BackPre-placement offers on the rise as firms intensify talent hunt
Many firms do most of their entry-level hiring through such offers, which have risen 50% from last year
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Earlier this year, Deutsche Bank AG took in nine students from the Indian Institute of Technology (IIT), Kharagpur, as summer interns. All of them have now joined the company in different roles.
Same was the case with global software firm Adobe Systems Inc. The company recently hired all seven IIT Kanpur students who interned with it this summer.
The story repeats across India, where companies competing for talent identify bright students early and lock them in with pre-placement offers (PPOs).
So much so that many companies conduct much of their entry-level hiring through PPOs, instead of waiting for the official placement season that runs from December through March.
The number of PPOs has gone up by nearly 50% from last year’s figure, said placement cell executives from multiple premier technology institutes and business schools.
“Companies are increasingly going for the PPO model as it is an easier way to find talent at an early stage. So, most companies are taking interns and placing them while slowing down their activities during final placements," said Divya Pratap Singh, overall placement coordinator, IIT Kanpur.
According to placement cell representatives, IIT Kharagpur has already received 170 PPOs this year, up from last year’s 90, while IIT Bombay has got 150 against last year’s 110, and IIT Madras has got 56 PPOs against last year’s 70.
IIT Kanpur has received around 93 PPOs till the first week of October, which is 40% more than the 66 in the same period a year ago.
“We are seeing a considerable increase in the number of pre-placement offers this year. Most companies are no longer waiting for the final placement as there is a huge competition among them to recruit the best talent," said Manu Pant, secretary, corporate relations and placement team at the Faculty of Management Studies (FMS), New Delhi.
Around 20 companies, including Accenture Strategy and American Express, have made around 45 PPOs to students at FMS so far, 25% more than last year’s October figures. Pant said PPOs will rise further as most companies are yet to make announcements in this regard. Last year, it got a total of 61 PPOs.
Management Development Institute (MDI) Gurgaon and Indian Institute of Foreign Trade (IIFT) Delhi have also seen a jump of more than 40% in pre-placement offers.
Till the beginning of October, MDI received 80 such offers and IIFT 43.
“Pre-placement offers have shot up as more and more companies are finding it comfortable to hire through the internship route. Hence, the intake of interns from B-schools has also increased," Pant said.
Firms such as JP Morgan Chase & Co., Goldman Sachs Group Inc., Microsoft Corp., Nomura Holdings, Boston Consulting Group (BCG), Hindustan Unilever Ltd, Reckitt Benckiser Group Plc and Facebook Inc. have already concluded pre-placement recruitments across the IITs and MDI Gurgaon, FMS and IIFT.
Among the most in demand are software developers, financial consultants and data analysts.
“Large technology companies are adding jobs at the entry level. That directly correlates with the pre-placement offers going up in these top institutes. At the same time, a lot of start-ups which are expanding are also putting pressure on top institutes as they have funds," said Kamal Karanth, managing director at Kelly Services, a leading recruitment agency.
Most companies, especially multinationals, hired 25% more people in the September quarter over the previous year, he added.
IIFT director Surajit Mitra agreed that as hiring sentiment improves, PPOs are expected to rise. Even pre-placement interviews are on the rise, with 50 interviews already offered at IIFT, he added.
Godrej Industries, one of the Indian firms active in the pre-placement season, said around 91% of students who were part of its internship programme have been placed as management trainees, said Sumit Mitra, head, group human resources and corporate services at Godrej Industries Ltd and Associate Companies.
“Today, our businesses have a growing global presence. This kind of expansion means that new roles are created across businesses and countries. This year, our recruitment requirement from business schools has increased by 20%," Mitra said.
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