This post has been removed earlier. due to multiple posting. However, it was active on only one FORUM. But, I think, this is the best place for this post to be. So, Pagalguy.com System Administrator, please allow this posting to be here for the viewers to read the REALITY and get...
Lesson to be learnt from these article are: not to run blindly for doing an MBA!! These kind of salary figures act on parents mind and most of then foce there ward towards MBA. Also, there is lot of diiference avg sal,avg sal for fresher & avg sal for lateral!!Hence should take all the factores i...
This post has been removed earlier. due to multiple posting. However, it was active on only one FORUM. But, I think, this is the best place for this post to be. So, Pagalguy.com System Administrator, please allow this posting to be here for the viewers to read the REALITY and get benifits from it and let them choose their best career decision.
I have read the following posting on India Times. I am sure, many of the student had read this, however, being an MBA student from premier institute, I can say it is exactly the situation. Young crowd should focus on where their stregths are, not just follow the "Hyped" trend.
NEW DELHI: Marquee B-school grads are the chosen ones in the job market. The starting salary is sky high, opportunities are abundant and the experience is global. Bluest of the blue-chip global companies and banks queue up to sign on a handful of students with eight-figure salaries. The career of a fresh graduate definitely starts on a high note!
Thats the marketing spiel or call it the myth. Now the rub: Just a couple or perhaps four get that kind of salary. Its not the fresh graduate with no work experience. Those who get the big salaries are students who have slogged it out in the corporate world for a decade, in many cases. Also, the big salaries are usually for overseas postings with salaries quoted in dollars, euros or pounds.
In many cases these are dollar salaries converted into rupees, and thats why they look bloated. Even at IIMs there are students who get between Rs 3.6-4.8 lakh per year. At lesser-known institutes, fresh graduates may not get more than Rs 2.4-4.5 lakh a year. The problem is that people always talk about the one spike and that creates a myth of B-school salaries.
K Sudarshan, managing partner, EMA Partners International
Nearly 95% of B-school grads take home a smaller pay package. According to HR industry watchers about 80% have to be happy with around Rs 6.5 lakh per annum or less.
When asked about the compensation of B-school graduates, K Sudarshan, managing partner, EMA Partners International told ET, In many cases these are dollar salaries converted into rupees, and thats why they look bloated. Even at IIMs there are students who get between Rs 3.6-4.8 lakh per year. At lesser-known institutes, fresh graduates may not get more than Rs 2.4-4.5 lakh a year. The problem is that people always talk about the one spike and that creates a myth of B-school salaries.
Santrupt Mishra, director HR, Aditya Birla group agrees, Exception makes the news. We hardly read the fine print as most of the fancy salaries have break ups and the bonus component is also high. More than 50% of B-school grads would get less than Rs 7.5 lakh per year.
In fact, Adil Malia, VP, HR, Coca-Cola, India feels around 80% of B-school grads would be taking home around Rs 6.5 lakh only. The cream does not represent the total taste of the cake as there are several layers to it. Most of the fancy salaries are paid by FIs and foreign banks for overseas postings.
The lowest salary at Indian School of Business, Hyderabad was Rs 6 lakh a year, offered to freshers without experience. On the other hand, the average was Rs 11.7 lakh per year paid by companies in India, and $120,000 was for the international placements. Many of these guys had already logged in at least two to five years of experience. And that often includes bonus to be given against performance and rent for a plush apartment. Compare this to the Rs 1.04 crore, which was the best offer.
The actual take-home could be far less. At IIM, Ahmedabad the highest offer of Rs 34 lakh actually went to a 40-year-old IPS officer, who enrolled for management studies and is now a country manager for one of the RPG Group companies.
Says R Mohan, who teaches at XIM and IIM, Bangalore, If you take the extreme points the average salary will also come down drastically. Typically the average is between Rs 7-8 lakh for those who join the new economy companies and Rs 6-7 lakh for those who sign up with the old economy manufacturing companies. Also, in any given batch of students less than 10% get the extraordinary pay cheque.
At IIM-A this year the batch size was 248 out of which 235 took placement offers. The average entry level salary for domestic offers was Rs 9.7 lakh. While, for lateral hires (at least 18-months experience and in many cases it was above three-years experience), it was Rs 10.6 lakh per year. Three students got $185,000 per year (close to Rs 80 lakh) for global offers. But they had prior work experience.
So, if you are aspiring for that fat cheque, it might just be a better idea to work a few years and then try and get into one of the top B-schools.
