Students' corner

Dear Students,

LAST WEEK WE ASKED: Do you think compensation packages could take a bigger hit than that of last year’s during placements this season?

BEST RESPONSE

For compensation packages to be better than that of last year’s, what we really need to ask ourselves is whether we are better off in terms of good governance. With the Indian economy under stress, inflation looming large, corruption spreading, and an ineffective central government, the Indian diaspora is falling apart. With most foreign investors adopting a wait-and-watch policy, the job creation scenario is going to take a hit, thereby adversely affecting compensation packages.

Amol Mahale, The Institute of Cost Accountants of India, Mumbai

OTHER RESPONSES

Exciting offers at the end of an MBA programme are major attractions for students and institutes alike. Students look forward to a better future and institutes to better students in years to follow. The broader picture from the global economic standpoint appears stable. The US president’s re-election indicates indubitable saviour from galactic shifts in global policies, which coherently entails downright advantage for organisations. The recent summer placements, which top institutes have completed in a trice, have witnessed stipend margins far higher than previous years. Barring a few domestic discordances, corporate India’s position looks very promising.

Amit Mitra, Praxis Business School, Kolkata

The placements have not been lustrous over the years, owing to the global slump. This has led to a significant decrease in average salary of fresh graduates. Considering the economic meltdown and shrinking job opportunities, fresh graduates are left with no option but to accept job offers with low salaries. In this plunging economy where recruiting, maintaining and motivating quality manpower together is the most challenging task, compensation packages could take a bigger hit than last year.

Debayan Daw, ITM University, Gurgaon

Going by the current trend, companies are trying to tinker with compensation policies. Rather than cutting on the packages, companies might look forward to reduce the fixed component in the package and beef the variable pay component, which would not only give them some time to stabilise but also help motivate the employees to do better because of performance-based packages. So, the total package might not change, only the structure might.

Anmol Gupta, Xavier Institute of Management and Entrepreneurship, Bangalore

Your responses should reach us at edu@business-standard.com  by Monday evening every week. Please ensure your responses do not exceed 100 words. Avoid attachments and email your full name, institute’s name, batch and complete mailing address. The student who gives the ‘Best Response’ will be awarded Rs 500.

THIS WEEK’S QUESTION: Do you think international firms could reduce exposure in Indian B-schools this placement season?