EY-NHRDN B-School Research

EY-NHRDN B-School ResearchNew Entrants to the VUCA World

2 | EY–NHRD B-school-related research on new entrants to the VUCA world

3EY–NHRD B-school-related research on new entrants to the VUCA world |

Representation of institutes Gender-wise representation Representation of specialization Representation of year of study Representation of past work experience & Internships

Contents



It is with great pride that we launch the EY-NHRDN B-school research paper on new entrants to the volatile, uncertain, complex and ambiguous (VUCA) world.

It is widely acknowledged that human capital is a key enabler of growth and a critical differentiator in today’s VUCA world.

organizations are competing in the talent marketplace with innovative strategies aimed at attracting and retaining “best in class” talent. B-school students form an important resource

year. Understanding their perceptions and beliefs on what it takes to succeed in the corporate world as well as what

helping organizations customize their recruitment strategies and employee-value propositions. This study is also aimed at capturing thoughts on how B-school leaders perceive changing competency requirements in a VUCA world and the steps they are taking to address new realities in the talent marketplace.

We would like to thank all the students and campus representatives from B-schools across the country who participated in our survey. We would like to express our special thanks to Mr. Yogi Sriram, Prof. Vijayan Pankajakshan, Dr. Gopal Mahapatra, Prof. Sasmita Palo, Prof. Mousumi Padhi, Prof. Snigdha and Prof. Zubin Mulla for the continuous support and guidance.

We would also like to acknowledge the EY team - Alpana Priyabhashini, Impa Agarwal, Dr. Kruthika Jayatheertha, Kaaviya Mariappan, Prachi Choudhary, Shahin Sonali - who worked towards completion of this research.

We hope this paper bears out the trust you placed in EY

will be an annual survey, which will cover different aspects of the attitudes, perceptions and beliefs of MBA students and the managements of postgraduate institutes on how they can best prepare for the corporate world, and to help new entrants into the VUCA world realize their ambitions.

Foreword

PartnerAdvisory ServicesPeople & OrganisationErnst & Young LLP

Ryan Lowe PartnerAdvisory ServicesPeople & OrganisationErnst & Young LLP


Executive summary

HR and Talent Management professionals are constantly looking for information that will help them position their

this study aim to provide organizations with useful insights to help them sharpen their strategies and action plans as they acquire their key business asset — talent.

The key themes that emerge from our study:

1. HR is attracting “best in class” talent, with 88% of the

students want to build long term careers in HR and believe that this career path can lead to an eventual CEO position.

2. “Great learning opportunities” constitute the single most

with “brand equity” and “fast track career opportunities” being the next two important factors. Opportunities for innovation and learning are perceived to be of higher

life balance scores higher compared to rewards and recognition in forced comparison ratings.

3. Clear but divergent views on key competencies required for success in the VUCA world

According to students, vision, communication skills and perseverance are the key competencies required.

adaptability, comfort with problem-solving and decision-making in an ambiguous environment are the key competencies needed.

Despite this difference in their perspective on the key competencies required to achieve success in the VUCA world, almost 90% of the respondents believe that B-schools are adequately preparing students to face work-related challenges in the corporate environment.

4. According to more than 50% of the respondents, career opportunities constitute the critical retention factor for students.

Traditionally, most of student-based research has centered on the logistical attributes of employers, e.g., location, size, type of industry and compensation. However, EY-NHRD research indicates that applicants are not just attracted by these attributes, but also by symbolic ones, e.g., an organization being a great place

the survey can help organizations project attributes that are the most relevant and desirable for their target talent

appropriate talent match for their requirements.

Executive summaryEY’s survey of Indian B-school students in 2014, titled New entrants to the VUCA World, presents a broad picture of B-school students’ perceptions and priorities guiding their decisions on the attraction of and retention in organizations.


survey


The EY-NHRD Indian B-school survey 2014 elicited an overwhelming response from the student community. The by-invitation survey garnered the opinions of B-school students from across the nation. It was conducted across nine business schools on more than 2000

We received a total of 1089 valid responses from participants across different specializations and years of study.


Preparation of students


Do students feel a career in HR can lead to the position of a CEO?Around 71% of the respondents with an HR specialization felt that it is likely that a career in HR can lead to the position of CEO; only 34% of the respondents from other specializations were of this opinion.

that opting for a career in HR can lead to the ultimate C-level.

