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Freshers looking for plum entry-level jobs at top Indian companies might be in for a rude shock. Data from TeamLease Services show fresher hiring has fallen to 20 per cent from about 80 per cent earlier.
On sectors such as information technology, Manish Sabharwal, chairman and co-founder of Teamlease Services, said, “While this sector continues to hire, salaries stand at the same levels.” While the drop in gross domestic product growth was a factor, Sabharwal said now, employers were looking to recruit from the informal sector, as workers in this segment had a realistic view about workplaces.
He said instead of hiring freshers, these organisations might wait for a year and hire those with a year’s experience, at the same salary structure. Segments seeing rapid growth were sales, customer services and logistics, and attrition rates in theses sectors was high, he added.
Compared to the numbers hired, there is abundant talent in fields such as engineering. Reports suggest 1.1-1.5 million pass out with engineering degrees every year, while industry’s overall intake capacity is only 0.3-0.5 million.
The head of staffing of a city-based human resource firm specialising in entry-level talent said the company’s clients had reduced the intake of freshers 25-30 per cent. “Earlier, companies had the wherewithal to hire talent and train them for the first few months. Now, with a dip in growth, companies do not have the resources or intent to wait for talent to turn employable. Therefore, those from vocational streams or those with 12-15 months of experience are preferable,” he added.
Today, lack of access to the right talent is raising the cost of recruitment for employers. A LinkedIn-PricewaterhouseCoopers study said the time taken to find the right candidates, coupled with the increased likelihood of mismatched talent quitting soon, was costing Indian companies Rs 22,300 crore in avoidable recruitment costs.
The key, according to Sabharwal, is to pursue a course, along with an internship, as by the time a student graduates, he/she will have at least basic work experience.
IN LIMBO?
* 1.5 mn engineers graduate every year; demand 0.3-0.5 mn
* Due to low economic growth, firms hiring fewer freshers
* Staffing, training costs up 35-45% y-o-y; ready talent in demand
* Informal sector offers cheaper candidates
* In IT, fresher salaries stagnant at Rs 2-3.5 lakh a year for 3-5 years
