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THE Indian infrastructure sector witnessed 3 per cent drop in hiring activity during Jan-Jun 2016. Talent demand was stable in May 2016, with

demand dropping significantly in Apr 2016. Jun 2016 was the only month when the infrastructure sector posted rise in hiring activity. The Union Budget 2015-16 laid special emphasis on the infrastructure sector with the government announcing budgetary allocation of Rs 2.21 lakh crore for infrastructure sector. The capital outlays for roads and railways have been also been increased by Rs 140.3 billion (USD 2.05 billion) and Rs 100.5 billion (USD 1.47 billion) respectively. There are plans to award 100 highway projects under the Public-Private Partnership (PPP) mode in 2016, says a report by India Brand Equity Foundation. All these will push growth in the infrastructure sector. While Jan-Jun 2016 was largely a period of consolidation for most industries, infrastructure was also no exception. However, industry experts expect boost to growth prospects and increase manpower demand in the sector in coming times.

Jobs grew for engineers as infrastructure plans take shape

Market average and demand

95

80

65

50

35

79

44

83

50

Jan 16 Jun 16

Demand

Market Averagen Engineers continue to rule the hiring scene across experience segments in the infrastructure sector

n Opportunities in manufacturing, production, design, construction, quality control continue to increase

n Business management and consultants were also sought across experience levels

n Tech professionals were in demand at middle level; sought at junior and senior level in Jul-Dec 2015

n Hiring surged in international locations, metros top job hub for mid-level professionals

KEY TAKEAWAYS

PROJECTS/INFRASTRUCTURE

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n Production/manufacturing/maintenance had max job share; demand up by 6%

n Plant maintenance saw over 30% rise in demand; job share was 5%

n Demand was up by 20% for civil and mechanical engineers in Jan-Jun 2016

n Quality control posted 10% drop; grew by 19% in Jul-Dec 2015

n Demand was up by 3% for charted accountants; design engineers 2% rise

n Engineers had nearly 54% job share; demand fell by 3%

n Electronics engineers saw over 30% rise in demand; job share was negligible

n Business management, consultants profiles saw 19% rise in demand

n Sales/BD job share saw 1% rise in demand; was 20% up in Jul-Dec 2015

n IT professionals too registered 1% rise; grew by 11% Jul-Dec 2015

n FUNCTIONAL AREAElectronics engineers tops demand

n Delhi-NCR claimed max job share; posted 3% drop in demand

n Lucknow was next performing tier II/III location with 28% demand rise

n Chandigarh saw 18% rise in demand; Indore registered 17% rise

n International locations reported 10% rise; saw over 30% rise in Jul-Dec 2015

n Mumbai registered 3% drop; was up by13% in Jul-Dec 2015

n TOP LOCATIONSJobs in small cities

Share of jobs in top locations

Delhi-NCR

Mumbai

International

Bengaluru

Pune

Others

16%

15%

8%

6%

6%

48%

n AREA OF SPECIALISATIONHiring for plant maintenance

Share of jobs in area of specialisation

10%

Production/Manufacturing/

Maintenance

Electrical/ Electronic

Engineering

Plant Maintenance

Oil & Gas

Others

8%7%

5%4%

66%

Share of jobs in top functional areas

6% Accounting

6% Quality Control

5% IT/Telecom

18% Others

54% Engineering

11% Sales/BD

UNLIKE Jul-Dec 2015 when junior level roles saw rise in demand for all profiles, Jan-Jun 2016 saw sluggish hiring and demand dipped across most functions. There was increased demand for

electronics engineers in infrastructure sector during this period. Business management and consultant profiles were also in demand. As anticipated, procurement saw high demand at junior level in Jan-Jun 2016. Quality control and marketing professionals posted noticeable rise in demand at junior level. Demand grew for sales, business development, HR and IT professionals by a small margin. Specialisations in production, electrical, mechanical and plant maintenance were sought at entry level, just like Jul-Dec 2015. Most jobs were in metros with Delhi-NCR leading. There was significant demand in Tier II and international locations also.