14%

57%

16% 12%1%3%

31% 28% 32%

6%0%

20%

40%

60%

Highly likely

Likely Neutral Unlikely Highlyunlikely

Overall

HR % Other%

A higher percentage of female respondents believe that a career in HR can lead to the position of a CEO, compared to male respondents.

Gender

Male Female

5%

37%26% 27%

5%11%

52%

17% 17%3%0%

20%

40%

60%

Highlylikely

Likely Neutral Unlikely Highlyunlikely

How long do students wish to remain as professionals in their

Overall

7%

23%25%

20%25%

7%

17%

25% 25% 27%

11%

26%24% 23%

16%14%

35%

18%22%

12%

0%5%

10%15%20%25%30%35%40%

1-5 yrs. 5-10 yrs. 10-15 yrs. 15-25 years 25+

Finance HR Marketing Operations

More than 50% of the respondents with an HR specialization indicated their willingness to remain in the HR profession for

more than 15 years — the highest in comparison with all other specializations.

Preparation of students


Ranking of various MBA specializations — in order of students’ preferencesThe results of the survey indicated that 88% of the students

prime career interest. However, only 3% of the respondents specializing in non-HR areas ranked it as their most preferred option.

Top ranked specialization

5%

88%

7%0%

38%

3%

42%

17%

0%10%20%30%40%50%60%70%80%90%

100%

Finance HR Marketing Operations

HR Non-HR

Sectors in which students would like to internA majority of the students indicated that they would like to intern with FMCG companies.

• Brand image of organization

• Scope for learning and growth

• Pre-placement offer policy

• Organizational culture

• Remuneration

Note: “Preference of company for internships” was an open-ended question, and no choices were given to the respondents.

13EEY–NHRD B-school-related research on new entrants to the VUCA world |

organizational preferences (for

A “great learning experience” emerged as the most important

“Brand” and “fast-track growth opportunities” were

other important factors cited. It is interesting to note that compensation, international opportunities, etc., ranked low in the list of students’ priorities.

51%

22%

11%5% 3% 3% 2% 2% 1%

0%

10%

20%

30%

40%

50%

60%

Greatlearning

experience

Brand equity

Fast trackgrowth

opportunities

Access to C-Level

Executivesof the

company

Salary &associatedmonetaryincentives

PPOs / PPIspolicy of the

company

Word ofmouth

Internationalopportunities

Job rotations

Organizational preferences


To what extent students agree that campus life prepares them to face and address challenges at workThe majority of the students believe that campus life prepares them to face challenges at work (as depicted in the graph below):

Campus life

43%46%

8%

2% 1%0%5%

10%15%20%25%30%35%40%45%50%

Strongly agree

Agree Neutral Disagree Stronglydisagree

There was no variation observed in responses across male and female students with prior work experience. According to the respondents, campus life (with diverse group of students) helps to build time management, teamwork, decision-making and stress management skills as well as competitiveness and the ability to network effectively.

However, respondents who disagreed with the statement felt that campus life does not expose students to real life situations at the workplace, which are generally addressed by relying on intuition and past experiences rather than management theories.

B-school authorities believe that the following are helpful in preparing students for their professional careers:

• Application of theoretical concepts in the form of live projects, and research and consulting assignments

• International exposure to global faculty through exchange programs

• Involvement in extra-curricular activities and participation in national-level competitions

Select colleges have begun exposing their students to social media, sustainability initiatives and social entrepreneurship to enable them to develop a sense of social responsibility.

Vision considered important for balancing volatility in the environment

Top three competencies B-School students believe they need to succeed as future leaders in the VUCA worldCommunication skills, vision and perseverance were the top three competencies considered important by the respondents for succeeding as leaders. They felt that adaptability and teamwork are other essential factors.

B-school leaders, who play an important role in preparing students for the VUCA world, believe that the most important competencies needed to succeed as a future leader include

decision-making in an ambiguous environment. Ability to take risks was also considered an important competence.


Management events that help students face the uncertain corporate environmentManagement case studies, guest lectures, internships, live

respondents as being helpful in preparing them for the VUCA corporate environment.

to around 83% in the second year.

