Each year, approximately 1.5 million engineers enter the job market, but only 20 per cent are successful in securing relevant employment. Others end up in jobs that do not use their technical skills and training or no job at all. A recent report by Niti Ayog showed that 48 per cent do not find jobs. How can these graduates make themselves employable?
For several years now, engineers have gone on to join MBA programmes for precisely this reason. And it is safe to say that that trend has not gotten outdated.
Engineering graduates have a definite advantage when applying to MBA programmes. Their training prepares them to do well in entrance exams like the CAT, XAT and NMAT. According to Ajey Mehta, managing director of Trustonic India and an alumnus of IIT-Madras and IIM-Calcutta, “When I was at IIM-C in the mid-nineties, 85 per cent of my batchmates were engineers. Many of us went in for management degrees as there weren’t many great core engineering jobs available then in India. However, nowadays, engineering graduates have more opportunities and are being hired by firms such as Infosys, Wipro, Amazon, Google and even by some big banks as analysts.”
Nikith Subramaniam, who is in his final year at the Manipal Institute of Technology in Bengaluru, intends to pursue an MBA and plans to take the CAT and GMAT exams. He says, “Doing an MBA will improve my job prospects and supplement the technical skills that I have acquired. I’ve heard that management graduates get good starting salaries.”
The average salary package for graduates of premier institutes such as the IIMs, XLRI, ISB and S.P. Jain range from Rs 30 to Rs 35 lakh per annum. The highest domestic and international offers usually range from Rs 70 lakh to 1.2 crore a year.
Consulting, IT, FMCG, pharma, banking and financial institutions are the biggest recruiters on MBA campuses. Management institutes publish placement reports providing information about employment statistics, salary data, alumni success stories, and networking opportunities on their websites.
Some individuals prefer to work for a few years before pursuing an MBA. This gives them practical experience and a better understanding of the concepts they will learn. It also helps them to define their career goals. Anil Biyani, for example, completed his BTech in computer science degree and worked as an incident specialist at Amazon for four years before deciding to return to his studies. An incident specialist handles and responds to security breaches, system failures and other emergencies, basically ensuring smooth operations and quick solutions. He enjoyed working with people and improving processes but knew it was impossible to transition to that type of role from his current position. “It was the right time to take a break and pursue an MBA so I could upgrade my skills and shift to process improvement and training,” he says.
However, not everyone wants to make a dramatic change or switch careers. Many are looking to pick up the pace of their professional development or gain access to more senior roles within their current organisation or industry. Some opt for executive MBA programmes as they offer the flexibility to continue working while pursuing further education. These programmes are now widely recognised and respected by industries.
Those pursuing an MBA can choose between a general management programme or specialise in human resources, finance, marketing, analytics, information technology, or sustainability and environment.
Entrepreneurship is another popular specialisation. Founders of many successful start-ups, including Sachin Bansal of Flipkart, Naveen Tiwari of InMobi, and Sanjeev Bikhchandani of Naukri, have management degrees.
In addition to the academic component, incubator cells in business schools provide support and resources to help students develop their ideas into successful start-ups. Subhrangshu Sanyal, CEO of IIM-Calcutta Innovation Park, says, “To be a successful entrepreneur, you need to possess a broad range of skills, including technical, financial, marketing and people skills, as you have to perform a variety of tasks in the early stages of your venture. We have supported around 1,000 start-ups in the last eight years by providing mentorship, funding, market connections and other resources to help individuals translate their ideas into successful ventures.”
Pursuing an MBA can be beneficial for engineers looking to move into management or leadership roles, start their own businesses, or transition into a new field such as consulting or investment banking. It offers a broader business outlook as well as helps develop and hone finance, marketing, and strategy skills.
It is worth mentioning here that it is not necessary for all engineering graduates to obtain an MBA. For some, focussing on acquiring specialised technical skills or pursuing advanced degrees in engineering may be more beneficial. Ultimately, the decision to pursue an MBA should align with long-term career goals and specific opportunities you want to pursue. Research and networking can provide valuable insights for making an informed decision.
