Only 21% MBAs employable: Study
According to a MeriTrac survey report in collaboration with a MBA education blog, the employability rate of management graduates in India has decreased by 4% in the last five years. The study concluded that only 21% of the surveyed management graduates are employable as compared to 25% employability index recorded during the 2007 survey.
The MeriTrac employability study 2012 covered 2,264 candidates from tier-II B-schools in 29 cities excluding top 25 institutes like Indian Institutes of Management (IIMs), reported the Business Line. Students were evaluated for their verbal ability, quantitative ability and reasoning based on globally standardised tests on behalf of recruiting companies. The overall average percentage scores obtained by the surveyed MBAs in above mentioned sections were 52.58%, 41.17% and 37.51%, respectively. The result of the study shows that only one out of 5 MBAs is employable. The survey also found that a lot of correction was required with regard to the manner in which classroom teaching is executed in tier-II B-schools, reported TOI.
The pass-through rates were determined on the basis of pre-decided cut-off for each test conforming to the average cut-off scores decided by companies in their recruitment exercise (45% for verbal ability, 35% quantitative ability and 40% for reasoning). The result shows a satisfactory performance in verbal ability, while there is a necessity for improvement in the reasoning part. Reasoning is crucial to making sound and efficient management decisions, and the result of the study stresses on the importance of this element, which is lacking. (Read more)
However, the number of MBA seats in India has increased dramatically by 30 per cent (from 94,704 in 2006-2007 to 3, 52,571 in 2011-12) which has not helped the deteriorating employability rate. According to S Murlidhar, CEO and director, MeritTrac Services India, the report is evident of the employability gaps across various competencies and highlights the need for scientific examinations and tests to align the candidate skills to employability metrics. (Read more)
