India Inc. says it’s all ready to step up hiring activity in new financial year in the HeadHonchos’ Hiring Outlook 2014-15. Recruitment consultants too believe that hiring will gain momentum as compared to last year.
What’s behind the upswing? Will plans to ramp up materialize this year?
5 reasons that hiring in 2014-15 is expected to beat the market blues:
#1. It includes job creation not just replacement.
During an economic downturn, ‘replacement hiring’ will often continue. It’s new job creation that is the real casualty. In our survey 84.1% of employers say that headcount in their respective companies will increase in 2014-15 as they hire not just to compensate for attrition but to expand operations. The slowdown could finally be over middle-management & senior level jobs.
#2. Recruiters agree.
Recruiters provide a valuable perspective that is based on a sense of how the job market is moving in different industries. The recruitment community seconds the opinion that hiring will pick up pace in 2014-15. What’s behind it? A bit of science and a bit of sentiment, as companies vote to leave pessimism behind.
#3. These are not just entry-level positions.
The scale of senior hiring will always be small compared to lower levels in the hierarchy but it carries more weight. 26% of employers are expecting to hire at senior levels, while a significant 73% say they will recruit middle management executives. New jobs at middle-management & senior levels support the idea of a return to stability and growth.
#4. Job creation across sectors.
IT/Technology is the clear front-runner in the race to create jobs but there are more. Recruitment consultants are clear that more than one industry will see hiring. Pharma & Life Sciences, BFSI, FMCG, Hospitals/Health Care, Oil & Gas… are in the running. But more important than the actual sectors is the fact that there will be a pattern of diversified growth that is not dependent on just one sector.
#5. There’s a price correction.
With an over-supply of great candidates, employers are not only selective about who to hire, they bargain hard and often candidates take a hit in CTCs. On the other hand, as hiring picks up there’s competition among employers to hire the best or find scarce skill-sets. That’s when the downward pressure on compensation eases up. In the survey, 63% of employers said they are gearing up to pay more to new hires, signaling a price correction in the market for talent.
About the Survey: HeadHonchos’ Hiring Outlook 2014-15 is the only survey focused on senior hiring in India. It was conducted over March-April 2014. 169 human resources and recruitment professionals participated in the survey.