Why Indian youth prefer MNC's than domestic firms?

I think in domestic firms one needs to struggle in the initial period and even to reap benefits the company should do really well for that matter and also the work environment will be much more demanding, but one will be able to learn more here, Whereas in MNC's its instant growth curve that one gets is everybody behind and very less people care what they actually learned, as in established MNC companies there will be one set of work that will be given to them and they will follow it which will be monitored by a manager, and domestic and SME's one will perform all kind of roles and learn many things, but growth will be limited but will learn more than the person who is working in an MNC.

And being in the recruitment field I have seen many times that there is very less turnout for a interview in a domestic firm, but there is a 5 fold increase when there is an interview in an MNC, so it also has to do with how Indian youth see job for that matter, for many and not for all, its something which gives good money and great work environment irrespective of what one learns during their job tenure. So Indian youths are choosing the easy way out according to me.

MNC's Offer

1. Much better work environment.

2. Recognition of talent.

3. Excellent growth chances for  capable candidates.

4. Good initial pay packet.

5. There work means work, holiday means holiday.

Generally indian educated youth prefers a MNC job compared to a domestic firm, mainly because domestic companies are not professionals, however they pose to be but in practice the main shareholders treat the employees as their own domestic servants. In most of domestic companies there is hold od a family(except a few like TATAs etc). The youth is always under a mental pressure and a feeling of insecurity. The most important thing for job seeker is the job security which not there in domestic companies. To survive in an Indian company even a qualified professional has to remain a kind of sycophant(chamcha) which looses the value of a professional manager and he can not use his own skill to maintain the company as a transparent professionally managed organisation. There are certain needs to implement in a good organisation like safety, health, environment, waste treatment which is generally  not preferred by the so called owners. I mean to say that the Indian owners do not see the long term requirements of an industry because generally they are lack in professionalism

India is a country having populated by 1.2 crore of persons which is 16% of world's population while it occupies only 6% of the geographic ares of the world. The industrialization has taken place in 18th centuries in the Europe and we are at this moment lagging behind after 63 years of Independence! These matter of fact we have to keep in mind that the politicians of our vast country have failed to grow our mother land fast. But the civilization would obviously go ahead. It is remarkable to note here that in question of education, higher education and thinking people have grown faster than the industrial and economic growth. That lead our talents to find their accommodation in the abroad and in the MNC in order to effective utilization of their talents. We the people of our country have failed to create any space for those talented assets in our own country. The top most IIT boys are hired by the Europe or USA. These are painfull but ground reality.

Hasanul Islam

Why experience is more important than higher education?

I think there is less opportunity in Indian domestic firms and SME's and also the offer that one gets in these MNC's are much better than what Indian domestic firms offer, as there are many MNC's that have set up their businesses in India, it has made all the more life easy for the students who have just passed out of college, if there was no IT boom in India, then there would have been lot of unemployment and India would have faced more problems, So better package and better work conditions is driving Indian youth to join MNC's than domestic firms.

1. If it's the brand value plus fat pay packages for a fresher, it's the brand plus work culture plus good remunerations for someone with some experience. It takes just a couple of years to make a mind set in the industry.

2. Another factor is the onsite opportunities and international exposure that MNCs offer. Career growth looks more promising with MNCs which includes not only exposure to technology advancements but also the jump a person makes to other organizations.

3. It just adds to the social status as to where one works, it seems. this includes marriage! Yes, it's true. Everyone is an engineer these days(it seems :-) ), so what's special about you?

But after a few years all that matters is the competencies a person holds and the diverse experience one has to back it up. From there on the offer that seems best is taken up irrespective of an organization's standing as long as the few basic items of interest are provided.

Most Indians youths believe opportunities to grow lie abroad and come from there and not from within. Isn't that true?

I have Experienced it.

Except a few indian firms, which are proven, rest are yet to prove their sustenance and stability in the market.  Yes in the last decade many of the small firms have grown big to the standard of MNC's.  This will change the attitude of the youth to prefer indian firms.  The one proven example is satyam, for their bad approach n attitude.  The MNC's are proven in their systematic approach and which are looking after their employees, hence youth choose such MNC's where growth on professional front and the living is good  in terms of pay and benefits, etc.  The Indian companies has conservative approach, those who broke the shell had really grown and preferred by the youths.

Noticeable change has been seen in salary structure of Indian MNC but they are still not par with international MNC.

It is not true that Indians job seekers always prefer Overseas MNC's against Domestic MNC companies. In fact those who want to get US green card may not prefer US MNC's. What one looks at is Opportunity to Learn, Opportunity to Grow with the company, Reward for talent, Unbaised performance evaluation system, Automatic performance based Incentivescheme, Opportunity to Participate in the Management, Professionally Manged Company, Less Politics in Office. Life time Job Security, Tentionfree atmosphere at Work (Most important). Treat Employees as human beings and not as animals or machines.

If job seekers are prefering MNC's instead of Domestic Companies it is either because of plus points with respect to some of the points stated above or there is too much Politics in the organization and Employee can raise in the organization by playing Politics with out doing much work.

advantages as seen by indians of mnc's
- Better work environment
- onsite opportunities and international exposure
- Good Pay package
- Brand value
- Secure feeling in terms of size and numbers
- responsiblities are shared well among the team [work pressure is relatively less]
- Span of control, roles and responsiblities are very clear
- everything is planned, scheduled and system is driven systematically

Kiran

I believe initially the person goes for money as cash is the priority for most of the guys.MNC firms pay you quite well.Even in a MNC bank branch in a small city,the employees are paid really well as compared to domestic firms.Later on when the same people get bored of the same things,most opt for venture capitalist firms/ entreprenurships if they get the chance and others remain in the same field with the relevant experience who donot get the chance/who donot want to take the risks.

