Employers optimistic about hiring in H1, 2014

Employers optimistic about hiring in H1, 2014

Employers optimistic about hiring in H1, 2014

The consistent decline in economic slowdown and the consequent pessimism in many sectors notwithstanding, employers in select sectors are upbeat on hiring “intent” in the first half of current fiscal, with Tier I & II cities holding out more promise for aspiring employees.

Paradoxically, business sentiment optimism continues to be less gung-ho, according to the findings conducted by staffing solutions company TeamLease Services.
The report titled “Employment Outlook Report” said that the Employment Outlook Index has increased 4 per cent compared to October-March 2013 while the Business Outlook Index has grown 2 per cent.

Sector-wise, the frontrunners are ITeS, healthcare and retail while infrastructure has lost out. In terms of cities, Mumbai leads the optimism ratings with 5 and 7 per cent for employment and business outlook respectively.

The senior vice-president and co-founder of TeamLease Services, Sangeeta Lala said: “It is surprising that despite the economic downturn, the job market this half year shows a positive outlook in almost all the major sectors. Tier II cities are emerging as hiring grounds for cost effective talent, giving the mid level companies an opportunity to boost their employee base. Companies will also face new challenges for retaining the top level talent and calibrating the wrongly hired talent in the past.”

Employment study

TeamLease releases the Employment Outlook Report at regular intervals after a survey conducted with HR managers and senior management of different companies in India. The study, which covered 614 companies in the latest round, focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile.

The report is based on a survey and analysis carried out during the preceding 3 months. The survey spans eight industry sectors and eight cities across India. The survey covers small, medium and large companies across these sectors, studies attrition and employment trends, and gleans information on hiring sentiments, all this covering different locations, hierarchical levels and functional areas.

The Employment Outlook Index is computed as the difference in the proportion of respondents who report an increase in hiring needs and those who report a decline in hiring needs over the next three / six months.

The Business Outlook Index is computed by subtracting the percentage respondents who say business in the next three / six months is likely to decrease from the percentage who says it will increase.

The report said that Tier-II cities lead hiring intent, with a big rise of 4 points. Metros follow suit, however, with a marginal improvement of a single point. Hiring at the middle and junior levels is set to be more popular in the forthcoming half year (Apr-Sep 2013), with a 6 and 4 point increase in hiring intent. Split by functional areas, blue collar and engineering are far ahead of the rest by registering an increase of 6 and 5 points respectively.

Respondents were of the view that rural BPOs at locations like Hosur, Kochi, Udupi, Falda and Chindwara have emerged as favourites, especially for hiring cost-effective support staff. Hiring in Tier I cities will see a marginal increase of 1 per cent this half year. It is after a long time that rural and Tier II locations are likely to outpace Tier I locations in hiring.

On attrition, the report pointed out two primary reasons across sectors - a small element of wrongly calibrated hiring in the past and better market opportunities. While the first cause is a known one, the second reason is an outcome of supply-constrained market.