RecruiteX - Hiring Projections 2013.pdf

7/28/2019 RecruiteX - Hiring Projections 2013.pdf

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NOTES


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Key Findings

l Cautious optimism ruledthe recruitment industryduring the July-December2012 period

l Automobile industrycontinued on the growhpath and reportedsignificant increase inhiring activity

l Manufacturing and BFSIindustry also managed topreserve the positive hiringmomentum

l Support functions reportednoticeable increase indemand for talent

l Demand was for talentwith niche skills inspecialised roles, the sameis expected to be thetrend in the future

l 2013 is expected to be agood year for industriesthat take the rightinvestment decisions andfocus on technologyinnovations

The bi-annual recruitment report by TimesJobs.com, RecruiteX, dis-

cusses the significant developments in the recruitment space and analy-ses the key trends and issues. The report discusses the Indian job market

in view of demand for talent and supply of talent. The study scrutinises

key industries, reviewing hiring trend on the basis of location, functional

areas and experience in each sector. The comprehensive analysis of the

industry and associated segments aim to serve industry in make strategic

business decisions.

According to the findings of the latest edition of RecruiteX, cautious op-

timism prevails across major industries. Prevailing uncertainty in the

global and domestic markets and policy fissures are resulting in slow-

down in hiring. Engaging and retaining talent is the top workforce man-

agement agenda for companies across industries. Most organisations areeying brand positioning exercises to attract top talent. Along with organi-

sations referral programmes, online social activity was on top of every

recruitment heads agenda in 2012 and will continue to be so through

2013. Unconventional channels of recruitment such as hiring through

Tier II and III cities is also becoming more and more evident, thereby

giving visibility to rural talent.

While hiring sentiments were dreary across key sectors,

Automobile/Auto Component/Auto Ancillary, Manufacturing and BFSI

industry managed to preserve the positive hiring momentum. Negative

sentiments continued to plague the IT/Telecom industry. Docile budget

allocations for IT industry coupled with the uncertain macro environ-ment are to be blamed for the downbeat hiring activity during the second

half of 2012, felt industry experts. Demand for most key functional areas

dropped across industries. However, support functions saw growth in

hiring activity. Sales and Business Development professionals emerged

as the most in-demand profile during the July-December 2012 period.

Akin to the overall lacklustre demand scenario, hiring was dormant

across key locations. Where key job hubs such as Delhi/NCR, Mumbai,

Bangalore, Chennai reported slump in demand for talent owing to recur-

ring economic crisis, volatile macro environment and vigilant hiring, tier

II and III locations such as emerged as high growth markets.

During the July-December 2012 period, demand for fresh/entry level

candidates and senior professionals was upbeat in some industries. How-

ever, demand for talent at middle level recorded flat to negative activity

across industries during the same period. Experts say that the numbers

are indicative of the fact that organisations were only looking to hire on

demand, and increase lateral hiring. Lateral hiring too was cautious as

organisations wanted to optimise their workforce. Companies want to re-

tain employees.

Experts predict that while the macro environment would remain chal-

lenging, 2013 can be a good year for industries, with the right invest-

ments and technology innovations. They also ascertained that thecollaboration between government, academia and industries is the need

of the hour and it would provide a competitive edge to Indian recruit-

ment industry in 2013.

Executive Summary


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BI-ANNUAL RECRUITMENT REPORT Recruite

RecruiteX January 2013 1

500

400

300

200

100

0Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13

Demand for Talent Supply of Talent

IT/Tele

com


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The recruitmentlandscape in theIT-Telecom sector in2012 India points to

the resilience in thecountry's economy

BI-ANNUAL RECRUITMENT REPORT

took a hit, explains A G Rao, Managing Director, Manpower Group India.

These, along with domestic policy paralysis, forced the IT industry to lower its

growth forecast to 11-12% from last fiscal target of 16-18% growth.

The second half of 2012 saw cautious hiring by most IT companies as most

corporates hire at the beginning of the year so that new hires have enough

time to ramp up and deliver by the second half of the year. Also, given the

economic environment, organisations would have become cautious about

hiring, adds Shriyan Nagraj, head of recruitment at SAP.

Harshvendra Soin, VP, Leadership Acquisition & Development, Mahindra

Satyam, attributed the fall in demand to the trend that jobs are being

generated more in tier-II cities as the cost structure of these cities is less and

provides an attractive destination for the companies.

The telecom industry faced a lot of uncertainty in 2012 and that led to slow

hiring in 2012. There were policy gaps on the part of the government, and the

industry was just waiting and gauging the way forward. This has led

the industry in general to put off

hiring, adds Rao.

According to a report by

Accenture, India in 2013:

A Quick Recovery is a

Must, sluggish

economic recovery

in Indias

traditional export

markets such as

the US and

Western Europe

have compelled

Indian IT and IT

enabled service

(ITeS) providers

to look east to

other emerging

economies. The

Asia Pacific market

is growing at 18%

year-over-year and is

expected to account for8% of total IT-ITeS exports

by the end of 2013.

The talent demand index for the IT/Telecom industry has dipped by 28 points

since December 2010 (100*). From July 12(91) to December 2012, the index lost 19 points.It touched 72 points in December 2012.

Recruite


Share of total jobs in the

industry for top locations

during July-December 2012

Bengaluru/Bangalore

Delhi NCR

Mumbai

Chennai

Hyderabad/Secunderabad

Others

21%

18%

26%

8%

17%

9%

According torecruitment data from

TimesJobs.com,

demand for talent in

the IT-Telecom sector

fell from July to December 2012 in

all four major locations: Bengaluru

by 34%, Delhi/ NCR by 24%,

Mumbai by 14% and Chennai by

24%. The only upward trend was an

increase in demand for talent in the

below 2 years experience category

by 17% (July-December 2012).

The data provided is in sync with

what the IT industry experienced in

the last quarter of 2012. Apart from

the unfavourable global market

conditions, there were some

structural changes in the software

industry. Many software companies

started recruiting from locations

near the offsite projects, whether inthe US or Europe. Add to this the

economic and political situation in

Europe and the US, and recruitment

Key findings:

> Demand for talent in the IT-Telecomsector fell from July to December2012 in most major locations

> Flat IT budgets and the uncertainmacro environment continued tochallenge the industry in thesecond half of 2012

> Many software companies startedrecruiting locally from locationsnear the offsite projects, whether inthe US or Europe

> Uncertainty in the telecom sector,coupled with policy gaps, led toslow hiring

*The base value for the talent demand index is taken as 100 for the month of December 2010.


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Hiring

trends 2013The IT industry will take some

time to recover, atleast 2-3 quarters.

By the fourth quarter of 2013 the

industry will gain ground and show

about 20% growth. As for the

telecom industry, I am very bullish

about hiring in this industry in the

coming months. Auctions in

February and March will help

consolidate the industry it will

establish which players are serious

and where they want to go fromhere, leading to hiring, said Rao.

