Gauri Chhabra
The Indian economy seems to be in a state of flux. And this has a ripple effect on hiring trends and college placements. Almost a decade ago, the big names used to make a beeline for the top league campuses. They used to hire in bulk, offering Letters of Intent to masses. Of late however, the trend has reversed. With growing economic uncertainty and tighter deal pipelines, there are new rules for hiring.
While much is being made of the eye-popping salaries offered by a few global firms and the sharp increase in the number of recruiters, the placementshave shown a significant change in the mindset of the institutes, which have this year given pride of place to companies with manufacturing bases in India in tune with the prime minister’s “Make in India” push. As per the Business Standard issue Dec 2014, 25 per cent of the companies that visited the IIT Bombay campus are from the manufacturing segment. About 100 more from this segment are expected to visit the campus during the current placement season that will end by July 2015 and the list of those that have already recruited include Airbus and GE. There is a paradigm shift from only the core IT companies to manufacturing companies and service oriented companies visiting the campuses.
Start- ups going to top league institutes:
One tectonic shift is start- ups now going to top league institutes for hiring and finding talent.The IIM’s see start-ups in the e-commerce, cloud computing and analytics segments that have funding and are in a growth phase coming to the campuses for recruitment.There are a number of reasons for this new hiring trend. The recruiters feel that they need students who have lateral thinking and problem solving skills. Also since their businesses are at a nascent stage, they need people who can take up challenges and can wear multiple hats. The top league institutes, owing to their stringent admission processes and quality academics and pedagogy are able to instil the same in the students.
From the students’ perspective, they wish to have a challenging job and not just be a cog in the wheel in a high profile company. Moreover, these students have an entrepreneurial stint in them and they know the challenges they face in startups can hone and prepare them for their own ventures in future. It is the open work culture, a competitive pay package and an opportunity to learn skills that could prove useful when you start your own business also endears the graduates for these startups. Also, the start-ups offer flexible working environments, opportunities for rapid career growth and roles with greater responsibility to attract talent. They encourage a high sense of teamwork among employees Pranav Desai who opted for a logistics and supply chain management company after graduating from IIM Bangalore said,” I will get to do my kind of work at the start up with innovative ideas and enthusiasts around me”.Another reason for the growing interest in students for start-ups is that they offer stock options while others provide iPads, smartphones and other gadgets. In some cases, their pay packages are comparable with that of established companies.
However, PuneetSethi,Naukri.com, sounds a note of caution. He says that, while IIT and IIM graduates may improve the brand image of a start-up and even help in attracting angel investors, there are a few pitfalls as well. “Some of these high-profile students get impatient and bored at times. They look forward to faster growth and quick reward. It becomes difficult to retain them,” he says. That will be the next challenge for start-ups.
Big names going to tier B institutes:
Another reversal of the trend is big names going to tier B colleges in small towns. This influx owes its roots to the fact that the graduates from tier 2 colleges come with a positive attitude to learn and the level of integrity and sincerity is high. “These students wish to learn and they do not have very high expectations in terms of salary”, said Mr Gill, the Training and Placement officer at GTB Khalsa College Malout. “Besides, these candidates are not a part of the constant employee turnover. Once they have a job they stay for a longer period of time and do not jump from one hot coal to another in search of jobs”.
Academic Inflation- degrees losing ground:
We live in a state of paradox called academic inflation. It is a state that refers to the increasing requirement of higher degrees for certain jobs, even when a higher degree is not necessary to perform those jobs.For example, many jobs that would have traditionally only required an associate’s degree in the past are now requiring a bachelor’s degree or even a master’s degree. This phenomenon is reducing the ability of those just entering the workforce to learn through work experience, and instead they are encouraged to remain in school to get certificates and degrees for longer periods of time. Today, having a college degree no longer implies that an employee is qualified. On the other hand the degrees are so many that it becomes a case of too many degrees chasing too few jobs. So, when companies visit the campus they prefer candidates who may have a diploma but are ready to work hands on and do not come with the baggage of a degree and dollops of attitude.
Grade Inflation- marks not the only criterion:
Earlier it was a known fact that if you have a good GPA, you get a good chance to getting a placement. The academic inflation has a cousin- Grade inflation which actually is the cause of academic inflation. It is becoming easier for students to earn good grades, and more graduates are reporting higher grade point averages (GPAs) on their resumes. This makes it harder for employers to differentiate between applicants. Marks are no more the sole criterion for hiring. Companies are looking at problem solving skills, adaptability to the new environment and innovative ideas besides celebration of diversity and team work. Even the interviews are designed in such a manner that the candidates have to go through various situational scenarios and jobs.
Manufacturing companies visiting campuses:
Due to the ‘Make in India’ campaign by the Prime Minister, there would be an increasing trend of manufacturing companies visiting the campuses. Disha Oberoi, member, Placement Cell, Alliance Business School, Bangalore also predicts a change in the profile of recruiters and the jobs that would be offered. “It will be manufacturing companies rather than the people-centric or service centric ones that would emerge as top recruiters. These include companies dealing with manufacturing, insurance and telecom. Within consultancy firms, the hiring would be directed towards talent management and talent retention profiles instead of strategic planning,” he said. Sharma also believes that students would now have to settle for Indian companies, with fewer MNCs coming forward.
What should students do?
Shab Hundal,Senior Lecturer, Strategic Management and International Business, JAMK University of Applied Sciences, School of Business Finland, who was visiting India for a student exchange program with Punjab University said “We are at a curious cusp where degrees do and do not matter anymore, where it is not only about the top league colleges, and not only about marks. It is about something else- This something else is the right attitude and celebration of diversity and inclusion. Companies have their own ways of gauging and measuring it. They want a return on investment on you in terms of money and time.” Therefore, students should gauge the changing trends in hiring and placements and equip themselves with the necessary skills, it is not about being the right fit for the company. It is about the right fit as a global citizen.
Therefore, brace yourself for the perennial challenge that placements pose every year and develop the agility to flow along with it…
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