MBA graduates preferring public sector jobs in 2014: ASSOCHAM
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By Saurabh Tyagi : According to a recent report released by ASSOCHAM, an increasingly greater number of B-school graduates are flocking to top public sector companies. This growing trend highlights the rising importance of public sector jobs in India.
ASSOCHAM recently released its paper on the occasion of Independence Day, “PSUs Back In Reckoning”. As the title suggests, it goes on to provide insights into how public sector companies in India is gaining attention from graduates of leading business schools of the country. The data offered by the report says that the number of intake by the PSUs from B-schools, inclusive of IIMs and non-IIMs, has climbed up by 160% in 2014 as compared to the previous year. The survey was conducted by including over 500 students from various top-of-the-line business schools such as BITS, ICFAI Business School, IIMs and Symbiosis Institute of International Business (Pune).
There is further information in the report about the huge demand of public sector jobs this year. The increase can be attributed to steep rise in the management trainee jobs in the public sector in the past one year, which has increased to the tune of 120%. Over 65% of the students responded that PSUs will be their first choice and they would like to be in a government job.
The overwhelming response in favor of the public sector jobs is largely owing to the improved Sixth Pay commission salaries and announcement of the next pay commission, which will give its report in 2016. Most of the PSU companies currently offer a starting package of Rs 10-12 lakh which is greater than the average starting salary of Rs 7-8 lakh in the private sector that a fresh engineering graduate and pass out of second tier business school gets. However, more than the salaries, it is the number of special allowances that are paid to the officers including children education allowances, bungalow maintenance allowance, professional pursuit allowance, courtesy allowance, canteen subsidy, and remote area allowance, which are in addition to the normal allowances such as HRA, and DA. Job security and stability also present a good reason to pursue these jobs.
The best employers in government jobs are names like Steel Authority of India, Oil and Natural Gas Corporation, National Thermal Power Corporation, and oil majors like Indian Oil Corporation, Gas Authority of India Limited, and Bharat Petroleum Corporation Limited. In addition to the Navratna enterprises, public sector banks are also a great attraction for not only business school graduates but also engineering students. This can be partly attributed to the mismatch of supply and demand where 4 lakh jobs are available for a pool of 15 lakh graduate engineers. As such, B-Tech graduates are turning towards banks for their dream job. An online survey by TalenSprint in 2013 revealed that 78% of respondents see banking as a dream job, more than half of which were engineers. The popular roles for which these banks hire engineers include specialist officers, probationary officers, and IT officers. The ASSOCHAM report revealed that 2.2 lakh job applicants applied to vacancies in SAIL, which is one lakh higher than last year. ONGC also got 1.5 lakh job applications this year, which is 120% greater than the last year. These companies attract candidates for engineering manager jobs, specialist engineer, trainee engineer and other senior executive level posts.
Banking sector to further generate 20 lakh jobs in the next decade
Experts claim that the banking sector might create up to 20 lakh new jobs in the next 5-10 years. This can be attributed to the government’s decision to issue new licenses and its initiatives for expansion of financial services into rural areas. HR service major Randstand India reports that the sector will be amongst the top job creators in 2014. It also predicts creation of 5-7 lakh jobs being created in the coming years, as more than 50 percent of the workforce is nearing its retirement age. In a statement, Randstand India & Sri Lanka CEO Moorthy K Uppaluri said, “With the new banking licences, which are likely to be issued in the first half of 2014, the banking sector is poised to create big career opportunities in the near future”.
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Saurabh Tyagi took to writing at a tender age of ten, when he submitted his first essay for the school magazine. Although an engineer by qualification, he has kept his creative flame alive and still writes and guest blogs for online education websites on various career and education related topics.
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