Further, according to the data,

demand fell across all functional

areas, by 11% in Sales and Business

functions, by 30% in the

Banks/Insurance/Financial

Services and 32% in IT/Telecom

functional areas. Experts however,

say that inspite of slow hiring in the

second half of 2012 product

development will be a major area of

growth in the near future. The four

major technologies in the ITindustry that will drive growth will

be cloud, analytics, big data and

mobility.

"Consultancy and products will be two major areas in the IT sectorthat will throw up huge opportunities as companies want to

optimise investments in current technology. In telecom, jobs

related to customer experience, big data and analytics will

drive growth as organisations seek to comply with new

regulations, and control new risks more effectively," stated

Rao of Manpower Group.

Nagraj adds that data scientists, people with design and

user experience and people who are able to manage large

projects will be in demand in 2013.

The skill gapAccording to RecruiteX data, demand for talent in all

experience categories fell during the July-December12

period, 41% in the 5-10 years experience category; except

less than two years (increase of 17%) and more than 20 years

(increase of 19%). Experts say that the numbers are indicative

of the fact that organisations were only looking to hire on

demand, and increase lateral hiring. Lateral hiring too was

cautious as organisations wanted to optimise their workforce.

Companies want to retain employees. The data for more than 20+

years experience reflects the trend that the industry has focussed on

leadership hiring to manage large geographies, large projects and large

programmes, says Nagraj from SAP.

Industry experts also pointed out that moving forward, addressing the skillgap issue will be a key focus point for the industry and the government.

Savneet Shergill, Head-Talent Acquisition,

Dell India gave some pointers:

l Invest in Training & Talent

Management

l Set up a diverse

workforce by

embracing

diversity

recruiting

l

Strengthenthe Employer

Brand and

leverage

employee

base as brand

ambassadors

l Strengthen the

HR framework

on policies like

job rotation and

reskilling

Soin of MahindraSatyam adds, We should

encourage sharing of data

amongst the large companies to

Recruite


Growth in demand for talent

in top locations within the

industry during

July-December 2012

Bengaluru/Bangalore Delhi NCR

Mumbai Chennai


-34%

-24%

-14%

-38%

-24%

Share of total jobs

in the industry for top

functional areas during

July-December 2012

IT/Telecom

Sales/Business Development

Customer Service

HR/PM/IR/Training/T&D

Accounting & Finance

Others

66%

11%

13%

3%

4%

4%


10/70


ensure that anyone who has beenasked to leave for a values issue

does not get hired by a competitor.

We also need to use robust hiring

methodology like skill tests,

technical tests, psychometric tests

and tools like competency based

interviewing.

The social

network

2012 also saw the emergence of thesocial recruiter. Employers moved

towards online social and

professional networks to not only

look for talent but also to build their

employer brand among passive

candidates.

Social Media Recruiting has

recently taken off in India and we

see quite a few firms across India

Inc. using it aggressively to build,

manage and scale their talent

pipeline.

Social media has created a

paradigm shift in the way brands

interact with their stakeholders

its taken them a step closer and has

personalised / humanised

conversations. GenY has accepted

social media as a means of day-to-

day communication, explains

Shergill.

Along with organisations referral

programmes, online social activity

was on top of every recruitment

heads agenda in 2012 and willcontinue to be so through 2013.

According to a TimesJobs.com

survey, 35% recruiters utilised

social networks to source new

employees in 2012.

In 2013, the conversations will no

longer be one way, organisations

will have to organise themselves

efficiently in order to acquire

passive talent or employees that are

the right fit, most companies will

invest on employer branding online.

We can expect to see more

discussions than ever before as the

trend for social networkingas a recruitment tool

continues to evolve.

Says Soin,

Organisations will

have to use the

social media and

other Gen-Y tools

to improve the

Employer Brand

and clearly

articulate the

EVP (employee

value

proposition) of

the brand

company.

Adds Shergill, Dell

manages a very

aggressive and unique

social media outreach. Our

presence on Facebook, Twitter,

LinkedIn and other social media

platforms is strong and the followership is

becoming even stronger by the day.

This trend will refine even more over this year and will witness shift in hiring

behaviour of employer and employee.

l Employers move towards social

media to source talent as well as

to build employer brand

among passive

candidates

l Social media has

created a

paradigm shift in

the way brands

interact withtheir

stakeholders

l According to a

TimesJobs.com

survey, 35%

recruiters

utilised social

networks to

source new

employees in 2012

l Social recruiting would

continue to be on everyrecruitment heads agenda

in 2013 also

Recruite BI-ANNUAL RECRUITMENT REPORT

IT/Telecom Sales/Business Development

Customer Service HR/PM/IR/Training/T&D


-32%

-11%

-12%

-9%

-5%

Share of total jobs


experience segments during

July-December 2012

Less than 2 years

2 to 5 years

5 to 10 years

10 to 20 years

Over 20 years

18%

39%

1%

31%

11%

Growth in demand

for talent in top functional

areas within the industry during

July-December 2012


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Future Outlook2012 was a year of challenges for the Indian IT sector. Experts say that

while the macro environment would remain challenging, 2013 can be agood year with the right investments in platforms and innovation.

According to Rao of Manpower Grop, the key areas of focus for

the HR industry should be:

l Skill set development

l Preparing for the challenging business environment ahead

l Creating a culture of innovation

l Keeping your current employees engaged

Savneet Shergill, Head-Talent Acquisition, Dell India has

some advice for the graduating class of 2013:

l Embrace social media to find your dream job

l Define a Career Path: Network with your peers and

professors, and connect with your mentor. Engage in

conversations regarding what you want to achieve in life, basis

which you can chart out a career path for yourself

l Keep Learning: Focus on skill sets that matter to you and that reflect

in your career path. Keep learning this will help you make progress

towards your desired goals and objectives

What are some of the current

campus trends and challenges?

Our current challenge is to train and

equip them for billable positions.

Colleges have to introduce some basic

understanding on the work

environment and their curriculum

needs to be revisited. Some of the

leading IT companies have a tie-up with

engineering colleges and have built

branded curriculum for campus

selected students.

What is the future outlook forcompensation trends in your

industry?

As of now, the future outlook looks flat.

After the assessment of the last quarter

results of the IT/Telecom companies

and the forex, the compensation

budgets would probably remain the

same or less than last year (2012). This

would mean a much stronger focus on

performance and potential of an

individual and the ability of the

organisation to identify the right talent.

What are the key challenges

that should be the focus of the

HR fratenity in your industry

in 2013?

Disengaged employees lead to

dissatisfied customers, which not only

hampers business growth but also

results in attrition. Hence, our primary

focus should be to create an amicable

work environment that keeps the

employee engaged to deliver their best.

At a workplace, there will always be 4-5

generation of employees working

together. Hence all our policies, process

and workflows should be flexible and

effective at the same time to meet the

requirements of employees across

generations. Social Performance

Appraisal and Social 360 degree

feedback should also be in focus in 2013.

