Business Sentiment Positive In India But Campus Hiring Of Entry-Level Graduates Decline: Report

Despite a positive business sentiment in India, the study found companies are taking a cautious approach to campus hiring, with several organizations implementing hiring freezes and reducing hiring volumes, a new report said.

Aon, a global professional services company, has announced the findings of its India Campus Study Report 2024-25.

The annual report, now in its thirteenth year, is based on the responses of over 250 organizations surveyed about their campus recruitment practices. It covers an in-depth analysis of the campus hiring landscape across various sectors and qualifications and offers valuable insights into the recruitment and onboarding experiences of campus hires.

The report said that business sentiment looks positive for India, with 69 percent of organizations expecting a high to moderate growth. The sectors driving this growth are financial institutions, life sciences and consumer goods.

CA, CFA See Growth

Internships, lateral hiring and hiring for niche qualifications such as Chartered Accountant (CA) and Chartered Financial Analyst (CFA) continued to see growth.

Hiring volume for CAs and CFAs increased by 47 percent in the fiscal year 2024, followed by interns at 46 percent and lateral hiring at 40 percent, while 38 percent of MBA graduates and 30 percent of diploma holders including those who have completed vocational courses saw the least increase compared to the fiscal year 2023.

Compensation Trends

The compensation trends for campus hires remained largely stagnant across the tiers and qualifications, with some pockets seeing a dip in total fixed pay.

Organizations are focusing on performance incentives through variable pay, which ranges between 11-13 percent. MBA graduates are typically seeing a combination of incentives with more than 90 percent of organizations offering a joining bonus plus variable pay.

“Campus hiring is a strategic opportunity for organizations to build a diverse, skilled and future-ready talent pipeline. However, the campus hiring market in India is undergoing a rapid transformation due to the changing expectations of the candidates, the evolving skill requirements of the organizations, and the impact of the global slowdown,” said Roopank Chaudhary, partner and head of reward solutions in India for Aon.

“Furthermore, there is a direct correlation between company culture and performance, and organizations therefore must have policies and frameworks in place to align culture with employee expectations to ensure stickiness of the new hires,” Chaudhary added.

More Interns In Demand

The report said that there has been an increase in volume hiring of interns with more than 80 percent of organizations offering pre-placement interviews or pre-placement offers to promising candidates upon successful completion of an internship, with the highest prevalence for graduates of master’s in technology.

However, the study also revealed that early attrition is a cause of concern among MBA and bachelor’s in technology graduates, the top reason being competitive pay.

Gender Diversity Lacks Focus

Diversity beyond gender is still not a focus area for those surveyed, with 85 percent of organizations not hiring interns from diverse communities. However, 49 percent of organizations are investing in health and wellness, continuous feedback, learning and development, and rewards and recognition programs to drive wellbeing and performance.

“While there is a clear focus on strategic hiring, companies must prioritize building a strong employee value proposition that aligns with the expectations of the new generation,” said Saachi Verma, senior consultant, talent solutions in India for Aon and the study’s lead.

“Our study highlights that the main drivers of early attrition are external pay inequity, job mismatch, and work-life balance. Designing a compelling value proposition for new hires that includes both a competitive compensation and bonus package along with learning opportunities and career growth will help attract and retain top talent for organizations,” Verma added.