New Delhi, Sep 16 : The outlook for campus hiring in India has brightened, with 73 per cent of organisations expecting moderate to high business growth, a new report said on Tuesday.

The data compiled by Aon notes that optimism is strongest in sectors such as financial services, life sciences, and consumer goods, and is translating into a stronger intent to hire fresh graduates compared to 2024.

The 'Campus Study Report 2025-26', based on responses from over 220 organisations, shows that sectors like information technology, industrials, materials, and healthcare are also driving demand.

'More than 40 per cent of companies surveyed plan to expand their workforce by over 10 per cent in FY26, pointing to a wider job market recovery even as global economic challenges persist,' the report said.

Despite this rebound in hiring sentiment, compensation growth for fresh graduates remains modest.

MBA and engineering graduates have seen only slight increases in their total cost to company (TCC), with the rise largely fuelled by joining bonuses and performance-linked pay rather than fixed salary hikes.

Organisations are focusing on incentivisation, with variable pay ranging from 10 to 12 per cent.

The report found that 67 per cent of employers provide short-term incentives to MBA graduates.

'India's campus hiring is evolving,' said Roopank Chaudhary, partner and head of data solutions for Aon in India.

'Organisations are moving from mass recruitment to focusing on candidates with the right skills, early engagement, and long-term retention,' Chaudhary stated.

The report also underscores a growing focus on workplace culture and diversity. More than half of the organisations surveyed believe culture alignment directly impacts performance, and nearly 90 per cent now assess cultural fit during hiring.

Gender diversity has also become a priority, with half of the firms setting gender ratio targets across talent pools.

Over 30 per cent of employers are even expanding beyond their usual list of colleges to achieve these targets, as per the report.

'Campus hiring is no longer just about filling roles -- it's about shaping the future of the organisation,' said Saachi Verma, associate director of Talent Solutions for India at Aon and lead author of the report.

Verma stressed that building a strong learning and development programme, along with a compelling employee value proposition, will be key to attracting and retaining top talent.

/IANS