Financial institutions, life sciences, and consumer goods are major drivers of India’s growth as 69 percent of organisations expect a high to moderate growth in 2024-25. However, the positive business sentiment has no major impact on campus hiring. Companies are taking a cautious approach to campus hiring, with several organisations implementing hiring freezes and reducing hiring volumes. However, internships, lateral hiring, and hiring for niche qualifications such as Chartered Accountant (CA) and Chartered Financial Analyst (CFA) continued to see growth.
According to Aon’s Campus Study Report 2024-25, based on the responses of over 250 organisations surveyed , the hiring volume for CAs and CFAs increased by 47 percent in the fiscal year 2024, followed by interns at 46 percent and lateral hiring at 40 percent, while 38 percent of MBA graduates and 30 percent of diploma holders including those who have completed vocational courses saw the least increase compared to the fiscal year 2023.
The compensation trends for campus hires remained largely stagnant across the tiers and qualifications, with some pockets seeing a dip in total fixed pay. Organisations are focusing on performance incentivisation through variable pay, which ranges between 11-13 percent. MBA graduates are typically seeing a combination of incentives with more than 90 percent of organisations offering a joining bonus plus variable pay.
Also, there has been an increase in hiring volumes of interns with more than 80 percent of organisations offering pre-placement interviews or pre-placement offers to promising candidates upon successful completion of an internship, with the highest prevalence for graduates of master’s in technology. However, the study revealed that early attrition is a cause of concern among MBA and bachelor’s in technology graduates, the top reason being competitive pay.
Diversity beyond gender is still not a focus area for those surveyed
As many as 85 percent of organisations not hiring interns from diverse communities. However, 49 percent of organisations are investing in health and wellness, continuous feedback, learning and development, and rewards and recognition programs to drive well-being and performance.
“Campus hiring is a strategic opportunity for organisations to build a diverse, skilled, and future-ready talent pipeline. However, the campus hiring market in India is undergoing a rapid transformation due to the changing expectations of the candidates, the evolving skill requirements of the organisations, and the impact of the global slowdown,” said Roopank Chaudhary, partner and Head of Reward Solutions in India for Aon. “Furthermore, there is a direct correlation between company culture and performance, and organisations therefore must have policies and frameworks in place to align culture with employee expectations to ensure stickiness of the new hires.”
“While there is a clear focus on strategic hiring, companies must prioritise building a strong employee value proposition that aligns with the expectations of the new generation,” said Saachi Verma, senior consultant, Talent Solutions in India for Aon. “Our study highlights that the main drivers of early attrition are external pay inequity, job mismatch, and work-life balance. Designing a compelling value proposition for new hires that includes both a competitive compensation and bonus package along with learning opportunities and career growth will help attract and retain top talent for organisations.”