IITs plan safety net as startups revoke offers

May 28 2016 11:20AM


After Flipkart deferred the joining date for its B-school recruits, several other startups have withdrawn their offers to MBAs and engineering graduates, forcing the IITs to mull a safety net for its students, reports Hemali Chhapia .

Some of the startups have, after making their offers , reduced the compensation they had promised to pay to the freshers. As a result, the IITs have allowed all the affected students to re-register for placements. With Flipkart deferring the joining dates of 18 graduates of the Indian Institute of Management-Ahmedabad (IIM-A) by six months, the premier business school is set to draft new guidelines for placements to avoid such episodes in the future.

"We want to send a strong message to recruiters that they should define their recruitment policy appropriately before they go to campuses," Asha Kaul, chairperson of IIM-A's placement committee, said on Friday.

No solution has emerged in the Flipkart row so far, as both the institute and the company continue to stick to their demands. IIM-A has asked Flipkart to increase the compensation amount from the existing Rs 1.50 lakh, to be paid lump sum on joining, but the latter is neither ready to increase it nor change the joining dates. "I had a telecon with them (Flip kart). We tried to explain our points, they tried to explain their points. However, there was no progres," Kaul said.


" Flipkart may have its own constraints and they would like to continue with the same compensation or bonus. It's up to the students to decide whether they want to wait and join Flipkart," she said, adding that Flipkart's decision to defer the joining dates was a setback for the recruited students.

Meanwhile, IIM-A has also issued a written statement, saying, "Flipkart has been a trusted recruiter, and we are facing such a situation for the first time. We are certain that this matter can be sorted out satisfactorily."

Source:-TOI

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