New Delhi: Recruiters who hired on-campus for the first time this year as business schools cast their net wider to make up for the absence of Wall Street firms are preparing to receive these graduates—and retain them.
High expectations: Students at Faculty of Management Studies in New Delhi. Job market experts say those who have accepted offers reluctantly will switch if they get a better offer. Ramesh Pathania / Mint
Companies are ready with orientation programmes to engage the new hires and lay out a well-defined career paths to keep them from straying.
“We are creating a fast-track in the company. They will be identified as fast-trackers,” said Hanuman Tripathi, chief executive of Infrasoft Technologies Ltd, speaking about the eight Indian Institute of Management (IIM) graduates the Mumbai-based banking software solutions company hired.
Infrasoft hired from IIM Ahmedabad, IIM Calcutta and IIM Indore. It participated in on-campus recruitment for the first time.
Wall Street firms hit by the turmoil in the US financial industry stayed away from Indian B-schools this year, enabling non-traditional recruiters such as Infrasoft to hire graduates of the elite IIMs for the first time.
The average salary for domestic jobs offered to the graduating batch of IIM-A dropped 32% from last year, to Rs12.17 lakh a year, mirroring the impact of a slowdown in India’s economy.
The chief executive officer (CEO) of another first-time recruiter, Unicon Financial Intermediaries Pvt. Ltd, said he is preparing an orientation programme for the new hires with the help of informal advice from friends in such companies as US-based Goldman Sachs—a big hirer in the past—and sanction from investors in his own company.
“We are already working on a training curriculum for them,” said Gajendra Nagpal, the CEO. The financial services company run by him hired 37 candidates in all from the IIMs in Ahmedabad and Indore, and Delhi’s Faculty of Management Studies (FMS) and Indian Institute of Foreign Trade. It is expecting acceptance of job offers from another 12.
Job market experts estimate the class of 2009 from business schools will switch jobs they had accepted reluctantly.
Tarun Matta, who graduated from IIM-I in 2003 and recently quit his day job to nurture iimjobs.com, a portal for job seekers, said that IIM graduates are under “loads of pressure to land good jobs” and many of them would have accepted offers simply to let their school complete the placement process.
Iimjobs.com has 25-30 resumes from fresh IIM graduates, indicating they are in the market for new jobs, even after all the six IIMs declared placements closed. Matta expects job portals to get more popular because of this churn.
New recruiters are keeping their fingers crossed that such prophecies won’t come true.
Brokerage firm Jaypee Capital Services Ltd, a first-time recruiter at business schools which ended up emerging one of the biggest hirers at IIMs this year with 53 graduates accepting its offers, besides 10 from FMS, is confident it will retain them—provided they show up on the first day of work.
Though the company’s chief executive Gaurav Arora said: “This is not the first time we are hiring MBAs, (it is only) the first time we are going to business schools”. His relative and the company’s vice-president Saurav Arora said there is a possibility that a few may not turn up when joining date arrives in May.
“(we are) very excited to have them. Let’s see how it goes,” said Saurav Arora, who personally recruited at campuses.
The first-time recruiters say the new hires will have enough of a challenge to test their mettle. Jaypee is set to launch a stock exchange in partnership with state-owned commodity trader MMTC Ltd on which it will offer currency derivatives trading later this year.
Infrasoft Tech and Unicon Securities recently got private equity investment and said they are expanding.
“(We have) opportunities both in verticals and geographies which call for new skills,” said Infrasoft’s Tripathi, who is expanding his company’s presence in West Asia and South-East Asia. While Tripathi said his company was “outclassed” in earlier years at IIM campuses and did not get an opportunity to hire from there, Unicon’s Nagpal said he began engaging with IIM-A at the start of the academic session and the vacant hiring slots did not influence his decision to recruit at the school.