If you join an MBA programme in any of the Business schools in India, there are high chances that you will secure a job before the end of the course. Such offers are popularly known as a Pre-placement Offers (PPOs).
What are Pre-placement Offers (PPOs)?
Pre-placement offers PPOs are usually given during the summer internship on the basis of the candidate’s performance. In the scenario, where jobs have become scarce, Pre – Placement offers (PPOs) are something every candidate longs for.
A Pre-placement Offer comprises of an Offer Letter, which assures a candidate a job in the said company once the professional course is complete. Once the candidate accepts the job, they are given appointment letters by the company.
Hiring through PPOs is aimed at giving both the parties a chance to experience each other and bring out the best results. The candidates know what is expected out of them and the companies know how well the candidate will deliver the results.
Why do companies give out Pre-placement Offers?
Every company knows that in order to sustain their business, they require a good workforce. Therefore, they tend to acquire candidates from good institutes based on their internship performance, by giving them the Pre-placement Offers (PPOs).
Along the same lines, a 30-minute interview for placements — a profound technique for grounds enlistment into the companies — may turn into the second most-favoured path for recruiting future leaders.
Strategy Consulting, General Management and FMCG companies are generally pretty early with their Pre-placement Offers. The Finance firms, however, confirm their PPOs later. Companies simply don’t want to lose on good candidates in this competitive ground. They want to grab future leaders for their respective firms.
What do the stats of top B-schools have to say?
Records from several Indian Institutes of Management (IIMs), and other top B-schools such as MDI Gurgaon and XLRI, show that 1 in every 3 students, in a class of 20 students is likely to be recruited through Pre-placement offers.
Consulting and consumer companies are leading the charge with a flurry of Pre-placement Offers. They ensure that more and more students have a job in hand before the final placements even kick off in the campus.
Why are Pre-placement Offers a rage in B-schools?
It would not be wrong if we say that candidates prefer to go for internships that come with Pre-placement Offers. As more and more companies are coming out for summer placements via internships, it has proved to have a domino effect on the students.
PPOs help relieve psychological pressure among candidates and keeps them much more focused. Not only this, it also enables the students in setting the bar high for their own career growth.
Thus, students are progressively accepting Pre-placement Offers (PPOs) while completing their course in the best B-schools of India.
What is the present state of PPOs?
IIMS: Pre-placement Offers usually go on till the end of January. This year, just a couple of months into the process—and more than four months to go—most IIMs have already retraced up to 60-80% of last year’s total PPO tally, which is showing that companies are in a rage to get a hand on good candidates.
IIM Bangalore has officially got more than 100 PPOs this year, against an aggregate of 155 PPOs. The previous batch figured out how to draw in before the finish of the academic year.
IIM Calcutta has 80 or more PPOs, which is expected to grow to a total of 133 by the end of the year. IIM Kozhikode has so far accepted 61 Pre-placement Offers, compared to 79 in the entire year for the previous batch.
IIM-Kozhikode saw a 33 percent increase in the number of candidates accepting PPOs this year. The increase in the number of PPOs has been commendable.
XLRI: In the 2017-19 batch of its flagship programme, a two-year postgraduate diploma in management, XLRI had a total of 358 candidates for HRM (Human Resource Management) and BM (Business Management). A total of 122 candidates received PPOs this year, almost 34% of the total size of the batch. Around two years ago, the number of candidates receiving PPOs was less than 100. Evidently, a clear shift to PPOs is taking place.
IMI: IMI, New Delhi, saw a 25 percent hop in PPOs, with around 50 PPOs being offered to their 2017-19 batch students. The total strength of batch is 303 students.
MDI: At MDI Gurgaon, the PPO tally has crossed 71. It is a nearly 122% jump over the 32 offers that were made at the same time last year.
What are some of the top companies offering PPOs?
Well, there is no denying fact that companies are offering PPOs in large quantities. Some of the leading companies for PPOs are as follows.
BCG India: Global management consultancy BCG India has already made 50-plus pre-placement offers (PPOs) across the country from top Business schools. Over the last few years, the company has increased its PPO hires dramatically.
Bain & Company: Bain & Company has doubled its PPOs across experienced consultant roles. The global consulting firm runs its summer programme at IIM Ahmedabad, IIM Bangalore, IIM Calcutta and IIM Lucknow every year. Based on the candidates’ performance, it distributes them PPOs. If we go by the stats, 75% is the typical conversion rate of interns landing pre-placement offers from the companies itself.
Hindustan Unilever, Procter & Gamble, and Reckitt Benckiser: FMCG companies too are going strong With PPOs. Hindustan Unilever, Procter & Gamble, and Reckitt Benckiser are among the top consumer products companies that have made PPOs at IIM Calcutta this year.
Others: Aditya Birla Fashion and Retail, Asian Paints, BCG, Deloitte, EY, HUL and Nestle made PPOs at IIM Kozhikode.
While the numbers of Pre-placement Offers made to students are huge, this is yet to be increased as the final placement season has not started in some of the B-schools. Let us sit back and watch how the tables turn in the final placements!