Flipkart and IIM-A Clash

The spat between Flipkart and IIM -Ahmedabad is the most talked about subject for the aspiring B- school students. The months of May and June are supposed to be the most critical time for the interns and job seekers. But the situation has run into trouble, as some of the students are deferring joining dates or backing out. The most sought after business institute announced deferring joining dates by six months. It said that students had rejected offers to join Flipkart because they feel cheated. “The compensation of Rs 1.5 lakh being offered is surely unacceptable and it should be in the form of lump sum as joining bonus or arrears”, slams IIM -A.

Flipkart said the delay is largely due to a corporate restructuring that the company is currently undergoing and is part of the redesign process which led to the postponement of new recruits joining the company by few months. Flipkart is undergoing an organization revamp that involves creation of new units in some cases and integration of a few units.

Big players like Ola and Snapdeal did not even attempt to attend the campus placement last year, while others like Stayzilla delayed joining dates for few recruits. The move may hurt Flipkart’s brand image as an employer during campus hiring in the years to come. The prestigious IIMs are considered the most important recruiting ground for companies. The delay in joining dates could affect the rapport between B-schools and Flipkart.

This conflict would bring a lot of change in the start-up world as if these talented lots ostracise these major brands and the future engagement of Flipkart with B- school campuses are bound to get affected. The latest controversy surrounds around the deferment of hiring added to the string of news on markdowns in Flipkart’s valuation by some of the investors, senior level exits and challenges to its market leadership. Shahsank Kaushik says that IIM-A does ensure that students honor their commitment by levying a penalty on individuals which is more than what Flipkart is paying as an organization.

"Flipkart is open to recruitment based on their business needs. But they made a commitment right? You should atleast agree they should have analyzed their business needs better. And I don't agree they have the "right" to delay the date of joining. Power yes, but not the right", tweets Shahsank Kaushik, a student of IIM-A.

Flipkart is still a growing company and in many ways, still a start-up. This is not the kind of company that offers job security. Hence, not joining Flipkart does not adversely affect the fresh graduates too much. The main focus should be on both parties working together. The main objective should be to protect the careers of the students who are the talent pool of the country.