The placement report of any MBA college is the deciding factor of that college’s reputation in the industry. The placement session 2019 in all the top MBA colleges is now over, and some of the prestigious MBA colleges like IIM Ahmedabad released their placement data after the IPRS Audit in the month of September. According to the placement trend of this year, most MBA and PGDM colleges have gone pass their past records.

The rising trend in final placement in top MBA colleges is evident from the placement data 2019 released by IIMs, SPJIMR, FMS, XLRI and other top B-Schools. In addition, the summer placement record of top colleges for the 2018-20 batches is also over with higher stipend.

MBA Placement Trends

The placement trend clearly shows an upsurge in placement and average salary as compared to previous year. The average salary in terms of international packages has also gone high this year. This is the 2^nd consecutive year where the demand for talented MBA professionals has gone up. Despite the economic meltdown till last year, 2019 was the year of productivity and young professionals were able to find their dream jobs.

This year, the average salary has gone high as compared to the highest salaries offered to students of premier MBA institutes of India. Many MBA colleges including IIMs have witnessed a huge gap between the average and highest placement packages in their placement reports.

This year, recruiters showed tremendous interest in hiring fresh MBA graduates from specific sectors and didn’t lag behind in offering competitive packages. The placement session in many top MBA colleges continued for 3-4 days with high salary offers and increased number of employers from almost every sector. All the sectors recorded growth in MBA placement 2019 including Finance, Banking, Insurance, Services & Consultancy, Operations, Manufacturing and others.

Percentage Change in Average Salary

The detailed list of percentage change in the Average salary of past few years is presented below in the tabular format. This list shows the average salary of the past 3 years of top most MBA colleges in India.

Besides, the detailed list of percentage-wise change in average salary over the years in top MBA colleges is presented below in the tabular format:

Top MBA colleges that didn’t do well 

Although most of the MBA colleges saw an upsurge in the salary figures this year, there were some colleges that lagged behind and showed a downward trend, including a few IIMs. Top MBA institutes that showed a downward in average salary as compared to previous year’s trend include IIM Rohtak and IMI Delhi with a slump of 4.87% and 2.16% respectively.  XIM, Xavier University, Bhubaneswar witnessed the biggest dip in average salary this year with a negative growth of 5.61%. 

The reason given by the board member of IMI New Delhi in support of the decreasing average salary is due to the increase in the batch size by 47% as compared to previous year’s batch.

B-schools have defended the negative growth rate in the average annual salary in a flawless way; however, experts are taking this dip as a sign of recruiters who are not willing to take risk by hiring more employees in the possible era of slow growth prospects. According to the words of a placement officer of some MBA college, the recruiters will always get the favour when the industry sentiment is not vibrant and the recruitment norms are tighter.

Top B-schools with single digit growth

Most of the top MBA colleges of India were not able to record more than 5% increase in average salary. Nevertheless, the salary figures remained higher than Rs. 15 Lakhs per annum in these colleges.

In terms of single digit growth, IIM Kozhikode recorded the lowest percentage of salary increase, 0.62%, which was closely followed by JBIMS Mumbai at 0.78%. IMT Ghaziabad, XLRI Jamshedpur and IMT MDI Gurgaon witnessed an increase of 3.01%, 4.41% and 1.48% respectively in their annual packages.

Government funded MBA colleges such as DMS of IITs, FMS Delhi and JBIMS Mumbai (Known for offering quality MBA programs at affordable fee) have observed a marginal increase in the salary packages, ranging between 2% to 3%. However, the thing to note is the salary increase percentage may be less, but the average salary figures are higher than other top MBA colleges with 10% increase in the average salary package. Despite the depleting growth rate in the percentage of salary increase, the average salary of FMS Delhi for 2018 is Rs. 21.1 Lakhs per Annum, for IIT Kharagpur is Rs. 15.4 Lakhs per Annum, and that of JBIMS Mumbai is Rs. 18.91 Lakhs per Annum.

Experts believed that the marginal increase in the salary is all due to the industries across India are witnessing a rationalization revolution in various sectors.  Nevertheless, the marginal increase or decrease in annual salary would not affect the overall placement performance.

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