'Even IIM tag won’t save you': Reddit post on skill-based hiring outweighing degrees sparks debate on relevance of MBA courses

The MBA craze continues to grow in India. Every year, over 3.3 lakh aspirants compete for a seat at the coveted IIMs, but only around 5,000 make it. The exclusivity makes it feel like a golden ticket to success. But how true is the claim? 

A recent Reddit post by an IIM graduate paints a different picture—one that’s filled with rising costs, uncertain job prospects, and a shifting job market.

The cost of pursuing an MBA has skyrocketed, with fees at top B-schools touching ₹25–30 lakh, while placements remain unpredictable. The return on investment (ROI) is increasingly skewed, as landing a high-paying job isn’t guaranteed. As the Redditor puts it, "Fees are skyrocketing, placements are unpredictable, and many students are drowning in bank loans. Unless you land a top-tier job, it can take years to break even."

Adding to this challenge, recruiters are shifting from degree-based hiring to skill-based hiring. While an MBA may look great on paper, it’s problem-solving, analytics, sales, and leadership that actually get you the job. Without honing these skills, "even an IIM tag won’t save you," warns the graduate.

Despite its flaws, an MBA can be transformative—if leveraged correctly. The curriculum is designed to force students out of their comfort zones, encouraging them to speak up, take initiative, and compete in real-world scenarios. But success isn’t handed on a silver platter—students must actively participate in competitions, projects, and networking to stand out.

However, the Redditor raises concerns about how outdated some MBA courses are, stating, "The world is evolving, industries are changing, but the way we are taught still feels outdated." A stronger focus on practical exposure, industry-driven learning, and modern skill development is essential to make an MBA truly valuable.

Beyond tuition, an MBA comes with an expensive social culture. From networking events and trips to parties and peer pressure, keeping up with the crowd burns a hole in students’ pockets. The two-year journey can be exhilarating, but also financially draining.

With rising costs and a changing job market, blindly chasing an MBA—just because it's the latest trend—could lead to disappointment and financial burden. The key is understanding what you truly want from an MBA and whether it aligns with your career goals.

The Redditor sums it up: "An MBA is worth it only if you have a clear reason for doing it and know how to leverage it. Otherwise, it’s just an overpriced ride that leaves you with a fancy degree, a mountain of debt, and no real skills to show for it."

The post kicked off a debate with one Redditor saying, "MBA is a worthless degree but a brilliant platform to get better paying opportunities. It depends on your outlook - retaining good education or building a network?"

But another user said "MBA worked wonders" for the individual. The 2021 IIM pass-out elaborated that before MBA, the individual's salary was Rs 5 lakh per annum. "Now, I am at Rs 30 lpa, done with my study loan recently. So yeah, it’s still relevant I would say," the user added.