Impact Of COVID 19 On MBA Students

In the past few months, from sharing memes on COVID 19 to the time it instilled fear in my heart when I saw empty roads and public places, I think a lot has changed and a lot is going to change soon. Let's be a part of this classic global case study encompassing economics, science, and politics.
Here we will take a look at how COVID 19 will affect 2020, 2021, and 2022 batches of MBA.  But before that let's identify the sectors that have been worst hit by the pandemic - Automotive, Transportation, FMCG, IT, and Banking. The IT sector is mainly dependent on exports and clients like the US, which themselves are impacted badly. Employees in IT will need to develop skills accordingly and improve collaboration while working from home or else they'll be hit the most.
BFSI is indirectly involved in everything as falling demands and reduced cash supply will force people to default or reschedule loans. And we have monetary and fiscal policies at hand, but they are also interdependent on a large number of unknown-unknowns including global supply chains, oil prices, and socio-political environment that may take a concrete shape after the pandemic is over. We also have some sectors which will bloom like pharmaceuticals, Edu-Tech startups, and e-commerce firms (provided they ensure high levels of hygiene).

With international organizations and leading consulting firms being marginally positive on the growth of India (because it is a consumption-based economy) than the rest of the world we can see a better turnaround in later years. Now let's have a look at how the situation will affect the MBA graduates.

The 2020 Batch

The Bad-
I believe this batch will face the strongest headwinds. There are already a number of sectors which have announced compulsory unpaid leaves and a lot are trying to cut down on costs. Given the scenario, I believe that there are chances of current offers being deferred to next year or even second rounds of salary negotiations may take place. This will also involve a major shift in roles and responsibilities as they will get blurred and due to the economic slowdown, people may have to handle multiple dimensions.
The Good-
I think this is once in a lifetime opportunity for the batch to add diversity to their skill sets and also it will help them in the long run as this is expected to be the worst recession after the 1930s (Pun Intended).

The 2021 Batch

Let's shift the focus on current 2nd-year students. I think the demand for Business Development Executives, Operations Managers, and Marketing Professionals will increase and by the time they will start working, things would be much better. But because the sentiments are lower they will have to take the haircut in terms of salary expectations and roles. Also, some prominent firms have stopped hiring from the current year, so they may have to compromise on the choice of brand as well.
If the lockdown extends there can be online classes and exams, a trailer of which we have already seen.

The 2022 Batch

I think by the time 2022 batch comes on-board, most of the effects of this pandemic would have been mitigated and both the country as well as the world economy will be coming back in shape. In that scenario, some normalcy regarding placements can be witnessed, and also there will be greater hiring prospects.
Common theme
I believe all these effects can be serious and far-reaching if the pandemic is not handled properly and, as the economy does not work in silos, repercussions can be huge.
I think after this you would have got a slight idea of the after-effects. Till then stay safe stay healthy.

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About The Author

Raghav Kumar, an Electrical and Electronics Engineering graduate, is currently pursuing PGP at IIM Nagpur. He's keenly interested in finance and has qualified the CFA Level 1. Apart from following the stock market, he is also interested in traveling, playing guitar and writing poetry.