IITians - Wall Street is a trap!!
Dear IITians and others,
I have read many times that IITians and other college kids in India are getting hired by I-banks and they are going to do the same job that MBAs out of Stanford, Harvard or Wharton do. Today again I read the post in ToI which says like this: Move over Wharton, IIT is here (http://timesofindia.indiatimes.com/a...w/1529318.cms). Then it talks about how I-banks are hiring IITians and paying them US$ 60000 to 100000 per anum. This irks me. I felt that writer of this article is very ill informed, not her mistake, just like most of Indians. There is big hype about these I-banks hiring in India in IIMs and IITs. Let me clarify the mist briefly and I hope that someone will benefit from it in making the career decision.
1. Investment banks have two entry points. Analysts join after their undergraduate degree and associates join after MBA degree. Analysts are supposed to leave after two years, maximum three. Some of them get absorbed in associate programs. But this number is very little. From associate onword you move into ranks of Vice President, Director and Managing Director. Don't confuse them with a Vice President of an industrial company who manages billions of business and is reported to by hundreds of employee. VP in I-bank does not manage anyone, let alone a business.
2. What I-bankers do?
Think of them as deal makers. like that house broker, but at much more sophisticated and advanced level. They help business sell their subsidiary, buy other business, sell the stocks or issue debt etc. They are middlemen who add value by making a market and facilitating the process. For that they get a fee, which is like comission on house sale value for a broker.
Senior bankers like MD and Directors do all the talking. They will talk to CEOs and financers and other. Junior bankers do all the dirty work. And the position of Analyst which at the bottom of a food chain does all the dirty work. Please be informed that most of student joing these I-banks from IIT and IIMs are joining in analyst program.
3. Now what an analyst does. First of all they work mind numbing hours. They are supposed to work 18 hrs a day, 7 days a week. non stop! night outs are frequent. You are always on call. you can not plan anything. no vacations! This life is hell. This could be better if you could do some interesting work. But the works is absolute dumb and mindless. You spend infinite hours putting together spreadsheets and power point presentations. In all this you do not add any value because you are not supposed to think. Then a good chunk of your time you spend in formatting - making a powerpoint look good for MD. Bottom line - you will hate the work, has zero intellectual challenge, no people interaction, zero learning. what you will learn there in years, you could learn by yourself in weeks. Now, you may be thinking at least you will make some money. Let's run the numbers.
4. How much money is to be made??
Assume you will earn $100000 and you are based in NY. Be aware that your basic will be much less and your bonus will make a chunk of it which uncertain. Assuming you are making 100K, your federal tax-28%, state tax-8%, Social Sec tax-6% and Medicare-1.5% will eat up at least 40%. So you are left with total 60K cash. Now, even if you share a house in NY, it will cost you at least 2K per month with related expenses. So there goes your another 24K, you are left with 36K. Now you could argue that you will not have time to do anything so you will save all this money. I hope that you will spend at least 6K on vacation and other entertainment. So you are left with 30K. Which is like 13Lac rupee. This money for working 7 days a week, 18 hrs a day for doing a mind numbing job which does not teach you anything but stamp you with an I-banker sticker which is a stigma in learned societey. I am sure you could save similar money in India, little less may be, and along the way could have much larger impact.
5. Will doing this job take you to top B-schools??
NO!!! People hate I-bankers in top B-schools. you add no value. you will have more chance to crack it if your are from IIT and went to work in a manufacturing or a sales job where you dealt in real business operation and worked with real people. you will have stories to write about in your B-school essays about leadership and changes/impact. As a analyst, you can't show any leadership.
Finally, don;t be fooled that I-bank is a very prestigious professon. They are not. After all they are a middle men, just like your house broker. they are given only as much respect by the industry and others as you give to your house broker. They are also seen in the similar light. They are the most boring people, have no time for family so most divorced.
I would advice you to go use your intelligence and capability at some place where you can make an impact. India is full of opportunity. Take a risk. Start a small shop. Go work for a small manufacturing company and help it go big. Start a small electronic assembly shop. Do something but don't go work for I-banks. I have nothing against I-banks. I just feel that my fellow Indians could do a much better job!
I totally gree with you,huge chunks of money is eating the heads of our younger generations.Time is the time to think practicaly and logically before heading in any direction.One step in right direction will lead you miles ahead.
Anallyise one's own capability and using in the best way is the need of the time.
looking forward that you will come up with great reviews.