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The Economic Times
The Economic Times

AI is pushing India campus hiring towards skills and job readiness

India’s campus hiring market remains resilient as employers focus on skills, critical roles and job readiness, according to Aon’s Campus Study Report 2026-27.

The 15th edition of the study covers more than 220 organisations, 10 qualifications and 12 key industries. It found that 56% of organisations plan to increase hiring of Chartered Accountant and Company Secretary graduates.

Around 51% expect to hire more interns, while 40% plan to increase recruitment of diploma holders and 36% expect to hire more engineers. About 40% of organisations also plan to increase lateral hiring.

“India's campus hiring market remains resilient, but employers are becoming more selective of the skills and roles they hire," said Roopank Chaudhary, Partner and Head of Talent and Rewards Consulting, India, Aon.

"Organisations continue to invest in campus talent, yet hiring decisions are increasingly shaped by business demand, specialised skills and graduate readiness. The findings show employers are building early-career pipelines that align more closely with the capabilities they need to support future growth."

The report said financial institutions, global capability centres, and fast-moving consumer goods and consumer durables companies are driving campus hiring across qualifications. Demand is strongest for data science and engineering roles, with a shift towards actionable insights in operations and supply chain functions.

The median intake stands at 15 MBA hires and 100 lateral hires, according to the study. Hiring sentiment also remains positive, with 43% of organisations expecting double-digit revenue growth.

Campus hiring concentrated in August-September

Campus recruitment remains concentrated in the August-September period, which accounts for 47% of total intake. Hiring during June-July has declined from 26% to 19%, according to Aon.

Around 21% of hiring takes place in October-November, while 13% happens in December-January. Year-end recruitment is driven mainly by other services, financial institutions and engineering and manufacturing companies.

Campus compensation set to rise

Campus compensation is projected to rise 2% to 7% year-on-year across major streams.

For Bachelor of Technology and Master of Technology graduates, the projected median total cost to company (TCC) for the 2027 cohort at the seven IITs covered in the study is INR 16.56 lakh, compared with INR 16.46 lakh for the 2026 cohort.

Median TCC at Tier-1 engineering colleges is projected to increase from INR 13.85 lakh to INR 14.75 lakh. The median TCC at Tier-3 colleges is projected at INR 7.55 lakh.

For MBA graduates, projected median TCC at the top IIMs is expected to remain at INR 26 lakh. At Tier-1 management institutes, it is projected to rise from INR 20.89 lakh to INR 21.50 lakh.

TCC includes fixed pay, one-time cash offers such as joining bonuses and annual variable pay, but excludes long-term incentives.

MBA compensation has largely stabilised, with employers protecting top-tier offers while limiting increases at lower-tier institutes. About 46% of organisations offer joining bonuses to MBA graduates, while 72% include variable pay in TCC.

For other graduates, median compensation stands at INR 7.55 lakh at Tier-1 institutes, INR 5.45 lakh at Tier-2 institutes and INR 4.71 lakh at Tier-3 institutes. Only 23% of organisations offer joining bonuses to graduates, suggesting that such payments are mainly being used for critical roles.

Internships remain key hiring route

Internship hiring remains widespread across qualifications. Between 89% and 94% of organisations hire interns, with the highest proportions reported for B.Tech and M.Tech graduates at 94% and MBA graduates at 93%.

Around 85% of organisations hiring MBA interns use pre-placement interviews or offers to convert them into full-time employees. The corresponding figures are 81% for B.Tech and M.Tech, 83% for B.A, B.Com and B.Sc graduates, 80% for M.A, M.Com and M.Sc graduates, 82% for CA and CS graduates, and 80% for other graduates.

Employers track post-joining outcomes

The offer-to-joining ratio is the most widely monitored campus metric, cited by 66% of respondents.

First-year performance ratings and early voluntary attrition are each tracked by 55% of organisations. The internship-to-pre-placement offer ratio is monitored by 52%, while gender diversity ratio is tracked by 50%.

Overall, 82% of organisations monitor early attrition. For 51% of them, early attrition refers to employees leaving within the first year. Other organisations define it as exits within three months, six months or two years.

Slow career growth and a mismatch between employees’ expectations and their day-to-day roles remain the leading reasons for early-career exits. Organisations are responding by strengthening role communication, onboarding, mentorship and career development programmes.

Focus on culture, inclusion and AI

Culture alignment is becoming an important part of campus hiring, with 90% of organisations assessing it during recruitment. HR-led interviews are the most common method used for this assessment.

About 32% of organisations report a direct link between culture alignment and individual performance. More than half have set gender representation goals across major talent cohorts, while about 30% have visited institutes outside their traditional campus lists to support these objectives.

“AI is helping organisations assess candidates more effectively by placing greater emphasis on skills, role relevance and job readiness,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon.

“As talent needs evolve, employers are using these tools to make more informed hiring decisions and build stronger talent pipelines. Campus hiring is no longer a staffing exercise; it is an opportunity to build the capabilities and strengthen workforce resilience for long-term success.”

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