Article: Indian employers are more cautious about hiring

C-Suite

Indian employers are more cautious about hiring

Increased salary cost coupled with advancement of technology and globalisation has resulted in jobless growth
Indian employers are more cautious about hiring
 

There is a reason for jobless growth: Increase in salary cost

 

Traditionally, Indian companies were far less conservative than multi-national companies when it came to hiring. In good old days when the salaries were low, everyone was hiring continuously. Then, two things happened: One, the gap between salaries in India and developed countries reduced; two, people started looking at the global market place rather than the domestic market alone. So, many companies have become far more conservative than what they were like in the past. By and large, people are cutting back on hiring.

The biotech industry is more capital and technology intensive than people intensive. We have never hired in huge numbers and will be conservative. In domestic market, we will continue to hire people in marketing, sales, research and development, quality manufacturing etc., but the numbers are not going to be huge. Typically, 5 to 10 per cent of increase in headcount is what we will expect next year. For our overseas operations, there will be a mix of people whom we hire from India and other countries.

There is a reason for what is being termed as ‘jobless growth’. Gradually, salary costs are going up. In the pharma industry they are not as high as in the service sector, but yes, the numbers are beginning to become significant. We are really looking at how we can work smarter, be more careful about where we deploy people. Medicine is not a discretionary purchase, so, regardless of a slowdown, we follow a very predictable approach. With companies becoming more cautious towards hiring, I do not foresee any problem with this approach.
 

Read full story

Topics: C-Suite, Strategic HR

Did you find this story helpful?

Author

QUICK POLL

What are the top work tech investment focus areas for your company currently?

2 months free subscription
q_auto,f_auto/v1639994115/mag-december-2021.png

Subscribe to all new People Matters HR Magazine

.

Subscribe
And Save 59% plus Two months free

Subscribe now

2022 is around the corner: what is next for the world of work?

READ the December 2021 issue to find out what global leaders and thinkers predict