Summer internships seem like a new buzz in the corporate world. Corporates used to hire new talents through conventional interviews at the placement season even recently, however, this year it is different. Premier business schools like MDI Gurgaon, XLRI, IIM Kozhikode and TISS Mumbai who have completed summer placements for the 2018-20 batch, recently witnessed this trend. The top recruiters visiting their campuses offered as high as INR 1.5 lakh per month as a stipend to the interns.
The figures have just doubled in two years and if we take a glance at the statistics Axis Bank stipends have risen to Rs 1.1 lakh from Rs 60,000 per month; to Rs 1 lakh from Rs 30,000 at Becton Dickinson; to Rs 1.25 lakh from Rs 85,000 at Pidilite; to Rs 1.5 lakh from Rs 90,000 at Godrej, and to Rs 1.6 lakh from Rs 85,000 at LÓreal, said Gurgaon’s Management Development Institute (MDI).
At Mumbai’s Tata Institute of Social Sciences (TISS), normal stipends amid summer placements crossed the Rs 1 lakh. Students were offered Rs 1.02 lakh for every month from Rs 88,000 for a year ago’s group. ITC, Hindustan Unilever and Reckitt Benckiser offered the most elevated month to month stipends of Rs 1.5 lakh each. At MDI Gurgaon, the most elevated stipend was from Lóreal, was Rs 1.6 lakh per month; at XLRI, it was Rs 1.65 lakh month to month.
Indian Institute of Management (IIM) Kozhikode additionally witnessed a 43% increase in the median stipend to Rs 1 lakh per month during this year’s summer placements. Around 27 students got the most elevated monthly stipend of Rs 1.5 lakh, three times the figure a year ago. Nearly top 100 students got a normal stipend of Rs 1.28 lakh, a 14% increase from the figures a year ago.
This sudden shift in course of the placements is due to the effect of many reasons. The Asian market is witnessing a boom and majority of the multinational is strengthening their business in Asia to benefit from this upward surge. Stringency in visa rules in the US and many other European countries also has some effect on the matter and most importantly, companies now want to hire tried and tested talent, one who has worked for them and know about the organisation inside and out in those 2-3 months of the internship period. Students also develop a bond with the brand and hiring them at the end of their course seems to be all rewarding.
The above statistics clearly exhibits how seriously companies are taking the whole summer internship exercise. In the words of Sumit Mitra, head, group HR and corporate services, Godrej Industries Ltd and associated companies, “Over the last few years, we have made considerable progress towards our aim of recruiting a majority of our Gallop Management Trainee batch through our Gurukul internship programme. Many young leaders at Godrej today first worked here as summer interns and accepted pre-placement offers to join us full time.”
Thus, it will be safe to assume that Summer Internship is a brand new tool to recruit budding talents who could become a prospective hire in the longer run. Students should take internships seriously and with a hike in the stipend it won’t be hard to win them over.