Why get an MBA even in the Covid times? Here are all the answers!

Is MBA a good choice? Does financial investment lead to enough returns after MBA? Does the MBA still have a huge demand from the recruiters? Deciding to go for an MBA is a big step for most and yet it is one the most sought-after courses in the world. Aspiring managers see MBA as the most important investment of their student life, with expectations of returns in various forms. More and more managers today are becoming assets of the country. The importance of an MBA degree has grown over time, but with the coronavirus still lurking around, it is imperative to be bombarded with endless questions about the value of an MBA. And here, we are going to arrive at answers that point us towards how an MBA is still an investment worth going for.

MBAs beating the Covid blues: The facts

2021 so far has been proof in itself of the importance of an MBA degree. With placement reports of various B-Schools coming out, the impact of the pandemic on the employability and value of the MBA degree can be judged. Here’s what the numbers have to say.

Little to no change in the number of students placed

Most B-Schools, especially the IIMs, registered a 100% placement record, including IIM Bangalore, IIM Lucknow, and IIM Kozhikode. At IIM Bangalore this year, there was a surplus of offers where 435 students received 481 job offers from some of the biggies of the industry. Other than the IIMs, XLRI also saw a 100% placement record despite the coronavirus pandemic. With many difficulties, most of the placement drives were conducted virtually but the recruitment processes went smoothly. This year also marked the entry of many first-time offerers in the placement drives looking for MBA graduates.

The rise in the average CTCs

Not only did the importance of an MBA show in the number of students placed, but also through how much they were offered for the jobs. The average CTCs of most of the B-Schools saw a jump this year with their highest packages exceeding the ones in the previous year. The average CTC for IIM Lucknow saw a 7% growth to reach 26 LPA while for XLRI Jamshedpur the growth was 3% at an average CTC of 25.08 LPA. At IIM Kozhikode, a growth of 8.1% in the average annual package was seen this year. The top 50% of students in the whole lot had an average annual salary package of 28 lakhs. The highest package offered at IIM Lucknow was 56 LPA.

It is thus imperative to understand that the apprehensions regarding the return on investment and the importance of an MBA degree might be justified, but these are proved wrong by the successful placement records of the institutes. The demand for MBA is on the rise not just by the students, but also by the recruiters.

What more will you get from an MBA?

The value of an MBA cannot solely be judged on the return on investment in terms of salary packages and the number of offers received. The importance of an MBA degree lies in the reasons why MBAs are found to be employable, and what it adds to the profile of the student. It is a skill-based course but is not limited to a classroom. With summer placements to give the student a glimpse into the real business scenarios and other case competitions, it makes the student ready to handle challenges that come his/her way as a manager. MBA is more than just a degree, and here’s why you should go for it.

A skillset to cope with the tough times

The importance of an MBA degree along with other factors, aces on the skill set point. MBA provides you with a skill set to cope with challenging and unprecedented situations with innovation and the use of other tools. IIM Ahmedabad, XLRI Jamshedpur, Indian School of Business, and other top B-Schools in India have accentuated their programs to include New Technologies, Business Analytics, AI, and Machine Learning in their curriculum making them a STEM infused MBA. Indian B-schools have also introduced new courses like Organising in Times of Crisis, Crisis Management, Building Resilient Organisations; Risk Management, Leadership during Crisis, Crisis Communication, etc, to help the student cope with obstacles in management in the real world scenario. This is becoming the new normal that the students are happy to adapt to.

During the pandemic, when more and more people are upskilling, MBAs should be no exception. Along with a pool of valuable skill sets that MBA students gain over the time of their course, it is important to keep looking for skills that can enhance the profile of the individual and increase their employability. Employability Enhancement Programs and profile enhancing certifications like NISM – National Institute of Securities Markets, NCFM – NSE Certification in Financial Markets, and AMFI – Association of Mutual Funds in India, Google Ads-Fundamental and Advanced Display Advertising Certifications, CII-UK-Certification in Insurance are good options.

Standing out in the face of competition

The pandemic has tested the patience and our capabilities for more than a year now. But the importance of an MBA degree lies in the fact that the value of an MBA lives longer than this period of a crisis. As more and more jobs are being made available with businesses reviving, more and more MBA degree holders are prancing on the chance to land a job. Once the hiring gets proactive, the corporates are again going to need skilled MBAs. MBA gives an edge to the individual with respect to his/her co-workers in the working space. This temporary period of the slowdown is a good time to update an individual’s skills and go for any upcoming opportunities coming their way. According to the survey by GMAC regarding the recruitment of MBA, while during the lockdown period the recruiters willing to recruit MBAs stooped from 92% to 77% but revived again by the end of 2020 to 90%.

Leading in times of uncertainty

The importance of an MBA degree increases in the time of uncertainty when the pre-planned paths of a business seem unclear due to obstacles presented by the pandemic. The MBA degree enables an individual to forecast trends as well as analyze current ones and devise plans accordingly. This understanding can be financial as well as otherwise. With more opportunities arising in the sunrise sectors, the jobs will be open to those who can lead the firms in a well-thought but flexible direction in the face of uncertainty.

Exposure at its best

MBAs ensure exposure of the student to real-world scenarios and prep him/her to handle difficulties and hurdles as and when they come their way. Case competitions like Colgate Transcend, InvicTAS, HUL L.I.M.E are some of the famous case competitions that test a student’s mettle and creativity in finding solutions to business problems under the mentorship of experts from these firms themselves. Most creative minds also receive PPIs. Not only that, many B-schools in India have tied up with international institutions of repute and made a curriculum in alignment with the global curriculum available at competitive prices. This allows for exposure along with a global degree possible at a good price. This also improves the chances of a student being placed internationally.

The Road Ahead

With over 81% of graduates placed clocking a 7.6% increase in average salary and an ROI at 1.24, the future of MBA looks bright. With more and more businesses sprouting around the importance of an MBA degree is only likely to grow with the demand of more able managers. MBA has a long shelf life, and the coronavirus pandemic has been nothing but strong proof of that. Go for an MBA if you want to gain unmatched skill sets and a boom of exposure with immense opportunities to work with some of the best names in the industry. The future is fertile for upcoming managers.

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