JUNIOR LEVEL[ PROJECTS/INFRASTRUCTURE ]

Talent demand is broadly as: entry level comprises project execution skills, BIM technology, project modeling; middle-level revolving around MEP; and senior level encompasses multifunctional skills like sales and project designing.

Urvi Aradhya,Sr. Vice President - HR, K Raheja Corp

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n Electrical/electronic engineers had maximum job share; demand up by 5%

n Civil engineers saw over 30% rise in demand in Jan-Jun 2016

n Mechanical and design engineers saw 20% rise in demand

n Project managers posted 10% rise; demand was up by 30% in Jul-Dec 2015

n Plant maintenance saw 12% rise in demand; rose by 24% in Jul-Dec 2015

n Sales/BD claimed maximum job share; demand up by 17%

n Engineers with 2% job share saw over 30% rise in demand

n Quality/process control saw 30% rise; up by 17% in Jul-Dec 2015

n Demand for IT professionals surged with 30% rise; 1% rise in Jul-Dec 2015

n HR professionals posted 24% rise; logistics saw a drop of 25%

n FUNCTIONAL AREADemand for core and support roles

n International locations clocked maximum job share; demand was up by 17%

n Delhi-NCR, Bengaluru, Chennai posted over 30% rise in demand

n Demand was up in Mumbai by 8%; reported 29% rise in Jul-Dec 2015

n Hyderabad saw over 30% rise; Pune posted 8% rise in demand

n Maharashtra was best performing state with 20% rise in talent demand

n TOP LOCATIONSHiring up across locations

n AREA OF SPECIALISATIONJobs for civil engineers

Share of jobs in top locations

International

Mumbai

Jaipur

Gujarat*

Lucknow

Others

24%

5%

5%

4%

4%

58%

Share of jobs in area of specialisation

7%

Electrical/ Electronic

Oil & Gas

Project Management

Civil

Mechanical

Others

6%5%

4%4%

74%

Share of jobs in top functional areas

7% Accounting

5% Administration

4% IT/Telecom

59% Others

16% Sales/BD

9% Logistics

MIDDLE level accounted for 35 per cent of total demand in the infrastructure sector in Jan-Jun 2016, this was 5 per cent lower than Jul-Dec 2015. Demand surged across core and support

functions. Demand was high for engineers, accounting & finance, sales, business development IT and quality process/control roles. Similar to Jul-Dec 2015, project management, electrical, civil, mechanical and design specialisations were in demand at middle level. Demand grew for software engineers at middle level in infrastructure sector. Their job share also improved compared to Jul-Dec 2015. Mid level professionals were sought across key locations. Demand was high in metros as well as small cities. International locations had maximum job share at middle level, demand jumped 6 per cent over the recorded percentage in Jul-Dec 2015.

MIDDLE LEVEL[ PROJECTS/INFRASTRUCTURE ]

In infrastructure, skills of engineering, design, project planning, management

and execution; financial understanding, planning and management; contract

awarding, execution and management will be sought after.

Deepak Bharara,Chief Human Resource Officer, Lanco Infratech

Limited

*Except Ahmedabad and Vadodara

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n Project management claimed maximum job share; demand up by over 30%

