IIMs CAN’T Make Your Career in 2024? Reality of MBA From IIM | Cons of doing MBA in 2024 #mba

Pavan Sathiraju
12 Feb 202409:18
EducationalLearning
32 Likes 10 Comments

TLDRThe video discusses the current challenges of pursuing an MBA in India, highlighting the difficulties faced by top business schools in placing students and the increase in fees. It emphasizes the negative ROI due to reduced salaries and increased competition for high-paying jobs, especially for career pivots. The speaker advises considering the current job market and one's personal network before investing in an MBA education, suggesting that the timing may not be ideal for many.

Takeaways
  • 📉 Top business schools in India are currently facing difficulties in placing their students post-MBA.
  • 💰 The fees for MBA programs at premier institutions like ISB and IIM have increased dramatically, affecting ROI expectations.
  • 💼 Salaries for MBA graduates have decreased, leading to a negative ROI or decline compared to previous years.
  • 🎓 There is an increase in the number of students admitted to MBA programs, which correlates with a struggle in internship placements.
  • 🚨 The job market is tough, with high-paying jobs significantly reduced, making career pivots difficult for MBA graduates.
  • 🌐 Economic downturns and uncertainties, such as the COVID-19 impact, affect business school recruitments and job satisfaction.
  • 📈 More than 50% of students in top universities lack work experience, which can limit the roles offered to freshers post-MBA.
  • 🤔 The value of an MBA degree should be considered carefully, especially given the high cost and current job market conditions.
  • 🌟 Having prior work experience can exempt students from mandatory internships and potentially lead to better job placements.
  • 🔄 Networking plays a crucial role in placements, with many students securing jobs through their professional contacts.
  • 📚 Timing is crucial for pursuing an MBA; practical learning with experience can be more valuable than theoretical knowledge alone.
Q & A

  • Why is the current period considered a difficult time for pursuing an MBA in India?

    -The current period is difficult for pursuing an MBA in India due to challenges in student placements, increased fees, reduced salaries, a tough job market, and difficulties in career pivoting. Additionally, there are macro uncertainties and a high percentage of freshers in top universities which may affect the quality of learning and job opportunities.

  • What are the top business schools in India currently facing with respect to student placements?

    -Top business schools in India, including IIMs and ISB, are struggling to place their students due to a tough job market and reduced high-paying job opportunities, which has led to a decline in average salaries for MBA graduates.

  • How has the fee structure for MBA programs changed in recent years?

    -The fees for MBA programs have increased dramatically. For instance, ISB's fee has increased from 36 lakhs to 42 lakhs per annum, and IIM Ahmedabad's PGPX program fees have risen from 28 lakhs to almost 32 lakhs for a 2-year course.

  • What impact has the increase in fees and decrease in salaries had on the return on investment (ROI) for MBA graduates?

    -The increase in fees and decrease in salaries has led to a negative ROI or a decline in ROI for MBA graduates compared to the previous years. This means that the higher fees are not being matched by higher salaries, making the investment in an MBA less lucrative.

  • Why has the job market become tougher for MBA graduates?

    -The job market has become tougher due to factors like the startup hiring slowdown and the macro environment. High-paying job opportunities have significantly reduced, leading to increased competition among MBA graduates, especially for those looking to pivot their careers.

  • What does the term 'career pivot' mean in the context of MBA graduates?

    -A career pivot refers to an MBA graduate's attempt to switch from their current industry or role to a different one, such as moving from IT to management, product, or finance. The current job market conditions have made such pivots extremely difficult.

  • How does the increase in class size and the current job market affect internship placements for MBA students?

    -The increase in class size and the tough job market have led to difficulties in securing internships for MBA students. This is a red flag as internships are crucial for final campus placements and can significantly impact the students' career trajectories.

  • What is the significance of work experience for MBA students in the context of the current job market?

    -Work experience is significant as it can exempt students from mandatory internships and provide an advantage in a tough job market. Experienced candidates are often preferred by employers, making it easier for them to secure desirable roles and perform successful career pivots.

  • How might the upcoming US elections affect the job market for MBA graduates in India?

    -The outcome of the US elections could influence multinational companies' recruitment strategies. Depending on who wins, there could be either an increase in hiring or a more cautious approach, adding to the uncertainties faced by MBA graduates in India.

  • What is the average work experience of students at top Indian and US business schools?

    -At top Indian business schools like IIM Ahmedabad, the average work experience of students is around 7 years, whereas at US business schools, the average is about 4 years.

  • Why is the speaker advising against rushing into an MBA program?

    -The speaker advises against rushing into an MBA because the value of the degree is significant in terms of cost and potential career benefits. It's important to be prepared and to have practical learning experiences, which are more valuable than theoretical learning in the current job market context.

  • What role does networking play in MBA placements, and how can prior work experience be advantageous?

    -Networking plays a crucial role in MBA placements, with a significant percentage of students being placed through their own networks. Prior work experience can enhance one's network, making it easier to secure desirable job opportunities without relying solely on campus placements.

