With a marked improvement in sentiment in the financial markets and overall turnaround in the business mood, corporate hiring in the first six months of 2014 has changed for better in key sectors like telecom, marketing and advertising while the information technology (IT) remained robust at the entrance level even though it is witnessing churning at the high-end jobs due to emergence of new technologies, an ASSOCHAM survey has shown.
“Post -Budget, aided by investment friendly measures like Real Estate Investment Trust (REITs) and prospects of easing of interest rates, the construction sector has also slightly improved in terms of hiring plans. The Budget focus on infrastructure has proved to be morale booster for the infrastructure but would still take time for on-the-ground action”, adds the ASSOCHAM paper.
Deciphering the trend, DS Rawat, Secretary General ASSOCHAM said, “While the industrial production growth has pleasantly surprised for May with the manufacturing showing signs of uptick, the employers would like to see a definite trend line before firming up their hiring plans. Somehow, the marketing and advertising remain in relevance even in difficult times with the only difference being that marketing requires hard sell”.
“Marketing & advertising professionals emerged as the next best in terms of demand profile during January to June 2014. On the other hand, manufacturing and automobile sectors reported stable hiring figures due to slowdown in the sales of vehicles and launch of new models”, adds the ASSOCHAM paper.
The inputs were tracked on a daily basis for vacancies posted by about 2,500 companies via job portals like timesjobs.com, naukari.com, monster.com, shine.com and others together with advertisements offering job opportunities published in national and regional newspapers across about 32 prominent cities and 20 sectors.
Among the top locations, Delhi-NCR, Bangalore, Pune and Hyderabad reported the most active location during the January–June 2014. Some of the Tier-II and Tier-III locations (Surat, Vadodra, Nashik, Allahabad, Udaipur, Agra, Ajmer, Kota and Meerut) which have emerged as high growth markets, retained their position.
During January to June 2014, the demand for mid-level candidates was upbeat. However, the demand for talent at senior levels with 10-20 years and over 20 years of experience, recorded flat to negative activity across industries. It further shows that organizations are only looking to hire on demand, and hiring is restricted to niche skills. Focus is more on up-skilling available talent rather than sourcing fresh talent, reveals the ASSOCHAM latest estimates.
As per the ASSOCHAM findings, Delhi-NCR region have recorded an impressive 54% increase in hiring during January –June 2014 period followed by Bangalore at 38% and Hyderabad, which reported a 32% increase in hiring. On the other hand, Chennai and Mumbai reported a drop in hiring for the same period, recording a 15% and 28% drop, respectively.
The ASSOCHAM paper points out, the falling rupees has also helped the overall outlook of the ITeS industry in India, as outsourcing becomes a cheaper. Marketing & advertising profiles reported highest increase (48%) in demand for talent. Customer service/Tele-calling profiles witnessed a drop of 8% in demand during the same period. Hiring was upbeat for junior level candidates as the demand for the senior personnel came under pressure. However, those with skills in cutting edge technology stayed in demand.
Among top locations, Bangalore recorded a maximum growth (43%) in hiring BPO/ ITeS professionals. Chennai reported highest drop (26%) in demand during the period as compared to similar months last year. Candidates with experience of 2-5 and 5-10 years, reported maximum increase (22%) in hiring in the BPO/ ITeS industry. Candidates with over 20 years of experience saw highest drop (35%) in demand in the BPO/ ITeS industry.
Consumer Durables/ FMCG
Consumer Durables/ FMCG sector are expected to witness more than 10 per cent growth during this fiscal. Delhi-NCR (39%) followed by Bangalore (37%), Ahemdabad (23%) witnessed a whopping 35% increase in demand. Reasons for cities have picked up their hiring activity is because several chains are increasingly working towards expanding their businesses, and therefore talent requirement has gone up, adds the paper. Mumbai and Chennai on the other hand witnessed a negative demand for talent, a dip of 23% and 15%, respectively.
Healthcare / Pharmaceuticals
In the first half of 2014, the healthcare/ biotechnology / pharmaceutical industry witnessed growth in demand for talent during March, April and June. Bangalore witnessed a major growth (45%) in demand during January 2014, followed by Delhi-NCR (33%) and Hyderabad (28%). Mumbai registered maximum dip in demand (22%) during this period followed by Chennai (10%).
Doctors/ nurses/ medical professionals turned out to be the maximum (24%) shareholders in the total jobs generated by the sector during January to June 2014 followed by sales/ business development professionals (15%).
All the top functional areas witnessed growth in demand for talent, except accounting & finance professionals, who witnessed a major dip in demand of 23%. It professionals witnessed the maximum growth in demand (29%) followed by marketing & advertising professionals (22%).
Petrochemicals/ Oil & Gas
The demand for petrochemicals/ oil & gas industry registered an overall growth of 9% during January to June 2014. The demand for design engineers across disciplines, including electrical, mechanical, civil and structural is stable and growing.
For the petrochemicals / oil and gas industry, Delhi-NCR region (19%) bagged the maximum share of total jobs created during January to June 2014. Mumbai (16%) captured the second highest share of total jobs. Chennai and Bangalore (7%) had an equal share of jobs.
Candidates with 5-10 years of experience (35%) captured the highest share of jobs; followed by candidates with 2-5 years of experience (27%). Candidates with 10-20 years of experience captured 24% share from the total job posting during this period. Candidates with less than 2 years experience recorded 3% growth in demand during this period.
Banking, Financial services and Insurance (BFSI)
The Banking, Financial services and Insurance (BFSI) industry reported the highest growth in demand in the month of January 2014. The positive hiring movement in June (12%) is significant, considering a major dip (16%) February 2014, another dip in demand expected around fourth quarter.
Among the key locations, Delhi –NCR, Hyderabad witnessed maximum growth in demand (over 30%) as compared to December 2013. In the insurance domain, demand for future hiring will be for frontline sales personnel with less than 2 years experience.