Year of study

53%

31%41%

52%

5%12%

4% 1%1% 0%0%

10%20%30%40%50%60%

Strongly agree

Agree Neutral Disagree Stronglydisagree

1st year 2nd year

Organizational priorities of students if they were to manage or run organizations

organizational priority by 60% of the respondents and social

Most important organization - related priority

60%

9% 7% 7% 7% 4% 3% 1% 1% 0%0%

20%

40%

60%

80%

100%

To have a To be To To


Least important organization - related priority

44%

23%

8% 8%4% 4% 4% 3% 3% 1%

0%

20%

40%

60%

80%

100%

To emphasize on social

responsibility

To provide the best

shareholder returns

To be agile

To focus on costs

To maintainoperational

To focus on clarity in

work

To focus on people

development

To create innovativesolutions

To be adaptive tochanging

global context

To have a

vision

Attractiveness of organizations

and recognition.

Opportunities to learn, career development and brand Image emerged as the most critical factors with regard to the perceived attractiveness of organizations.

Students’ views on factors relating to attractiveness of organizations : brand v opportunity for innovation and learning and work life balance v rewards and Recognition

28%

24%

21%

7%6% 5% 4%

3%2%

0%0%

5%

10%

15%

20%

25%

30%

Opp

ortu

nitie

s to

lear

n

Care

erde

velo

pmen

t

Bran

d im

age

Cultu

re o

f th

e or

gani

zatio

n

Grea

t peo

ple

to w

ork

with

Valu

es o

f th

e co

mpa

ny

Org

aniz

atio

nal

visi

on

Bonu

s /

ince

ntiv

es

Dive

rsity


The respondents were also asked to choose between two

level.

According to 77% of the respondents, they were attracted by an organization’s ability to provide an opportunity for innovation and learning (symbolic) rather than its brand

female respondents as well as their work experience, year of study and specialization.

23%

77%

Opportunity for innovation and learning

Brand

Overall

According to 71% of the respondents, work-life balance is (or would be) more important than rewards and recognition in their choice of organizations.

Factors attracting talent to start-ups

47%

25%

7% 6% 6% 5% 4%

0%

20%

40%

60%

80%

100%

Opportunity forinnovation andFreedom to try

new things

Values & Culture Exposure acrossfunctions / geographies

Inclusiveness Compensation and rewards

Work exibility Job security

the learning and career development opportunities offered by them as well as their brand image, college authorities feel that companies are looking for employees who are adaptable, responsive and responsible and have a positive can-do attitude. They believe that organizations will eventually want employees who will be equally effective in rural, luxury and mass markets as well as in niche ones. In addition, they are

importance as availability and/or exchange of information becomes easier and organizations’ reputations are at stake.

Ranking of primary drivers to attract top talent to start-up organizationsFrom an entrepreneurial perspective, the participants felt that freedom to innovate and venture into new areas will attract new talent to organizations that offer these opportunities.

Work-life balance

Rewards and recognition

Overall

71%

29%


Overall

63%

8% 9%1%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

A Multinational Company Indian Business House Entrepreneurial Start Up Not for Pro tOrganization

Indifferent toorganization type

Type of organizations students aspire to joinThe majority of the respondents prefer to join an MNC over other types of organizations; 19% are ambivalent or even indifferent about this.


Factors contributing to selection of an MNC

MNC

Competent /Talented colleagues

Internationalexposure

Exposure to bestpractices

Diverse cultures

Opportunities to learn

Brand equity


Retention in organizations


Factors that will make employees remain in organizations for a

remain in organizations that provides them career opportunities.

Retention-related factors

42%

17% 16% 16%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Career Opportunities Identifying piece of workwith visible outcome

Different skills & talent Job that has substantialimpact on the lives of

other people

Competitive SalaryPackage

Only 9% indicated that the incentive of a competitive salary package would result in their continuing to work in organizations.

Retention in organization


Conclusion


Conclusion1. The attractiveness of organizations for

prospective applicants in the context of the VUCA world needs to be centered on symbolic attributes students associate with far more than with institutional attributes, as has been traditionally observed.

2. experience in terms of events and learning initiatives are perceived as being ahead in preparing their students for the VUCA world.

3. An organization’s success in retaining talent

meaningful career opportunities. Institutional attributes seem to have become default factors and introduction of new and symbolic attributes will increase the commitment and loyalty of employees to their organizations.


