Examination crisis: Hiring costs may rise for industry, experts reckon

Concerns over CBSE and NEET assessment systems could force employers to add screening layers, raising hiring costs and complicating talent selection

Recent controversies surrounding the Central Board of Secondary Education (CBSE) and the National Eligibility-cum-Entrance Test (Neet) could weaken India Inc’s confidence in academic scores and lead to a rise in hiring costs, with industry having to independently assess candidates, said workforce experts. 

The implications may be more significant for large employers. “In mass hiring, even a small decline in the reliability of academic filters can create a sizeable operational burden,” said Shantanu Rooj, founder and CEO of TeamLease EdTech, the education and employability arm of TeamLease group. Rooj emphasised that if the credibility of any school- or college-level assessment system comes into question, employers may have to introduce additional screening layers such as aptitude tests, communication evaluation, AI and digital-readiness checks, and proctored assessments to validate candidates, which means higher costs. 

“There are two challenges when systems go awry. First, there can be adverse selection which affects quality. Second can be brain-drain, as bright students look outside for further studies. Both are not good. India Inc will surely have to do more screening to filter candidates. The issue is that these systems are large and cover the full country — one cannot ignore them anymore,” said Madan Sabnavis, chief economist at Bank of Baroda. 

 

Additional verification could increase recruiter workload, delay joining timelines, raise rejection rates after selection, and lengthen onboarding cycles.

 

“As an indicative estimate on the higher side, for every 10,000 applicants, even an additional ₹300-700 per candidate for testing, assessment administration and re-screening can mean ₹30-70 lakh extra in hiring-stage cost before training begins,” said Rooj of TeamLease Edtech, which focuses on workforce development and job-readiness programme.

 

"With AI raising entry-level expectations, employers will increasingly test for applied capability rather than assume that academic scores alone indicate job readiness," he added.

 

When assessment systems come under a cloud, they risk distorting meritocratic outcomes by depriving deserving students of opportunities while enabling less meritorious candidates to advance through critical educational and professional pathways, said Amrita Dutta, principal, education and social sector at Odgers, a global executive search and leadership advisory firm. Odgers works with firms on senior leadership hiring, board appointments and talent strategy.

 

Dutta warned that such failures could erode public confidence in school- or college-level assessment systems.

 

Anil Ethanur, co-founder of Xpheno, a specialist staffing and talent solutions firm working in IT staffing, engineering services, sales staffing and direct hire services, noted that university scores, certifications and qualifications are generally the main filters used by employers – therefore, any errors in the examination system could see deserving students fall behind.  

 

The concerns come amid multiple controversies in India’s high-stakes examination ecosystem this year. The CBSE’s newly introduced On-Screen Marking (OSM) system is facing multiple complaints over answer-sheet mismatches, missing pages, scanning errors, portal glitches and evaluation discrepancies. The Board is also examining cybersecurity-related allegations. Separately, NEET continues to face scrutiny following paper leak allegations, litigation and demands for reforms in examination administration and oversight.  

 

Odgers’ Dutta pointed to growing psychological pressure on students. "Systemic failures are aggravating psychological pressure on an already pressured student community. If this continues, Neet preparation may begin in the middle years, risking further burnout,” Dutta said, cautioning that some high-potential students may disengage from the system, creating a “loss of vital human capital”.