Only 21% of MBAs are employable in 2011-12, reveals the MeritTrac-MBAUniverse.com employability of MBAs study 2012.
A nationwide study of marks secured by 2264 MBAs who sat for tests by recruiting companies found only that only 21% of them could make the grade. The previous study of 2007 by MeritTrac placed employability index at 25%.
The students, drawn from over 100 B-Schools beyond the Top 25, were tested for verbal ability, quantitative ability and reasoning by using the internationally standardised tests by MeritTrac on behalf of recruiting companies.
According to the AICTE Approval Process Hand Book: 2012-13, the number of MBA seats in India has grown almost four fold –from 94704 in 2006-07 to 352571 in 2011-12—resulting in a 5-year compounded annual growth rate of 30%.
For purposes of this study, pre recruitment test scores of 2,264 candidates were analysed by MeritTrac to assess how they fared on the three tests in terms of the average per centage scores and pass-through rates.
The pass-through rates were calculated based on the pre decided cut-off for each test. These cut-offs are at par with the average cut-off scores decided by companies in their recruitment exercises. The threshold cut-off scores used in Verbal ability, Quantitative ability and Reasoning were 45%, 35% and 40% respectively.
Overall average per centage score obtained by MBAs in Verbal ability, Quantitative ability and Reasoning was 52.58%, 41.17% and 37.51% respectively.
While performance on verbal ability seems to be satisfactory, reasoning is an area where there is scope for improvement. Considering that the elements of the reasoning test (deductive logic, data sufficiency, spatial reasoning, and analytical reasoning) are crucial to making sound management decisions, this is a result which warrants closer attention.
The total pass-through rate, which is an index of employability, at 21% mark leaves scope for improvement considering that organisations hire from this talent pool for strategic roles and this is the managerial pool that companies bank on.
“This report clearly brings out the employability gaps across various competencies and highlights the need for scientific examinations and tests to align the candidate skills to employability metrics,” said S Murlidhar, CEO and Director, MeritTrac Services in a statement.
Source: The Economic Times