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.

LiveIIM CAT 2025 Result (OUT) LIVE: MBA admission criteria for IIMs; CAT score weightage, cut-offsDec 26, 2025 | 4:58 PM IST

IIM Bangalore has specified category-wise overall and sectional CAT cut-offs for preparing the first shortlist. The institute clarified that actual scores of shortlisted candidates are usually higher than the minimum cut-offs.

Category

VARC

DILR

QA

Overall

General

80

75

75

85

NC-OBC

70

65

65

75

EWS

70

65

65

75

SC

65

60

60

70

ST

55

55

55

65

PwD

50

50

50

60

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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: 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.

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.

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Questions related to CAT

On Question asked by student community

Have a question related to CAT ?

Hello,

The results for the CAT 2025 entrance, which is conducted on November 30, 2025, were declared on December 22, 2025. Candidates can download and see their results on the official IIM CAT website. On the website, click on the "CAT 2025 Result/Scorecard" link to download the result by entering the required details.

I hope it will clear your query!!

Hello,

The link to the website where you can check the published result is attached herewith.  The result will be out soon. You can also check the cutoffs on the website of Careers360.

https://bschool.careers360.com/articles/cat-result

Thank you.

CAT does not restrict eligibility based on stream. Candidates from commerce, arts, science, engineering or any other background can appear for CAT and apply to MBA programmes offered by IIMs and other top B-schools.

The basic eligibility criteria for CAT are:
You must hold a bachelor’s degree in any discipline from a recognised university with at least 50 percent marks (45 percent for SC, ST and PwD categories). Final-year graduation students are also eligible to apply.

Being a commerce graduate can actually be an advantage in areas such as accounting, finance, economics and business studies, especially during MBA coursework in finance, marketing and operations.

After qualifying CAT, admission depends on multiple factors including CAT percentile, academic background, work experience (if any), performance in GD, WAT and personal interview rounds. Many IIMs and B-schools follow a diverse academic background policy, which means non-engineering candidates, including commerce graduates, often receive additional weightage.

Apart from IIMs, several reputed institutes such as FMS Delhi, SPJIMR Mumbai, MDI Gurgaon, IMT Ghaziabad, and many state and private universities also accept CAT scores for MBA admissions.

So, as a commerce graduate, you are fully eligible to appear for CAT and pursue an MBA, provided you meet the minimum academic requirements and perform well in the selection process.

If you want, I can also help you with realistic CAT percentile targets based on your academic profile or suggest suitable MBA colleges.


Hello aspirant,

With a CAT 2025 raw score of 84 and strong sectionals, your expected percentile may fail in the high 98 range , depending on scaling. Your excellent academics and 2 years of work experience strengthen your profile .IIM Lucknow calls are possible but competitive for EWS engineers , while FMS Delhi looks mainly at CAT score and VARC , so you have a reasonable chance there . Final calls depend on cutoffs and composite score.

FOR REFERENCE : https://bschool.careers360.com/articles/cat-cutoff

Hope the details will help you.

THANK YOU

Hello,

For a raw score of 56 in CAT 2025 Slot 3, your expected overall percentile is likely to be in the range of the 90th-95th percentile. The exact percentile can vary slightly on the final normalization process and the process and performance of all test-takers. In this article you'll find more about the CAT result.

I hope it will clear your query!!