Choosing Between a PhD in Finance or HR: Market Potential and Academic Requirements
Deciding whether to pursue a PhD in Finance or Human Resources (HR) is a significant career choice that depends on your professional aspirations, passion, and academic background. This article aims to provide a comprehensive analysis of the potential market opportunities, academic requirements, and career paths associated with both fields.
Market Potential of Finance vs. HR
Unless your passion for HR is so intense that it overrides all other considerations, the academic and professional advantages of a PhD in Finance far outweigh those of a PhD in HR. Starting salaries for finance professors at reputable business schools range between $220,000 and even higher in the corporate world. This makes finance not only a rewarding but also a lucrative field.
Finances in the Academic Realm
At leading business schools, the demand for finance PhD students is low, often with only 2 to 4 applicants accepted annually. To secure a spot, candidates must possess exceptional academic credentials, a nearly perfect GRE Math score, and a robust background in mathematics. These stringent requirements reflect the high value placed on quantitative skills in the finance sector.
Finances in the Corporate World
In the corporate world, the earnings potential for finance professionals is similarly impressive. Roles such as financial analysts, investment bankers, and financial managers command salaries that are consistently above average. Additionally, finance professionals enjoy good job security and secure retirement benefits, making it a stable career choice.
Academic Requirements for PhD Programs
Academic requirements for a PhD in Finance and HR are quite different, reflecting the distinct nature of each field:
Requirements for a PhD in Finance
For a PhD in Finance, you will need to:
Assemble a strong academic background, including high grades in relevant courses. Secure a nearly perfect GRE Math score to demonstrate your quantitative abilities. Complete an extensive coursework in mathematics, statistics, and financial theories.The competitive admissions process ensures that only the most qualified candidates with a robust quantitative foundation are selected.
Requirements for a PhD in HR
A PhD in HR, while valuable, may not require the same level of quantitative rigor as a PhD in Finance. However, it is still a challenging and demanding program. HR PhDs:
Are often associated with subfields of management, requiring a solid background in management principles. May still require strong analytical and research skills, but in a different context. Focus on human behavior, organizational structure, and labor economics.Given these requirements, a candidate interested in a PhD in HR may find it beneficial to solidify their understanding of management principles and research methods.
Conclusion and Recommendations
Considering the market potential and academic requirements, a PhD in Finance stands out as a more viable and lucrative option. Not only do finance professionals enjoy high salaries at both the academic and corporate levels, but they also have the advantage of strong competitive careers and financial stability. If, however, your passion for HR is unwavering and aligns with a strong background in management, a PhD in HR can also lead to a fulfilling career.
Key Takeaways
This article highlights the following key points:
Higher starting salaries for finance PhDs. Stringent academic requirements for a PhD in Finance. Marketability and job security for finance professionals. Academic background and research skills required for both finance and HR PhDs.