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

hello everybody in this video I'm going to talk about why you should not do an MBA right now in India don't get me wrong I am a staunch advocate of doing an MBA at any given point in time but right now is a very difficult period I personally attended incad I've gained a lot loved my year at incad and would highly recommend but let me tell you the reasons why this is not the right time specifically in India so let's get started with the video and I would love to hear counterargument for every single point if you have any and let's make it a healthy debate rather than getting into any kind of mudslinging so let's start with the first point that is the top business schools in the country right now are facing difficulties with respect to placing their students I'm talking about I am Amad I'm talking about ISB the best schools in the country if these schools are facing difficulties what happens to tier 2 tier three tier four schools and how am I talking about that well well Ken published a wonderful article a series of Articles named Day Zero I'll give you the link to that article in the description box you can go check it out by yourself but it has very clearly mentioned how almost all the top Business Schools are currently struggling to place their students add on top of that the fees of these courses have also increased dramatically for ISB it increased from 36 lakhs perom to 42 lakhs perom the fees the annual Fe Fe I IM amads pgpx one of their top onee courses has increased its fees from 28 lakh 1 to 2 years back to now it is almost 32 lakhs all the campuses in the country have increased their fees well we do MBA because we want a great Roi now the great Roi means we are looking at higher salary compared to last year's because we are also paying higher fees but unfortunately the fees is increasing while the salaries are coming down in ISP according to the Ken's report the salaries have come down from 34 lakhs average CTC to less than 30 lakhs even in the IM ahmedabad's onee executive program the salaries have come down from 35 lakh LPA to almost 30 lakh per LPA which means a negative Roi or a decline in Roi compared to last one or two years and they're also increasing the number of students in these classes ISB now has a record 900 plus students across its Hyderabad and moali campuses ISB I am Bangalore all of these guys have increased their overall intake and they have struggled to place students in their internships now that's a huge huge huge red flag now the second issue I want to highlight is it's not just tough job market but also the satisfaction or the quality of the jobs that you aspire to get would become very tricky to accomplish and why why do I say that because the total job market itself is difficult the number of high paying jobs in the market has gone down significantly you can attribute it to the startup hiring slowdown or the macro environment whatever are the reasons the effect is on the business school recruitments and what happens because of that people who have experience in the same field are given priority if McKenzie BCG Bane are recruiting 10 students instead of 20 students they would rather prefer the 10 students to have prior Consulting experience so the career pivoting becomes difficult and what does career pivots mean it means that hey if you're an IT sector employee you go do an MBA because you want to switch into management you want to switch into product or you want to switch into Finance these kind of pivots become extremely difficult and hence while you might still end up getting a job the satisfaction would be very low and that is one of the big reasons whenever you see during a downturn economic downturn like 2008 2009 financial crisis or 2017 demonetization or 2020 the covid impact or even right now people get jobs through Business Schools but they end up leaving the jobs in a very short span like 6 to 8 months I'm not speaking out any of these numbers based on assumptions I have done my research and I'm giving you the links to these articles in the description box please do check them out if you want to get more info on these claims so the whole point of spending 30 to 40 lakhs on an education so that you can pivot your career and get into your dream job that entire hypothesis is now proving to be wrong that's the second reason the first reason we've already noticed that the overall class size is more and the fees are increasing while the jobs are reducing the second reason is you are not even getting the job that you desire combine these two things and think about what would be happening in tier 2 tier three tier four schools a lot of people might say Hey you will still get a job I agree but what is the point of spending so much money and what is the point of spending 2 years on the campus absolutely nothing the third reason is because the IM IMS the top universities in the country have more than 50% students without any work experience and when career pivots become difficult what are the roles that any fresher would be offered so it would be great if you have any kind of work experience for example in I Bangalore you can get Exempted from the overall internship placement cycle if you have more than 3 years experience rather than getting into an internship that you don't like just move out of the entire process itself a lot of students have to do these mandatory internships because it is their first interaction with the industry and that interaction that internship will decide what is their final offer campus placement going to be when they leave the campus now you might say hey pan this argument is not good because when I get into the campus in 20 24 I graduate in 2026 so the job market would be better by that time I agree but your final placement depends a lot on your internship and when does your internship offer roll in your internship offers would start coming in by October November 2024 so less than 10 months from now hence if you don't have work experience to bank on you are still depending on the current job market and there are a lot of macro uncertainities right now towards the end of 2024 one of the biggest macr Trends indicator would roll out that is the US elections depending on who wins the elections a lot of mnc's would be enthusiastically recruiting or they don't want to recruit we still don't know who would actually come in and get elected as the US president the fifth reason is when you have more than 50% students as freshers in the MBA classroom the learnings would most likely come from your professors look at inad the average experience of students is 7 years can you imagine Indian universities having 7 years experienced business school students on other hand us Business Schools have on an average four years experience well we Indians are always in a rush to complete the education a lot of people have come to me and I asked them why are you in such a hurry to complete your education and the standard answer that I receive is because I'm not sure if I'll still be interested in education guys if you are not interested in education as that point in time nobody is forcing you to do an MBA neither nobody is forcing you to do an MBA right now it's not just an additional degree you should know the value of a business degree because it's not cheap it's again 30 to 40 lakhs so give yourself that time make sure you are ready and apply those practical learnings in that scenario probably an international business school would work very well because in the Indian context 99% of the placements are through just campus place placements office on the other hand though if you are looking for placements from schools like inad almost 20 to 40% of the students are placed through their own networks so networks would kick in a lot of people have work experience friends so they also start inviting their friends into their prior professional networks so give it a good thought even now when I am Kolkata and I am Bangalore had tough days basically placing their students they send a note to all the alumni and ask them can you help help the current batch students get a good stien that is the power of network if all the students in the classroom themselves have previous work experience and networks you can see the advantage you don't even have to rely on campus for sending these bulk WhatsApp messages you can just rely on your personal conversation so please don't ignore this prior work experience and just wait it out there is no rush in doing an MBA the value would be much more if you have practical learning versus theoretical learning and again just to end the video I want to reemphasize the point that I myself I'm an MBA grad and I would never ever say don't do an MBA at all it is just the timing right now is absolutely absolutely worse just look at the job market and you will realize what I'm talking about thank you so much guys we'll see you again in the next one bye-bye

Channel: Pavan Sathiraju

Views: 121,042

Keywords: pavan sathiraju, pavan sathiraju insead, pavan sathiraju management consulting, reality of mba, reality of mba from iim, mba jobs, mba package, mba salary, cons of mba, pros of mba, mba 2024, mba roi, mba course, why mba, reasons to do mba, mba salary trends, iim placements, bad side of mba, why mba is not worth it, is mba worth it, is mba worth it in 2024, best mba colleges, best mba colleges in india, highest mba package, career after mba, post mba career, mba job

Id: greph1Ftnl4

Length: 9min 18sec (558 seconds)

Published: Mon Feb 12 2024