 "Start-ups want Day-Zero slots; IITs say no")
At the Indian Institutes of Technology (IITs) placements this year, start-ups want Day-Zero slots, something blue-chip companies such as Google, Microsoft, Facebook and Oracle have been getting so far. The IITs, however, are in no mood to relent.
While the premier institutes say Day-Zero slots are based on annual pay packages, start-ups argue the employee stock ownership plans (Esops) offered by them as part of the packages are good enough for them to seek the coveted placement slots.
The IITs at Roorkee, Delhi, Kanpur, Kharagpur and Guwahati confirmed start-ups were increasingly aggressive about Day-Zero slots. At IIT Roorkee, Zomato, Housing. com and CouponDunia have sought these slots for placements this year.
Every year, IITs start placements on December 1, known as Day-Zero or Day-One slots. On Day Zero, 20-30 companies can participate and the slot is usually reserved for core companies and consulting giants. In the earlier placement season, start-ups, including Housing.com, Flipkart, Ola, Commonfloor, Meru Cabs, Snapdeal and Stayzilla, had hired aggressively from IITs. They had participated in the first phase of placements, in December.
This time, start-ups say they are paying good annual packages of Rs 16-20 lakh, including stock options. But IITs say companies are given slots based on higher cash-in-hand salaries, usually given by bigger companies.
During the last placement season, US-based computer technology firm Oracle had made one of the top offers at Rs 1.83 crore a year (base salary of Rs 80 lakh and 4,000 shares in stock options).
A placement cell official at IIT Roorkee said though start-ups were demanding Day-Zero slots, the institute hadn't committed to these companies yet. "Students take a call on which companies should be given Day-Zero slots. Though start-ups are welcome, we do not want to miss out on the big daddies."
IITs also cite the limited availability of students during Day-Zero and Day-One slots. "Almost all start-ups are pushing for Day-Zero slots but we cannot entertain them. Much of the choice of companies on Day-Zero or Day-One slots is decided by students. Also, at Guwahati, it is not a problem of infrastructure; there are only a limited number of students who can be accommodated on Day Zero," said sources in IIT Guwahati's placement cell.
What's more, with candidates at some IITs facing inconvenience during the placement process, their complaints have resulted in these institutes initiating due diligence measures.
"We are applying some more due diligence for companies coming to our campus, especially start-ups, as we want to be really sure about their policies. Otherwise, we do know the regular companies that recruit and are aware of their fair employment and recruitment practices. In fact, in the past, when we asked some regular large companies to shift to other days, many were happy to oblige," said Philip of IIT Kanpur.
According to IIT sources, the All IITs Placement Committee (AIPC) has informally decided not to invite some start-ups this year. "The AIPC meets twice a year and recent incidents have forced the IITs to take a stronger stance. Communication will be sent to the respective companies soon but start-ups or any other company for that matter should realise they cannot take IITs for granted," said the head of a placement committee at an IIT.
The move comes in the wake of IIT Kanpur deciding to not invite Zomato and Directi, among others. According to sources privy to the development at IIT Kanpur, the decision followed Zomato and Directi not recruiting any IIT student after interviews last year.
Directi chief executive Bhavin Turakhia told Business Standard, "We have not received any official notice from any of the IITs. Right now, we are talking to IITs more about internships than the actual placement allocation, which doesn't start before September. We have no clue of any lack of interest among IITs. We would have no hesitation in approaching IIT Kanpur. We do not hold anybody accountable and will certainly endeavour to go to each IIT, including Kanpur."
WHAT START-UPs SAY
While the premier institutes say Day-Zero slots are based on annual pay packages, start-ups argue the employee stock ownership plans (Esops) offered by them as part of the packages are good enough for them to seek the coveted placement slots.
The IITs at Roorkee, Delhi, Kanpur, Kharagpur and Guwahati confirmed start-ups were increasingly aggressive about Day-Zero slots. At IIT Roorkee, Zomato, Housing. com and CouponDunia have sought these slots for placements this year.
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Deepu Philip, chairman, Students' Placement Office, IIT Kanpur, said, "Start-ups are trying to be more aggressive in their recruitment tactics and one of the ways is by demanding Day-Zero slots. But we want to be sure these companies are worth the slot and that it is not only a marketing stunt. Also, we don't want our students to be put through too many companies on a given day."
Every year, IITs start placements on December 1, known as Day-Zero or Day-One slots. On Day Zero, 20-30 companies can participate and the slot is usually reserved for core companies and consulting giants. In the earlier placement season, start-ups, including Housing.com, Flipkart, Ola, Commonfloor, Meru Cabs, Snapdeal and Stayzilla, had hired aggressively from IITs. They had participated in the first phase of placements, in December.
This time, start-ups say they are paying good annual packages of Rs 16-20 lakh, including stock options. But IITs say companies are given slots based on higher cash-in-hand salaries, usually given by bigger companies.
During the last placement season, US-based computer technology firm Oracle had made one of the top offers at Rs 1.83 crore a year (base salary of Rs 80 lakh and 4,000 shares in stock options).
A placement cell official at IIT Roorkee said though start-ups were demanding Day-Zero slots, the institute hadn't committed to these companies yet. "Students take a call on which companies should be given Day-Zero slots. Though start-ups are welcome, we do not want to miss out on the big daddies."
IITs also cite the limited availability of students during Day-Zero and Day-One slots. "Almost all start-ups are pushing for Day-Zero slots but we cannot entertain them. Much of the choice of companies on Day-Zero or Day-One slots is decided by students. Also, at Guwahati, it is not a problem of infrastructure; there are only a limited number of students who can be accommodated on Day Zero," said sources in IIT Guwahati's placement cell.
What's more, with candidates at some IITs facing inconvenience during the placement process, their complaints have resulted in these institutes initiating due diligence measures.
"We are applying some more due diligence for companies coming to our campus, especially start-ups, as we want to be really sure about their policies. Otherwise, we do know the regular companies that recruit and are aware of their fair employment and recruitment practices. In fact, in the past, when we asked some regular large companies to shift to other days, many were happy to oblige," said Philip of IIT Kanpur.
According to IIT sources, the All IITs Placement Committee (AIPC) has informally decided not to invite some start-ups this year. "The AIPC meets twice a year and recent incidents have forced the IITs to take a stronger stance. Communication will be sent to the respective companies soon but start-ups or any other company for that matter should realise they cannot take IITs for granted," said the head of a placement committee at an IIT.
The move comes in the wake of IIT Kanpur deciding to not invite Zomato and Directi, among others. According to sources privy to the development at IIT Kanpur, the decision followed Zomato and Directi not recruiting any IIT student after interviews last year.
Directi chief executive Bhavin Turakhia told Business Standard, "We have not received any official notice from any of the IITs. Right now, we are talking to IITs more about internships than the actual placement allocation, which doesn't start before September. We have no clue of any lack of interest among IITs. We would have no hesitation in approaching IIT Kanpur. We do not hold anybody accountable and will certainly endeavour to go to each IIT, including Kanpur."
WHAT START-UPs SAY
- Want Day-Zero slots
- Offer high Esops
- Placement practices need change
- Day-Zero slots for blue chip companies with high compensation packages
- Do not consider Esops; cash component matters the most
- Placement practices in best interest of students