With the increasing focus on employee

centric processes and policies, its

crucial to adopt Crowdsourcing

methodology where the management

seeks employees ideas and suggestions

on employee related processes and

programmes. Identification and

development of key talent at various

levels is a key to the organisations

growth. This would mean a closer look

at the competencies needed at various

levels and strengthening the processes

to identify such people and have

specific growth plans to engage them.

Ravi ShankarEVP & Chief People OfficerMindtree



Growth in demand

for talent in top experience

segments within the industry


Less than 2 years 2 to 5 years

5 to 10 years 10 to 20 years

Over 20 years

17%

-28%

-41%

19%

-20%

Expert Speak


12/70

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500

400

300

200

100



Manu

facturing

&

Engin

eering


14/70

Manufacturing is aprime economic andsocietal pillar forIndia which will

continue to drivegrowth and employa large workforce


TimesJobs.coms datareveals that during the,

July-December 12

period, the

manufacturing industry

witnessed growth in demand for

talent during the month of October

12 (10%) and December 12(14%).

Both August 12 and November 12

witnessed similar dip in demand for

talent. Aditya Narayan Mishra,

President Staffing & Director

Marketing, Randstad India, stated,

Faced with strong headwinds of

poor global and domestic markets,

high fuel prices, power shortage

and lack of availibility of credit,

the performance of the

manufacturing sector, including the

automobile industry has been below

expectation in 2012. Negative

growth rate in IIP andmoderate GDP growth reflects

the same.

Hiring and recruitment across unorganised, small and mediummanufacturing firms and organised manufacturing industries was very

moderate, as there was no clear visibility in the market dynamics, he added.

Tony Goodwin, Chairman & CEO, Antal International, a global executive

recruitment organisation, said, In 2012, while we did see some heightened

recruiting activity, it all tapered off towards the later part of the year as

companies exercised caution due to the impact of global economy.

Quite a few sectors seem keen to push recruitment towards the RPO way

of managing.

Locations in demandDelhi NCR witnessed the maximum (20%) share of the total jobs in the

industry during the entire July-December 12 period, followed by Mumbai,which witnessed nearly 19% of the total share of jobs. Both Pune and Chennai

witnessed equal share (8%) of jobs. In terms of growth in demand for talent

during July-December 12, all the top

locations witnessed dip in demand

for talent, with Bangalore

registering the maximum

dip (28%). Ahmedabad

and rest of Gujarat

witnessed similar dip

in demand (27%).

According to

Mishra, The

traditionalmanufacturing

belts in Tamil

Nadu,

Maharashtra and

Karnataka have

continued to

attract

investments and

growth; however

Gujarat is witnessing

increased investments

and is expected to be a

strong hub formanufacturing, especially for

the automobile sector.

Recruite





Delhi NCR

Mumbai

Pune

Chennai

Bengaluru/Bangalore

Other

20%

19%

39%

7%

8%8%

The talent demand index for themanufacturing and engineering industry

remained the same as recorded inDecember 2010 (100*). From July 2012 (111) toDecember 2012, the index lost 11 points.

Key findings:

> During the July-December 12period, the manufacturing industrywitnessed growth in demand fortalent during the month of October(10%) and December (14%)

> Skilled blue collar workers were indemand in 2012 and would also bein 2013

> Gujarat is witnessing increase ininvestments and is expected to be a

strong hub for manufacturing> The jobs in the manufacturing

industry need to be branded andbetter positioned



15/70


Functional

areas indemandEngineering professionals captured

the maximum (37%) share of the

total jobs created in the industry

during the July-December 12

period, followed by Sales/Business

Development professionals (15%).

Biotechnology/Pharmaceuticals/

R&D professionals captured the

minimum (2%) share of the total

jobs.

Marketing & Advertising

professionals registered the

maximum (31%) dip in demand for

talent in the industry, followed by

IT/Telecom professionals (28%).

Logistics/Procurement

professionals clocked the least dip

(1%) in demand for talent during the

July-December 12 period.

According to Goodwin, sales and

marketing professionals, R&D and

quality control, engineering design

and development & testingprofessionals were in demand in

2012.

Mishra stated, With a spurt in the number of organisations setting uptheir R&D centres in India, R&D sector would be in demand. Also

there is need for semi-skilled workers for maintenance of

machinery, highly qualified welders, paint shop managers,

production managers and procurement managers.

With Indian consumers becoming more discerning about the

products and services they use, companies are focussing

more on quality and additional features. This is leading to

higher contribution towards R&D and employees getting

trained in niche skills. Also, with India becoming an

engineering and R&D hub, engineering consultancy is

another area which is on the rise, he added.

Amaresh Singh, Country HR Director, Alstom, during aTimesJobs.com boardroom dialogue, highlighted that fact

that there is a serious dearth of blue collar workers. He

believes good blue collar workers were in demand in 2012 and

would be in the future too. All good manufacturing industries

require hundreds and thousands of welders and we dont have

any. So, we get welders from ITIs and send them to Brazil and

Europe to be trained, he stated.

l R&D sector was in demand in 2012 with many companies setting up

their plants in India

l Engineering consultancy is also on the rise

l Skilled blue collar professionals were in demand in 2012 and would be in2013 as well

Experience

segments in

demandCandidates in the

experience

segment of 2-5

years captured

the maximum

(34%) share oftotal jobs in the

industry. Of the

total job share,

32% was

claimed by

candidates

belonging to 5-10

years experience

bracket.

Senior candidates

with more than 20

years experience had

the least job share (6%) in

the industry. Candidates with

less than 2 years experience were

Recruite




industry during

July-December 2012

Delhi NCR Mumbai

Pune Chennai

Bengaluru/Bangalore

-13%

-6%

-14%

-28%

-12%

Share of total jobs



July-December 2012

Engineering



Logistics

Quality/Process Control

Others

37%

15%

26%

6%

10%

6%


16/70


the only ones that witnessed growthin demand for talent (6%) for the

July-December 12 period.

Candidates with 10-20 years

experience clocked maximum dip in

demand (23%), followed by

candidates with 5-10 years

experience segments (22%). Senior

candidates with over 20 years

experience also witnessed double-

digit dip (14%) in demand during

this period.

The challengesfaced in 2012According to Goodwin, The key

challenge at this moment is not

sourcing; it is to ensure candidate

movement. Since there is such high

uncertainty candidates seem to

develop cold feet at the end of the

process and do not pick up the

opportunity. Engagement should be

easier due to the lesser number of

jobs available in the market.

However, for the better performingemployees; it sure is about the next

level of responsibility. Hence they

need to see that value being added to

their careers.

From the talent perspective, India

has a young workforce and the

demand for skilled labour outstrips

supply. The main challenge lies in

the shortage of skilled workers to

operate machinery and for the

factory floor. Indian employees are

skeptical about vocational training,

to equip themselves with the skillsrequired to get a job, as they

consider it less attractive when

compared to other qualifications.

Hence these complexities only

widen the gap and companies are

forced to find other avenues to

source talent, says Mishra. He

believes that the answer to such

challenges lies in vocational

training and other training and

development methods. According to

him, the possible solutions are:

Vocational Training: Government,

Universities and Companies should

incentivise and encourage setting

up of vocational traininginstitutes. It should not

only be in the form of

funding but also in

terms of recognising

that vocational

institutes will

provide a huge

boost to

employment

opportunities.

