MBA in Finance vs HR: Which Specialization is Best for You?

MBA in Finance vs HR: Which Specialization is Best for You?

Alen Tom ShajiUpdated on 20 Feb 2025, 04:05 PM IST

A major question for many MBA aspirants is whether to pursue an MBA in Finance or HR? MBA in finance and MBA in HR both have their pros and cons. HR and Finance are the most popular MBA specializations preferred by the candidates. Candidates should understand the different factors like required skills, industry trends, career opportunities, long-term goals, etc to decide which out of the two specializations is suitable for them. This article serves as a comprehensive guide to understanding the Finance and HR specialization to decide the one to choose for an MBA.

MBA in Finance vs HR: Which Specialization is Best for You?
MBA HR vs MBA Finance

MBA in Finance or HR?

For the first year of the MBA, the candidates are taught the same curriculum. Upon entering the second year of the MBA candidates are provided with the choice of selecting an MBA specialization. Candidates can choose from a variety of alternatives like Finance, Marketing, HR, Operations, Retail, E-Commerce etc. Specializations like Finance, Marketing, and Operations tend to have more salary than others like Human Resources.

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MBA in Finance or HR? Skillset Comparison

Finance and HR are two very different MBA specializations to deal with. Both have a skillset unique to them. Some skills might appear to be common but those are the general skills common to every MBA specialization. The skills that one gets specialized in after these MBA specializations are given in the table below.

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MBA Finance Skills

MBA HR Skills

Financial Analysis

Employee Relations

Financial Modelling

Recruitment Strategies

Investment Strategies

Organizational Behaviour

Risk Management

Performance Management

MBA in Finance or HR? Career Opportunities

When it comes to career opportunities finance is a much more preferred MBA specialization than HR. An MBA in finance can get a candidate a high-paying job in top companies operating in fields like Investment Banking, Asset Management, Equity Research Analyst, and Financial Analysis. The HR specialization on the other hand has limited career choices for candidates. Candidates with an MBA specializing in HR tend to stay within the domain of recruitment. The industry can vary though. Different career roles for both MBA specializations are given in the table below.

MBA Finance Career Roles

MBA HR Career Roles

Financial Analyst

HR Manager

Investment Banker

Talent Acquisition Specialist

Financial Manager

Organisational Development Consultant

Equity Research Analyst (Buy/Sell Side)

Chief Human Resource Officer

Institutional Trader

Performance Coach

Fund Manager


Chief Financial Officer


Financial Consultant


MBA in Finance or HR? Industry Trends

The industry trends for MBA in Finance and HR are quite different. Finance roles are generally high paying with roles that are of crucial importance to the company. They often have to make sensitive decisions concerning money. HR roles are also important for the overall health of the organization. The HR roles are also well compensated, especially at senior levels. The best part about HR roles is that they are needed in almost every sector which makes it a very safe choice. Finance roles can have a serious impact during a period of recession.

MBA in Finance or HR? Longterm Goals

The long-term goals and career plans are important to consider when deciding whether to do an MBA in HR or finance. Depending on how a candidate sets long-term goals for their career the choice of either MBA specialization can have a great impact. Candidates wanting to see themselves associated in an important leadership role with any of the big financial institutions should ideally go for an MBA specializing in Finance.

But if a candidate is looking for a safer career route irrespective of industry and wants more work-life balance they should choose HR as their MBA specialization. The pay scale might get stagnant. Candidates choosing finance should prepare themselves for a hectic work life with tight deadlines in exchange for great pay and the opportunity to get relocated to a tier-one country.

Frequently Asked Questions (FAQs)

Q: How do I choose between HR and Finance?
A:

For choosing between HR and Finance various factors should be considered like what are the expectations from one's career, the skillset they excel in, long-term career plans, etc. Based on how both specializations tend to prove for each factor candidates can decide for themselves.

Q: What is the MBA HR salary?
A:

The starting salary of an HR after an MBA is generally between Rs. 4 to 10 lakhs per annum. The salary will increase with more and more years of experience. The salary for MBA HR can go up to Rs. 30 lakhs per annum on the higher end.

Q: Which MBA is better, HR or finance?
A:

It depends on factors like the required skills, industry trends, career opportunities, long-term goals, etc to decide which out of the two specializations is suitable for them.

Q: Who gets more salary, HR or finance?
A:

In terms of salary and pay scale, an MBA in Finance tends to pay a lot more than an MBA in HR. At senior levels HR roles are also well compensated but nowhere near finance roles.

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