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Jobs in PSUs : Benefits & Drawbacks

Jobs in PSUs: Benefits and Drawbacks
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During the placements a lot of students are faced with a dilemma whether to join a PSU (Public Sector Undertaking) or to go for a private company. However, according to the thumb rule, most of them opt for private companies. Call it lack of publicity on their part or their not-so-positive image in terms of work culture & growth; PSUs do not create enthusiasm and interest among students. On the other hand, private companies manage to get the best talent because of their pro-active approach in hiring.

This does not necessarily mean that they (private companies) are the best bet for a career choice. Similarly a career in PSUs is not that bad an option as it is made out to be. Both come with their own share of benefits and drawbacks. Students ought to make an informed decision before they zero in on the most important course of their lives during the placement season. Here we list down the benefits and drawbacks of PSUs to help you decide what to decide?


Secure career: Security in career is one of the most sought after needs especially in present times. Recession, the dreaded phenomenon, has opened our eyes to the layoffs that come along with the fancy perks in MNCs. A job in a PSU is free from such vices and ensures peace of mind. You cannot be thrown away just like that. 

Attractive packages: The pay scale of PSUs are worth comparable and at times much higher than the private entities. After the implementation of sixth pay commission recommendations, the salaries have increased exponentially. The facilities or the allowances are add-ons. For ex NTPC has offered a package of 9.8 lakh to Graduate Engineer Trainees in 2011. In BHEL the figure was 7.5 lakh for the same post.

Good lifestyle:  In PSUs, various programmes like cultural events, festivals, games, etc. are organised from time to time for the employees. During the training, trainees get all kinds of experience right from PT drills to cultural programmes.  On the whole the employees get to experience a holistic lifestyle.

Less work pressure: It is an acknowledged fact that the work schedule here is not as demanding and hectic as that of the private companies. However that does not mean it is infested with incompetence. Those who are willing to learn and work hard always get the opportunity.


Lack of growth opportunities: Though it is true that PSUs award promotions to their employees, the frequency and process is time taking.  At times, the procedure is also biased and performance becomes a sidelined criterion.

Less appreciation for drive and initiatives: The government enterprises are not the right destinations for those who want to come up with new ideas and take initiatives. The work culture is such that it rarely favours such qualities.

Less incentives & increments: In government jobs, the increments and bonuses are very time bound and relatively less. Getting an out-of-the-turn increase in salary on the basis of your excellence is something unimaginable here.

Not challenging enough: Those who are looking up for challenges and want to prove their mettle can give government jobs a short shrift. They (gov jobs) do not offer challenges and after a point become monotonous.

(Also read: Tips for a successful interview)

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