High salaries and lucrative placements only for those from elite educational institutions
All this hype that India will have highest pay increases in the whole world in 2007 (report by ECA International, international Human Resources organization) has no meaning for the average engineer. Sure, the pay hikes in India even after taking into account inflation, are to be on an average 7 per cent, the highest in the world. But these averages are being spiked by a small elite group of people. If we take a look at just the starting salaries at the higher end of the spectrum, meaning of those guys and girls who are spilling out of the premier management institutes it all makes sense.
Just a peek into what IIM graduates are being offered this year
IIM – Ahmedabad, Bangalore and Calcutta:
Prospective employers: Goldman Sachs, BNP Paribas, Barclays Capital, Merrill Lynch, Lehman Brothers, ABN Amro, UBS, JP Morgan and HSBC have all made pre-placement offers to students this year and these salaries are the same as those being offered to those from the top B-schools in the United States!
At IIM Ahmedabad, IT majors like Wipro, Microsoft, IBM, Cognizant Technology Solution, Tata Consultancy Services, Microsoft, HCL Technologies, Tech Mahindra, Trilogy, are hiring in a big way. IIM-A latest placements are in the range of Rs 60 lakhs to 1 crore per annum! And these are just the domestic salaries. The international salaries are in the range of $300,000 to $600,000 per annum and this is an increase of 25 percent over last year. The domestic salaries according to this same news report have gone up by 40 percent. Inspite of this however a certain number of IIM A grads who were interviewed said that they were starting their own businesses. Others said they wanted to stay in India to be part of the nation’s growth.
Salaries here are up by 50 per cent over last year and these companies are from a wide varieties of sectors, unlike last year where the majority were IT companies. The average salaries are around Rs 13-14 lakh per annum, and the highest salary is Rs 27 lakh, up from Rs 20 lakh in 2006. Companies like Arcelor-Mittal, Trident, Pepsi, Tesco, MH Alshaya, Reliance, DLF, KPMG PWC, Tata Strategic Management Group, ACME, Citi Financial, Standard Chartered and Dr Reddy’s and Ranbaxy are those making the offers.
9th March: A report in the paper today says that three students from IIM C have got a pre-placement offer of more than Rs 1 crore from leading investment banks. Others have got plum job offers from global and national companies. But this is not all…the institute expects that more are to come. Students have claimed that they have recieved the highest offers across all IIM’s and that some of the salaries are 50 percent higher than the average salaries offered at international B-schools like Harvard, Stanford and Wharton. And the news is that these three students have for the first time in history been offered the position of an associate. Joining as an associate gives the employees a two year lead over others, and those from Harvard for example usually get hired as associates.
IIM Bangalore on the other hand is keeping mum this year about the fat salaries of its students! This is because a problem had arisen last year – two students protested when their salaries were made public. This time the institute is strictly following the confidentiality clause because they feel that salary details, “especially when they are above normal compensation levels, tend to catch the attention of unscrupulous elements and could cause immense physical as well as psychological distress for the persons involved.” However, other IIM’s are not following these policies, though names of students are not being disclosed.
This year, many international companies are offering lucrative jobs to those graduating even from smaller institutes such as IIM Kozhikode. This is the first time this has happened (so many international companies) in the 10 years since the institute came into being. The salaries offered have risen by 35% on an average. While average salaries being offered are Rs two and a half lakhs per annum, some companies like Yahoo! have offered around five and a half lakhs per annum. 63 companies came to IIM Kozhikode to pick up people, up by 50% over last year. Some of the other companies which were hiring were Goldman Sachs, Deloitte Consulting, Pricewaterhouse Coopers (PwC), JP Morgan Chase, Cadbury, Standard Chartered Bank, Al Aqilli Group, Colgate Palmolive and Olam International, Dubai-based Al Aqilli Group, Pittsburgh-based Calance Corporation, Emirates Bank International and US Technology recruited students for their summer internship programmes. Companies who offered placements abroad were Tata Motors and IT majors.
So this is about the IIM’s. As to the rest of the management graduates, salaries start to spiral downwards, depending on the ranking of their institute. This doesn’t seem fair because everyone knows that there is a perennial shortage of seats in these premier institutes and as a result not all of the best and brightest get in. But what it boils down to is that salaries are not really increasing across the board in India. Just a small section of people, meaning those who work in the top companies, are getting high pay hikes. The rest struggle with inflation.
Note: I have had to add this to tell readers to please look at the date of the post and not jump to conclusions. This is a blog, and as much as I wish to update each and every post it is not possible. So if you have an update, you are welcome to give it, but I do expect people to read the date of the post! All information given in this post is what was available on that date. Not even the best newspapers update their reports so it is a bit too much to expect a blogger to do it. And er…I am not an ‘agent’ of IIMA as someone from another IIM accused me of being. I am simply quoting news reports.
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