MBA dreams meet reality check: IIM Trichy's placement woes signal bigger crisis

As many as 59 students from the Indian Institute of Management (IIM) Trichy's outgoing batch are still seeking employment, a situation that has caught the attention of education experts who describe the trend as "not normal." The development has reignited discussions about the evolving job market for MBA graduates and the challenges facing even top-tier business schools, according to a report by India Today.

Social media platforms have become a battleground for debates surrounding the diminishing value of MBA degrees, particularly from India's premier institutions. The conversation gained momentum following multiple posts questioning whether the once-prestigious management qualification still guarantees career success.

One observer noted the brand dilution effect, commenting, "Too many IIMs have diluted their brand. Most of these colleges don't entertain cos with salary below a threshold to retain 'brand' value and that caused students [to] go unplaced. They will get a job offline but at a lower salary in most cases."

The sentiment reflects a broader challenge where institutions maintain high salary expectations to preserve their reputation, potentially leaving students without immediate placement opportunities. Industry insiders suggest that while these graduates may eventually secure positions, they often come with reduced compensation packages.

Hiring managers have also weighed in on the phenomenon, with one noting, "What could be the problem? I also observe a similar pattern in my hiring. Great kids, high talent but not finding opportunities... Markets and employers have become merciless with their high expectations."

The placement crisis extends beyond fresh graduates. Professionals attempting to re-enter the workforce after career breaks face similar obstacles. As one professional described it, "Returning back to work after a sabbatical is like climbing Everest Employment and career building in today's times is indeed a tough battle."

Industry experts note a shift in recruitment priorities, particularly within the technology sector. Traditional MBA-heavy industries, such as FMCG and consulting firms, have historically been the largest employers of business school graduates. However, the tech industry's approach has undergone significant evolution.

"The biggest consumer of MBAs in last decade used to be FMCG, Big4 and then tech in that order Issue is, in tech, entry to product roles does not require an MBA Even Tier 1 product companies no longer insist on a MBA degree for these roles for they have realised catching the talent young as a PM intern from an old IIT/BITS is good enough," explained one industry observer.

This shift represents a fundamental change in how companies approach talent acquisition. Rather than relying on traditional MBA pathways, many organisations are prioritising agility and cost-effectiveness in their recruitment strategies.

The situation at IIM Trichy reflects broader questions about the relevance of management education in today's rapidly evolving business landscape. As employers increasingly seek specialised skills and practical experience over traditional qualifications, India's management education system faces pressure to adapt its approach.