Public sector companies eager to hire IIM graduates
I have been reading about how IIM graduates are being lured by public sector undertakings (PSU’s) because of a shortage of high paying jobs by private companies, particularly multinationals. It’s not just the lack of jobs that is driving IIM grads to PSU’s but also job security, something they are not finding in private firms today, particularly so in multinationals.
It is easy to be cynical about this trend by saying it’s not a trend but simply a blip on the horizon. I mean this seems temporary doesn’t it, until the global economy picks up? Surely the IIM grads with their impressive credentials will run to greener pastures as soon as they get the opportunity? Can anyone imagine them thriving in PSUs which are widely perceived as lacking meritocracy and are weighed down by bureaucracy? And no IIM graduate will have forgotten the case of Manjunath who was murdered while trying to check adulteration of diesel and petrol in his area.
Sure, plenty of murky deals are hatched in private companies as well but the difference is that in a private company it is mostly the owners and perhaps a handful of top managers who are in the know. In a PSU more people are usually involved or rather, have to play along, even those are junior levels.
I am certainly not saying that a hatred of bureaucracy and an intolerance of mediocrity is the prerogative of IIM’s – not at all. Any person with a modicum of talent will be frustrated in such a system, but then he/she may not have the choices that IIM graduates have. Right now ofcourse IIM grads don’t have a choice.
Here are some facts:
- PSU banks hired as many as 34 of the 265 students at IIM Calcutta. Other public sector companies which came to campus included IOC, NTPC, Coal India and not surprisingly, the average salary here fell by 23%.
- The annual salary offered by PSUs is just 7 lakh but IIM graduates are accepting these salaries. Considering those from less well known institutes are scrambling for jobs, IIM grads probably consider themselves lucky that almost all of them are getting jobs. Most IIMs are reporting 100% recruitment.
- Even those from the elite IIM Ahmedabad have taken up public sector offers and here salaries have dropped by as much as 30%!
- Average salaries have dipped by 30 per cent at IIM Bangalore too, what with the high paying financial firms opting out and PSU’s in. SEBI, GAIL , NTPC , BPCL and HPCL participated and about 15 students have so far accepted offers from these companies.
While I am not surprised that IIM graduates are eager to join PSUs this year, what surprises me is that PSUs have so much faith in IIM grads. Do these public sector undertakings believe they will be able to retain them? Why, just last year most of these PSUs were untouchables at IIM campuses, not even allowed to come to recruit anyone from the campus due to the lower salaries they offered. This year at IIM Calcutta for example, any company offering a minimum of Rs 6 lakh per annum has been allowed to recruit students, but last year the minimum was Rs 8.25 lakh per annum.
Maybe the PSUs really believe that they need the IIM graduates. The opening up of the economy which started about a decade back has forced many PSUs to spruce up their work environment and there are many who are becoming competitive and customer focused and are in fact in a state of transition. However, PSUs should understand that it is the system (government interference) they need to change otherwise no IIM graduate will stick. There are some some excellent managers in PSUs who have shone once they left and joined the private sector, so it is not a lack of talent at PSUs which is the problem…it’s the system.
(Photograph is by me and copyrighted. The graph is from yourstoryin.com)
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