Hiring at IIM-B to cost more

The Indian Institute of Management, Bangalore(IIM-B) is set to revise its placement fee this year.

Other IIMs "" including IIM Ahmedabad and IIM Indore and IIM Kozhikode "" had increased their placement fee last year. IIM Indore plans to increase the same next year.

While IIM-B is yet to decide on the exact quantum, the increase could be anywhere between Rs 20,000 and Rs 50,000. The institute will be revising its fee after three years.

Through the revision, the institute plans to increase its earnings from the placement fee. On an average, the institute generates Rs 1.5 crore per year by means of placement fees. The revision would certainly take the earnings upwards of Rs 2.5 crore.

The placement fee comprises two components: participation fee and recruitment fee. While the participation fee is a fixed amount that a company has to pay to be present on the campus, the recruitment fee is a variable component wherein the institute charges a specific amount from the company multiplying it by the number of students it recruits. The fee varies for domestic and international recruiters.

For instance, IIM-Bangalore charges a participation fee of Rs 1 lakh on day zero; Rs 60,000 on day one; Rs 40,000 on day two; and Rs 30,000 on day three. On the other hand, for recruitment fees, the institute charges Rs 50,000 on day zero; Rs 50,000 on day one; Rs 40,000 on day two; and Rs 30,000 on day three.

The institute, however, does not charge any participation fee from international recruiters. Instead, a recruitment fee of $4,000 (around Rs 1.6 lakh) is collected from the international companies that visit the campus for recruitment.

"Our courses are highly subsidised, and we have been charging a low placement fee for the past three years. The amount we will generate through this revision of placement fee, will go towards infrastructure development of the institute," said professor Sourav Mukherjee, chairperson, placement, IIM Bangalore.

The institute has made a proposal to the board and expects a clearance in the next two weeks, post which it will intimate the companies on the same.