TeamLease Services Pvt. Ltd, India’s largest staffing company, recently released their annual Temp Salary Primer 2009. The Temp Salary Primer 2009 is a comprehensive report on skills and salary data of more than 75,000 temporary staff working across 264 different profiles, 13 industries and eight functional domains in India.
The report finds that an upside of the slowdown is that hyperinflation in employee costs that was making India a hostile habitat for entrepreneurship may have been blunted. It also highlights temp industry’s broad-based hiring and the clear increased rewards to skills in the last year.
TeamLease, till date, has served more than three lakh temps and the report is also an outcome of the collective wisdom gained over the years. The Primer serves as a guide for both job seekers and employers alike to match talent, skills, salary growth rates and compensation. The locations covered in the Primer are Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi, Goa, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Lucknow, Mumbai and Pune. According to TeamLease Services, Temporary Staffing Vice President Rajesh A R “The biggest upsides of the last year have been a higher returns to a skill and a blunting in the hyperinflation of employee costs. Rewards are starting to get more differentiated and the rise in overall hiring standards is creating huge productivity pressures for employees whose salaries had got ahead of their capabilities.
Overwhelming feedback from employers and job seekers led us to launch an online support tool at www.indiasalary.in-India’s first and one-of-its-kind online temp salary estimation system, built solely on authentic salary record data.”
“In general, salaries between temp and perm hiring are converging. The convergence is sharpest for candidates with zero to one years and one to three years experience. The variance between Temp and Perm salaries considerably narrowed this year also for the three to five years experience category we anticipate that the gap may soon be history. The convergence reflects labour market maturity and a more efficient people supply chain.”
According to the study, the automotive industry prefers low to mid level experience and is also quite promising for Freshers. About 20 per cent of all hires are freshers; a good share of this has gone to the Engineering, Sales and Marketing and Administration functions.
In the consumer durables sector, growth rates between six per cent and 11 per cent make for a better picture, compared with most other industries. In case of the food and hospitality industry, the report shows that while the presence is better at Goa, Delhi, Mumbai and Kochi, salaries are higher at Bangalore, Delhi and Mumbai.
The healthcare and pharmaceutical industry prefers to hire mid to high experienced professionals, although IT and Administration functions in the pharma sector have hired Freshers, states the report. However, the ITeS sector has been promising for Freshers, particularly from Engineering and Administration related background. “We are also seeing the labour market becoming more sophisticated as the returns to skill increase quite substantially; this augurs well for the overall economy as it creates incentives for the private funding of skill development that will improve overall productivity,” he said.
TeamLease’s salary data repository is, by far, the largest and the most authentic of its kind in India. It comprises actual salary records of associates that are — and have been — on TeamLease rolls for the last six years. Through IndiaSalary.in, a candidate can estimate the salary he or she deserves based on skills and choice of industry and vocation, while an employer can compute salaries for, virtually, almost any temp job imaginable and create cost effective hiring plans.
The estimation is based on statistical models which relate skills and longevity of candidates with market salaries. More than 500,000 salary records have gone into the building of the models.
Meanwhile, the firm has released an upgraded version of its annual temporary salary primer with a first time salary and basic skill linkage (transactional, functional, relationship and communication).
The firm has further gone live with www.indiasalary.in — a one-of-its-kind salary computational system, built on authentic salary data, which has a number of tools for candidates to estimate their salary and employers to compute salaries and increments, geographic and company size adjustments, etc.
This year’s salary primer shows a clear de-acceleration in the wage growth of the last few years though India is not seeing the salary deflation currently gripping many parts of the world.
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Key Findings
* Temp hiring slows down: The 25 per cent – 30 per cent growth in hiring over the first two quarters of the year abruptly dropped to four per cent - six per cent towards the third.
* Salary growth was hit: Last year’s 14 per cent year-on-year growth could well dip to an average rate of 7.5 per cent by the end of this fiscal. IT and Engineering continue to be the best rewarded. Customer Support/Blue Collar are functions that get rewarded the least.
* Location trends have been largely consistent: Mumbai, Bangalore and Delhi pay the highest salaries and have also seen the best salary appreciation (11.62 per cent on an average). Goa, Indore and Ahmedabad are the most prominent amongst low paying / low growth rate locations (4.27 per cent on an average).
* Tech is no longer the fastest growing industry: Communication, Energy and Healthcare & Pharma have overtaken the IT/ITeS sectors this year with salary growth rates in excess of 10.8 per cent. Also, the Energy and Healthcare & Pharma industries have each hired 21 per cent more temps this year than in 2007.
* City-industry drill down: Bangalore leads in compensation for the IT and ITeS industries and Mumbai follows closely. Mumbai leads in Manufacturing, Retail, Communication, Energy and Healthcare & Pharma and Delhi is the favourite with BFSI, Consumer Durables and FMCG.
* Temp penetration improves: A nearly all-accommodative temp market had significant levels of penetration across far more industries and locations than it used to a year ago. For instance, Energy and Healthcare & Pharma have turned to temping for all possible profiles – and Energy has done so in large numbers.