Tuesday, November 21, 2006

Mum about money: IIM on an undercover job!

Priyanka Tiwari, 20 Nov, 2006 2056hrs IST Times News Network

IIM-Bangalore's decision to not disclose the impressive salaries being offered to students is being deemed as a sensible move.

Much is made of the whopping pay packets that IIM or IIT students bag even before they've stepped out of the hallowed precincts of their institutes. Just last week, an IIM-Calcutta student was offered a record stipend of Rs 10 lakh approx ($22,000) for his summer training! The salary of two IIM Bangalore students -- Gaurav Agarwal and Venkatesh Shankararaman -- became the topic of discussion and reason for jubilation when they bagged plum pay packets. While Venkatesh was offered Rs 30 lakh per month -- the highest offer for a domestic position, Gaurav Agarwal received the highest ever offer of £105,000 ($193,000) per annum in London.

But as much as it may be a reason to cheer, IIM Bangalore has decided to not reveal the salary/stipend offers that its students receive from here on because it creates unnecessary psychological pressure on other students of the institute to meet greater expectations.

And others agree. "Highlighting salary details, especially when they are above normal compensation levels, creates psychological pressure on other students and draws the attention of unscrupulous elements. The expectations of parents, students and teachers are upped, but the worst affected is the student whose salary gets disclosed as he is inundated with queries," says Prof Devi Singh, director IIM Lucknow.

Prof Salwan, placement chairman at IIM-Indore also agrees that disclosing pay packages increases the burden of expectation on other students. "However, I think that most students are mature enough to understand that salary packages are just one of the components of their job profile," adds the Prof.

Also, the hype created around hefty pay packets tends to sideline other factors involved in job selection. Training and placement head at IIT-Mumbai Prof Subash Babu feels disappointed that only the salaries offered by organisations gets reported. "There are many other issues which deserve attention while differentiating job offers. Of course, the pay offered is a huge attraction, but a large number of students look for jobs that are professionally challenging and relevant to their field of expertise and interest," says Prof Subash and adds that he is contemplating a policy proposal to ensure that salary offers to students are not made public.

But students mince no words while criticising the hype created over job salaries. Says Shobhit Bhatnagar, an IIT-Kanpur student, "Disclosing unexpectedly high salaries offered to students puts other students under tremendous pressure, especially from their parents."

The psychological angle is confirmed by experts as well. "Imagine the stress created on brilliant students who have not been able to bag an equally good offer. It also increases the burden on average students who try to overreach themselves," says psychologist Dr Parveen Shukla.

However, the institutes' decision to not reveal the salaries offered to their students is not the end of the problem. For, in many cases, it's the companies that disclose these offers. Explains Prof Rajiv Sinha, head of the training and placement department at IIT-Kanpur, "There's stiff competition between companies as well and they highlight their salary offers to outdo their competitors. At least in the IITs, disclosing salaries is the prerogative of the recruiting company."

This, when companies make students they are employing sign a confidentiality clause saying that salaries offered by them should not be made public, as Sourav Mukherjee, chairperson of the placements department at IIM-Bangalore points out. He adds, "The decision of IIM-Bangalore, which has been collectively taken by students, dean and director would now meet that clause."

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