MBA HR Freshers: A Paying Off Ideal or Justifying Lower Salaries?

In today's competitive job market, many MBA HR freshers find themselves in a situation where they are offered lower salaries despite having a prestigious degree. This phenomenon is not limited to just MBA HR graduates but also spans across various other educational backgrounds. The question arises: why are MBA HR freshers paid less, and is there any justification for this practice?

Why Are MBA HR Freshers Paid Less?

Companies, especially those seeking cost-effective staffing solutions, often indulge in hiring candidates who are willing to work for lower salaries. It's not uncommon to find instances where individuals with less formal education, such as B.B.A or even B.E graduates, are offered positions that MBAs bid for.

For example, I worked under a manager in a BPO company who was only 2 years younger than me and had not even completed his B.E course. He had started as a Technical Support Officer and later shifted to the HR department. Despite having an MBA from a good institute, I found that the work he was doing was similar to what someone without a degree could perform.

Is MBA Just About Smartness?

MBA is often perceived as a course that equips individuals with practical business skills and knowledge. However, in reality, some of the concepts taught in MBA are not unique and can be applied by anyone with practical experience. For instance, a 12th pass individual who earns around 20 lakhs annually is very good at market knowledge, branding, sales, workforce management, and financial aspects of their business.

The key difference, according to many experts, lies in practical application, rather than the degree itself. MBA programs generally provide a structured curriculum and exposure to real-world business scenarios, but the skills are often honed through practical experience. Therefore, an MBA degree isn't enough to guarantee a higher salary; rather, it is the combination of education and practical experience that determines salary potential.

A-Decent Start for Freshers

Despite the challenges faced by MBA HR freshers, there are still opportunities for them to start their careers with a decent salary. According to industry standards, a fresh graduate starting as an HR associate can expect to earn between 3.0-3.5 LPA in companies like Accenture, TCS, Wipro TechM, and others. This salary is considered reasonable in the current market conditions.

However, for those aspiring to earn higher salaries, such as 7-8 LPA, having an MBA degree from a reputed university is a crucial factor. Additionally, there are many startups that offer decent packages. Location plays a significant role in salary expectations, with metropolitan areas generally paying more.

Looking for Learning Opportunities

When starting a career, as a fresh graduate, it's important to prioritize opportunities that offer substantial learning and growth, rather than solely focusing on the salary package. Many companies, especially startups, offer valuable learning experiences that can benefit your growth in the long run.

Conclusion

The paying off of MBA HR degrees is a multifaceted issue. While MBA programs are designed to equip individuals with business acumen, practical experience also plays a critical role in determining salary potential. It's essential to balance theoretical knowledge with practical skills to secure a better position in the marketplace. Aspiring HR professionals should be prepared to navigate the initial low salaries but should also leverage their degree to seek learning opportunities that contribute to their long-term career growth.