Why Do IIT Graduates Often Quit PSUs in Just One or Two Years?

The decision of IIT (Indian Institutes of Technology) graduates to quit Public Sector Undertakings (PSUs) like IOCL (Indian Oil Corporation Limited), HPCL (Hindi Petroleum Corporation Limited), and BPCL (Bharat Petroleum Corporation Limited) after a short tenure is multifaceted. This article explores the reasons behind this trend, backed by key insights and real-life experiences.

Career Growth

One of the primary reasons why IIT graduates opt to leave PSUs is the limited career growth opportunities. Many graduates seek rapid advancement and promotion, which can be challenging in a PSU environment characterized by a hierarchical structure and slower promotion rates. This can be a significant deterrent for those who aspire for faster career progression in their chosen fields.

Work Culture

The work environment in PSUs often stands in stark contrast to that of the private sector or startup environments. The bureaucratic nature and the less dynamic processes in PSUs can make them unappealing to IITians who value innovation and a more agile working style. Some graduates may find the work culture rigid and less conducive to creativity, leading them to seek greener pastures.

Job Roles

The specific roles and responsibilities in PSUs may not align with the interests and skill sets of IIT graduates. These graduates often prefer more challenging and innovative projects, which are more abundant in the private sector. They may feel stifled by the traditional and less forward-thinking job roles that are prevalent in PSUs.

Compensation

While PSUs offer job security and good benefits, the salary packages often fall short for IIT graduates, who are in high demand in the private sector. The incentives and earning potential in private companies can be significantly higher, making the decision to leave PSUs for better compensation a logical choice.

Entrepreneurial Aspirations

Many IIT graduates have entrepreneurial ambitions and may choose to leave stable jobs in PSUs to pursue their own ventures or join startups. The excitement and potential of starting something new can be a powerful motivator for these graduates, driving them to take the leap.

Exposure and Learning Opportunities

Grads may find better learning and exposure opportunities in the private sector or multinational companies. These environments can offer a wider range of projects, more diverse tasks, and more global exposure, leading to a desire to switch and broaden their horizons.

Peer Influence and Personal Experiences

The culture at IITs often fosters a competitive spirit, and graduates may be influenced by peers who have moved to high-growth sectors. This can prompt them to follow suit, seeking more challenging and rewarding opportunities. Personal experiences also play a significant role. As one IIT graduate mentions, finding it difficult to control coordinator workers and feeling that they are more suited for academic roles rather than industrial ones can lead to frustration and a decision to leave.

Moreover, there is a common issue in PSUs where inefficient or non-competitive individuals are often promoted due to factors other than efficiency. This can lead to significant frustration among talented graduates. They may feel that they cannot work under such unproductive or inefficient senior colleagues, leading them to leave the PSU for a sense of self-respect and to work in a more efficient and competitive environment.

In conclusion, the high turnover rate of IIT graduates in PSUs can be attributed to a combination of factors, including career growth, work culture, job roles, compensation, entrepreneurial aspirations, exposure, and peer influence. Understanding these factors can help in tailoring better retention strategies and creating more attractive environments for IIT graduates in PSUs.

Further Reading

For more insights on retention strategies in PSUs and career developments in the private sector, you can explore the following resources:

Retaining Technical Skilled Workers for Private Sector Growth in Africa Why IIT Graduates Hit Issues When Joins PSUs?