I recently came across an Economic Times article that reported a study of B-schools in 2016.The report states that
“Barring a handful of top business schools like the IIMs, most B-schools in the country are producing sub-par graduates who are largely un-employable and therefore earning less than Rs.10,000 a month, if at all they find a job”. The report blames the lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty as the major reasons behind India’s unfolding B-school disaster.
The report observed that “while on an average each student spends nearly Rs. 3-5 lakh on a two-year MBA programme, their current monthly salary is a measly Rs.8,000 to Rs.10,000.” In the article, Assocham Secretary General D S Rawat said that "The quality of higher education in India across disciplines is poor and does not meet the needs of the corporate world."
This article helped me reflect on some of my interactions at my previous workplaces. Having worked across organizations in healthcare, consumer durables, children’s publication and a HR start-up, one of the most regular tasks that I had to do was to assist in recruiting. Some of the openings have been for simple administration roles but the resumes we would get, would be of candidates who have completed their MBA and are looking for a good administration role. I used to wonder why an MBA graduate was applying for an administration role. This article helped me answer my decade old query.
After entering the education arena two years back as a faculty, with my corporate experience and the current understanding of the operations of a B-school, I cannot help but agree to the ‘lack of quality control and low-paying jobs’ that more than 5,500 B-schools (as of 2016 does not include unapproved Institutes) in India are churning out every year for students.
A faculty colleague brought to my attention a few days back a term called ‘Profitable employment’. Online search for this keyword didn’t through up any results but my colleague was kind enough to explain this term. For example, let us say a student pays Rs.7 lakhs as fees for doing an MBA programme. After he/she completes the programme, their first salary turns out to be Rs. 20,000 per month (Annual package of 2.4 Lakhs). He/she has got a job but is not profitable because the returns on the money invested in the programme is far higher. The quality of education has also contributed to the low salary.
Return on Investment on your MBA degree
Two Survey reports help us in concluding that India is seeing a rise in higher education while unemployment is also on the rise.
An All-India Survey on Higher Education in 2017-18 showed that the survey has estimated that total enrolment in higher education is at about 36 million. International Labour Organisation (ILO) states that India will be seeing its unemployment rate at 3.5 per cent in 2018 and 2019, the same which was seen in 2017 and 2016.
Hence it is vital for every Management Institute to have an ideal pedagogy that provides academic knowledge and grooms necessary skill sets for a student to be profitably employed.
At Regenesys, we have proactively tied in quality education and profitable employment as guaranteed outcomes for our MBA students. To know more about our MBA programme, you can write to me at email@example.com (Prof.Sandya Jadhav,Senior Faculty, Regenesys Institute of Management).