Training &

Development:

One other pain

point with

industries is that,

companies have to

invest in basic

training programmes

at the cost of

productivity. To overcome

the same, they can partner

with institutes to build exact

replicas of the work environment in

order to make it easier to cross the theory-

practical divide.

Talking about the branding issue of the sector during the boardroom

dialogue, Sanjeev Kumar, VP-HR, Moser Baer Power & Infrastructures

Limited stated, The jobs need to be branded

and the manufacturing sector has not

invested so much in positioning

themselves and their jobs vis-

-vis IT and IT enabled

services.

Future

OutlookManufacturingis a prime

economic and

societal pillar for

India which will

continue to drive

growth and

employ a large

workforce. The

recent initiatives

and reforms taken by

the Indian government

will further enhance the

attractiveness of themanufacturing sector and

increase its contribution to the

countrys GDP. The industry is also


Engineering Sales/Business Development

Accounting & Finance Logistics

Quality/Process Control

-15%

-5%

-20%

-11%

-1%

Share of total jobs



July-December 2012

Less than 2 years

2 to 5 years

5 to 10 years

10 to 20 years

Over 20 years

10%

34%

6%

32%

19%

Growth in demand



July-December 2012


17/70

gradually moving up the value chain and as a testimonial to this trend we see

multiple MNCs setting up captive R&D centres in India, leading to

increased hiring of specialist talent, predicted Mishra.

We believe that in 2013, government, academia and industry will

act in conjunction with each other to make India gain more

competitive advantage as against its stronger competitors from

around the world, he added.

According to Goodwin, Currently recession has definitely

taken some toll on this industry, increase in bank rates,

increase in fuel prices, and typical seasonal slack are the

major contributors apart from negative force of global

economy. However, this is a transient phase and it is going

to change in the next two quarters, 2013 second half will

turn the manufacturing sector and 2014 will see good times

again.

l Manufacturing is a prime economic and societal pillar for

India which will continue to drive growth and employ a large

workforce

l The collaboration between government, academia and

industries would provide a competitive edge to India in 2013

l The second half of 2013 would witness good hiring activity in

manufacturing industry

What are some of the new trends inrecruiting? Will 2013 witness a more

organised social media talent plan?

Use of social media has definitely made

the recruiting method easier. You can

contact good talent from the industry

through LinkedIn, Facebook,

Skillpages, and Twitter, to name a few.

Job portals have always been there, but

definitely with more and more social

media sites coming up, the year 2013

will see a more organised way of doing

social media recruitment.



The colleges are aware of the market

conditions and they are sending the

students to interact with organisations

through projects, internships or

training. Challenges are increasing due

to the increase in number of colleges

every year.

What is the future outlook for

compensation trends?

In the near future, the compensation

trends will be more or less the same.

But, the situation is going to change

fast and the compensation trends would

change as well.

What are the key challenges thatevery HR head in your industry

should have on top of their

workforce agenda in 2013?

Retaining existing employees, creating

a win-win situation, work out employee

benefit policies, and mechanising a

proper review procedure are the key

priorities for HR heads.

Are there new skill sets that will

emerge in 2013 that you would like

entrants in your industry to be

trained/ready for?

In our industry the basics will always

be the same. However, there are several

softwares which work as a helping hand

with the employees, the entrants should

keep on enriching their knowledge and

prepare themselves to handle multiple

work.

Which roles will pick up momentum

in coming months and why?

To start with, human resources,

financial positions like CFO will be

picking up momentum. Technical

knowledge will always be in demand,

at least in our industry.

Dr. Siddhartha PandeyChief People Officer(Group Head HR ),Bhushan Power & Steel Ltd



Growth in demand






Over 20 years

6%

-10%

-22%

-14%

-23%

Expert Speak


18/70

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500

400

300

200

100



BFSI


20/70

The future for thebanking sector in2013 is expected tobe challenging yet

full of opportunities,with lakhs of newjobs expected in theindustry


According toTimesJobs.com data,

during the July-

December 12period,

the industry witnessed

a growth in demand for talent only

during the months of October

12(10%) and December 12(3%). 2013

began with a growth of 8% during

the month of January. On the

supply side, the industry recovered

from a substantial dip in July 12

and adopted a growth trajectory till

October. The maximum growth in

supply of talent was witnessed in

September 12(26%). After

witnessing a dip of 1% during

November 12, on the supply side,

the industry recovered again. "In

the next few years, there will be

almost 5 lakh jobs available in the

Banking industry. With the newbanking license regime, it should

only make the job market more

lucrative," stated Hamsaz Vasunia,

Group-Vice President, DCB Bank during a "High-Tea" session, a chat platformon TimesJobs.com. She also highlighted that despite the economic slowdown

in the industry, the growth in the industry has been steady.

Last year was a mixed bag for the BFSI sector with majority of the hiring

being done in the April-June 12 and July-September 12 quarters. Overall the

hiring grew by 8 to 9%, stated E.Balaji, MD & CEO, Randstad India.

Talking about the compensation trends, Balaji added, BFSI sector has

differential pay structures depending on the business units and revenue

contribution. In 2012, employees in the retail banking segment received a

moderate pay hike but employees in sales and functions like Trade Finance,

Risk Analytics & Assessment and Treasury, received relatively better hikes

and good performance linked bonuses.

Also there is a noticeable shift in trend where companies are proportionately

adjusting the variable component to enhance performance. The salary hikes

range from 8% to 15% for the fixed component and 20% to 30% for the variable

component.

We see a great number of

foreign banks entering into

the Indian markets, which

is generating huge

employment in the

banking sector as

well, stated

Deepak Kaistha,

ManagingDirector,

Planman

Consultant.

Vinay

Deshpande, chief

people officer,

Mahindra and

Mahindra

Financial Services

said, We at

Mahindra Finance

have been hiring and

recruiting aggressivelysince last year. We have

hired approximately 1000

additional employees during the

The talent demand index for the BFSIindustry has dipped by 6 points sinceDecember 2010 (100*). From July 12 (103)

to December 12, the index lost 9 points. Ittouched 94 points in December 2012.

Recruite





Mumbai

Delhi NCR

Bengaluru/Bangalore

Chennai

West Bengal

Other

29%

16%

35%

6%

9%6%

Key findings:

> During the July-December period,the industry witnessed a growth indemand for talent only during themonths of October and December

> The year 2013 began with a growthof 8% during the month of January

> The agenda of government is toincrease financial inclusion andbanks have a key role to play byincreasing their rural presence

> Hiring is expected to be on anupswing with many PSUsplanning to recruit in largenumbers



21/70


period April 12 January 13.

Mahindra Finance has followedindustry trends with respect to

compensation philosophy this year.

We have been balanced in our

approach towards compensation at

various levels. Specialised/hot skills

have received higher compensation

due to their limited availability.

