Flipkart, CarDekho defer joining date of IIM graduates
Months after the completion of recruitment process at IIM campuses, many e-commerce companies including Flipkart have deferred joining dates of top B-School graduates citing their ongoing ‘restructuring processes’ among other reasons. E-commerce firms like Flipkart, CarDekho, and Hopscotch among others have told IIMs that the joining dates of the recruited students have been postponed by three to six months. According to the media reports, IIM Ahmedabad, IIM Bangalore, and IIM Udaipur are among the few top B-schools which have been notified by the companies about the deferred joining dates.
Confirming to the reports, Chairperson, Career Development Services- IIM Bangalore Prof Ganesh N Prabhu said, “A few companies have informed our institute about the delay in joining dates of the recruited students. Hopscotch and CarDekho have delayed the process till September 2016 and Flipkart till December 2016.” Further, he told Careers360 that around 19 students have been affected by the company’s decision, but at present are on speaking terms with the company officials. IIM A officials also confirmed that Flipkart has deferred the joining dates for their recruits from IIM-A campus by about 7 months.
On their part, the recruiters have attributed the delay to their ongoing restructuring and other reasons. For example, Flipkart on its official website posted that the ongoing restructuring, new business structure and bigger opportunities for new recruits are reasons behind the delay. The website stated, “As a part of this ongoing restructuring, the campus program will also go through a comprehensive overhaul to ensure that it is in line with our new business structure and that our campus recruits start working towards larger company goals from Day One. As we work on redesigning this program, we have taken a decision to postpone the joining of new recruits by a few months. Instead of June 2016, the new recruits will now be part of the improved campus program in December 2016.”
With the delay on their part, a few companies have also offered an additional joining bonus to their recruits. Flipkart has announced that it will pay a joining bonus of Rs. 1.5 lakh to all campus recruits. IIM Ahmedabad and IIM Bangalore though have confirmed on the compensation provided by Flipkart, but demanded job guarantee for the recruited students. They also argue that the waiting period of 6-7 months is too long and it should be reduced. “Flipkart has offered an additional joining bonus directly to those students who will join them in December. IIMB will not negotiate with companies on compensation but is open to discussion on ways to reduce the long waiting period for the affected students. For example, if the recruited students cannot be on-boarded immediately due to internal restructuring, they can be taken on a time bound project internship on a stipend by the recruiter before joining the company formally in December,” said Prof Ganesh N Prabhu.
A few B-schools are also in talks with the recruiters to sort out differences on the issue. An IIM A official confirmed that they are scheduling a conference call with the Flipkart to further negotiate on the matter.
Meanwhile, the students are left on pins and needles and are willing to look at other job options with other companies during the waiting period. A few institutes including IIMs have also started facilitating the job search for the affected students. The B-schools are also considering a formal rejection of such job offers. According to IIM-B officials, there is nothing wrong in formally rejecting offers if the students wish so.
B-schools now feel that the recent crisis may mar the reputation of e-commerce recruiters in campus placements across top B-schools in India. “Yes. It is likely that students will not apply next year to the specific e-commerce companies that postponed joining dates considerably or changed terms of employment from what was promised on campus during pre-placement talks,” said an official from an affected IIM.
Stay tuned to www.bschool.careers360.com for more news and updates