TeamLease Services, India’s leading human resource company has launched their hiring sentiments report called ‘Employment Outlook Report’ for the period April-June, 2021. According to the report, if further lockdowns and workplace operating rules are not enforced the intent to hire in the current quarter (April – June 2021) can rise to 7% point over the previous quarter (Jan 2021- March 2021). In fact, out of the 21 sectors reviewed more than 8 sector will witness a 9-11% points rise in their intent to hire in the current quarter.
As per the report Healthcare & Pharmaceuticals, Educational Services, Ecommerce & Technology Start-ups and Information Technology are the key sectors who are likely to ramp up their talent pool. In fact, more than 58% of the corporates in Healthcare & Pharmaceuticals sector (which is nearly 11% points higher than the period Jan-March 2021) are keen on hiring talent. Educational Services, Ecommerce & Technology Start-ups and Information Technology have also indicated similar enthusiasm with 55% (12% point growth), 51% (10% point growth), and 50% (11% point growth) of the companies expressing intent to hire. According to the report, while there is an overall positivity, Power & Energy, BPO / ITeS, Media & Entertainment Consulting, Marketing & Advertising, Travel & Hospitality may take more time to reach the kind of intent to hire enthusiasm that the other sectors are expressing.
Further from a geography perspective while Metro and Tier 1 cities (32%) take the lead in terms of overall intent to hire, with 9% increase each, Tier 3 cities also are not far behind. Tier 3 towns have witnessed a 5% point increase. Delving deep into cities barring for Kochi, Coimbatore, Nagpur and Kolkata most of the cities have expressed a growth in keenness to hire. With regard to functional areas similar to the previous quarter, Sales (41%) and Marketing (34%) continues to be the most sought after functional roles. However, when it comes to hierarchy the preferences seems to have changed substantially. The intent to hire senior level talent has dropped by 4% point over Jan-March, 2021.
International hiring trends: Policy support and vaccine approvals/launches from governments around the world have shored up sentiment –in varying degrees –across all the five regions. However, the outlook remains cautious because of the renewed waves and virus variants, and uncertainty lingers on in the global economy
Gain in intent to hire:
· APAC – [21%]
· Middle East – [11%]
· Americas – [10%]
· Europe – [10%]
· Africa – [9%]
India trend: Favourable growth forecasts ranging from 11.5% by the IMF, to 12.8% by the OECD. Increased government spending, a business and consumption friendly budget. Improved economic activity that has moved above pre-pandemic levels are driving a positive growth in the intent to hire. It has moved from 27% point in the period Jan –March, 2021 to 34% point in April-June, 2021
· High intent to hire Sectors: Healthcare & Pharmaceuticals-58%, Educational Services-55%, Ecommerce & Technology Start-ups -51%, Information Technology -50%, Fast Moving Consumer Goods-46%, Knowledge Process Outsourcing -46%,Agriculture & Agrochemicals-41%, Telecommunications 39%
· Moderate intent to hire Sectors: Power & Energy -31%, Fast Moving Consumer Durables-33%, Financial Services-32%, BPO / ITeS-30%
City Trends –
· High intent to hire Cities: Bangalore [52%], Delhi [45%], Chandigarh [38%], Hyderabad [37%], Ahmedabad [33%]
· Moderate intent to hire Cities: Gurgaon [29%], Chennai [27%], Pune [27%], Mumbai [33%], Kolkata [25%]
Geographical Trends -Intent to Hire: Metro and Tier-1 [41%], Tier-2 [32%], Tier-3 [24%], Rural [17%]
Hierarchical Trends -Intent to Hire: Senior level [28%], Junior level [28%], Mid-level [26%], Entry level [21%]
Business Size Trends-Intent to Hire: Large [40%], Medium [22%], Small [20%],
Functional Area Trends: Intent to Hire: Sales [41%], Marketing [34%], Information Technology [33%], Engineering [24%], Office Services [23%], Human Resources [12%], Blue Collar [41%]
Biggest gainers of the downward trend: Knowledge Process Outsourcing [7.84%], Information Technology [7.60%], Educational Services [7.40%]
Smaller drop in attrition rates: Healthcare & Pharmaceuticals [5.38%], Power & Energy [5.27%] Media & Entertainment [2.48%]
Elaborating about the report findings, Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “Indian economy has been regaining the lost ground and the same was reflecting in hiring as well. Be it the IMF, OECD or Fitch all have been positive and this was bolstering the business sentiment and the intent to hire. However, if we resort to lockdowns it will derail and further delay the recovery. In fact, it will impact the scope of growth in employment negatively. If we continue with our efforts and not opt for lock down the business optimism will remain intact and so the hiring. The intent to hire will grow from 27% point (Jan – March, 2021) to 34% point in the current quarter.”
A comprehensive study analysing the eco-system according to the report it is the large and medium business who will be driving the demand for talent rather than the small business. Further, as per the report the attrition levels have plummeted across sectors with the onset of COVID, and are likely to remain so for the foreseeable future.
The 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.