A positive trend of recruitment was witnessed in smaller towns and mini-metros during the April-June period of 2011 on the back of increased hiring in sectors such as engineering and manufacturing, says a survey.
According to a study by MyHiringClub.Com, 41% of the companies surveyed said they recruited 23% more personnel in tier-II cities such as Pune and Hyderabad during the first quarter of 2011-12 compared to the year-ago period.
Another 12% of the respondents said they hired 5% more employees in tier-III cities like Jaipur, Ghaziabad and Kochi during April-June, 2011.
"The same hiring trend will continue in the next quarters also," MyHiringClub.Com Founder and CEO Rajesh Kumar said.
Tier-II and Tier-III cities seem to be gaining ground compared to the metros as companies continue to look at them as cost-effective destinations.
"The motivational reason to hire from these cities are rising salaries and high attrition experienced from hiring in metros," the survey noted.
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The engineering and manufacturing sector accounted for 22% of total hiring from tier-II and III cities, followed by thr insurance, banking and other financial services sector (18%), IT and ITes (18%), FMCG (16%), retail (14%), telecom (12%) and infrastructure (10%).
"With increased volume of activity, particularly in engineering, manufacturing and financial services, the tier-II and III cities had seen strong hiring. Also, IT-ITeS companies are looking to relocate to non-metros as companies don't have to pay that much and attrition is lower. The huge demand in manpower is pushing companies to hire from tier-II and tier-III cities," Kumar added.
The survey was conducted by MyHiringClub.Com, a recruitment tendering platform catering to Asia and the Gulf/West Asia, among 232 employees and 897 recruitment consultants between May and June this year.