After recruiting some of the best brains from India’s top notch engineering institutions, Public Sector Undertakings (PSUs) are now turning towards management institutes to take hold of graduates from top B-Schools of the country. Following the footsteps of corporate giants, State-run companies like Bank of Baroda, Union Bank of India, State Bank of India, National Housing Bank, Indian Oil, ONGC, SIDBI, BHEL, NTPC, SAIL, GAIL and Coal India are lining up for top B-School to absorb deserving candidates in their organizations.
Currently, the placement drive is underway and PSUs are offering promising job roles in the fields of marketing, finance and operations. The salary package is competitive when compared to private entities. In addition to this, B-School graduates are increasingly gaining interest in working at PSUs.
Why PSU’s are hiring management graduates?
A sudden rush to hire business graduates has been seen this year, however, this not the first time that PSUs are visiting B-Schools for recruitment proposes. It was only in 2011, when Madras High Court imposed ban on hiring graduates for working in State-owned companies, a drop in recruitment by PSUs was witnessed. The ban however, was dismissed in 2016 and in the year 2017 but hardly any offers were made by PSUs.
- As per recent reports, PSUs have offered 15 jobs to final year students at IIMs Kozhikode and Bangalore.
- Indian Oil Company offered a couple of jobs at IIM-Calcutta. IIM-Indore also saw presence of PSUs on its first day of placement. The number of proposals rolled at IIM-Indore increased by 60% in comparison to last year.
- The average salary package offered by PSUs rose by 50% at Faculty of Management Studies (FMS), Delhi. In 2017, the average package offered by companies like IOC, SBI and SBI Capital Market was Rs. 11 lakh per annum. This year, the average package increased to Rs. 16 lakh per annum.
- Similarly at XLRI, Jamshedpur, the number of offers rose by 50% and average salary package by 30%. PSUs like GAIL, HPCL, IOC and NHB were among the early participants in the placement process at XLRI to recruit candidates from the college.
PSUs in turn look forward to hiring talented candidates from top B-schools as the candidates have already proved their worth by qualifying in highly competitive entrance exams like CAT, XAT, MAT and more. Further candidates are shortlisted through interview rounds, Group discussion and academic performance.
PSUs mostly don’t have any fixed recruitment policy when compared to other government organizations. New recruits are hired as and when the demand arises. Sometimes, a PSU doesn’t go on hiring for two years due to lack of vacancy. However, this shouldn’t concern management graduates from top B-Schools as PSUs from 2018 are expected to increase recruitment by 160%.
Why Graduates are Preferring PSUs?
Graduates are also preferring PSUs for recruitment. The primary reason for the same is the lucrative pay cheques (starting package) at par or equivalent with other major private companies.Additional monetary benefits of working at a PSU include free medical insurance, retirement benefits, easy loans, incentives, etc. There is also a higher rate of job security in a government job.The unpredictable market economy is the reason for having job security as a valuable asset.
PSU’s also provides stability to career along with great growth opportunities. Unlike the private companies, promotions and increments in PSU are sure to occur. The path to achieve this is more transparent and reliable. If an employee works arduously and committed to achieving targets, then he/she has a bigger chance of professional growth within the company.
On the social front, working in a PSU has always been a matter of respect and reputation.PSU employeemay also get opportunities to travel around the country and abroad for work.
PSUs and Campus Placement
One of the popular ways through which PSUs recruit graduates is by visiting the campuses of premier B-Schools like the IIMs, FMS, XLRI, etc. These companies visit these institutes to at the time of placement session and roll out job offers to final year students who they find best for the jobs.
The deadline to implement 7th Pay Commission is nearing fast and it is expected that salaries of PSU employees are set to rise and that too at a rate higher than the one recommended by 7th Pay Commission report. It was recommended to give a pay hike of 2.57 times on basic salary and it is expected that it won’t be less than 3.00 times.
Such positive factors accompanied by craze among young graduates for government jobs, is going to release pressure from other government organizations and will also act as an alternative for management graduates who are not looking for jobs in the private sector.