Is your degree worth what you¡¯re earning? Survey reveals skills fetching premiums upto 20%
Over the past five years, campus compensation in Indian colleges has shown a robust Compound Annual Growth Rate (CAGR) of 5.2%, with certain courses experiencing particularly significant increases, as revealed by a Deloitte survey.
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Deloitte India's "Campus Workforce Trends" survey highlights significant shifts in on-campus placement compensation trends:
- Courses like M Tech and CA/CFA have seen substantial increases in compensation over recent years.
- Companies engaging in on-campus recruitment have adjusted their pay structures, notably increasing the emphasis on variable pay components by 2.5% in the 2023-24 fiscal year compared to the previous year.
- Joining bonuses are increasingly popular, offered by 48% of organisations in FY24, up from 33% in the previous year. These bonuses typically include a 2-year clawback policy, meaning that if an employee leaves the company within a specified period (in this case, 2 years), they may be required to repay part or all of the joining bonus. The aim behind this is to reduce turnover and ensure a return on the investment made through the joining bonus.
- Despite an overall upward trend in compensation for management degrees, there was a notable 7% decline in the financial year 2022-23, attributed to financial pressures on hiring companies.
- Skill-based hiring is gaining traction, with skill premiums reaching up to 20% for roles in AI/ML, Robotics, Social Selling, Sustainability Management, and ESG.
As per the survey, in recent years, despite students' expectations of high compensation aligned with market norms, a downward trend has been observed. This decline can be attributed to heightened concerns about unemployment, coupled with cost-cutting measures and a decrease in job opportunities.
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