Is it merely the general perception of the people or is this phenomenon backed by facts and figures that there is a massive slowdown in MBA hiring process? Let’s find out the truth behind the slowdown in the MBA hiring and current trends in MBA job market.
Every year, nearly 7000 plus MBA graduates walk out of the top 26 MBA Colleges in India. Most of them go through the placement season route to grab their first job through campus placements. When we talk about 2017, while the majority of B-schools expected a serious downturn in the placement numbers, the actual numbers, especially those for the top B-school students are not that bad.
Despite the effects of demonetizations, global economic slowdown and even the IT layoffs in India, the general mood during the placement season was quite cheerful. The same can also be seen in the placement data numbers provided by the B-schools. This proves our first point that there is no significant or visible slow in the hiring of MBA graduates in India. In fact, many surveys and reports have repeatedly conveyed that only those colleges suffer from placement shortfall, who are unable to train their students for the current dynamic business environment.
Now that we have got the monkey of ‘slowdown in MBA hiring’ off our backs, it’s high-time we look at and evaluate the current job market for MBA graduates in India. Again, taking a sneak peak at the 2017 MBA placements data from the top MBA colleges in India, we can ascertain that, although recruiters were quite cautious on hiring front, they were still very much open for the right candidates with the right skill set.
Despite the general perception of slowdown in MBA hiring, the average salaries of MBA graduates from across the country saw an average rise of 8 to 12 percent. Although this growth is comparatively subdued with regards to 2016 data, but still is not in negative zone by any stretch of imagination. MBA students walking out of B-school campuses who possess the right attitude and skill set to handle the contemporary business challenges enjoy a stable job market that still has its hiring trend figures in green.
While the placement figure numbers from top B-schools in India are a promising sign that the MBA job market is growing at a stable pace, there still are certain challenges that MBA graduates have to face. The volatile nature of the economy and the ongoing changes and challenges that face the modern day business, present a very challenging work scenario for the students.
The two main challenges that can impact the MBA hiring trends in the coming period are:
Although quite obvious, but this has to be one of the biggest challenge that MBA graduates will have to cope with when they are placed. Apart from those joining MNCs and IT majors who are already digital in nature, the MBA graduates who are going to join other sectors, will have major problems in transforming the traditional business models into digital ones. This is especially applicable to manufacturing sector which has seen a steep rise in the hiring of MBAs in top ranking positions.
The second challenge that MBA graduates will face in 2017-18 will be the dynamic business environment that the Indian economy is facing today. The Indian economy post the 2007-08 economic slowdown has been highly impacted by the global business processes. In addition to this, the complications specific to Indian businesses make the situation even more challenging for the business managers India. This means that only those managers or MBA graduates who are trained to handle both domestic business challenges along with those which arise with due to global business practices are able to deliver the goods to their employers. Such MBA graduates are in high demand in the current job market.
Coming to the top MBA recruiters, it is quite obvious that MNCs and Tech giants rule the roost when it comes to dominating campus placements in India. Several survey’s and placement data provided by even top MBA colleges in India reiterate this fact. Right from e-commerce giants like Amazon and Flipkart to Research firms like EY have always shown keen interest in hiring talented MBA graduates over the years.
Finally, coming to the more important part, if you are planning to take up MBA, which college should you opt for and which domains or specializations should you target? Now, this is one questions that has no simple or confirmed answers. The data provided above, clearly shows us that while in boom years of e-commerce industry, several players emerged and dominated the hiring trends. Similarly, we can also see telecom majors like Vodafone and Bharti Airtel also feature in the list, but the recent past their dominance has diminished quite a bit.
On the contrary, consultancy firms like BCG, financial firms such as ICICI Bank and Tech majors such as Cognizant, Wipro and HCL have continued to dominate the MBA hiring trends over the last 7 years. These companies hire business managers for banking, finance and insurance domains which form nearly 45% of the MBA graduates hired from the top B-schools across India. In the second position comes tech companies who primarily hire business managers for IT and operations managements position. The year 2017 also saw increased hiring of MBA graduates in FMCG sector, with almost all major B-schools reporting growth in the number of pre-placement offers and even final placement offers.
As far as government companies are concerned, State Bank of India and Hindustan Petroleum emerged as the top contenders to give placement offers to MBA graduates from top MBA colleges in India. On similar note, in the e-commerce world Amazon has been dominating all the domestic players after the bust of Flipkart bubble last year.
Looking at this trend, the safest bet for MBA graduates seeking jobs would be to target Consulting and Financial firms. Alternatively, established MNCs in different domains like Wipro in IT/ITes, Amazon in e-commerce are also good options. But, you must keep in mind that these are merely trends and bound to change any moment depending upon the business conditions.
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