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Employment and business outlook dips, so does attrition, states the TeamLease- IIJT Employment Outlook Report for the quarter ending March 2013.
The information technology and IT-enabled service and infrastructure are the laggards dragging the index down while other sectors report flat outlook. The only cheer for companies is the significant drop in attrition across sectors.
The sluggish overall economic growth seems to have had its impact on the hiring sentiments in the forthcoming quarter. Both the net employment and the business outlook have registered a two and one point drop in their indexes respectively indicating stagnant hiring outlook in the forthcoming quarter.
Engineering and IT seem to be bearing the brunt of negative growth. However, sales and marketing will be the most sought after functions over the next three months.
The report reveals that though the employment outlook is largely muted across most of sectors and functions, there is a growing demand for better quality skill. For instance companies have expressed an interest in hiring skills such as accounting, book keeping, administrative and legal experts.
According to the report, though attrition has been brought under control, job hopping is still prevalent pushing companies to incorporate various performance based rewards and career enhancement activities.
Commenting on the report, Sangeeta Lala, Senior Vice-President & Co-Founder TeamLease Services, said, “We have seen earlier also that business and employment sentiments can change significantly over two quarters if the macroeconomic factors play their part”.
TeamLease-IIJT releases the Employment Outlook Report every quarter after a survey conducted with HR managers and senior management of leading companies in India. The study covered 640 companies in the latest round, focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile.
Except for healthcare and pharmaceutical, retail and fast moving consumer goods experiencing quarterly spike, most of the sectors had registered a rather stagnant growth in the current year.
But next year would see a burgeoning demand for niche skills like analytics, telecom, design and profiles like R&D. Sectorally, retail, consumer durables, engineering, real estate, construction, bio-med and pharma are likely to hire more. Retail is expected to experience a 20-25 per cent growth in hiring.
From a salary perspective, it would be more realistic. Barring few exceptional performers who can expect a double digit pay hike, most industries will be rewarding talent with single digit increments only.
Bangalore is the only city to lose out on both the employment and business outlook indexes. The indexes for the rest of the cities either increase/decrease marginally or stay flat in the upcoming quarter.
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