Flexing it with Benefits
Smart Pay Packages at Campuses
The positivity also resonates in the pay packages offered in campuses. 2015 will witness some of the highest compensation offered to students. Pay package is one of the simplest yet effective levers to attract students, and sectors like consumer products and e-Commerce are using this to their advantage to hire the best talent. The overall MBA Tier 1 median on total cost to company has increased by 12% in 2015 as compared to last year, whereas the total fixed pay median has only increased by 5%. This shows companies are adopting smarter ways to design pay packages at campuses, with minimal increase in fixed pay component and substantially increasing one time payouts such as joining bonus or increasing the variable pay component to link performance and pay aggressively at the start of student careers. By increasing the TFP nominally and TFC substantially (by increasing / introducing one time payout of joining bonus/ completion bonus), companies are able to maintain year-on-year on MBA batch parity and salary differential.
While the engineering colleges are churning high number of graduates and the industry is picking up talent in large volumes, the year-on-year increase on both the anchors is ranging from 3% to 7% across tiers. Similar trend is seen each year with flat or not so drastic changes in the pay packages at engineering campuses.
Mounting Campus Packages Four-Year Trend Line
The trend line for Tier 1 MBA campuses shows a mounting trend when data is compared for last four years. Top B School pay packages have increased by 28% over the last four years, with average YOY increase of 7% and maximum YOY increase of 12%, which is expected this year. The trend line for Tier 2 and Tier 3 campuses also show a similar movement with average YOY increase of 6% and 7% respectively.
About the Study
The study aims to understand the changing dynamics of campus recruitment strategies and compensation offers across various academic streams such as engineering, MBAs, CAs, commerce graduates, hotel management graduates, lawyers and pharmaceuticals. The survey reports provides in-depth insights on hiring and compensation trends across different tiers of colleges and industries covering aspects like joining bonus, brand building initiatives, benefits, etc
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