Major emphasis is on creating and

executing a variable pay structure

which pushes performance and

productivity, he added.

Locations indemand

Mumbai captured the maximum

share (29%) of the total jobs created

in the industry during the July-

December 12 period, followed by

Delhi NCR (16%). Among states,

West Bengal held the maximum

(6%) of the total share of jobs.

Hyderabad/Secunderabad and Pune

registered similar share of 4%. In

terms of demand of talent, Mumbai

was the only location that witnessed

a meagre growth of 1% during the

July-December 12 period. All other

major locations witnessed double-

digit dip in demand. The maximum dip (35%) was clocked byHyderabad/Secunderabad region. Talking about the locations that

performed well in 2012, Balaji stated, We observe the traditional

financial centres like Mumbai and Delhi to have performed well

in terms of hiring. Also hiring in locations like Chennai are

also picking up with many MNCs setting up their technology

and back office operations here.

l Mumbai captured the maximum share (29%) of the total

jobs created in the industry

l Mumbai again was the only location that witnessed a

meagre growth of 1% during the July-December 12 period

Professionals in demandDuring the July-December 12 period, 42% of the total jobs

generated in the industry were captured by Banking/

Insurance/Financial Service professionals. Sales/Business

Development and Accounting and Finance professionals

registered similar share of 17%.

HR/PM/IR/Training/ T&D and Logistics/ Supply Chain Management/

Procurement professionals witnessed growth in demand for talent.

Professionals belonging to all other major functional areas witnessed dip in

demand. The maximum dip (39%) in demand was clocked by IT/Telecom

professionals,Companies prefer candidates with an average experience of 3-8

years for roles in retail banking, corporate sales and business developmentwhich always have been in demand. Other roles related to operations in trade

finance and wealth advisors for premium clients

are gradually picking up, stated

Balaji.

Majority of the

recruitment was focused

towards the Sales and

Recovery operations

function. This is in

the area of retail

asset financing.

Credit

Operations andAccounting

function has

also seen a

steady increase

in additional

requirements,

says Deshpande.

l HR/PM/IR/

Training/ T&D

and Logistics/

Supply Chain

Management/

Procurementprofessionals witnessed

growth in demand for talent

Recruite




industry during

July-December 2012

Mumbai Delhi NCR

Bengaluru/Bangalore Chennai

West Bengal

1%

-15%

-19%

-17%

-17%

Share of total jobs



July-December 2012

BFSI



Customer Service

IT/Telecom

Others

42%

17%

13%

5%

17%

5%


22/70


l The maximum dip (39%) indemand was clocked by

IT/Telecom professionals

l The strong demand for qualified

MBA professionals will continue

Top Experience

SegmentsCandidates with 2-5 years

experience captured the maximum

share (39%) of the total jobs created,

candidates with 5-10 years

experience followed suit with 33%

share. Senior professionals with

over 20 years of experience

captured the least share (1%) of the

total jobs.

On the demand side, professionals

with less than 2 years of experience

turned out to be the only candidates

that witnessed a growth (6%) in

demand for talent. The maximum

dip (27%) in demand was clocked by

candidates with 5-10 years ofexperience. According to

Deshpande, Candidates falling in

the experience segment of 0-5 years

were in demand. These comprise of

field executives and junior

management positions.

Talking about the importance of

middle management professionals

during a TimesJobs.com boardroom

discussion, Dhruv Desai, Sr. VP HR

and Leadership Academy, Angel

Broking, stated, We need to focus

more on retaining middlemanagement employees. If the

attrition goes beyond a certain level

our cost gets affected and for middle

management its about retaining the

right talent.

l Professionals with less than 2

years of experience turned out to

be the only candidates that

witnessed a growth in demand

l Finance professionals at entry

level will be in demand in 2013

l Hiring activity will increase for

strategy and corporate finance

roles across all sectors

Key IssuesTalking about the

challenges in the

sector during the

TimesJobs.com

boardroom

dialogue, Vibhash

Naik, VP HR,

HDFC Life,

stated,

Challenge lies in

volume

recruitment. We

often fail to

estimate if we

have enough

number of

candidates. Though

candidates are given

the right company

orientation, due to cultural

difference or some other

reason, we face a lot of attrition

in our industry. He also stated that

there is a huge gap between skills required and

what they actually get in the market.

There is also location based talent challenge, according to Deshpande. He

stated, Since we recruit from rural and semi/urban location, sourcing of

suitable candidate pose a big challenge for

us, as our requirements do not

always match the skills

available in the market.

However, engaging

employees has not been

a challenge.

Recruitment in the

BFSI segment will

be driven by PSU

bankspredominantly as

bulk of their

lower and middle

level employees

will retire in the

next five years.

With new banking

licenses in the

pipeline and rural

penetration, the

banking industry is set

to face a huge talent

crunch. We can expectmigration of talent between

private and public sector banks,

stated Balaji.


BFSI Sales/Business Development

Accounting & Finance Customer Service

IT/Telecom

-25%

-8%

-1%

-39%

-11%

Share of total jobs



July-December 2012

Less than 2 years

2 to 5 years

5 to 10 years

10 to 20 years

Over 20 years

17%

39%

1%

33%

9%

Growth in demand



July-December 2012


23/70

l There is a huge gap between skills required and what employers actually get

in the market

l Challenge also lies in volume recruitment

Future OutlookThe future for the banking sector in 2013 is expected to be

challenging yet full of opportunities, according to Balaji. With

the government planning to issue new licenses and bring

about policy changes as an impetus for growth. The agenda of

government is to increase financial inclusion and banks have

a key role to play by increasing their rural presence, use

modern technology for greater information security and

lower transaction costs. Also banks are trying to reduce their

NPAs, and shift their focus to a more customer-centric

approach. In terms of employment, hiring is expected to beon an upswing with many PSUs planning to recruit in large

numbers as close to 50% of the workforce will retire in the next

few years, he added.

Since the RBI has opened new banking license for big corporate

houses, we feel that hot skills with respect to banking would be in

demand in the next year. We also see a growing demand in the retail

asset financing area in rural and semi/urban sector, where we operate,

stated Deshpande.

What are some of the new trends in

recruiting?

Recruiting landscape has changed over

a period of time. Corporates have

become far more tight to pre assess

predictability of success in the roles.

Quality of Hire has become a key

with increase in resource optimisation.

Partnered Hiring models have evolved

more on a variable cost structure and at

times linked to performance and

productivity of the resource over a

longer period of time. Recruitment

Process outsourcing has started takingshape in some pockets and are moving

towards a process maturity.

Will 2013 witness a more organised

social media talent plan?

In 2013, we will be witnessing more

organised social media plan to create

specific recruiting environment which

will enable candidates to exhibit their

competencies and choose their

employer linked to their ambition. For

organisations there is a growing need to

participate in right social mediarecruiting forums with two way

evaluation tools and to ensure that the

brand is build jointly with the word of

mouth approach by this talent pool.


compensation trends in your

industry?

Compensation in the coming days will

be very tightly linked to growth.

