Demonetization not a deterrent for placement

(By Prof. Rajneesh Chauhan, Chairperson Placements FORE School of Management, Delhi.)[/b]

Contrary to the belief, demonetization is proving to be a positive development for management students. At FORE School of Management, Delhi, 75 % of the 2015-17 batch is already placed with average remuneration of Rs. 9.4 Lakhs.

This year the placement season has seen more action towards the end of Placement Season. The traditional technology recruiters from B Schools, namely Cognizant, Infosys, NIIT etc. delayed their recruitment numbers in light of US elections. E Commerce companies have also seen their recruitment numbers getting revised towards the fag end of the placement season. Given that last year, some of the E-Commerce companies had deferred their joining dates, E Commerce companies were not expected to hire in big numbers. However, because of demonetization, companies like Paytm, MobiKwik, Freecharge are hiring in bigger numbers and E-Commerce companies, expecting a brighter outlook going forward, are making a late dash for B School students towards the fag end of placement season.

Another sector that is reaping from demonetization is the BFSI sector and FORE is seeing the recruitment numbers of Banks getting revised upwards. Banking and Financial Services (BFSI) companies like ICICI, SBI, CRISIL, HDFC, Darashaw etc. also showed up in strong numbers. In this sector, the client base is increasing, the quantum of money in bank deposits is increasing, loans are expected to go up, the number of high net worth customers is expected to go up - all this means more recruitment from B Schools. Banks which had already recruited from FORE are evincing interest to come for second round.

The current placement season is also seeing a strong interest from blue chip companies which have, traditionally, been strong recruiters at FORE. HUL, Reckitt Benckiser, Asian Paints, ITC, Maruti, Mahindra & Mahindra, Tata Motors, Café Coffee Day etc. to name a few.Blue chip companies, strategy roles, IT sales, BFSI and e-wallet companies are making their presence felt. Consulting companies like Deloitte, EY, KPMG, Axis Risk Consulting showed up and so did the technology consulting companies like Cognizant, Genpact, Capgemini etc. The technology consulting majors did prune their numbers this year and given the direction coming from Donald Trump’s administration, these technology majors will see increase in recruitment action in US at the cost of Indian recruitment.

A positive trend this year is the increase in number of strategy profiles offered on campus. FORE’s academic focus on Strategy is paying dividends. IT Sales is another area that has traditionally attracted a lot of companies to come to FORE. This year even Gartner came for IT Sales.

Last year at FORE had seen a peak salary of 21 Lakhs per annum and an average CTC of 9 Lakhs. This year, placements have already outshone the previous year and the average CTC is 9.4 Lakhs per annum

 

[Swaswati Borpuzari]

Demonetization, the process of stripping a currency unit of its status as legal tender, has been a tool used by governments to combat black money, corruption, and counterfeit currency. However, its effectiveness as a deterrent for securing placements in educational institutions, jobs, or other competitive fields remains questionable. The primary goal of demonetization is to disrupt the flow of unaccounted cash, which often fuels illegal activities. While it can have short-term impacts on the availability of cash, the underlying issues that drive the use of black money in securing placements are more complex and deeply rooted in systemic problems such as corruption, lack of transparency, and inadequate regulatory frameworks.

For instance, in the context of educational placements, demonetization might temporarily reduce the liquidity of black money, making it harder to pay large sums of unaccounted cash. However, this does not address the root causes of why individuals resort to such practices. The demand for premium placements in top institutions often outstrips the supply, leading to a competitive environment where some individuals and institutions may still find ways to circumvent the system. Moreover, the transition to digital payments and other forms of value transfer can mitigate the impact of demonetization, allowing the black market to adapt and continue its operations.

Similarly, in the job market, demonetization might disrupt the immediate flow of bribes and kickbacks, but it does not eliminate the underlying incentives for such practices. Employers and job seekers may still find alternative means to secure favorable outcomes, whether through digital transactions, favors, or other forms of influence. The lack of robust regulatory oversight and enforcement mechanisms means that the deterrent effect of demonetization is limited and often short-lived.

To truly address the issue of securing placements through illicit means, a more comprehensive approach is needed. This includes strengthening regulatory frameworks, increasing transparency in the selection processes, and implementing stringent penalties for those found guilty of corruption. Additionally, fostering a culture of integrity and ethical behavior through education and awareness campaigns can help create a more level playing field for all participants. Demonetization, while a significant step, is just one part of a broader strategy to combat the systemic issues that enable such practices to persist.