Even amid the fresh surge in COVID-19 cases across the country, a new report suggests that the hiring intent in Q1 (April-June 2021) can still rise by 7% point (nearly 26%) over the previous quarter if further lockdowns and workplace operating rules are not enforced. Out of 21 sectors reviewed, more than 8 sectors will witness a 9-11% points rise in their intent to hire in the current quarter, according to the Employment Outlook Report by HR firm TeamLease.
The report attributes the positive hiring intent to favourable growth forecast, increased government spending, a business and consumption-friendly budget, and improved economic activity.
Healthcare and pharmaceuticals, educational services, e-commerce and technology startups, and information technology are the key sectors that are likely to ramp up their talent pool, the report said. It added that 58% of the corporates in the healthcare and pharmaceuticals sector (which is nearly 11% points higher than the period Jan-March 2021) are keen on hiring talent. And that educational services, e-commerce and technology startups, and information technology have also indicated similar enthusiasm with 55% (12% point growth), 51% (10% point growth), and 50% (11% point growth) of the companies expressing intent to hire.
According to the report, while there is overall positivity, power and energy, BPO/ITeS, media and entertainment, consulting, marketing and advertising, travel and hospitality may take more time to reach the kind of hiring enthusiasm that the other sectors are witnessing.
Split by geography, the report said that Metro and Tier 1 cities (32%) take the lead in terms of overall intent to hire, with 9% point increase each, and Tier 3 towns have witnessed a 5% point increase. Barring Kochi, Coimbatore, Nagpur and Kolkata, most of the cities have expressed a keenness to hire. With regard to functional areas similar to the previous quarter, sales (41%) and marketing (34%) continue to be the most sought-after functional roles. However, when it comes to hierarchy, the preferences seem to have changed substantially. The intent to hire senior-level talent has dropped by 4% point over January-March 2021, the report further said.
The report went on to add that large and medium businesses will drive the demand for talent rather than small businesses. Further, the attrition levels have plummeted across sectors with the onset of the pandemic, and are likely to remain so for the foreseeable future.
“Indian economy has been regaining lost ground and the same was reflecting in hiring as well. Be it the IMF, OECD or Fitch, all have been positive and this was bolstering the business sentiment and the intent to hire. However, if we resort to lockdowns, it will derail and further delay the recovery. In fact, it will impact the scope of growth in employment negatively. If we continue with our efforts and not opt for lockdown, the business optimism will remain intact and so the hiring. The intent to hire will grow from 27% point (Jan – March, 2021) to 34% point in the current quarter,” said Rituparna Chakraborty, Co-Founder and Executive Vice President, TeamLease Services.