Most of the ‘average’ students today do an MBA and get a degree. Now this could be from a great college, a good college, a bad college or a downright stupid college.

Let me tell you the salaries that were being offered for these graduates. It is really appalling. For example I remember that there was a company that was paying Rs. 3.5 L for the people who passed out in the 2006 batch. IN the year 2006 this was not a bad salary. Let us see how much should this be just adjusted just for inflation over the past 5 years. Well it will look nice…assuming 10% inflation per annum:

2006        350,000                2009 – Rs. 465,000

2007        385,000                2010   Rs. 512,000

2008        423,500                2011   Rs.  564,000

Any guesses on what is happening at the ground level ?

FOR the same company and same institute, the company is offering – believe it or not Rs. 250,000. Those who joined in 2009 are continuing to be paid Rs. 350,000 and some of them are unable to get Rs. 250,000 outside. Of course there is a group which will be getting paid better..but this is not far away from the truth for too many of the students. It is the job of the industry to separate the men from the boys – so you see guys who have passed in 2006 who earn Rs. 1 Million a year. But the average, the median, mode are not good. The standard deviation makes a mockery of the word average.

I recently received the CV of a kid who had spent Rs. 10 lakhs on an MBA degree (super publicity seeking overrated, over advertising college – just guess!). I could not do anything – but did speak to him. The best job offer he has is from a co-operative bank which is offering him a grand salary of Rs. 1 lakhs PER ANNUM (repeating Rs. 1L per month, or Rs. 8k per annum)…well I had no comments to offer. Sad, but true.

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  1. Akanksha,
    Generally, you stand better chance of getting noticed in a place that does not hire in bulk. Never go for a good paying job that gives you work not matching your qualifications.

    Good companies do not hire engineers at different salaries based on which college you come from. Companies that care about people development will always pay same salary to freshers who have same qualification. Good people need to be taken care of otherwise they leave. identifying good people can take some time. I mean not five years but two – three years is normal. If you do not have that patience, it is the roaming life for you.

    I have always wondered about MBA’s. What do they bring to the work that justifies higher pay? If you have some sence where you want to go then MBA will help you. Just getting an additional degree does not help you get better at work.

    The exceptions to the law have to work harder to compensate for their poor show in early college life. There is no easy way out here. In the end I have seen that it is not the brightest that win the race.

  2. Ashutosh Chakraborty

    “Why hire a preson at higher salary if you can hire him / her at lower?”

    Completely agree with Rajeev’s comment above. Companies exist to make profits for shareholders. Employee development (after hiring) does improves profits, but before hiring, why pay more without knowing the true potential.

    The “grading” of colleges is not done by a company. Not even any conglomerate of companies. It is done by families + applicants when the smartest of the lot choose to go to a particular school.

    If all grade A students had instead gone to a grade C school, would that remain a grade C school anymore? 🙂

  3. I guess my industry (IT) is not so bad then. I spend 2 lacs on my MCA degree. My CTC — 2007:2.4lac 2008:3.6 2009:4.25 2010:5.6 2011:7.9 🙂

  4. there are so many open and private universities/colleges are available in the market because of which the value of MBA has degraded. Every corner of the road u see, there is MBA college

    the course which was valuable is marching towards valueless(with very few exceptions)

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