PREVAILING PAY PACKAGES

Q- FROM AN MBA STUDENT- slashed packages r really hurting...

In a booming economy any kind of Salaries are not high enough but when economy turn sluggish, companies do not hesitate to hand over PINK SLIPS to highly sought after employees. As long as the American economy was booming the top US financial institutions were seting up records of higher packages for fresh MBA recruites in India. Now since there is a huge mortgage melt down and a massive Credit Liquidation, millions of jobs are lost in USA. The buying power of the people in USA will drastically come down because of job losses and credit crunch.

The US economy will be heading for a major Deflation. This will result in a drop in demand, commodity prices and services cost which in turn impact the salary structures in USA. There several reasons that will limit the job opportunities and better pay packages to the aspirants from all across the world. The compelling reasons for USA to hire locally will be availability of many talented & experienced people , Political Pressures and Moral obligations to protect the jobs for Americans. Since American companies will have lots of choices locally and were largely responsible for offering very high pay packages, higher pay packages for fresh MBA recruites will be distant dream for a while.

Pay Structures generally move in tandem with the market conditions and looking at the present market dynamics, It is advisable to accept jobs at current salaries prevailing in the Industry.

CHITARANJAN NAGRECHA