Lowest Salaries in IIMs and Top B-Schools | Shocking Numbers!!

Amol Wadhwa

20 Nov 202311:42

Summary

TLDRThis video script discusses the varying salary expectations for graduates of different business schools in India. It categorizes business schools into top 10, 11-30, and lower-ranked institutions, explaining how the average salary packages differ across these categories. The speaker advises viewers on how to interpret placement reports accurately, considering factors like the fixed salary component and the performance of the placement committee. The script also highlights the importance of preparation, performance, and external factors like economic conditions that can influence job placements and salary offers.

Takeaways

😀 The video discusses the varying salary expectations one might have when joining different business schools, emphasizing that performance and the school's reputation play a significant role in determining salary packages.
🏫 The script categorizes business schools into three main groups: top 10, 11-30 rank, and lower-ranked private colleges, indicating that the salary range can differ significantly across these categories.
📊 It is advised not to rely solely on the average package figures from placement reports, as these might not accurately represent the full spectrum of salaries offered to graduates.
💼 The video explains that placement committees and the college's management play a crucial role in inviting companies for placements, which can affect the quality of job offers and salary packages.
🔢 The script suggests that understanding the difference between CTC (Cost to Company) and the fixed salary component is vital, as the actual take-home salary depends on the fixed component.
📉 Economic factors and market conditions can influence placement outcomes, with economic downturns potentially leading to fewer job offers and lower salary packages.
🎓 The speaker advises students to focus on factors within their control, such as their preparation and performance during placements, rather than external factors.
📝 It is recommended to read placement reports with a critical eye, considering that they may not always represent the true state of placements at a business school.
🤝 The performance of the placement committee, including their negotiation skills, can significantly impact the salary packages offered to students.
📈 The video highlights that preparation for group discussions and interviews is essential to improve one's chances of securing a higher salary package.
👍 The speaker encourages students to perform their best during their business school tenure and to manage expectations regarding salary packages.

Q & A

What is the main topic of the video script?
-The main topic of the video script is about the salary expectations and the categorization of business schools in India, including factors that affect the placement process and salary packages.
How are the business schools categorized in the script?
-The business schools are categorized into three groups: Top 10 business schools, extra second category business schools, and third category which includes lower-ranked private colleges.
What is the significance of categorizing business schools in terms of salary expectations?
-Categorizing business schools helps to understand that the salary range can be significantly different depending on the ranking and reputation of the business school.
How should one approach reading placement reports to understand the actual salary scenario?
-One should read placement reports by considering the average package, but also be aware of the exclusions such as students who are not placed, blacklisted, or opted out.
What is the difference between domestic and international packages in terms of average salary calculation?
-Domestic packages are usually compared to the Indian market standards, while international packages are often higher and may not be directly comparable due to different country economies.
How does the script suggest evaluating the placement reports of business schools?
-The script suggests evaluating placement reports by looking beyond just the average package and considering factors such as the number of students placed, domestic vs. international placements, and the fixed components of the salary.
What is the role of the placement committee in a business school according to the script?
-The placement committee is responsible for inviting companies for placements, negotiating package offers, and managing the overall placement process for students.
How do economic factors influence the placement process and salary packages?
-Economic factors such as recessions or economic slowdowns can lead to companies reducing hiring, rescinding offers, or lowering salary packages, which in turn affects the placement outcomes for students.
What is the importance of understanding the fixed component of the salary package?
-The fixed component of the salary package is important because it represents the guaranteed income that will be received by the employee, which may differ from the total compensation package.
How does the script advise students to prepare for their placement week?
-The script advises students to prepare by practicing their processes, such as group discussions and personal interviews, and to have a deep understanding of their subject matter to perform well during placements.
What are some external factors mentioned in the script that can affect salary outcomes?
-External factors mentioned include the performance of the placement committee, the state of the economy, and the luck or performance of the student on the day of the placement.

Outlines

00:00

📚 Business School Rankings and Salary Expectations

The speaker discusses the categorization of business schools into top 10, extra second category, and third category, including names like IIMs and ISB. They emphasize the importance of watching the entire video to understand the salary expectations based on the performance and ranking of the business schools. The speaker explains that the average salary packages differ significantly across these categories and that understanding the placement reports is crucial. They also mention that some students may not get placed or may be blacklisted, which affects the average salary figures. The focus is on understanding the reality behind the placement figures and not just the presented data.

05:00

💼 Insights into Placement Reports and Salary Structures

This paragraph delves into the intricacies of interpreting business school placement reports and salary structures. The speaker advises against taking the average package at face value, as it may not reflect the actual salary a student can expect. They explain the difference between domestic and international packages, with international packages often being significantly higher due to companies like Landmark Group and Middle East retail-based companies. The speaker also discusses how placement committees calculate the average salary by combining domestic and international packages, which can skew the perceived value. Additionally, they touch on the importance of considering the fixed component of the salary and how it directly impacts the actual take-home pay after taxes.

