Campus Placements: As big companies hesitate to hire, experts motivate engineers to opt for start-ups

However, given the current economic situation around the world, some big companies such as Infosys, Wipro, HCL have seen a decline in their workforce recently. According to a report in PTI, Infosys has announced that the company will not be hiring freshers via college placements this year as the company had hired nearly 50,000 freshers last year.

Students are anxious, but experts say ‘all is well’

Such updates from companies are scaring engineering students who will be participating in placements this year. “This trend is a nightmare for students who have believed and joined the degree course thinking they would get placed,” said Bhavani A, who is in her seventh semester of Mechanical Engineering from Vidyavardhaka College of Engineering, Mysore.

Meanwhile, college authorities are assuring students that there is nothing to worry about. Experts believe this may also lead to an increase in the number of companies from core sectors.

“This decision of not participating in the campus placements by specific organisations should not be viewed as a general trend. In fact, this approach can be seen from an optimistic perspective as other recruiters, including core sectors, are expected to hire more enthusiastically to fetch talented graduates,” an IIT Guwahati spokesperson told indianexpress.com.

The institute also claims that this might not adversely affect the placement season. The Centre for Career Development (CCD), IIT Guwahati is anticipating that the number of companies participating in this placement season will likely grow beyond 250 by mid-November. “This projection is based on the fact that some companies are in the process of finalising their headcount requirements and are waiting for their quarterly performance results to determine their plans for on-campus hiring across multiple institutes. Consequently, CCD expects a few additional companies to confirm their participation by mid-November,” the spokesperson added.

However, there are a few institutes that are a bit worried about more companies joining the trend of not hiring freshers from college this year. “We can expect a few more companies from the service industry this time. The number of hires would be small in comparison to last year,” said TV Devi Prasad, head of placement cell, IIIT-Hyderabad. The institute has already seen registrations from over 40 companies till now and is expecting more companies to register in the next couple of weeks.

Deferred joining

As Infosys CFO explained, the fact that there is a possibility of more such companies joining this trend of not bulk hiring from campuses might be due to the fact that some of the freshers hired last year are yet to be utilised completely by employers.

“Many companies have stopped bulk hiring when compared year-on-year basis. Companies which have reduced growth this year have shelved their plans and are undergoing internal restructuring. Some companies had deferred joining from the previous years which is impacting the placements this year. The number of candidates hired per company is lesser this year so far. If this trend continues with remaining companies, then it is likely to affect placements this year in general, although this trend is not for all the companies,” said Arvind Chaturvedi, director of the School of Management, IILM University.

IILM has registered a total of 60 companies for placement season this year and 36 companies are in the pipeline. The institute is hoping to have at least 120 companies this time.

Some experts also believe that while this year’s placement season may have slow growth, the brand name and the skills acquired from the institute by candidates may have a positive impact on students’ profiles and may encourage companies to visit the campus. “The reputation and resilience of an IIT can play a crucial role. Established institutions like IIT Guwahati may be better positioned to attract recruiters even during challenging times,” an IIT Guwahati spokesperson said.

Start-up your career

As some of the main companies are hesitant about visiting engineering campuses, some students and experts are hoping that this will pave the way for more hirings in start-ups. Akhilesh Chandra, associate director of the Corporate Resources Center (CRC), GD Goenka University is urging students to “explore various career options, including startups, as they offer a dynamic and innovative work environment that can be incredibly rewarding. While some experts may have cautioned against startups, we always emphasise the importance of doing thorough research and seeking guidance from our career counselling services to ensure that students make choices that align with their aspirations and goals.”

As per GD Goenka University, around 500 top companies confirmed their presence for this year’s placement drive.

However, given the current economic situation around the globe, experts are unsure if students would prefer start-ups as their first employer. The reason behind this hesitancy might be the risk of the start-up not surviving or the low salary package. “Students’ attitudes are slowly changing; not all students look for established/giant companies. Many of them look for challenging assignments even if the package is lower. However, the majority of the students are uncertain about the success of the startups and find it risky. Since the starting package in startups is also lower, not all students tend to apply for such companies,” Chaturvedi explained.

On the other hand, students are still unsure about how the rise in start-up employers affects their choices. “Joining a startup would offer me the opportunity for accelerated learning and innovation, while larger, established companies often provide a more structured and favourable work environment. But, established brands carry a certain level of prestige and impact in the industry,” said Anushka Singhal, a student of Dr APJ Abdul Kalam Technical University.

As per a FICCI-Randstad startup hiring trends survey, 80.49 per cent of the total startups surveyed stated that they plan to increase their manpower hiring in 2023, while 15.78 per cent plan to maintain their existing headcount, majority being early stage. The sectors depicting the highest hiring intent include the healthcare sector, IT/ITes, agri/agritech, AI/ML/DeepTech, Fintech and Manufacturing; while Hyderabad and Pune are emerging as regions exhibiting strong intent to hire for senior-level positions.

The intent to hire freshers is a win-win for the employees and employers, experts believe. “Startups thrive on innovation, and hiring recent graduates can bring fresh perspectives and a willingness to experiment, which can be valuable for startups looking to disrupt industries and create new products or services,” Geetica Chaudhary, Associate Dean -Industry Collaboration and Alumni Affairs, NIIT University said.

What happened during 2022 placements?

Meanwhile, some IITs (second and third generation) saw a decline in the number of placed students. IIT Dhanbad saw a decline from 811 to 774 last year. IIT Dharwad also witnessed a dip in offers from 91 to 77 last year. The number at IIT Jammu also decreased from 230 in 2021-22 to 224 in 2022-23. While the number of placed students increased slightly from 223 to 231 at IIT Ropar, the placement percentage saw a dip from 88.49 per cent to 82.21 per cent.

IITs have also faced the brunt of economic slowdown around the globe. (Graphics by Dinkar Sasi)

In the first generation IITs, the situation was better. In IIT Mandi, the number of companies hosted for placement increased from 183 in 2021-22 to 301 in 2022-23. Similarly, In IIT Madras, the total number of offers increased from 1491 in 2021-22 to 1612 in 2022-23. In IIT Bombay, however, the total number of companies that offered jobs decreased from 332 in 2021 – 22 to 324 in 2022-23.

IIT placements are conducted in two phases – the first phase in December and the second phase between January and June. The majority of IITs are currently in the process of inviting companies and setting up the placement process and will begin the season by December 1.