Myth of Placements Salaries

Do companies pay more for fresh MBAs than to MBAs with four years of work experience?
Probably yes, if this is what B-Schools wish us to believe.

As per CoolAvenues internal research, in lateral job market, the fixed salary offered to an IIM profile of 2001 Batch by a leading bank in India was around INR 15 Lakhs. The same bank also happened to be Day One Slot One across all IIMs, and so what they will be paying to Batch of 2007 is anybody's guess. However, if average salary this year is around INR 14 Lakhs, then does it mean Day One Slot One recruiter pays less than the institute average or they pay more to fresh graduates as compared to experienced profiles!!!

To put things in perspective, Indian PSUs have been able to recruit from IIMs this year, e.g., BPCL, a public sector oil major, was also a recruiter at IIM Bangalore. Given govt.-regulated pay scales and well-defined entry level for management trainees, no way the salary offered by BPCL including all perks can be beyond INR 4 Lakhs.

The salary offer may contain all kinds of inclusions like overseas training costs, housing loan costs, canteen costs, transport costs, and ends up inflating salaries which are further flashed to the world by the Institute without doing any due diligence as they are in the race to dish out better results. But what is the truth, nobody knows, as all said and done, remuneration data is a very private affair of a corporate as it is part of its business strategy, and hence, can't be given out to everybody, but unfortunately, these confidentiality clauses are creating a scenario where data is dressed up liberally to win the race against peer institutes.

- by CoolAvenues Editorial Team