India Inc optimistic about new job openings in FY23, says report

India Inc seems to be optimistic about opening of new vacancies amid steady hiring trends during the current financial year as the country's economy is on a growth trajectory, a report said.

India Inc seems to be optimistic about opening of new vacancies amid steady hiring trends during the current financial year as the country's economy is on a growth trajectory, a report released on Saturday said.

At least 72 per cent organisations which participated in a survey believed that there will be more hirings for new positions during this fiscal.

According to 'The 11th Hiring, Attrition and Compensation Trends Report 2022-23' by Genius Consultants, 72 per cent corporates believed that there will be vacancies opening up for new positions, while 18 per cent indicated towards replacement hiring.

The report further said that the companies are also reviewing internally to strengthen their workforce.

 

Around 40 per cent said they are planning on increasing the team strength by 10-15 per cent, while 30 per cent said they are planning to add almost 10 per cent new employees to the team and around 15 per cent of the respondents opined that the employee strength of their organisations will increase by more than 10 per cent.

Only 20 per cent indicated that there might not be any new hiring actions, the report said, adding that the economic recovery after the COVID-19 pandemic is "indicating an upward curve towards hiring in the current fiscal".

"India Inc is planning the overall business outlook and its continuity understanding the demand of the market and accordingly ramping up the employee strength, compensation package etc., considering the complete sustainability. The overall positive business sentiment, increase in consumption, pent-up demand will help the job market to bounce back," Genius Consultants chairman and managing director R P Yadav said.

The report is based on a survey among 1,260 executive-level managers and HR leaders during March and April covering sectors such as auto and auto ancillary, banking and finance, construction and engineering, education, FMCG, hospitality, HR solutions, IT, ITES and BPO, logistics, manufacturing, media, oil and gas, pharma and medical, power and energy, real estate, retail and telecom.

According to the report, almost 51 per cent of the respondents stated that the focus will be more on hiring candidates with experience of 3-7 years, whereas 15 per cent said that they will prefer recruiting those having 8-13 years of experience.

The survey found that most employers will hire a workforce comprising an equal ratio of men and women employees, as 46 per cent of the participants indicated the same, while the rest said their focus will either be on more male candidates or vice versa.

Stream-wise, recruitment of postgraduate candidates top the chart, followed by marketing, MBAs, engineering and others, it noted.

The report further projected that this financial year the increment scenario remains positive, with 33 per cent of companies saying that salary hike is on the cards and it is expected to range between 7 and 10 per cent, whereas 22 per cent opined that it will range between 5 and 7 per cent.

At the same time, 33.5 per cent said the pay hike is likely to be less than 5 per cent and only 11 per cent of the respondents believed that there will be no hike in this fiscal, it added.

About the employee turnover rate, 58 per cent of respondents indicated that employees of mid-senior level are more susceptible to attrition than junior levels, the report said, adding that among the senior management the northern zone is expected to witness the highest attrition this year over other parts of the country.

Meanwhile, the report also revealed that the WFH (Work From Home) trend remained significant as most employers and employees have embraced the new hybrid working model.

Over 33 per cent respondent said WFH is part of the organisation now as more than 20 per cent of the staff will be working remotely.

As this work module has opened more opportunities for specially-abled candidates, the organisations' workforce is expected to see 15-20 per cent rise in hiring of such talents, it added.

"The overall situation is positive, and we hope there will not be any further significant impact of the pandemic on the market.

"Hence the hiring market will witness an impressive rebound with companies looking for the best talents to hire. As India Inc continues to adopt the work from home and remote working, the balance of employment and talent pool will remain steady," Yadav added.