Management students from tier II cities prefer to work for public sector undertakings (PSUs) over private companies because job security weighs most on their minds, according to a survey.
The survey, conducted by industry lobby Associated Chambers of Commerce and Industry (Assocham), is based on responses from 500 students, 300 of whom were from tier II cities.
The findings are in contrast to those of management students from metros, who would prefer challenging assignments and fast-track growth that the private sector offers.
The study could help public sector companies, which are struggling to attract talent, partly because of relatively lower salaries, to refocus their recruitment strategies in smaller cities and towns so as to have a better success rate.
As many as 85% respondents in tier II cities such as Ghaziabad, Lucknow and Chandigarh said their first preference would be “Schedule A” PSUs including Oil and Natural Gas Corp., National Thermal Power Corp. and Steel Authority of India Ltd.
The remaining 15% felt their B-school background will give them an edge while competing at all-India levels for government jobs, said Venugopal N. Dhoot, president of Assocham.
In contrast, 90% of B-school students in metros said leading private companies provide both excitement in terms of job profile and compensation. An overwhelming majority of students in metros said that with increasing liberalization, it would be unrealistic to assume that PSUs will continue to provide job security over the years.