I believe that MNCs have Higher Standards of Work Environment Quality, Staff/Employee Comfort & Anti-Stress Activities which allow managing the employee performance in many aspects. apart from that better pay packages and of course luxurious workplace blind their eyes (or should i say attract the crowed?).

i think it is very important to know what the employee wants and how he is comfortable working in an environment which will bring out the maximum productivity and not burn him out before his time (burnout is purely at the mercy of the employer though ;)) 

Look at the Hotel chains in India: The Kempinski, The Hyatt, The Hilton, Starwood Hotels... these are just some of the chains that have global muscle but governed by the owners!! They have expatriots working as GM's or VP's. Look at the other side: Tata's Indian Hotels - Taj Group.. thoroughly Indian in every aspect!!

Its purely perception. I am with a company called WIZCRAFT INTERNATIONAL. Its completely Indian and very purely DOMESTIC!! I am glad I am with them period!! No complains in pay packages, work environment or even hierarchy!! I have failed to understand the point of ideation here completely!!

Some of reasons:

1. Better working environment and working culture.

2. Working on latest s/w tools.

3. Working with talented workforce, which creates competition amongst peers and  thus improves quality of work.

4. Much better pay packet

5. Better job opportunities.

Indians like everyone else look for quality.The most important reason for an Indian to prefer a MNCs is their supposed ability to deliver a work culture which encourages  new ideas, difference in opinion and  dissent(rarely acceptable in Indian COs) as an creative outlet for the talented employees.  Also,MNC's  are perceived  to deliver quality management(transparency), greater opportunities to work and cross- migrate , high financial rewards, international exposure and multi culturalism to an employee.

People's mindset makes the work environment in any country. Very few Indian companies have maintained that level of thinking/ approach matching up Europeans. This country once was famous for its hospitality values way back but now in Indian owned firms we lack those manners. Most MNCs recognize merit and value the hardwork. Whereas in Indian firms politics is every where and hence the cheap tricks and all, which make the environment worst! Earlier I worked with 2 domestic firms before joining this MNC and this was the main reason of joining. Though Indians again here try to have that same kind of play but our Korean bosses are quite vigilant and provide equal opportunities to all. It's the output they value and making the environment competitive and aggressive for vibrant youth. When you have good exposure, you learn more and hence the growth rate. Some youth prefer MNCs because of the tag! In India foreign tag is highly appreciated always. And I feel that SMEs offer more learning opportunities if the boss has foresightedness towards growth.

It really the employee friendly work culture that attracts many people.In India many organisations have feudal work culture. Thus it is obvious that Indian youths are attracted towards MNC. When small & medium organisations chnge their culture, Indian youths too would be attracted like the global trend.

Branding is the last thing that I look at while suggesting about a job. Brand, corporate culture, ranking, etc. are all subsidiary. The most important thing to ask before accepting any offer should be PROFILE. Next PROFILE. Last PROFILE.

MNCs have international presence, better systems, and everything else. But is that important and enough.

If you are satisfies with work, nothing in this entire world will put you off, else any tiny-miny thing can take your peace of mind. Be it package that your friends tell you that he draws or transactions they have worked on or something else.

In fact, 3 Idiots movie also lays stress on doing what one likes to do.

It is hard to digest that except some indian compansies all are treating their staff as a servant, neither they give good salary nor they have good opportunities apart from this they have pathatic condition of working environment. they do not take their emplys as asset of the company.

Irfan ahmad

I think one of the most important thing is that it enables the young and fresh hot blood people to show the fire which they behold in their belly.This fire helps these people to work hard and harder and hardest infact the scope of appreciation is also very high apart from all these i think the MNC's has been successful in entrusting trust amongst Indians that they are highly bothered for their employees and that their employees are their assets and last but not least is the Concern for their employees family  by giving due importance to their family as well.

Outlook and trade mark are the two focal factors which makes one to prefer/desire MNC devoid of knowing what's happening inside the company. Once he/she stepped in to an MNC then only they know about the company real nature/quality; how they deal with their employees; how they treat and how they handle them.

A creature mindset is to have secured and comfortable zone to live. This is what happening here; financially secured and the comfort level inside the company which drives the employee to do lot more and also drives them to do innovation. Coz the company has good business. Therefore, they support their employee ideas and encourage them to do. Though the employees have work pressure it has been substantiated by money. Money plays the major role in MNC.

Domestic companies do have outlook but do not have trade mark and they don’t buzzing the google news daily and we do not know what’s happening inside and we are not ready to lend our eyes and ears to look at it. Domestic companies do not follow western culture but MNC’s have their own western culture which gravitates employee to adore/worship them.

I Swear... almost all the reasons are mentioned above and so i feel this can be an icing on the cake, therefore its also the matter of PRIDE for many working with an MNC.  .. Thank you, Manish N

Cheers!!

As we are able to improve our knowledge if we are staying in MNCs and added , the salaries are much more than that of our domestic firms, we are preferring to work in MNCs........And we wil be having greater rate of growth in our career also.......so We prefer to MNCs...

I support all the views stated above regarding fat pay, brand value and all...but I also believe in MNCs one gets to learn many things that is more beneficial in the long run of one's career:

1. Getting to mix and learn different cultures including international and inculcating some values in themselves.

2. Opportunity to learn from leaders of various other countries about their perspectives and thought process rather than just their own bosses or reporting Managers

3. Access to the huge internal database of learning materials to develop one career in the path one feels comfortable, which hardly any domestic firms provide.