10:01

🚀 Factors Influencing Placement Success and Salary Outcomes

The speaker outlines various factors that influence the success of placements and the salary outcomes for business school graduates. They discuss the importance of preparation and performance in MBA entrance exams, the role of the placement committee in inviting companies, and the negotiation power of the college authorities. Economic factors and external parameters that are beyond a student's control are also highlighted, such as economic slowdowns or market fluctuations. The speaker encourages students to focus on what's within their control, such as their preparation and performance during placement week, and to practice and optimize their skills to secure the best possible offers.

Mindmap

Keywords

💡Placement Reports

Placement Reports refer to the official documents released by educational institutions that detail the employment outcomes of their graduates. In the context of the video, these reports are crucial for understanding the salary packages and job placements of students from various business schools. The script mentions that students should read these reports carefully to get an accurate picture of what to expect in terms of job opportunities and salary ranges.

💡Average Package

The term 'Average Package' is used to describe the mean salary package offered to students upon graduation. The video emphasizes that relying solely on the average package figure from placement reports can be misleading, as it may not represent the salary range of all students, especially when outliers are included. It is a key metric for students to gauge their potential earnings post-graduation.

💡Top Business Schools

Top Business Schools are institutions that rank highly in terms of education quality, faculty, and placement opportunities. The video script categorizes business schools into different tiers, with the top 10 being the most prestigious. These schools are important as they are perceived to offer better salary packages and job prospects to their graduates.

💡Salary Range

Salary Range denotes the spread between the lowest and highest salaries offered to graduates. The video discusses how the salary range can vary significantly across different categories of business schools, indicating the potential earning potential for students joining these institutions.

💡Domestic vs. International Packages

The script differentiates between 'Domestic' and 'International Packages', referring to the salary offers made by companies operating within the country versus those that are international. International packages are often higher and may include additional benefits, reflecting the global nature of the companies and the market they operate in.

💡CTC (Cost to Company)

CTC stands for 'Cost to Company', which is the total cost incurred by the company to hire a candidate, including salary, bonuses, and other benefits. The video explains that while CTC is often used as a metric for salary packages, it's important to understand the fixed component of the CTC, as this is the actual amount that a candidate receives regularly.

💡Fixed Component

The 'Fixed Component' of a salary package refers to the guaranteed amount that an employee will receive, regardless of performance or other variables. The video script highlights the importance of considering the fixed component when evaluating job offers, as it represents the stable income portion of the package.

💡Placement Committee

The 'Placement Committee' is a group within a business school responsible for managing the placement process, including inviting companies for recruitment and negotiating salary packages. The script mentions that the effectiveness of the placement committee can significantly impact the quality of job placements and salary offers for students.

💡Economic Factors

Economic Factors in the video refer to the broader economic conditions that can influence job placements and salary packages. The script gives examples such as recessions or economic slowdowns, which can lead to reduced hiring and lower salary offers from companies.

💡Performance in MBA

Performance in MBA is a critical factor that can determine a student's job placement and salary. The video script suggests that students should focus on their academic performance, participation in case studies, and interview skills to improve their chances of securing higher salary packages.

💡Switches

In the context of the video, 'Switches' refer to changes in job roles or companies that a graduate might make after their initial placement. The script mentions that some students who start with a lower salary package may be able to increase their earnings through strategic job switches in the future.

Highlights

Introduction to the video discussing salary expectations and performance at business schools.

Categorization of business schools into top 10, extra second category, and third category with examples.

Explanation of salary ranges and differences based on the category of the business school attended.

Importance of reading placement reports correctly to understand actual salary figures.

Misinterpretation of average salary figures and the need for a more nuanced approach.

Discussion on the difference between domestic and international salary packages.

How placement committees calculate average salaries, including the inclusion of international packages.

The impact of the number of students placed and the average salary skew caused by high international packages.

Clarification on the difference between CTC (Cost to Company) and the fixed salary component.

Advice on focusing on the fixed salary component for a more accurate understanding of earnings.

Salary expectations for top 10 business schools, including the range of low to high salary packages.

Salary expectations for mid-range business schools and the potential for salary growth through switches.

Factors that determine salary, including preparation, performance, and placement committee effectiveness.

The role of economic factors and market conditions in influencing placement outcomes.

Importance of focusing on controllable factors such as preparation and performance.

Recommendations for optimizing performance during placement week to secure the best offers.

Encouragement to practice processes like GD (Group Discussion) and PI (Personal Interview) to improve performance.

Final thoughts on not relying solely on placement reports and considering a range of factors for salary expectations.