The Decline in MBA Employability in India: A Closer Look
India has long been known for its high graduation rates in various disciplines, including MBA and engineering. However, recent trends suggest a notable decline in the employability of MBA graduates compared to their engineering counterparts. This article examines the reasons behind this trend and offers insights into how MBA graduates can improve their employability.
Quality of MBAs from Lesser Colleges
The quality of MBAs from smaller colleges in India is reported to be subpar. Many students struggle even with basic English communication and writing skills. This is a critical issue as many jobs require clear, effective communication in a professional setting. Employers often find that these MBAs are unable to meet the minimum standards for job requirements, leading to lower employability rates.
Over Supply of Degrees with Minimal Skill Development
There is a concerning trend of issuing degrees, including MBAs and BTechs, without providing adequate knowledge or skill development. Many students are enrolled in these programs for a fee, but they do not receive the necessary education. This has resulted in a glut of degree holders who lack the practical skills required in the job market. The demand for quality education and the associated skills is increasing, but the supply is not keeping up, leading to a mismatch between education and employability.
The Evolution of HR Roles
When reflecting on changes in the HR department, it's evident that many HR professionals with MBAs are now handling tasks that were previously done by non-degree holders, such as timekeeping and welfare assistance. This shift is due to a lack of high-quality MBAs and a focus on maintaining costs. Despite the hype surrounding HR positions, many MBA HR professionals are underutilized or overqualified for the roles they are assigned.
The Shift in Demand for Employable Skills
From an industry perspective, the decline in MBA employability can be attributed to several factors. Firstly, the intellectual quality of MBA students appears to be deteriorating, resulting in lower employability. With a rapid increase in the number of MBA programs, including IIMs, the quality of students is being diluted, leading to fewer job opportunities for MBA graduates.
Secondly, the demand for technical skills has grown significantly, particularly with the rise of technology startups. Business and technical skills are now in conflict, with many businesses outsourcing their core functions to focus on innovative projects. This trend has led to a decrease in the focus on business skills in MBA curricula.
Thirdly, MBA students are not taking advantage of the opportunities available to them. A recent experience at a sustainability and social redevelopment firm revealed that only a few MBA students showed interest in on-campus internships, with NIT students outperforming them. This indicates a lack of interest or capability in pursuing opportunities that are suitable for them.
Improving MBA Employability
To improve MBA employability, graduates must view their programs as skill development initiatives rather than solely as pathways to high-paying jobs. MBA programs should focus on developing critical thinking, problem-solving, and adaptive skills. Employers are increasingly interested in candidates who can demonstrate these skills, in addition to academic qualifications.
MBA graduates should also be proactive in networking and seeking out internships and other professional development opportunities. By acquiring practical experience, they can better understand the demands of the job market and adapt their skills accordingly.
Finally, there is a need to streamline educational pathways. Those best suited for lower-level administrative tasks should receive that training rather than being overqualified in MBAs. This would reduce the supply of degree holders and ensure that those with MBAs are better prepared for more skilled and higher-paying positions.