COVID-19 Impact: Companies revoke internship offers, IIM students struggle to find one, settle for unpaid work

Amid coronavirus outbreak, students at IIMs struggle to get summer internship as several companies have revoked the offers. Many IIMs have credits for the projects done at work.

In the wake of coronavirus outbreak across the country, many companies have revoked the summer internship offers extended to students. Due to nationwide lockdown, several businesses are undergoing economic and financial breakouts which has led to revocation of such offers. This has left students of India’s top B-schools grappling to find summer internships as many IIMs award credits for the projects done at work. IIMs conduct internship drive for eight weeks from April 1 to May 31.

These students are posting on LinkedIn about how companies have rescinded their offers and that they are looking for alternatives. Riddhi Patel, a first-year student at IIM-Indore shared how an eCommerce firm revoked her internship offer for the role of Business Development. She got a phenomenal response on her post with over 1,100 likes and 234 comments and she got an internship. However, it isn’t that easy for everyone.

According to a noted media source, Riddhi informed how several firms have revoked internship offers, making students desperate since many IIMs have credits for the projects done at work. She told that many of her friends at IIMs have settled for internships without getting any stipend. Usually, the average range for the internship for a student at IIM can be in the range Rs 70,000 to Rs 1.5 lakhs.

Shashikant Nayak, Placement Coordinator at IIM Jammu, says that their batch had a total of 97 students, from which 60 students got summer internships and the rest 30-35 are still figuring out different options. "Some firms informed that they will start internship around May 10 or May 15. Those students who haven't got an offer are trying on their own. The Placement committee is also helping them," said Nayak. "Two companies had offered Rs 50,000 per month for sales role but they later made it unpaid internship and the students are now doing market research projects," he further told.

Janat Shah, Director of IIM Udaipur, said that about 12 companies cancelled their internship offers from a total of 87 firms that came to recruit the first-year students on campus. Among them, 28 students had bagged offers from 3 companies in Dubai and all of those got cancelled. "It is ultimately the company's decision which we respect. When they told us, our team got these students other internship offers," says Shah. Of the 285 students, 133 have started internships virtually, especially those job roles that could be done remotely, the rest will begin in May.

The concern was more for those students who were unable to find internships. "We wanted to make sure the quality of experience of a student does not suffer. And, if there was a degradation of experience we can make up for it somewhere else," says Shah. They created an alumni network of mentors to guide the students during the internship process and help them address the red flags, says Shah. As of now, five students are still looking for internships.

Similarly, of the total 131 companies that extended offers at IIM Kozhikode, 6-7 rescinded offers, told Debashis Chatterjee, Director, IIM Kozhikode. The institute has helped the students find alternative roles. He said that significant readjustment was done in internships this year as the duration of the internship was also reduced to six weeks.

Even at IIM Ahmedabad, four per cent of the internship offers got cancelled. Over 120 companies had approached initially. Other recruiters and alumni chipped in and accommodated students whose internships were cancelled, told Amit Karna, Associate Professor of Strategy and Chairperson Placements at IIM Ahmedabad (IIMA). "Looking at the constraints faced by firms, we are allowing virtual internships (working from a remote location) as a valid mode. We have also allowed, on a case to case basis, if firms have asked for the reduced duration of up to 6 weeks. Plus, instead of starting the second year for these students on 5 June, we are now starting in the first week of July," said Karna.  The rationale was the extension will give the leeway for more students to be accommodated due to the deferred date of internships, and still complete 6-8 weeks of internship.

IIM Calcutta too allowed a mix of virtual and on-field modes of internship to allow digital onboarding of the students. Abhishek Goel, Placement Committee Chairperson added, "A few recruiters have requested for more time as they wait for the lockdown to be relaxed.  While all recruiters honoured their promised internships, five recruiters had rescinded their internship offers due to the changed business scenario affecting 25 out of 480 students. The affected students have got new internships."

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