Biz & Economy

Hiring Woes In The Tech Industry: A Quick Look

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On 20th May 2016 Flipkart postponed the joining date of IIT and IIM graduates from June to December

Citing restructuring of its businesses as the reason for the deferment, Flipkart offered a bonus of Rs. 1.5 lakhs to the students in recompense. Following this announcement, the All-IITs Placement Committee (AIPC) said they would withdraw Flipkart’s Day-One slot in placements. Meanwhile, the students demanded either a higher bonus or a reduced deferment period.

The Chairman of IIM-Ahmedabad demanded corrective measures from Flipkart 

The Chairman asked for a higher bonus to compensate for offers foregone by the students and to help them meet loan repayments. Further, the institute also demanded a confirmation of the final joining date in December. Flipkart agreed to increase the bonus to Rs. 3 lakhs and arranged for paid internships at other startups for the deferment period.

Meanwhile, other companies jumped in with job offers for the disgruntled students

While Flipkart was taking remedial measures, other e-commerce portals like Amazon, Paytm, Voonik and other portals got in touch with the business schools to hire these students. Students are weighing the options offered by above mentioned organisation. The students who did not wish to wait took the offer from the tech companies.

Just like Flipkart, they to0 delayed the offer letters

After Flipkart, Larsen & Toubro (L&T) Infotech withdrew offers to 1500 students in Chennai. The reason cited was poor performance in an assessment test just a few days before the joining date. Other firms like Roadrunner, a logistics startup, car portal CarDekho, mobile advertising firm InMobi also delayed joining dates of new hires.

These incidents have prompted student protests and concerns about the growth of tech industry

Following the delay in offer letters, the agitated students of these institutes broke out into protests. For instance, L&T offices in Tamil Nadu were picketed by protesting students in response to the offer withdrawals, reflecting their fear about their future job prospects in this industry.

There are concerns that this indicates a slowdown in hiring from the tech industry for the foreseeable future. In May 2017, the IT employees’ wing of the New Democratic Labour Front (NDLF) even sought Tamil Nadu government’s intervention on the issue of job cuts. 

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