Can the Employability of fresh MBAs be measured?

Can the Employability of MBAs of a Business School be Measured?

Should the employability of a fresh MBA/PGDM be only measured by these graduates being placed in a company? This number, often measured by the percentage of MBAs/PGDMs placed, represents only the quantity but not the QUALITY of Employability. For Quality, a metric I call 'Modal CTC (cost-to-company) to CGPA Ratio' (mCCR) can be used. To calculate this, find the ratio of CTC monetary value to the CGPA value of top 10 to 20 performers (in terms of their CGPA). Then find out the modal value of all these ratios which will be an indicator of how the academic performance of your MBAs is evaluated by recruiters in terms of their 'employment monetary value'. Though I have not done any market research on this, but simply by the word-of-mouth generated statistics, for the majority of business schools in India, an mCCR of Rupees 100,000 to 200,000 per unit CGPA will be considered medium Employability Quality. mCCR value below this will be considered Low Employability Quality, and above this as High Employability Quality.

Low Employability Quality could be because of many factors, but most common factors causing Low Employability Quality are: (i) curriculum not aligned with business/industry needs; (ii) specialisation courses not skill-focused, and (iii) poor industry-faculty linkage (either through executive training programmes, collaborative research/case writing, or consulting). Setting up a good Quality Assurance System at your business school which monitors Employability Quality and enforces corrective action can improve it significantly within a short period of two to three years.