7 percent growth in intent to hire sales in the current quarter: TeamLease Employment Outlook Report
Mumbai, India: The near-10% growth in GDP in the current fiscal coupled with fewer supply disruptions, opening up of the pent-up demand both in the traditional and contact-intensive services as well as the buoyancy in the global economy are having a positive impact on hiring states TeamLease Employment Outlook Report (Oct- Dec’21). As per the report, there is a 3% point growth in the overall intent-to-hire in the current quarter. The biggest gainer of this positive sentiment is the sales function. More than 58% of the employers from across sectors are keen to hire talent for sales roles. In fact, out of the 21 sectors reviewed sales are the most sought-after roles in 4 sectors (more than any other role) for the period October- December 2021. The other sought-after functions are Information Technology (43% of the employers) Marketing (40% of the employers) and Engineering (37% of the employers).
Comprehensive research covering hiring, job growth, job creation, salaries, and their drivers, as per the report out of the 21 sectors reviewed around 15 have indicated positive hiring sentiment. The leading sectors are Information Technology (69%), Educational Services (64%), and Healthcare and Pharmaceuticals (51%). Another highlight is the recovery in telecommunications and Construction & Real-Estate. From being laggards with just 3% point and 1% point growth in the previous quarter both telecommunication and construction & real-estate are exhibiting 5% point growth in this expected indicating a revival of hiring by the sectors. With a drop in hiring sentiment ranging from 4% -2% point Marketing & Advertising, BPO / ITeS, Retail [Non-Essential], and Consulting are the only laggards.
With a hiring intent as high as 56% point and a 7% point growth metros & tier 1seems to be dominating the hiring intent from a geography perspective. Though not as high as metros & tier 1, even tier 2, tier 3 and rural areas are also on the positive trajectory. Diving deep into cities and their hiring sentiments, Bengaluru is leading as more than 67% of the employers have expressed intent to ramp up their talent pool. In fact, it is not just this quarter, Bengaluru has led in terms of hiring sentiments for 4 straight quarters. However, in terms of growth, it is Delhi that is topping the chart this quarter. Delhi is indicating an 8% point growth over July-sept’2021.
- International hiring trends: An all-around improvement in hiring intent across global geographies signals a gradual recovery of labor markets across the world. The Americas, Africa, and the Middle East make gains that are on par with APAC for the forthcoming quarter. The labor market recovery in APAC is being catalyzed by relative success in restraining the pandemic. But, this trend is expected to be impeded by global factors.
- Gain in intent to hire: America- 18% (+4%), Africa-10% (+3%), Middle East-15% (+3%), APAC-26% (+3%), Europe-14% (+2%)
- India trend: A near-10% growth in GDP during the current fiscal is propelling employer sentiment for the coming quarter. However, this comes on the back of a very low base, and sustaining a growth upwards of 8% in the years to come would still be a challenge for India
- High intent to hire Sectors: Information Technology (69%), Educational Services (64%), and Healthcare and Pharmaceuticals (51%). Other sectors which are also expecting growth in hiring are FMCD (59%), E-Commerce (57%), and Agriculture (54%).
- Moderate intent to hire Sectors: Logistics +47%. Telecommunications +47%, Manufacturing, Engineering & Infrastructure +39%
- High intent to hire Cities: Bangalore +67%, Delhi +59%, Hyderabad +53%, Pune +46%, Chennai +45%, Chandigarh +43%
- Moderate intent to hire Cities: Mumbai +41%, Ahmedabad +39%, Gurgaon +35%
Geographical Trends – Intent to Hire: Metro and Tier-1 [56%], Tier-2 [40%], Tier-3 [26%], Rural [16%]
Hierarchical Trends – Intent to Hire: Senior level [27%], Junior level [34%], Mid-level [24%], Entry level [34%]
Business Size Trends – Intent to Hire: Large [50%], Medium [26%], Small [29%],
Functional Area Trends: Intent to Hire: Sales [58%], Information Technology [43%], Marketing [40%], Engineering [37%], Office Services [22%], Human Resources [14%], and Blue Collar [40%]
- Biggest gainers of the downward trend: Information Technology [8.67%], Educational Services [7.79%], Knowledge Process Outsourcing [7.61%]
- Smaller drop in attrition rates: E-commerce and technology start-ups [6.29%], Healthcare & Pharmaceuticals [5.73%], Power & Energy [4.55%]
Commenting on the findings, Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “Robust GST & e-way bill generation, recovery of the manufacturing PMI, increasing in business activities, improvement in the industrial and service sector activity, rise in demand across sectors and the ramping up inoculation are not only positively impacting the economy but also the job scenario. Though this quarter may have seen a 3 percentage point, the larger picture is that there is a 5% quarter-on-quarter growth in the hiring sentiment since January, 2021, indicating that the recovery is on the right track and we would need is only fast-tracking to offset the impact of the pandemic.”
From a hierarchy perspective, entry-level continues to be the preferred. Having put business operations in place with steadily increased pace, India Inc is looking to optimize costs and this is translating into positive hiring sentiments for freshers. The intent-to-hire entry-level talent is at 34% point.
Apart from dwelling into the sectors, cities, and profiles the report also analyzes the hiring sentiment across business sizes. As per the study, the hiring intent in general across different business sizes is on a positive trajectory. However, with more than 50% of the employers indicating positive intent to hire and a growth rate of 6% points large businesses are on an overdrive.
In in-depth research as per the report, it is not only the hiring intent that is on a positive note, even the attrition. Close to eight sectors namely Ecommerce & Technology Start-ups, Power & Energy, Telecommunications, Financial Services, Media & Entertainment, Logistics, Fast Moving Consumer Durables, and Construction & Real Estate have been successful in reigning in attrition by a significant margin as compared to the previous quarter. In the previous quarter out of the 21 sectors, 7 were struggling with attrition ranging from 4.48% – 8.02%.
The TeamLease Employment Outlook Report is a forward-looking tool for human resource professionals, policy, and decision-makers and reflecting hiring sentiment across 14 cities and 21 sectors in India. This report carries “Intent to Hire” statistics for Q-3, 2021-22 [Oct, 2021 – Dec, 2021] on the basis of the survey and analysis carried out during July and August, 2021. The survey covers 650 small, medium, and large companies across the 21 sectors across India. The coverage is spread 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].