Study finds gap in companies' expectations & newly hired MBAs skills

Do new MBA graduates of India's institutes and universities meet the expectations of their first employers?

According to a study by Higher Education Forum (BEF) there are gaps that exist between the expectations of the employers and certain skills.

The 'Skill Gap Survey' conducted to systematically evaluate if there are gaps in the expectations and performance of newly hired MBAs in the Indian Banking, Financial Services, and Insurance (BFSI) sector.

"The Skills Gap Survey found that gaps do exist, particularly in skills such as listening, and team work and collaboration; attitudes such as self-motivation, self-discipline and commitment and dedication; and Knowledge such as understanding organisation and process; product, solutions, and services; and consumer behaviour," Director 1SOS Manish Panchal and vice-president Westat India Vasudha Narayanan who conducted the survey for HEF said.

The survey was released at the first annual meeting of HEF with a theme, "Towards excellence in Higher Education" at Welingkar Institute of Management.

This research is the first step in understanding the gaps between industry expectation and the performance of newly hired MBAs in the Indian BFSI sector.

Only a small sample of the many, diverse BFSI organisations were included in this study. Although this survey helps begin to understand the issue, further research is needed, they said.

The Indian BSFI sector is a driving force in the nation's ever-growing economy. "We are sure this report will add value to the education institutes and the corporates in learning about the skills gaps and finding solutions to bridge these gaps," said Dr A K Sengupta, Convener of HEF.

The survey was conducted between late November 2009 and January 2010. The core topics covered by the Skills Gap Survey are the knowledge, skills, and attitudes employers expect of these new MBAs, and their performance compared to these expectations.

A purposive sample was compiled starting with members of HEF and moving outward from there. In total, data were collected from 113 individuals from 74 organisations in the BFSI sector.

This included one Human Resources (HR) representative from each of the organisations involved in the study and 39 senior executives who directly supervise newly hired MBAs from these 74 organisations, Panchal said.

All respondents completed a short, web-based survey. In addition, a small sample of respondents also took part in a supplemental in-depth telephone interview.

The survey found that industry has the highest expectations for newly hired MBAs in the area of attitudes, followed by skills, and finally by knowledge. The consensus view, as shared by one respondent, was clear, "We hire people for attitude and train them for the skills", Panchal said.

"The industries expect new MBAs to come to the corporate world with the proper attitude. They must be committed, dedicated, self-disciplined, self-motivated, showing an aptitude and willingness to learn. They must possess strong analytical, listening, and communication skills, and they must be able to work in a team and collaborate."

"Finally, they must come in with at least a basic knowledge of the organisation and processes within the organisation, and an understanding of products, solutions, and services - including those of competitors - as well as consumer behaviour.

However, Narayanan of Westat pointed out that additional research could expand this survey with a representative sample of BFSI organisations for a more complete picture of gaps in this sector. 

Also, the Skills Gap approach could be applied to other sectors in India to help other education institutes and industry in India better understand what corporations need and what education institutes are providing, and how any gaps that exist can be reduced," Narayanan said.