n Manufacturing engineers had second highest job share; demand up by 20%

n Demand for electrical, civil engineers up by 10%

n Mechanical engineers saw 15% rise in demand in Jan-Jun 2016

n Direct/commission sales down by 20%; saw stable hiring in Jul-Dec 2015

n Legal/law profile clocked maximum job share; demand rose by over 30%

n Engineers saw over 30% rise demand despite miniscule job share

n Sales/BD too reported over 30% rise in demand in Jan-Jun 2016

n Demand for quality control, marketing roles up by 30% in Jan-Jun 2016

n Business management saw 23% rise; logistics saw 14% rise

n FUNCTIONAL AREAEngineers most sought

n Vadodara had most jobs; demand increased by 7% in Jan-Jun 2016

n International locations with 6% jobs share saw over 30% rise in demand

n Chennai was the only metro to post rise (over 30%) in demand

n Ahmedabad saw 20% drop in demand; rose by over 30% in Jul-Dec 2015

n Chhattisgarh, Uttarakhand gain job share; demand saw 9% rise in demand

n TOP LOCATIONSJobs abroad for senior professionals

Share of jobs in top locations

Vadodara

International

Karnataka*

Gujarat^

Chennai

Others

7%

6%

3%

3%

2%

79%

n AREA OF SPECIALISATIONDemand for project managers

Share of jobs in area of specialisation

6%

Project Management

Engineering/Manufacturing

Industrial/Utility

Electrical/ Electronic

Oil & Gas

Others

6%5%

4%3%

76%

Share of jobs in top functional areas

3% Bus. Mgmt

3% Logistics

2% Sales/BD

83% Others

6% Legal/Law

3% Accounting

DEMAND was high for engineers at senior level for Jan-Jun 2016. Business management, accounting & finance and logistics professionals also reported rise in demand at senior level in

the infrastructure sector. Sales, quality and marketing roles were in considerable demand in Jul-Dec 2015 and continued to surge in Jan-Jun 2016 too. Demand for senior IT professionals posted drop; it had seen 30% rise during Jul-Dec 2015. Profiles with specialisation in project management, manufacturing, industrial, electrical and civil engineering were in demand, just like Jul-Dec 2015. Vadodara claimed maximum job share followed by international locations. International locations led in terms hiring as metros, except Chennai reported drop in demand at senior level in Jan-Jun 2016.

SENIOR LEVEL[ PROJECTS/INFRASTRUCTURE ]

The power sector is technology and capital intensive in nature, requiring large number of specialised skilled and trained manpower during the project construction phase as well as the operation and maintenance phase.

Aman Attree,HR Head, Hindustan Power

*Except Bengaluru^Except Ahmedabad and Vadodara

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Tremendous opportunities would continue to surge in infrastructure sector, thus creating need for highly skilled resources to manage asset operations and also in projects, creating ‘best in class’ infrastructure”

Game changern Companies would shift focus back on internal talent pipeline for bulk of the roles while the war for niche skills may intensify, both for external hiring and retention. n Build internal bench strength of bright engineers and management graduates to address attrition as well as to build future leadership pipeline. n In niche roles, hiring professionals on contract rather than regular employment, which is turning out as ‘win-win’. n Outsource non-core work without compromising on cost and quality.n Emphasis on diversity at the workplace by giving preference to women candidates for critical and senior level roles

Role of technology in HRn IT capabilities make it easier for organisations to expand globally, providing seamless integration between present organisation and potential partners/entities. n HRIS analytics helps in providing appropriate information to HR

professionals and line managers to address risk-management decisions. n Allows the recruiters to get ERP integration for real time information to enhance the quality of hiring. n HR technology, balanced with appropriate Personal Touch, will play greater role in process improvements, talent connect and engagement.

Skills in demand n Entry level: Aircraft Rescue and Firefighting (ARFF), Airport Operations Control Centre (AOCC), operation and maintenancen Middle level: Contracts & commercial, AOCC, design engineering, planning, project financing, quality, legal, operation and maintenance.n Senior level: Legal, corporate finance, corporate strategy, project heads, commercial property development

Compensation trends n Entry level: To be compensated more with fixed pay rather than variable pay. Companies are also watching proposed statutory changes such as bonus, PF etc.n Middle level: Strictly as per the market and role value with appropriate mix of fixed and variable pay. Compensation rise would be linked to rise in responsibility levels and individual performance. n Senior level: Will be linked to higher accountabilities and performance with differentiators in variable pay towards organisations performance n Premium profiles: There may be wide variations on compensation and terms which is purely linked to group’s performance and future strategies and the value an individual brings to the table.

Emerging skills- Regulatory- Commercial- Project financing and restructuring- Policy advocacy- Enterprise risk management - Portfolio analysis, scenario planning; and - Operation & maintenance

Future outlookTremendous opportunities would continue to surge in infrastructure sector, thus creating need for highly skilled resources to manage asset operations. We look forward to strengthen our position in existing sectors e.g. airports, energy, transportation (rail, road) and urban infrastructure.

Infrastructure sector requires high levels of skills

PROJECTS/INFRASTRUCTURE INTERVIEW Aniruddha Ganguly Group President-HR, GMR