High levels of attrition and the boom in the technology sector are driving up compensation for freshers.
The median salary for campus hires at top management institutes this year is expected to be Rs 25.5 lakh per annum, a jump of 24% over the offers in 2019. In 2021, the salary averaged Rs 24.47 lakh, according to Deloitte’s ‘Campus Workforce Trends’ survey.
For engineering graduates from top colleges, the median annual salary is tipped to be Rs 15.81 lakh, an increase of 32%. In 2021, the median salary offered at these colleges was Rs 14.84 lakh.
Neelesh Gupta, director, Deloitte India, told FE attrition levels have risen to 20% from 15-16% a couple of years back. “Moreover, today’s youngsters are looking for flexible and hybrid work environments,” he said.
Against this, there has been a surge in demand for technology skills across sectors from FMCG to pharmaceuticals.
Gupta believes that while the cycle continues pay packets of freshers or young talent are expected to go up to near-unsustainable levels.
The top 10 colleges have been ranked by the National Institutional Ranking Framework (NIRF).
The rise in the compensation for graduates is visible across tier-1, 2 and 3 colleges. A technology graduate from a tier-1 college should earn Rs 11.8 lakh annually while a graduate from a tier-2 college will command Rs 7.78 lakh and a tier-3 institute graduate will make Rs 5.01 lakh.
Graduates from top MBA institutes should take home Rs 21.93 lakh and those from tier-2 and tier-3 institutes Rs 10.15 lakh and Rs 7.18 lakh, respectively.
Digital skills and data analytics feature on the lists of both the campus and the employers. Companies are on the lookout for talent in fintech and risk analysis, artificial intelligence, cybersecurity, and product design and engineering.
Skills in areas such as iOS/Android development, digital marketing and market access, material sciences/R&D, and financial risk management are in big demand.
Institutes and colleges are finding it hard to include everything in their curricula immediately and therefore, there is a shortage of certain skills. The number of youngsters with skills in the fields of robotic process automation (RPA), machine learning and artificial intelligence are not adequate to meet the demand.