New Delhi: First, the good news. The placement season at top business schools, including some Indian Institutes of Management (IIMs), has started on a positive note.
Now for the not-so-good news. The salaries are not what the students were expecting. According to Mint’s initial analysis—placement season is still on—most raises show a single digit growth over last year.
The demand for B-School graduates and the salaries they get is an indicator of the jobs market and also the potential increments existing employees at companies can expect.
While IIM-Lucknow, which has already placed its 435-strong graduating batch, did not divulge details of salaries, IIM-Rohtak said salaries this year have grown by 10.1% as against 12% last year.
The RP-Sanjiv Goenka Group-promoted International Management Institute (IMI) in New Delhi has seen a 4.5% increase in average salary this year as against a double-digit growth last year. The Indian Institute of Foreign Trade (IIFT), where placements are ongoing, has seen a single-digit salary growth as of now. IIFT, too, saw double-digit growth in average salaries last year.
Fore School of Management, another Delhi-based B-School, has seen a 5% increase in average pay (placements are ongoing).
“The average salary is not growing significantly across B-schools. Companies are hiring but the average salary may not witness a double-digit growth," said Sanjiv Verma, the placement in-charge at IIFT. He said 70% of this year’s graduating batch at IIFT has been placed and he expects the others to find jobs in a week.
A professor at one of the four older IIMs (Ahmedabad, Lucknow, Bangalore and Calcutta), who asked not to be named, said though the hiring sentiment is not negative this year, salaries on offer are modest. “Demonetisation and its impact on companies in the December quarter may be partially responsible but, overall, companies have become very conscious about the salary hike. Some are of the view that while recruiting from campuses, they need to be conservative," he added.
The maximum jobs offered and accepted so far have been in sales and marketing, banking, financial services and insurance, and consulting.
At IIM-Lucknow, while 26% of the jobs were for sales and marketing, 23% were for financials, and 22% for consulting. At IIM-Rohtak, first of the new IIMs to complete placement this year, sales and marketing jobs accounted for 45% of the total jobs accepted.
Thus far this year, start-ups haven’t been big recruiters on campuses. The schools named above listed Accenture, McKinsey and Co, Deloitte, the Boston Consulting Group, Goldman Sachs, J.P. Morgan and Chase, Standard Chartered, ICICI Bank, Citibank, the Aditya Birla Group, Amazon India, Hindustan Unilever, Apollo Munich, Wipro Ltd and Tata Administrative Service (TAS) among their top recruiters.
Last year, several start-ups ran into trouble with engineering and business school administrators after offering jobs and then deferring them on account of adverse business conditions.