Businesses are not only looking at

growth as increase in top line/revenue

but similar focus on value and bottom-

line is also getting linked to the

compensation philosophy. Corporates

are taking a far more balanced

approach while finalisation of

compensation increases.

Fixed to variable ratio is being re-

looked at and higher variable

compensation linked to business levers

and performance seems to be the

mantra in the days ahead. Long

term/deferred pay plans linked to

performance is getting more focus to

retain and manage key talent.

Considering the existing scenario of

high inflation, GDP predictions and

other external aspects the outlook will

remain conservative. Compensation

trends will remain moderate. However,we will follow a fairly

differential/segmented approach for

key talent and average performance.

Saurov GhoshExecutive VP & Head - HR & TrainingBirla Sun Life Insurance Co. Ltd.

Growth in demand






Over 20 years

-16%

-27%

-3%

-26%

6%



Expert Speak


24/70


25/70



500

400

300

200

100



BPO/I

TeS


26/70

BPO/ITeS sector hasplayed a pivotal rolein placing India onthe world map as a

booming outsourcingdestination, in a veryshort span of time


Demand index for the

BPO/ITeS industry

dropped from 115 in

July 12 to 106 in

December 12. The

index witnessed a nearly 20% drop

in the July to September 12 quarter,

closing at 93 in September 12.

However, after the initial blow

demand for talent in has been

steadily increasing. The Indian BPO

industry is at a crossroads. While it

is poised for huge growth, the

industry as a whole is grappling

with challenges including wrong

perceptions and severe talent

shortage.

Though the sector is trying to move

up the value chain and seek out new

opportunities of growth, the

scarcity of people with requiredskill sets is making this an

extremely difficult task.

Perception about BPO jobs is a problem. It is considered a stop-gap job.

Although opportunities are abundant in BPOs, getting people to join BPO

industry is a struggle, said Subrat Chakravarty, Head Human Resources,

HCL technologies Business Services, at the TimesJobs.com boardroom

dialogue.

There is a dichotomy of what really happens and strong perceptions, which

are out there in the market generated by people, who really do not know the

business. There is a strong need to build a brand. There is a strong need to tell

people what the industry offers to its employees in the short term as well as in

long term level.

Functional areas in demand

The overall decline in demand for talent was a result of low hiring in all top 5functional areas with over 20% drop in hiring for IT and Finance and

Accounting profiles. Sales and Business Development profiles were the only

exception and reported a 7% increase in

demand for talent. Increase in

hiring for Sales and Business

Development profiles

indicate a heightened

focus on expanding into

new territories and

domains by most

companies.

Where demand for

CustomerService/ Tele

Calling profiles

fell by 10%, its

share in total job

postings

witnessed a

healthy increase

of 55% during the

July-December 12

period. Being one of

the key functional

areas in the BPO/ITeS

sector, the drop inCustomer Service/Tele

Calling profile points towards

The talent demand index for the BPO/ITeSindustry rose by 6 points from December2010 (100*). From July 12 (115) to

December 12, the index lost 9 points. Itregistered 106 points in December 2012.

Recruite





Delhi NCR

Mumbai

Bengaluru/Bangalore

Chennai


Other

29%

19%

21%

8%

12%

11%

Key findings:

> Demand for talent in BPO/ITeSindustry reported a 9 point dropduring the July-Decemeber 12period

> Demand soared for Sales andBusiness Development profiles,other key functions experienced adrop in demand

> Hiring was upbeat for junior/entrylevel and senior candidates,

pointing towards future businessexpansion plans

> The industry needs to work onbrand building and positioning



27/70


the tough competition from

international markets such asPhilippines, believe industry

experts. Another reason could be

the brand positioning of the

industry. As Ravikumar Aleti, Head-

Talent Acquisition, Cognizant BPO,

articulated at the TimesJobs.com

boardroom dialogue, The quality

talent pool in the market does not

look at this industry as a long-term

career option. People do not find the

need to continue in a BPO job. As a

result, we are losing people to other

industries. This is resulting in jobs,

especially voice-related work,moving out of India. However,

experts are optimistic that demand

will improve for these profiles in

times ahead.

l Sales and Business Development

profiles reported highest increase

(7%) in demand for talent.

l IT and Finance & Accounting

profiles witnessed a drop of over

20% in demand.

l Despite a drop, the share ofCustomer Service/ Tele Calling

profiles in total job postings

increased.

Locations in demandKerala clocked a 9% increase in hiring activity during the

July-December 12 period. It was the only region in the top ten

locations to report positive hiring activity. Overall, hiring was

low across all major cities with southern states and cities

losing the most momentum.

Among the top five locations, Bangalore, Chennai and

Hyderabad experienced a drop in demand by an average of

17%. Inspite a 6% drop in demand for talent, Delhi/NCR

reported maximum increase in proportion of jobs posted as

against total jobs in the BPO/ITeS industry during the

stated period, followed by Mumbai. According to Harish

Jotwani, Head Recruitment, Serco Global Services,Hyderabad and Bangalore locations saw slump in the

number of hires because companies at those locations rely

more on tech specific processes linked to the downtrend in the

US and European economies.

Earlier studies by TimesJobs.com have revealed that many

BPO/ITeS companies are strengthening their bench strength in

cities such as Lucknow and Jaipur owing to the escalating manpower

and logistics cost in metros.

According to experts, local BPOs are coming up in a major way and thus, the

industry is sourcing talent from Tier II and III cities to tap the local talent,

which is well-versed with the local dialect and is economical. Subir Ghosh,

President Aegis Global Academy stated at one of the boardroom dialogues

conducted by TimesJobs.com, Going forward real opportunities when we talk

about job creations will be driven by

domestic markets. In that case

English speaking skills are not

going to be primary but

customer empathy and

right temperament to

serve is going to be

fundamental.

l Among top

locations,

Kerala wasthe only

region to

clock growth

(9%) in

demand for

talent.

l Pune was

worst effected

among top job

locations,

witnessing a drop

of 33% in demand.

l Tier II and III cities

emerged as new BPO/ITeS

job hubs.

Recruite




industry during

July-December 2012

Delhi NCR Mumbai



-6%

-9%

-19%

-22%

-11%

Share of total jobs



July-December 2012

Customer Service


BFSI

IT/Telecom


Others

55%

10%

15%

4%

8%

7%


28/70


Experiencesegments in

demandHiring during the six-month period

was mainly limited to entry

level/fresher hiring. This segment

reported over 20% increase in

hiring activity. According to

Jotwani, Entry level functions

always face a constant level of

attrition as candidates keep moving

on to seek greener pastures. Also,new business growth in the

industry requires higher level of

entry level candidates which results

in more of entry level hire than mid

and top-level hires. The ITeS/BPO

industry also witnessed a 7%

increase in demand for candidates

with over 20 years experience

suggesting hiring for head of

operations.

While the industry is hiring

freshers and entry level candidates,

experts admitted that there is abroad overall issue of skills in the

Indian workforce, specially the kind

of people the industries hire from

colleges.

