IIT Placement Season Faces Setback as Companies Trim Hiring and Slash Salary Packages

Amidst the ongoing placement season at India's esteemed Indian Institutes of Technology (IITs), there's a noticeable slowdown in the pursuit of high-paying jobs. This trend has emerged as companies scale back their hiring endeavors and extend reduced salary offers. Consequently, students reaching the tail-end of the recruitment process are encountering annual compensation packages falling below the Rs 10 lakh mark.

Organizations that typically select half-a-dozen students are now only picking one or two at most, prompting colleges to expand their outreach to additional companies. However, many of these newly approached companies are offering annual compensation ranging from Rs 10 to 15 lakh. Despite securing campus jobs at what they perceive as a lower pay scale, students are actively seeking better opportunities on job portals and are even traveling to different cities to participate in job fairs and interviews.

According to a report of TOI, The global economic slowdown has significantly impacted the campus placements for the 2024 graduating batch of IIT Indore. The reduced hiring numbers of recruiters compared to the previous year have resulted in a challenging placement season. To offset the impact, IIT Indore has taken early steps by tapping into alumni networks and has broadened its pool of potential employers, including PSUs," said Professor Suhas Joshi, director, IIT Indore.

A student from IIT Bombay remarked that this year, Companies that previously hired 5 to 8 students are now opting for just 1 or 2. Moreover, many students are still awaiting job offers. Interestingly, during the second phase of placements, some students have secured positions in a variety of sectors, from coaching classes to start-ups, with salary packages ranging from Rs 60,000 to Rs 80,000.

Another student from an IIT-Kharagpur said, Spectrum Technologies offered Rs 3.6 lakh for trainee engineers and Rs 6 lakh for trainee design engineers. Startoon Labs and Gem Machinery offered Rs 5.5 lakh annually. Skyroot offered Rs 5 lakh. Sri Chaitanya and Next Education offer Rs 4.8 to 6 lakh per annum, TOI reported.

According to a source, the current situation sees many students accepting jobs that offer the minimum salary threshold of Rs 6 lakh per year while actively seeking alternative opportunities. Both students and placement office staff are making concerted efforts to attract more companies by negotiating packages with NGOs, reaching out to job portals, and offering guidance to final-year students.