IIMs and IITs see an upsurge in placement packages during COVID-19

The COVID-19 pandemic has shocked the economic pillars of the entire nation, but the premier institutes of India have successfully saved themselves from this gloom with phenomenal placement offers. IIMs and IITs have seen better and bigger payment pockets this year as compared to the batch of 2020. The batch of 2021, even after bearing the full impact of the pandemic, sees an upsurge in their placement packages at India’s top B-schools and E-schools. While the second wave of the COVID-19 pandemic left a major impact on several other graduate institutions and colleges, it did not have a significant impact on the final placements of tier-1 and tier-2 campuses that ended before the second wave.

What do the latest studies suggest?

According to the latest reports by Aon, a professional service firm, the average MBA package for IIMs, tier-1, and tier-2 business schools has seen a rise of 2-3% in 2021 compared to last year. Despite the strained economy, these schools have witnessed a 20% hike in pre-placement offers and a rise of 10-15% in the number of firms queuing up to hire. The pandemic, undoubtedly, has impacted many sectors but not the compensation of IIMs and IITs. 

The final placements of the 2021 batch are likely to commence this week, which is already set to see improved placement offers as studies suggest. Roopank Chaudhary, partner at Aon said that the effect of the Covid-19 pandemic has been less this year as compared to 2020. Because of this reason, he said, there are fewer instances of offers being revoked or withdrawn.

Even though IIMs are among the top choices for recruiters, the placement cell at other B-schools has also seen an improvement in 2021. At XLRI Jamshedpur, a placement official said that the business school has seen an increase in average CTC (cost to company) from Rs 24.30 lakh per annum in 2020 to Rs 25.80 lakh per annum. At the other end, IIM Indore saw an increase of 3% in the average CTC. Consulting, e-commerce, and tech-driven firms are the core reasons behind this rise in average CTC. Below is the table showing the highest and the average CTC of IIMs 2021 placements. 

Also read: XLRI Jamshedpur Final Placement Report| Average Pay Increases For Batch of 2021

Joining bonuses and placement incentives

Besides a surge in placement packages, tier-1 and tier-2 campuses have also seen an uptick in the joining bonuses and other incentives. For students studying in B-schools, the joining bonus scaled up by an average of 2.9% year-on-year while for students studying in engineering colleges, it’s up by 3.8%. 

This figure was arrived at by taking in the responses of 370 companies across eight verticals which included hi-tech, consumer products, e-commerce, and financial institutions, across three campus tiers. The study also revealed that companies see insight into the return to normalcy and have simultaneously measured and controlled their actions with respect to hiring and compensation in 2021.  

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