Job Market India 2012-2013

According to a January 2012 report from Ernst and Young, in FY11, around 360,000 candidates were placed by placement agencies across various levels. The permanent recruitment market is estimated to be 3,000 crore, according to the report on the Indian HR solutions industry. Landscape of the Indian job market and the job seekers has changed significantly over the last 5 years. With more access to talent via job portal, active placement cells from colleges and staffing organisations offering end-to-end solution, the gap of talent search is getting narrower. But what is more important is the new face of the job seeker, they are 5 years younger than an average job seeker a decade ago, which only means paradigm shift in the aspirations of young Indians. The employment terms have outgrown the laws governing them by 20 years, so is the role of HR from the mere gatekeeper and arbiter in employee v/s employer relationship. Added to the new face of employment is the competitiveness of the organisations, not only locally but globally. Managing markets, resources and diversities at the same intensity is the new role of a HR professional. HR of today cannot stay away from the changing roles, they are directly responsible for both the top and bottom line thus making them organisation strategist and not mere people strategist. How can HR impact the financials of a company? The 3 most critical aspects for an organisation are markets, top line and bottom line, one may not have a direct control on the markets as it’s mostly or wholly an external factor but top line and bottom line are completely under the influence of an organisation. HR can make a positive financial impact by being accountable for Talent Engagement, Talent Optimisation and Talent Measurability. Talent Engagement: With the growing demand for talent pool there are multiple opportunities for a job seeker, attracting or retaining talent is directly proportional to the organisation’s ability to engage its employees. Talent Engagement is not about right job fitment but it is about getting the employees to visualise themselves with the organisation’s growth. Hence, aligning employee aspirations with the vision of the organisation is a critical ingredient to achieve Talent Engagement. Talent Optimisation: Consistent training, providing lateral and vertical growth for an employee is not restricted to Line/SBU heads or HR, but enabling it at an organisational level to leverage the organisational talent pool is the role of the HR. Talent Optimisation would mean an easier mobility of an employee and access to talent seamlessly across the organisation. To make this happen HR needs to have precise business overview and involvement as a stake holder in various business decisions without restricting themselves to base camp. Talent Measurability: Today’s HR has to start looking beyond assessment & appraisal process, HR has always been a facilitator for assessment or appraisal process, but is that the role of the HR? Developing a measurability metrics across organisation could be the 1st step but it does not end there. Service/Production cost, Employment cost, Employee cost has to become part of HR metrics, this facilitates rationalisation of talent equity across organisation. But, Talent Engagement, Optimisation and Measurability are only possible if HR becomes a board function and COO, CMO, CHO and CFO have a common people metrics. How can a CEO make this happen? Optimising the role HR is easier said than done, any organizational change is only possible when it percolates from the top. Commitment to change would mean a comprehensive scorecard for COO, CMO, CHO and CFO with common objectives and quantifiable metrics. HR as function could make substantial impact on the business, with its optimal positioning HR can synthesis and create a ‘Balance Scorecard’, going by Kaplan & Norton’s Balanced Scorecard design process that includes: *Translating the vision into operational goals *Communicating the vision and link it to individual performance *Business planning; index setting *Feedback and learning, and adjusting the strategy accordingly The ‘new HR’ is an organisational change, and cannot be left for HR to take initiative or implement, which means that CEO and the board has to look at HR with a fresh pair of eyes. Who better than HR can get an overall business prospective to make this happen! HR can be re-aligned as a business function and not as a support function by separating the Tactical role HR and the Strategic role HR to begin with. "The market is quite slow, and 2012 has been a tough year for professionals and companies, as hiring has been negligible," says Sunil Goel, director, GlobalHunt. Among sectors, BFSI and IT have been severely affected while retail has also grown slowly, he says. Adds Asim Handa, CEO of Gi Group: "The job market is certainly slow compared with last year. This could be attributed to slow growth in virtually all sectors barring life sciences, uncertain economic climate in the West, and political uncertainty." Although Randstad India has done marginally better compared with last year, on a quarter-to-quarter basis there has been a 5-10% dip in its numbers as well, says GM in charge of staffing Aditya Narayan Mishra. For Kelly Services, a shift to permanent hiring, which is more lucrative than the temporary market, has not had the desired impact because of the global slowdown. The margin for each temporary placement is 9-12% compared with 20-22% on each permanent placement. In June last year, the hiring firm had decided to shift out of the low-margin temporary business and concentrate on those sectors that would get them more permanent numbers and higher margins. "We did not manage to get the lift that we were expecting after changing our business plans," said Kamal Karnath, Managinf D of Kelly Services India. Although the staffing firm's business increased 15% compared with the same period last year, it was way short of a 30% expected increase since half their business has become permanent hiring now. -- Thanks and Regards Mitesh.Mistry http://www.myjobsindia.com http://www.linkedin.com/in/miteshm100 We may be known by the designation on our Visiting card... but... we are remembered by the values we live by and the love we give to others !!! Job market in 2013 to see modest hiring, 10-15% pay hike 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. FROM THE MAGAZINE: Staffing firms prosper as India Inc hires more temps 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. TeamLease Services Senior Vice President and Co-Founder Sangeeta Lala said "2012 has been a stagnant year for most sectors; few sectors like retail, FMCG and real estate has seen some quarterly spike due to projects and specific hiring projects." According to various surveys and experts, hiring activity in the country in 2013 is likely to be at a slower pace, but that, India would still fare better than its global peers, who are reeling under economic uncertainty, which in turn is affecting their investments in talent. Despite the continuing impact of global macro-economic situation and the uncertainty around the economic and political environment, in India, employer hiring intentions remain positive across sectors and geographical regions. During 2013, sectors like BFSI, manufacturing, power, construction, oil and gas and petrochemicals are expected to be bullish towards hiring. According to Manpower India Executive Director Srikanth Rengarajan, "the first quarter of next year (January-March) looks low on hiring activity trend. However, second quarter onwards activity will definitely pick up and markets will have to come out of the closet." Government policies will be required to increase consumption and attract investors, Rengarajan added. Some key hiring trends in 2012 included selective hiring (both in terms of quality and quantity) and more stringent selection procedure -- starting with additional rounds of interviews and background checks. These trends are likely to continue in the job market during the next year as well, feel experts. On the salary front, however, most industries would keep to single-digit increments, as companies are likely to take a cautious approach and adopt cost cutting measures next year as well, believe experts. "There would be a few sectors and exceptional performers who can expect a double digit pay hike; however, even theirs would be dependent on goal achievement by the team and organisation overall. Most industries would keep to single digit increments," Lala added. Also, companies may look at increasing the variable component linked to performance rather than increasing the fixed component. According to Executive Access Managing Director Ronesh Puri, "the firing of non-performers will increase majorily as organisations which hitherto refrained from pushing the envelope on this will be left with no alternative but to become far more demanding from their employees." 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.