Mr. Anderson is a team leader at Matrix IT Services with a work experience of 3 years in the company. Despite rising through the ranks and building a decent work profile, Mr. Anderson is not quite satisfied. He is really keen on being a ‘Neo Analyst’, a highly coveted job category.
Pursuing an MBA degree would boost his chances but he is unsure if the gamble is worth it. He decides to consult his friend, Mr. Smith, who happens to be a career counsellor.
‘What do you think Smith? Should I go back to education? Would that be wise?’ enquired Mr. Anderson
‘Well, you do want to be Neo…and an MBA degree can definitely be helpful in that.’, replied Mr. Smith
‘Can you tell me what are the risks and rewards? Will I have an edge in MBA entrance exams? Will the MBA jobs be able to fulfil my expectations of becoming a Neo analyst?’ asked Mr. Anderson. This led to a lengthy discussion regarding the pros and cons of having work experience while pursuing MBA.
Let’s analyse if work experience does really lend an advantage in the pursuit of MBA.
First things first- why MBA?
Although the question might seem redundant, it is essential to understand the perspective of those already having jobs. Quitting a job and pursuing MBA would have the following cost implications:
- The existing flow of income would stop. Most flagship MBA courses in India are 2 years long. This would mean a gap of 2 years between the last and next pay cheques.
- A significant investment in course fees and living expenses. Many MBA students apply for educational loans, thereby creating financial obligations for the future.
Work experience summary of IIM Bangalore PGP 2016-2018 class
Looking at these two cost implications, what are the triggers that lead a person to opt for an MBA?
1) Vertical growth in the same company/industry- An MBA degree can expedite your growth in a corporate setup.
PRAQTISE Factfile- MBAs from reputed institutes are generally get into above entry level roles. If not, they are promoted to such roles in a span of 2-3 years. A non-MBA newcomer to the company might have to work for 5-6 (or more) years to achieve this.
2) Switching sectors/industries- The first job is a choice made out of necessity for many. However, getting into an industry does define your place in the broader economy, irrespective of whether you truly wanted to build a career in that sector/domain. Through the MBA course, one gets access to a wide number of employment opportunities across industry verticals and business domains.
PRAQTISE Factfile- IT behemoths such as Infosys, TCS, CTS recruit engineering graduates en masse every year. After working for 2-3 years, many of these employees decide to pursue MBA. Their main aim is landing jobs in consultancy firms, FMCG, BFSI and other domains.
Sector wise split up of final placements in MDI Gurgaon in 2016
As we all know, almost 50% of students of institutes like MDI Gurgaon come from the IT sector. However, the final placement statistics above show that only 9% of the given batch got into the IT domain.
3) The almighty glass door- Despite performing exceptionally, one might not achieve vertical growth if he/she is not an MBA. In such cases, MBA is again more of a necessity than a choice.
What is the significance of the work experience in the MBA process?
- MBA entrance exams: It is tougher to prepare for MBA entrance exams in parallel with your job . Work means a break from academics coupled with a restricted amount of time for preparations. Consequently, those having jobs have to exhibit greater tenacity and focus to gear themselves for entrance tests.
- Selection into top colleges: This is one aspect where having work experience generally favours the applicant. IIM Bangalore, for example, has a 5 % weightage for experience. Therefore, a person with experience can get through with a score lower than a fresher’s.
- The actual MBA coursework and campus life: Work experience obviously endows one with specialized domain knowledge. This practical perspective is useful in both theory-based coursework as well as projects based on market scenarios. Further, campus life provides a tremendous opportunity for personal growth. Those who have gone through the churn of corporate life appreciate this aspect better.
- The MBA jobs: Companies treat 0-18 months of work experience as a single category. Companies offer similar job profiles to these students. It is relevant to discuss the concept of ‘lateral placements’ here.
PRAQTISE Factfile- Students with more than 18 months of work experience qualify for lateral placements. In some colleges the required duration is 22 months. Here, recruiters generally hire students for mid level roles. For instance, a bank might hire freshers as team leaders but offer project manager roles to laterals. Many of the top b-schools define laterals as a separate job category.
A PRAQTICAL Look: Simplicity in the placement process decreases with the increase in the extent of job experience. . Companies cannot simply ignore a previous experience in excess of 20 months. They are particularly sceptical about such a student’s capability to unlearn and relearn. From the student’s perspective, there would be justifiable expectations in terms of work profile, designation and salary. A much smaller number of companies would be able to fulfil student expectations across all criteria.
Conclusion
So, is it advantageous to have work experience prior to commencing on the MBA journey? The question is straightforward but the answer is not. Duration, job role, industry/sector of work all contribute to the experience becoming an asset or a liability.
How would you want to start your MBA journey- as a fresher or with some work experience? Which would be better in your opinion?
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Image Sources:
- http://www.iimb.ernet.in/pgp-batch-profile
- http://www.mdi.ac.in/Final%20Placement%20Report%20Batch%20of%202014%20-%2016.pdf
- Featured image: http://empoweringfutures.org/2016/06/15/5-benefits-getting-work-experience/