65% B-school graduates now prefer PSUs over private cos
17 Aug 2014 11:12 PM GMT
Business school graduates are increasingly preferring to work in public sector undertakings (PSUs) over private entities owing to several factors like job security, lucrative salaries, generous perks and special allowances, according a survey.
‘More and more pass-outs from business schools are flocking to topline public sector companies due to job security, improving prospects of firms and headwinds faced by the private sector, especially those in highly leveraged sectors like telecom, real estate, power and other infrastructure,’ an Assocham paper, PSUs Back In Reckoning, said.
The survey sample included over 500 students from B-schools, including IIMs, BITS, ICFAI Business School and Symbiosis Institute of International Business (Pune). It was conducted between June and July 2014. ‘Over 65 per cent students said their first choice would be to join PSUs and Central government jobs. The top picks for them include ONGC, IOC, NTPC, HPCL, BPCL, SAIL and leading PSU banks like State Bank of India (SBI)’.
The survey observed that with improved Sixth Pay Commission salaries and announcement of the next Pay Commission, due to give its report in 2016, Government jobs have become attractive and more lucrative. The study found that Indian students are opting for public sector jobs over private sector ones because of fatter financial packages with banking and public sector undertakings becoming a major attraction on campuses today.
‘The PSU companies are offering nearly Rs 10 lakh-12 lakh annual package, higher than the average starting salary of Rs 7-8 lakh in the private sector offers for fresh engineering graduates and pass outs from second their B-schools. Most public sector units offer starting salaries between Rs 9 lakh and Rs 11 lakh,’ it added. It noted that number of intakes by PSUs from B-Schools, more so those outside the IIMs, has gone up by 160 per cent this season over last year.Â
‘More and more pass-outs from business schools are flocking to topline public sector companies due to job security, improving prospects of firms and headwinds faced by the private sector, especially those in highly leveraged sectors like telecom, real estate, power and other infrastructure,’ an Assocham paper, PSUs Back In Reckoning, said.
The survey sample included over 500 students from B-schools, including IIMs, BITS, ICFAI Business School and Symbiosis Institute of International Business (Pune). It was conducted between June and July 2014. ‘Over 65 per cent students said their first choice would be to join PSUs and Central government jobs. The top picks for them include ONGC, IOC, NTPC, HPCL, BPCL, SAIL and leading PSU banks like State Bank of India (SBI)’.
The survey observed that with improved Sixth Pay Commission salaries and announcement of the next Pay Commission, due to give its report in 2016, Government jobs have become attractive and more lucrative. The study found that Indian students are opting for public sector jobs over private sector ones because of fatter financial packages with banking and public sector undertakings becoming a major attraction on campuses today.
‘The PSU companies are offering nearly Rs 10 lakh-12 lakh annual package, higher than the average starting salary of Rs 7-8 lakh in the private sector offers for fresh engineering graduates and pass outs from second their B-schools. Most public sector units offer starting salaries between Rs 9 lakh and Rs 11 lakh,’ it added. It noted that number of intakes by PSUs from B-Schools, more so those outside the IIMs, has gone up by 160 per cent this season over last year.Â
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