Only 7% of MBA graduates get jobs: How to ensure you aren’t among the 93%

The latest report by Assocham states that only 7% of the MBA graduates actually employable, except graduates from IIMs.

“Barring government run Indian Institute of Managements (IIMs) and a few others, most of the 5,500 Business schools in the country are producing "un-employable" sub-par graduates, earning less than Rs 10,000 a month if at all they find placements,” says the study.  

India has at least 5,500 B-schools in operation and including unapproved institutes could take that number much higher. However, Only 7% of MBA graduates from these schools, excluding those from the top 20 schools, get a job straight after completing their course, adds the findings of the report.

The study attributes lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty as the major reasons for India’s unfolding B-school disaster.

While on an average each student spent nearly Rs 3 lakh to Rs 5 lakh on a two-year MBA programme, their monthly salary is a measly Rs 8,000 to Rs 10,000.

Even the quality of IIM/IIT students coming out now-a-days in comparison with the last 15 years, has come down due to the quality of school education, it said.

While the disappointing report, debunks the myth about MBA being crème career option, it also serves as a warning to the aspirants.

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So what does as MBA aspirant need to keep in mind so as to not fall into the 93% category. We list a few points here:

1.Choose your college correctly:  A successful career is 50:50 ratio of your hard work and the college you attend. Ranking, faculty, library, facilities, fee structure, administration, placement cell – all these should be kept in mind while choosing a college to ensure a secure future.

2.Check for university affiliation: The degree from an institute affiliated to University Grant Commission (UGC), a statutory body set up by the Indian Government, hold the highest value than any other degree/diploma from institutes not affiliated to UGC.

3.Specialization: The aspirant should analyze the feasibility of the specialization he/she is planning to opt for in the MBA course keeping in mind the industry trends and future market potential. Viability of the course is the key here.

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4.Feedback and Research: Every college claims it is the best and promises 100 % placement but the truth is, as revealed by the Assocham study, many MBA graduates remain jobless for a long time after passing out. Thus, it is important to get feedback from current students and alumni about faculty, facilities, placement statistics and other facilities.

5. Study hard: Last but not the least, there is no other way of making it to the top colleges except for faring well in the entrance test. However, remember that marks matter but they are not the only benchmark. You might have scored exceptionally in the written test, but if you turn out to be lazy, uneasy or unconfident during the personal interview or the group discussion, all the efforts put in for the written test will go for a waste.

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