Indian students prefer Indian companies

Vol 3, PW 23 (08 Dec 99) People & Policy
     

If you are a foreign multinational and plan to recruit local staff in India dont delude yourself into thinking you are first choice among students looking for a job.

A survey conducted by a Delhi-based consultancy shows that given the choice, most students, still prefer jobs with Indian companies, both private and public sector. Reason: job security, a prime consideration in a country with no social security back up if you face a spell out of work.

The survey - conducted among 300 students studying for a range of professional courses reveals that 38% of respondents feel Indian private and public sector companies are best at providing job security, while only 28% feel the same for multinationals. Among Indian private sector companies, the Tata group scores highest, with 45% of respondents expressing a desire to join the company, followed by Reliance (18%) and Infosys (12%).

Believe it or not, ONGC is the most popular choice among state-owned companies, with 18% voting in its favour. A close second comes the semi-public carmaker Maruti Udyog, which like ONGC is perceived as a company which provides good perks, another key consideration when selecting a future employer.

Only in terms of salary do multinationals win convincingly. A massive 70% acknowledge that foreign companies pay better than Indian companies.

McKinsey, Microsoft and Arthur Andersen are named as the best foreign paymasters in India. The moral of the story In India salary is not the primary consideration of employment.

In a country where breadwinners often support a joint family of three generations under one roof, it is not surprising that preference is given to an employer who provides health cover for everyone in the family - grandparents included. Indian companies understand this better than foreign ones.