarily pharmaceutical and industrial North American firms in the former, and professional services firms in the latter).

A watershed year for MBA employment

However, we have to go a year back to identify the turning point – 2011 was the watershed year for the MBA in the Latin America in terms of employer demand. Opportunities leapt by incredible amounts. Mexico, traditionally the largest MBA hiring market in the region, saw demand leap up by an incredible 103%, and BRIC economy Brazil enjoyed a 53% increase. Growth was not limited to these two powerhouses: Colombia saw growth of 62%, Peru’s figure was 45% and Chile was not far behind on 38%.

Though multinational firms have certainly played a significant role in increasing demand for MBAs, they are very much looking locally for their hires, with 97% looking to hire within the region. Notably, Latin America is also seen as a fertile ground for hiring by MBA employers in other regions. 30% of employers in the Africa & Middle East region, 28% from the US & Canada and 24% from Western Europe target Latin American hires. 55% of employers globally look to the region – presumably to hire those with knowledge of this increasingly important business area of the world.

So whether it’s a domestic or international career for which Latin American MBAs are looking, prospects are bright – though note, this is primarily the case for experienced candidates. Only 26.2% of Latin American MBA employers look for candidates with three years of experience or less. 40.5% look for 3-5 years, while those with 5-8 years of experience are sought by 25% of employers in the region – more than in any other region.

MBA salary: Latin America closes the gap

It remains the case that in terms of the MBA salary paid by international employers, Latin America remains towards the lower end of the scale. However, the long term trend here is positive, with the gap between Latin American and US & Canadian salaries (the highest) shrinking from 50% a decade ago to only 30% today.

So, what MBA salary can a Latin American graduate expect to earn? If working for an international employer, the average figure stands at US$61,551, with an average bonus of US$16,553, while domestic employers pay an average of US$48,093 with a bonus of US$13,605. The figure for international employers represents a 3% increase on the previous year’s figure.

Of course, figures vary from country to country. Unsurprisingly, Mexico leads the way with an average salary and bonus of US$92,100 being paid out by international employers, with Brazil following on US$76,600. Perhaps a little more unexpectedly it is Peru and Venezuela that follow on US$75,000 and US$65,000 respectively, before Argentina and Chile, where the equivalent figures are US$58,200 and US$53,900.

MBA jobs by industry

Consulting remains the most stridently growing employment sector worldwide, as it has for the past decade, during which time employer demand has tripled. The latest figures are no exception, and the sector grew 16% in 2012, and looks set to increase by a further 9% by the end of 2013. In Latin America, however, no such slowdown is predicted, and we can expect a 25% increase this year to compound the 16% increase of 2012.

Financial services are similarly strong, and hiring levels have recovered to levels substantially stronger than the pre-crash world of 2007 – obviously, the big bucks and glamour offered have allowed it retain its allure. Latin America saw 22% growth in this sector in 2012 – the same as in the US & Canada, while the 21% growth in opportunities expected this year is world leading.

However Latin America is not expected to lead the way in the world’s hottest growth sector, technology, with only Eastern Europe having a lower growth prediction in 2013.

However, despite this, it is clear that the MBA is a qualification with increasing cachet in Latin America. This is sure to continue, as MBAs with a personal understanding of the qualification enter the market and take on hiring responsibilities.

“We look for MBAs because they can bring analytical skills, innovation, strategic thinking, and deal effectively with all races, cultures and ages,” says Claudia Vila of L’Oreal, Mexico. “[We look for] someone who has the functional and technical knowledge and skills to do the job. Someone who is good at bringing the creative ideas of others.”

And what better way to gain these skills than by an MBA?

Written by

Pavel Kantorek

Mansoor is a contributor to and former editor of TopMBA.com. He is a higher and business education specialist, who has been published in media outlets around the world. He studied English literature at BA and MA level and has a background in consumer journalism.