Job market to see modest hiring, 10-15% pay hike next year
After remaining mostly stagnant in 2012 due to global economic slowdown, Indian job market is expected to grow only at a modest pace next year, although still better than other countries, while high-performers can look forward to pay hikes of 10-15 per cent in 2013.
The public sector could emerge as the major ground for any large-scale hirings, especially banks, even as recruitment activities in human capital intensive sectors like technology, as also for functions like sales and marketing in other sectors, would track the macro-economic developments.
The hiring numbers for public sector banks are expected in the range of 50,000 to 70,000 people in 2013, while the private sector banking space could also see a fair amount of such activities if licenses are given to new players.
Retail sector is also expected to see large-scale hirings after the entry of foreign players into this business.
When it comes to salary hikes, the average for most of the sectors is expected in single digits as part of cost-saving efforts, even though companies would be doling out 10-15 per cent pay increments to good performers, experts say.
At the same time, the companies may not hesitate to lay off non-performers and carry out restructuring exercises to do away with non-performing business units.
Manpower India Managing Director A G Rao said that the companies would not hesitate to pay a salary hike of 10-15 per cent to performers, but at the same time some will remain very objective and cost cautious due to the economic scenario.
"We also see a growing trend of organisations using new age tools like work from home, flexi working and performance linked bonus, ESOP's, Global opportunity etc. as tools of retention / compensation of employees," Rao said.
The year 2012 has proved to be a mixed bag for the Indian job market as most sectors were slow on their business and employment outlook, but the coming year holds promise driven by the government's reform push.
Hiring took a hit this year largely on the back of global slowdown as well as slower growth rate of Indian economy.
"The year 2012 began with a lot of promise as the job market in India was estimated to grow at 15 per cent. But the sharp economic downturn in India and the impact of the European crisis adversely affected hiring across sectors like IT, telecom, hospitality, retail and infrastructure," Randstad India MD and CEO E Balaji said.