Key action areas


EY hopes that the results of this survey will be a guide for B-schools and organizations in India to address the following issues:

1. What should be the orientation of organizations at the time of campus recruitment drives?

2. What are ways in which internship opportunities for students can be enhanced?

3. How will organizations attract talent in India?

4. How will B-schools prepare their students better?

5. How can B-schools and organizations provide opportunities to students to enroll in HR specialization courses?


respondents


Representation of institutesOur student sample represented some of the leading B-schools in India. The highest participation was from SCMHRD, XLRI and XIMB from a total sample size of 1089 respondents.

Institute-wise ratio of respondents

90%

40%

29% 28%

18%11%

7% 4% 2%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SCMHRD XLRI XIMB TISS IITD MDI SIBM We School IIM, Lucknow

The graph below represents the percentage of responses received from each institute vis-à-vis the number of participants who participated in the survey.

Gender-wise representation Distribution across male and female categories.

Male

Female

Gender-wise representation

69%

31%


Representation of specializationsWe had invited students from across specializations for our survey in order to obtain a well-balanced view of the scenario. While the largest number of students had opted for HR and

marketing, those from other specializations also provided their very relevant input.

Specializations

18%

39%

24%

9%

4%7%

HR

Finance

Marketing

Operations

General Management

Other


Past work experience

26%

11%

27%

33%

2%

0%5%

10%15%20%25%30%35%40%45%50%

Nil 1 -12months

13 - 24months

24 - 48months

48+months

Representation of year of study Representation of past work experience The respondents have varying levels of experience

Year of study

605

484

56% 44%

0

100

200

300

400

500

600

700

1st Year 2nd Year

The majority of the respondents had prior experience in the IT/ITeS sector.

InternshipsSeveral respondents had interned in organizations across different sectors including FMCG, IT, banking and pharmaceuticals.

Notes:

2nd

Near C.N. VidhyalayaAmbawadiAhmedabad - 380 015Tel: + 91 79 6608 3800Fax: + 91 79 6608 3900

Bengaluru6th, 12th & 13th

“UB City”, Canberra BlockNo.24 Vittal Mallya RoadBengaluru - 560 001Tel: + 91 80 4027 5000 + 91 80 6727 5000 Fax: + 91 80 2210 6000 (6th & 12th

Fax: + 91 80 2224 0695 (13th

1st Floor, Prestige Emerald No. 4, Madras Bank RoadLavelle Road JunctionBengaluru - 560 001Tel: + 91 80 6727 5000 Fax: + 91 80 2222 4112

Chandigarh1st Floor, SCO: 166-167Sector 9-C, Madhya MargChandigarh - 160 009 Tel: + 91 172 671 7800Fax: + 91 172 671 7888

ChennaiTidel Park, 6th & 7th Floor A Block (Module 601,701-702)No.4, Rajiv Gandhi Salai, Taramani Chennai - 600113Tel: + 91 44 6654 8100 Fax: + 91 44 2254 0120

Hitech City, MadhapurHyderabad - 500081Tel: + 91 40 6736 2000Fax: + 91 40 6736 2200

Kochi9th Floor, ABAD NucleusNH-49, Maradu POKochi - 682304Tel: + 91 484 304 4000 Fax: + 91 484 270 5393

22 Camac Street3rd

Kolkata - 700 016Tel: + 91 33 6615 3400Fax: + 91 33 2281 7750

14th Floor, The Ruby29 Senapati Bapat MargDadar (W), Mumbai - 400028Tel: + 91 022 6192 0000Fax: + 91 022 6192 1000

5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000

NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050

6th

18-20 Kasturba Gandhi Marg New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200

4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171

PuneC-401, 4th

Panchshil Tech ParkYerwada (Near Don Bosco School)Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900

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About National HRD NetworkThe National HRD Network (NHRDN) is the leading Apex body of Human Resources in the country managed by professionals committed to promoting the HRD movement in the country and enhancing the capability of human resource professionals to enable them to make an impactful contribution and create value for society.

Established in 1985, the National HRD Network is an

role in grooming leaders for tomorrow to compete globally. Today, it is the largest body of Human Resource professionals in the country represented by over 12,500 Members and 30 Chapters across the country.

The amazing spirit of volunteerism that pervades this great institution creates an emotional glue that binds its members with a common cause. Nurtured by committed leaders, as trustees in the years gone by and for decades

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EY-NHRDN B-School Research