73% of Firms Expect Growth, But Pay Hikes Stay Muted: Study

Hyderabad: Nearly three-fourths of Indian companies anticipate moderate to high hiring growth in FY26, yet fresh graduates entering the job market are seeing only modest pay gains, according to a recent campus study report 2025-26.

The study, by Aon’s, which surveyed more than 220 organisations, points to a clear rebound in hiring intent. Over 40 per cent of firms plan to expand their workforce by more than 10 per cent, with financial services, life sciences and consumer goods leading the optimism, and IT, healthcare and industrial sectors showing recovery.

Salaries, however, remain restrained. MBA and engineering graduates are seeing only slight increases, largely through variable pay and bonuses rather than fixed components. About 67 per cent of companies now offer short-term incentives to MBA graduates, typically in the 10 to 12 per cent range.

Recruitment strategies are also shifting. Nearly 90 per cent of firms now test for cultural fit, while half have fixed gender diversity targets. Some have extended hiring to colleges outside their usual networks to meet these goals. Internships are emerging as a major pipeline, with more than 70 per cent of firms converting high-performing interns into employees through pre-placement offers.

The trends are visible in the city too. “Students used to worry mainly about getting a job. Now they ask whether they’ll grow in the role and whether the company has a healthy culture. Firms that can’t show this are losing out,” said Bharat Nagesh, head of placements at a college in the city.

Employers say they are also raising the bar. Rohit M., HR lead at a fintech, said, “We’re raising our internship game. If interns impress with project work or problem-solving, we convert them early with PPOs. It costs more initially, but retention improves.”

While hiring intent is clearly rising, the study shows that culture, diversity and skill alignment are shaping the campus landscape as much as compensation.