Outlines
00:00
📉 Challenges in Pursuing MBA in India

This paragraph discusses the current difficulties in pursuing an MBA in India, highlighting the challenges faced by top business schools in placing their students. It mentions the increase in fees for these programs, such as ISB and IIM, and the decrease in salaries offered to MBA graduates, leading to a negative return on investment (RoI). The speaker shares his experience and recommends that the timing is not right for an MBA in India due to these factors.

05:00
🚷 Impact of Job Market on MBA Aspirations

The second paragraph emphasizes the impact of the job market on the quality of jobs available to MBA graduates. It points out the difficulty in career pivoting due to the preference for experienced candidates in the hiring process. The paragraph also addresses the challenges faced by freshers in the MBA program, who lack work experience, and the uncertainty of the job market due to macro trends, such as the US elections. The speaker suggests that the value of an MBA might be better realized with practical experience and a strategic approach to timing.

Mindmap
Keywords
💡MBA
MBA stands for Master of Business Administration, a postgraduate degree that focuses on business and management principles. In the context of the video, the speaker discusses the challenges of pursuing an MBA in India, particularly during the current difficult economic period, highlighting issues such as job placements, increasing fees, and the impact on return on investment (ROI).
💡Job Placement
Job placement refers to the process by which graduates are placed in jobs by their educational institutions, often through campus recruitment. In the video, the speaker points out that top business schools in India are struggling with job placements for their MBA students, which is a key factor influencing the decision to pursue an MBA at this time.
💡Fees
Fees in this context refer to the cost of attending an MBA program. The speaker emphasizes that the fees for MBA programs in India have increased dramatically, which affects the return on investment (ROI) for students. Higher fees mean that graduates expect higher salaries to justify the cost, but the current job market is not meeting these expectations.
💡Return on Investment (ROI)
ROI is a financial metric used to assess the efficiency of an investment. In the context of education, it refers to the comparison between the cost of the degree (the investment) and the expected financial benefits, such as higher salary or better career opportunities (the return). The speaker argues that the current situation in India makes the ROI for an MBA unfavorable due to increased fees and decreased salaries.
💡Salary
Salary refers to the compensation paid to an employee for their work. In the video, the speaker discusses how the average salaries offered to MBA graduates have decreased, which is a significant concern for those considering the financial benefits of an MBA.
💡Career Pivot
A career pivot refers to a significant change in one's professional path, often involving a shift to a different industry or role. The speaker highlights that the current job market makes career pivots difficult for MBA graduates, as employers prefer candidates with relevant experience, making it challenging for those looking to switch fields after their MBA.
💡Macro Environment
The macro environment refers to the external factors that affect all businesses and industries, such as economic conditions, political changes, and societal trends. In the video, the speaker attributes the difficulty in job placements and salary decreases to the macro environment, suggesting that broader economic factors are influencing the job market for MBA graduates.
💡Internships
Internships are temporary work experiences that provide students or recent graduates with on-the-job training in their field of study. The speaker points out that many MBA programs in India require students to complete internships, which are crucial for final placements. However, the speaker warns that the current job market's challenges have made it difficult for even top schools to secure internships for their students.
💡Work Experience
Work experience refers to the period of time an individual has spent working in a professional capacity. In the context of the video, the speaker argues that having work experience can be advantageous when pursuing an MBA, as it can facilitate career pivots and lead to better job opportunities post-graduation.
💡Networks
Networks, in the context of the video, refer to the professional connections and relationships that individuals build throughout their careers. The speaker emphasizes the importance of personal networks in securing job placements, especially during challenging economic times when campus placements may be insufficient.
💡Timing
Timing in this context refers to the appropriateness of pursuing an MBA based on current economic conditions and job market trends. The speaker argues that the timing is not right for an MBA in India due to the factors discussed, such as job placements, fees, and ROI.
Highlights

The current period is a difficult time for pursuing an MBA in India.

Top business schools in India are facing challenges in placing their students.

ISB and other premier institutions have seen a dramatic increase in fees.

The return on investment (ROI) for MBA graduates has decreased due to lower salaries.

There is an increase in the number of students in MBA programs, which affects job placements.

High-paying job opportunities have significantly reduced in the market.

Experienced candidates are preferred for high-profile jobs, making career pivots difficult.

Economic downturns often lead to MBA graduates leaving their jobs within a short period.

More than 50% of students in top universities lack work experience, affecting the quality of learning.

Internships and campus placements are crucial for MBA students' final job offers.

Macro uncertainties, such as the US elections, can impact job markets and recruitment.

Having prior work experience can exempt students from mandatory internships.

The value of a business degree is significant and should not be rushed.

International business schools may offer better opportunities for those seeking an MBA.

Personal networks play a significant role in placements, especially for students with work experience.

Practical learning through work experience is more valuable than theoretical learning for MBA students.

The timing for pursuing an MBA in India is currently not ideal due to the job market conditions.

Transcripts

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