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MBA grads set for pay cheer, B-school freshers may see 6.4% jump in pay packages

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The Economic Times
19th January, 2022 06:14 IST

Pay packets for the MBA Class of 2022 are set to hit a new high as companies bet on optimism.

Companies and business schools expect the competition for top talent to be intense as the job market for most sectors has turned positive - a trend endorsed by the latest campus compensation study by Aon.

"It's a good job market; almost every sector is quite positive, barring a few. We expect competition to hot up," said Rahul Guha, managing director and senior partner, India, at Boston Consulting Group, which has been one of the top recruiters at IIMs Ahmedabad, Bangalore and Calcutta in recent years.

The Aon data, shared exclusively with ET, projects a 6.4% annual increase in compensation offered to students at Indian Institutes of Management (IIMs) and top tier colleges for 2022 against 4.9% last year and near to nil movement in 2020.

Tier 2 and tier 3 campuses have also been on a growth trajectory, with projected compensation increase of 3.5% and 2.9%, respectively, in 2022 as opposed to only a 1% increment witnessed in tier 2 campuses and a contraction of 1% in tier 3 campuses last year, the data from 300 companies showed.

Some recruiters such as Axis Bank plan to significantly increase their fresher intake and visit more campuses this year amid attrition and rise in demand. "We are doubling our intake across MBA colleges, and increasing the number of campuses we are visiting," said Rajkamal Vempati, head-HR at Axis Bank.

'Cos Pin Hopes on Next Fiscal'
Aditi Mahadevan Nair, chief human resources officer at Citi South Asia, said the bank anticipates an upward shift in compensation offered by banks at both B-schools and technology campuses as there is an increase in salaries across industries. "Citi will be reviewing compensation for the coming year in line with our global compensation and benefits philosophy," she said.

Top officials at leading business schools said companies are betting on the optimism that demand will be high in the future, and it'll be a V-shaped recovery curve as many expect the disruptions caused by the Covid-19 pandemic to end soon.

"There is also a sense that Omicron might be signalling the end of the pandemic," said Debashis Chatterjee, director at IIM Kozhikode. "Companies are betting on the next financial year. They are expecting to see a rapid and sharp turnaround in growth, and their hiring is in line with those expectations."

Several companies that underrecruited in the past two years are also expected to step up hiring this year.

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