As experts pointed out in

TimesJobs.com boardroom

dialogues, while the top tier colleges

that have the best talent are grabbed

by the best in the industry, other

companies also go to a number of

second tier and third tier

institutions and colleges, wherethere is fair amount of retraining

and skill development that needs to

be done.

l Fresh hires reported an increase

of 22% in demand during the

July-December 2012 period

l Candidates with 5-10 years

experience witnessed highest drop

(25%) in demand, during the same

period

l Senior candidates with over 20

years of experience saw a 7%

increase in demand for talent

during the stated period

Key issuesThe ITeS/BPO industry

is in a growth phase

and is evolving from

a primarily voice-

based industry to

high-end services.

With this

evolution, the

industry is also

facing unique

talent challenges.

Today with theevolution of the

industry, skills

such as voice or

capability to just

process invoices and

transaction have become

a minimum requirement

and redundant skills.

As companies move higher up in the

value chain, demand for the right talent is

tough. The industry is looking at well established industries to gain

understanding of different market segments. Companies across the board arefinding it difficult to move talent from industries such as manufacturing and

integrate it into a BPO environment, both culturally and career wise.

Also, the ITeS/BPO industry is

currently viewed as a stop-gap

opportunity for most freshers.

This is largely due the

inability of small

companies to match a

job profile with the

skill sets of a

candidate.

The mismatchoften results in

dissatisfaction

with the job and

leads the

employees to

believe that the

BPO is not a long-

term career.

The industry needs

to collectively

showcase the various

opportunities available

within the industry andcareer paths available to

candidates. Industry experts have


Customer Service Accounting & Finance

BFSI IT/Telecom


-10%

-9%

-19%

-12%

-27%

Share of total jobs



July-December 2012

Less than 2 years

2 to 5 years

5 to 10 years

10 to 20 years

Over 20 years

28%

42%

1%

24%

6%

Growth in demand



July-December 2012


29/70

suggested that to tackle the problem of image the term call- center should be

replaced with other professional job terms such as managed services.

Additionally, success stories from the industry should be shared with

the media to project the industry in a good light.

To arrest the problem of image internally, companies should

counsel new employees and find the right fit. Companies should

not hire for projects but should look at recruitment

holistically.

Looking aheadAccording to TimesJobs.com data, increased hiring activity

for Sales and Business Development executives and

candidates with over 20 years experience, suggests the

ITeS/BPO industry is expecting increased business activity

in the coming months, which may result in increased hiringacross levels and functions. Companies across the board are

now looking at various models between build from within

versus hire.

Companies are looking at the concept of skills in a manner that

would allow them to remain competitive vis--vis other emerging

location. Government agencies are working extensively on the skill

gap by collaborating with top companies in the industry and creating a

standard skill training module.

Expert Speak

Praveen KamathGeneral Manager & Global Head ofTalent TransformationBPO/KPO divisionWipro Corporation

Growth in demand






Over 20 years

-25%

-18%

22%

7%

-21%




recruiting?

Hiring through Social Media especially

through Facebook, LinkedIn and

Twitter has become a differentiator for

many emerging conglomerates.

Alternative channels such as hiring

through Tier II/III/IV cities there by

giving visibility to rural talent is

becoming more and more evident



Yes of course. Organisations are

spending considerably to train HR

professionals to understand this

channel of hiring. There is significant

progress both in terms of numbers

hired through this channel as well as

the percentage of contribution through

this particular channel of hiring.



E-campus and virtual campus hiring is

becoming a reality, today. Technology

solutions around this channel of hiringare emerging. Many corporations have

piloted this effort and it is working

for them.


compensation trends in your

industry?

Flat. Niche skills will be paid more,

plain vanilla skills will be paid less

and less in the days to come.

Compensation eventually will be a

function of demand and supply with a

factor of degree of difficulty/

availability of the skill.

What are the key challenges that

every HR head in your industry

should have on top of their

workforce agenda in 2013?

Talent Acquisition and Talent

Retention are some of the major

challenges that the ITeS/BPO

industry is struggling with, currently.

Are there new skill sets that will

emerge in 2013 (owing to new

technology/market forces) that you

would like entrants in your industry

to be trained/ready for?

Remote and hands-free hiring, remote

and technology based training completely will move into e-Learning,

v-Learning, link-based learning using

CBT technique.


30/70

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31/70



500

400

300

200

100



Consu

mer

Durab

les/

FMCG


32/70

The FMCG industryhas been resilientthrough theslowdown. The

impetus for hiringwill now come from,rural sector and tierII and tier III towns


According toTimesJobs.com data,

there was a drop in the

demand for talent in

major cities in the July-

December 12 period. For instance,

the demand in Delhi fell by 13%, in

Mumbai by 5%, in Chennai and

Bangalore by 12% and 24%,

respectively.

The reasons for negative demand in

terms of hiring were given as lack

of movement in existing projects

and dearth of new projects in the

pipeline. FMCG is a very

replacement heavy industry. So,

placements happen when people

quit their jobs. However, looking at

the economic scenario, there has

been no movement. Candidates/

employees are staying put and areaverse to taking risks by not looking

out for options. Hence, there has

been no demand, points out

Vandana N Pannaswami, executive director, ABC Placements. She adds,Along with employees, organisations are also not taking too many risks.

Hence there have been no new investments in terms of projects. They are

playing it safe. Further, organisations are trying to retain employees rather

than hiring new ones.

But, experts say, dont let this dampen your spirits just yet. The reason why

FMCG sector has shown negative numbers in terms of hiring is because these

numbers were based on a projection of last year. In the early months of 2012,

the industrys performance was weak. However, this picked up later in 2012

and even as we have entered in 2013 the growth seems positive. So, this means

to sustain the growth, companies will focus on hiring new people, points out

Ganesh Shermon, partner (market), KPMG in India.

He adds that there has been new growth as the companies are launching freshproducts across lifestyle, fashion and personal care brands. Even regional

brands are doing significantly well. This means there will certainly be

positive hiring.

We are expecting growth in the

FMCG sector during medium

and long term, given the

broad-based

consumption and

rising consumer

incomes, says

AshutoshTelang,

executive vice

president andhead human

resources at

Marico.

The reason for

this growth is

that the consumer

has high

disposable income

at hand. In the last

year there has been a

significant drop in

capital expenditure. This

means people now havemore disposable income, and as

a result they are spending more

The talent demand index for the consumerdurables/FMCG industry rose by 9 pointsfrom December 2010 (100*). From July 12

(119) to December 12, the index lost 10 points. Itregistered 109 points in December 2012.

Recruite





Delhi NCR

Mumbai

Bengaluru/Bangalore

Chennai

Pune

Other

21%

19%

38%

7%

8%7%

Key findings:

> The dip in demand in the sectorcan be attributed to the lack ofmovement in existing projectsand dearth of new projects

> Broad based consumption andrising consumer income wouldfacilitate industry growth

> Companies like Marico, GodrejConsumer Products are likely toinvest in new talent ahead of thegrowth curve this year

> Growth this year will come largelyfrom rural consumers



33/70


money on day-to-day goods andother lifestyle goods, adds

Shermon.

