Newer IIMs have been struggling to attract companies to recruit students even as placement season was fairly smooth in the older institutes. Alarmed by poor placements at the new Indian Institutes of Management (IIMs), the Ministry of Human Resource Development (MHRD) has asked them to submit placement details about recruitment and salaries for the 2015-2017 batches.
Newer Indian Institutes of Management (IIMs) are experiencing a cold placement season this year. These IIMs had started placements earlier but either several recruiters are withdrawing offers, offering low package or not shown up in the final show of placements.
IIM Udaipur, for instance, which began on November 30, 2016 has a batch of 144 students participating in final placements. But it is yet to place some of its students.
The older IIMs experienced a relatively smoother placement season. IIM Lucknow wrapped up placements within the first three days of recruitment event. The 435 students in its 31st batch were placed in 170 domestic and international recruiters, including McKinsey & Company and Boston Consulting.
IIM Amritsar, which was established just two years ago, said all its students have got jobs. Some 3 students of IIM Rohtak have not been able to get placed, while IIM Sirmaur in Himachal Pradesh did not provide information. The average salary in these IIMs stands at Rs 11 lakh per annum; lower than the older and established IIMs where the average salary is in the range of Rs 24 lakh to Rs 50 lakh. Average CTC (cost to company) at IIM Rohtak for academic year 2015-17 batch is 12.3 LPA.
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The department of higher education (management) has sought details of final placements from 13 IIMs at Sirmaur, Rohtak, Amritsar, Kashipur, Udaipur, Ranchi, Trichy, Shillong, Raipur, Bodhgaya, Nagpur, Sambalpur and Visakhapatnam.
IIM Trichy has seen a dip in the number of offers per recruiter for several reasons. The institute began its placement process in the last week of December but a cyclone in Chennai had played spoilsport. Several companies had to cancel campus interviews or rescheduled their recruitment plans.
MHRD under-secretary, Sanjeev Shrivastva, has asked the directors of the institutes to provide details like average, median, highest and lowest salaries for the selected students. The MHRD has directed the institute authorities to evaluate the reasons for poor placements. The MHRD has also sought steps being taken to ensure 100% placements.
In response to the MHRD letter, officials at IIM Amritsar, which was established in 2015, said its first batch had 44 students, who received a total of 48 offers from the 60 companies that came to campus.”The highest salary offered was Rs 17 lakh per annum. The average salary was Rs 10 lakh per annum,” said an IIM Amritsar official. The institute is mentored by IIM Kozhikode.
Newer IIMs put Economic factors such as, rising automation and US visa issues are among the reasons recruiters across sectors such as information technology, fast-moving consumer goods and banking, financial services and insurance have gone slow on recruitments.
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Chairperson-Placements and External Relations at IIM Trichy Abhishek Totawar said: “Several macroeconomic factors are coming to play in the final placements, including automation and H-1B visa issues. The whole placement process has slowed a bit. We haven’t been able to reach the numbers we had planned.”
In certain cases, he said, regular recruiters who had recruited three to four students last year have reduced their intake to one or two. “Some dip in the number of offers per recruiter has happened.”
Highlights of the Placement Details
- Newer Indian Institutes of Management (IIMs) see fall in offers per recruiter.
- Recruiters cite sluggish economy, internal restructuring as some reasons for not high recruitments.
- IIMs also see last-minute cancellation in recruiter participation.
- Having begun early, some newer IIMs yet to place all students.
- Older IIMs like IIM Lucknow wrap up placement process within 3 days.
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