After the unpleasant experience of last year in which a few start-ups withdrew their offers or deferred joining dates, business schools have been cautious in inviting startups for the placement process.
As the placement season at business schools draws to a close, one group of recruiters appear to be missing from the lineup of consultancies, banks, FMCG majors queuing up for talent.
After the unpleasant experience of last year in which a few start-ups withdrew their offers or deferred joining dates, B-schools have been cautious in inviting startups for the placement process.
In the summer placements as well as the final placement process, consulting firms have been given the first right of refusal.
At Indian Institute of Management (IIM) Lucknow, which has completed the final placement process, about 170 domestic and international companies have visited the campus.
Demonetisation and a sluggish economy notwithstanding, the Indian Institute of Management, Lucknow (IIM-L) achieved 100 percent placements for its batch of 435 students in record three days’ time. Boston Consulting Group (BCG), Accenture, Amazon, Hindustan Unilever and McKinsey & Company among others were the major recruiters.
Among the handful of start ups looking to recruit were Cloudtail and Rivigo.
“We also look at student interest and take their response before calling companies,” said the placement chairperson at an Indian Institute of Management (IIM).
“Large companies which are our regular recruiters are always first on the list. However, we have been cautious about inviting startups because we don’t want any negative impact on students,” the person said.
Even at the summer placements of B-Schools, consulting and BFSI firms dominated the process. Overall, placement officials said that the interest shown by startups has also been lower this year.
NMIMS Mumbai completed the summer placements for the students of Flagship MBA Core & MBA HR 2016-18 batch. A total of 605 students were selected by 184 companies. Here too, large firms like Britannia, ICICI Bank, Deloitte, Goldman Sachs, and Cognizant were among the major recruiters. Start up names included Shopclues, Droom among others.
Placement officials said that while students were impressed by the fat pay package and non-cash incentives offered by the startups, they were not sure if the offers would be honoured given the problems that most e-commence companies were facing.
Last year, online grocery delivery startup Grofers withdrew 60 plus job offers, while Flipkart had deferred joining dates.
In August 2016, IIT Bombay released a statement blacklisting nine companies for one year for revoking offers and also delaying the joining dates. One of the companies, LeGarde Burnett Group, was even found to be fake. The blacklisted companies included including Portea Medical, Peppertap, Mera Hunar, Cashcare Technologies among.
The old IIMs including Calcutta, Bangalore, Ahmedabad have the most coveted ‘Day Zero’ which is the first day of their final placement cycle where large companies battle it out to get a slot. These include large investment banks and consulting firms which offer a higher pay package and attractive job roles.
While some startups had also sought a slot on the first day, IIM officials have decided against it. A student placement representative at an older IIM which is about to begin its final placement said that only larger and established firms will be given a priority on ‘Day Zero’.