India Inc Adjusts Hiring Strategies: Companies Selectively Recruiting STEM Graduates – Here’s Why
India’s corporate landscape is witnessing a significant shift in hiring practices, particularly for fresh graduates in STEM fields. A recent study by TeamLease reveals that the number of STEM freshers hired is expected to drop from approximately 220,000 in FY25 to just over 150,000 in the current fiscal year. This trend indicates a growing preference among companies for smaller, more skilled teams rather than large workforces, as they seek industry-ready talent equipped with advanced technological skills.
Demand for Job-Ready Talent
Industry experts note that the expectations for fresh graduates have evolved dramatically. Companies are increasingly looking for candidates who are not only academically qualified but also proficient in modern technologies such as cloud platforms, data pipelines, automation, and artificial intelligence (AI) tools. Neeti Sharma, CEO of TeamLease Digital, highlighted that only 70-74% of firms plan to hire freshers this fiscal year, reflecting a more selective approach to recruitment. This shift is particularly evident in startups, which are prioritizing leaner teams while still seeking talent in high-demand areas like AI and data analytics.
Startups Embrace Lean Operations and AI Focus
The trend towards leaner operations is exemplified by the edtech and study-abroad firm Leverage Edu, which has reduced its workforce from over 1,400 employees to around 900 in recent years. Akshay Chaturvedi, the founder of Leverage Edu, emphasized the importance of hiring individuals who align with the company’s mission and values. He stated that the focus is on attracting talent with a strong commitment to integrity and a passion for the company’s goals. Additionally, Leverage Edu is concentrating on enhancing its AI capabilities while also recruiting senior business development leaders to drive growth in various markets.
Declining Hiring Numbers
The TeamLease study indicates a sharp decline in STEM fresher hiring, which fell from 400,000 in FY23 to 230,000, and is projected to drop further to 150,000 in FY24. Despite a 15-18% improvement in hiring last fiscal year, driven by a recovery in market sentiment and increased demand for AI and cloud-related skills, the overall trend remains concerning. Entry-level salaries are also reflecting this shift towards skilled hiring, with software engineering and data roles experiencing the most significant salary growth. The average annual salary for STEM freshers is expected to rise to around Rs 4 lakh in 2025, up from Rs 3 lakh in 2024, as companies prioritize quality over quantity in their hiring practices.
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