This is likely to affect hiring as well.

In fact, according to our data, there

was a rise in demand for people

below two years of experience by

16%. However, at mid-management

and senior level the demand has

been negative.

FMCG majors have now posted

positive results and they will push

sales. This job will then require astronger salesforce. Hence, the

candidates with 0-2 years of

experience will see growth in

recruitment. Having said that,

companies are also looking at

pushing the brands. There will be

focus on specialists in branding and

marketing space, points out

Shermon.

This trend is not restricted to big

cities and metros. In fact, small

towns are where the real game is

being played. For instance, in thelast few months, Delhi, Kolkata,

Hyderabad and Chennai saw a

hiring slowdown, while pockets like

Ernakulam, Kochi and Baroda saw relatively healthy hiring. Manycompanies, including FMCG majors Dabur, HUL and Godrej, are

seeing category share from rural markets growing. But,

Sangeeta Lala, senior Vice-President and co-founder,

TeamLease says, While there is some bit of recruiting

happening in the rural segment, the major chunk is still in

the metros. This is where big and managerial positions are

available.

Further, companies like Marico and Godrej Consumer

Products are likely to invest in new talent ahead of the

growth curve this year. We will continue to invest in new

talent hiring. There will be no significant changes in the

companys strategy of hiring new talent. The FMCG

sector has been resilient in the phase of slowdown and

will continue hiring unmitigated, pointed out Telang.

According to some reports, at Godrej Consumer Products

the growth in recruitment in India over last year has been in

the range of 3 to 4%.

l According to TimesJobs.com data, there was a drop in the

hiring demand in major cities in the July-Decmber 12 period

l There has been new growth in the sector as the companies are

launching new products across lifestyle, fashion and personal care brands

l Broad based consumption and rising consumer incomes are facilitating the

growth in the sector

l In the last few months, Delhi, Kolkata, Hyderabad and Chennai saw a hiring

slowdown, while pockets like

Ernakulam, Kochi and Baroda

saw relatively healthy

hiring.

Hiring

Trendsl FMCG is

expected to

generate 1.76lakh new jobs

in 2013

l Dabur, HUL

and Godrej

are seeing

category

share from

rural markets

growing.

l In 2013, hiring is

likely to go up by

10-15% in themonths of April-

May 13

Recruite




industry during

July-December 2012

Delhi NCR Mumbai


Pune

-13%

-5%

-24%

-8%

-12%

Share of total jobs



July-December 2012


Engineering


Marketing & Advertising

Logistics

Others

34%

13%

25%

8%

11%

9%


34/70


Trends that will drive FMCGgrowth in 2013

The growth this year will come

largely from rural dwellers, while

urban consumers will continue to

be affected by the macroeconomic

environment, point out experts. In

comparison to other sectors the

consumption story will remain

intact, though the pace of growth

has slowed compared with previous

years.

According to experts, this time theslowdown in consumption spending

is visible in some categories in the

higher SECs (socio-economic

classifications) of urban India.

The first quarter of 2013 does look a

little glum for recruitment. The

hiring is likely to go up by 10-15% in

the months of April-May, says Lala.

Toned Down

Cheer"The year is just beginning. Many

companies were cautious in the

past, but post appraisals and with

the start of a new financial year

companies will start recruiting,

says Lala.

This increase is expected to be

driven by an improvement in the

outlook for the financial services

and FMCG/retail sectors. Also,

there are small investments being

made in new products launches, sothis will help the sector to grow

further.

The FMCG sector has infact been

showing a positive growth in the

last few months. Driven more by

domestic consumption and

protected against currency

fluctuations, companies in the

FMCG and retail sector, such as

Dabur, have an upbeat hiring and

business outlook.

The FMCG sector has beenrecording year-on-year growth of

around 15-16%. The other thing that

will give a boost to the sector is

clarity in FDI in retail.Once the government

gives more clarity in

retail then there will

be some movement

within the sector.

This will lead to

growth in

demand and

hiring, says

Pannaswami.

Agrees

Shermon,

With clarity in

retail and new

tie-ups, the

industry will

certainly see

positive growth.

There will be

movement in single

franchisee models and once

IKEA sets shop in India, the

game plan will totally change.

New Markets

l Clarity in FDI in retail will boost the FMCG sector

l Recruiters are cashing in on the growth in e-commerce

Salary

AdvancesThough the hiring is

likely to happen mid-

year, candidates

should not expect

big salary hikes

during appraisals

or whileswitching jobs.

According to a

study conducted

by Kelly services,

in India the

salaries and

increments are

expected to witness

a projected best case

of 8 to 10% hike.

The hikes will be

rather nominal this year.

So, its best not to expect

much more. This hike is also

largely due to inflation, says

Pannaswami.


Sales/Business Development Engineering

Accounting & Finance Marketing & Finance

Logistics

10%

-32%

-13%

-3%

-21%

Share of total jobs



July-December 2012

Less than 2 years

2 to 5 years

5 to 10 years

10 to 20 years

Over 20 years

12%

38%

4%

30%

17%

Growth in demand



July-December 2012


35/70

Points out Lala, This hike is likely to come only after April-May. According

to Hay Group, India Inc is expected to dole out an average pay hike of

11.2% across job roles in 2013, lower than 12% increase witnessed last

year. The other reason for the moderate hike is directly related to

the performance. FMCG companies are showing signs of

recovery since 2012. Companies will first try and stabilise

themselves before going all out with fatter salary packages,

says Shermon.

But, if the company thinks you are a stronger candidate

then some analysts say that the rules of the game can be

changed. So, Lala has a word of advice. FMCG is a highly

competitive sector. So, one has to be ready to beat the

competition to grab that perfect pay package.

l Though the hiring is likely to happen mid-year, candidates

should not expect big salary hikes during appraisals or

while switching jobs.

l Salaries and increments are expected to be in the range of 8

to 10% hike

l This hike is likely to come only after April-May 13

l With the industry undergoing a recovery phase since 2012,

companies woud first try to stabilise before offering generous salary

packages and increments


recruiting?

Despite overall macroeconomic

challenges, we will see a steady hiring

trend across the sectors. While most of

it will come from the need of talent

replenishment (replacement hiring),

there will be upswing in the growth

oriented hiring for sectors like retail.

Top talent across the board will

command premium and will be most

sought after. Once the consumer

sentiment improves, moreopportunities will be available to the

current talent population which is

today risk averse. Most preferred form

of hiring will continue to be through

employee referral and organisations

will deploy means to reduce their

dependence on search partner agencies.



The advent of Social media will

continue to provide more opportunities

for consumer durable sector. The use of

Facebook, Linkedin and Twitter likeplatforms will be leveraged to our

advantage and the job postings on

online job portals and company's own

websites will increase as percentage of

total of hires from all channels. This

will be particularly attractive for Gen-Y.

Use of mobile phone ap

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