Placement 2009 Sees Drop in Average Salary for the First Time in History
Though the students of Indian business schools, and even those from premier institutions, are getting offers from companies in the ongoing placement session, the annual package they are being offered has fallen considerably, as per various media reports and industry sources.
At ISB Hyderabad, the offers have fallen to Rs. 13-15 Lakh range from Rs. 18-20 Lakh of last year, says a news-report in Business Standard. It seems the companies are feeling the pressures of economic downturn, and now reviewing their salary offers to the campus recruitments. Anticipating a decline in the number of offers, B-schools are, hence, inviting more firms to the campus this year, which includes SMEs in Tier-2 and Tier-3 cities.
Specifically focusing on placements at ISB Hyderabad is the Business Standard’s latest news, and here we quote from the story –
“… Most compensation packages have fallen to Rs 13-15 lakh a year, compared to the Rs 18-20 lakh of last year. And, students have had fewer offers to choose from than last year. The average yearly gross salary offered last year stood at $144,812 for foreign offers, and for domestic offers, about Rs 19 lakh.
Last year, around 230 companies came to the campus for hiring. The same number is likely this placement season, which began in January and would go on till March 31. Last year, 657 offers were made for 421 students of Class 2008. Of this, the IT, ITeS, finance and real estate sectors combined made 280 job offers. This year, there are 440 students.
Typically, placements at ISB are marked by heavy career shifts. All students have prior work experience and a high number shift to another specialty or another sector. Normally, companies would not take prior experience into consideration when the students wanted a shift in roles or sectors.
During the previous placement season, about 80 per cent of students changed function (20 per cent) or industry (10 per cent) or both (50 per cent). However, it’s a different situation this year. The job profile a candidate held before joining ISB is getting more weightage than before. “Prior experience in the sector is very relevant now,” said a student.
The students, too, gauging the market scenario, are often grabbing the first offer made to them. According to V K Menon, Senior Director of Admissions, Financial Aid & Career Advancement Services, the ratio of acceptance to offers is high as the students feel they are on a sticky wicket due to the slowdown.
Contrary to the belief that information technology is down and out, ISB graduates are getting some “decent” offers from IT companies. Of course, there is no Satyam this time. “Biotechnology, pharma and healthcare sectors seem to be the flavour of the season,” said Menon. These have turned “Day One” companies… This is the first time that life sciences’ companies are coming to ISB.
The financial sector made 14 per cent of all offers for Class 2008 and 17 per cent for Class 2007. This year’s should be much lesser. The shift is towards general management and consultancy.
According to a student, ISB is now asking small and medium companies in Tier II and III cities to come to the campus for hiring. Many have expressed dislike for joining the real estate sector now… Some students say they will try entrepreneurship…”
In one other news-source, it’s the gloomy scenario at IIM Ahmedabad campus that has caught the headlines. The placements are going on for last 8 days there, and not only the number of offers has dwindled alarmingly, even the quality has taken a beating with the offers providing little in terms of pay packages, positions and job locations.
While placement officials of premier B-schools are keeping quiet, sources say students are keeping themselves open to all sorts of companies visiting the campus, including FMCG companies, SMEs and public sector companies before finalizing their choice. Students are more open to the joining smaller firms that offer them chance to work in challenging environment rather than accepting less attractive offers from bigger firms, hence the extension in placement week at all campuses.
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