Easing of restrictions on economic activity coupled with increasing focus on ramping up operations and sales by businesses is having a positive impact on hiring of freshers states Teamlease Employment Outlook (July- Sept, 2021). According to the report, the intent to hire freshers has increased by 7% in the current quarter. The euphoria is not just restricted to entry level talent, the intent to hire junior level hiring is also on a positive trajectory indicating Q2 to be dominated by volume hiring. In fact, from a hierarchal perspective while the growth rate of intent to hire freshers is the highest, with a 32% point it is the junior level hiring that is leading in terms of overall intent to hire.
TeamLease Employment Outlook Report is a forward looking study reflecting the hiring sentiment across 14 cities and 21 sectors like Educational Services, Information Technology, Healthcare & Pharmaceuticals, Ecommerce & Technology Start-ups, Financial Services, Manufacturing, Engineering & Infrastructure, Knowledge Process Outsourcing, BPO / ITeS, Telecommunications, Fast Moving Consumer Goods, Retail (essential), Logistics, Agriculture & Agrochemicals, Power & Energy, Construction & Real Estate, Retail [Non-Essential], Consulting, Marketing & Advertising, Fast Moving Consumer Durables, Media & Entertainment. According to the report the growth in the GST collection, e-way bills, vehicle registrations, electricity demand, rail freight, and petrol consumption seems to indicate that the economy has started to recover from the impact of the second wave and this seems to be having a ripple and positive impact on the hiring sentiments as well. Though the growth percentage is not as high as the previous quarter the intent to hire is positive. There is a 4% point rise in the intent to hire in the current quarter compared to last quarter. It has moved from 34% point in April- June’21 to 38% point for the period July- Sept’21. Apart from the Americas region, India is the only market that has indicated a 4% point growth in hiring intent.
The positivity in the intent is largely dominated by Healthcare & Pharmaceuticals, Information Technology, Educational Services, Ecommerce & Technology Start-ups, Fast Moving Consumer Goods, Agriculture & Agrochemicals, Retail [Essential], Logistics and Manufacturing, Engineering & Infra.
With regard to geography, metros with hiring intent as high as 49% point and an 8% point growth compared to last quarter seems to be taking the lead. The only laggard is the rural areas which has registered a 2% point drop in intent to hire. And amongst cities, Bangalore continues to take the pole position with 8% point increase in the intent to hire. The other cities that will contribute to the positive hiring sentiments are Delhi, Hyderabad, Chandigarh and Mumbai. The cities wherein there is a drop in hiring intent are Coimbatore and Indore. Though marginal there is a 3% point drop in intent to hire in both the cities.
- India- A better than projected GDP growth, demand uptick, higher export valuation and healthy ultra-high frequency data –during Q1, and the relaxation of restrictions on economic activity is opening up opportunities. However, drop in the PMI for Manufacturing and Services in the aftermath of the second wave lowers the growth in hiring intent
o Trend by Sector
- Sectors with High Intent to Hire: Healthcare & Pharmaceuticals +60%, Information Technology +58%, Educational Services +57%, Ecommerce & Technology Start-ups +53%, Fast Moving Consumer Goods +51%, Agriculture & Agrochemicals +50%, Knowledge Process Outsourcing +48%, Retail [Essential] +48%, Logistics +44%, Telecommunications +42%
- Sectors with Moderate intent to Hire: Financial Services +36%, Fast Moving Consumer Durables +35%, Power & Energy +33%
o Trend by City
- Cities with High Intent to Hire: Bangalore +60%, Delhi +51%, Hyderabad +41%, Chandigarh +39%, Mumbai +37%
- Cities with Moderate intent to Hire: Chennai +35%, Ahmedabad +35%, Gurgaon +32%
o Trend by Geography- Intent to Hire: METRO +49%, TIER-1 +49%, TIER-2 +38%, TIER-3 +24%, RURAL +15%
o Trend by Business Size- Intent to Hire: Large +44%, Small +26%, Medium +24%
o Trend by Job Level- Intent to Hire: Junior level +32%, Entry level +28%, Senior level +26%, Mid-level +22%
o Trend by Function -Intent to Hire: Sales +51%, Information Technology +39%, Marketing +38%, Engineering +33%, Office Services +21%, Human Resources +11%, Blue Collar +43%
o Attrition Trend
- Biggest gainers of the downward trend: Information Technology +8.03%, Ecommerce & Technology, Start-ups +6.61%, Healthcare & Pharmaceuticals +5.49%
- Smaller drop in attrition rates: Knowledge Process Outsourcing +7.38%, Power & Energy +4.91%, BPO & ITeS+3.61%
- Global- Inoculation drives and unlocking of economic activities are gradually raising hiring intent in many regions, but the recovery is inconsistent. Americas, Europe and APAC witness impressive improvement in hiring intent. Talent markets in the US, Canada and Middle East benefit from high vaccination rates, while those in APAC countries benefit from the unlocking of their economies.
o Gain in intent to hire: APAC +23%, Americas +14%. Middle East +12%, Europe +12%, Africa +7%
Commenting about the research findings Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “Most of the industries seem to have overcome the impact of second wave and are moving towards growth. In fact, the focus of industries on profiles that are at the execution level is an indication that businesses have got their strategy as well as plan in place and this trend of positive momentum is here to stay.”
“Further the festive season is round the corner and most of the sectors would want to put the season to maximum use and this also a reflection why there is a significant rise in demand for freshers and junior talent.” added Ms. Rituparna Chakraborty
From a business size point of view as per the research, while large businesses are leading in the overall intent to hire with 44% of the employers indicating intent to ramp up their hiring, it is small businesses that are exhibiting a significant growth in the intent. The intent to hire by Small business has grown by 6% point whereas large businesses have indicated only a 4% point.
A comprehensive study analysing the eco-system highlights employers continue to manage the talent well. As per the research, barring Information Technology most of the other sectors have exhibited marginal to negative attrition.
A detailed analysis, the survey covers 661 small, medium and large companies across 4 geographical areas [Metros, Tier-1, Tier-2/3 and Rural], 4 hierarchical levels [Entry, Junior, Mid and Senior Levels] and 7 functional areas [Sales, Marketing, Information Technology, Engineering, Office Services, Human Resources, Blue Collar].