While Covid-19 infections are again on the rise globally, driven by Europe and East Asia, the caseload in India has been on a sharp downward trend. This ‘decoupling’ of sorts, even if temporary, has been a great source of optimism for employers in India, as a bi-annual survey released today by jobs platform Naukri.com reveals.
Importantly, the survey reveals that more employers are planning to give out salary increments in excess of 30% this time around, compared to the July-December survey.
More than 3 out of 5 employers (62%) expect the pace of hiring activity to snap back to pre-Covid levels by June, the Naukri Hiring Outlook Survey said. With digital transformation shaping the future of work, the demand for tech skills has been seeing a steady uptick.
As many as 57% of recruiters indicated both new and replacement hiring in their organizations in the coming months until June, versus 51% in the last year’s survey.
The top functional areas in which active hiring is expected in the coming months are IT (59%), Business Development (43%), and Marketing (36%).
From an experience standpoint, recruiters see maximum hiring to take place in the experience band of 3-5 years (67%), followed by 1-3 years (53%), and 5-8 years (53%).
“The anticipation of returning to normalcy by companies is fuelling a strong hiring sentiment as there has been a pent-up demand across sectors,” Pawan Goyal, Chief Business Officer, Naukri.com, said. “Naukri Hiring Outlook Survey corroborates this narrative, as 57% of recruiters indicated a surge in both new and replacement hiring in their organizations. Only 2% of recruiters foresee a hold on hiring, while just 1% indicate layoffs for the coming months, which indicates re-stabilization after a turbulent period.”
The experience bracket of 3-5 years is expected to see a majority of attrition (51%), followed by 1-3 years (45%). Given the continued surge in demand for IT roles, recruiters expect this sector to witness a high employee fallout (churn) rate of 49%. It is interesting to note that the number of recruiters anticipating an attrition rate greater than 20% grew by 33% when compared with the previous survey conducted last year.
More increments in excess of 30%
As per the survey findings, the number of recruiters planning to roll out increments in excess of 30% grew by 60% versus the previous outlook survey conducted in July-December. It’s great news for employees as the economy continues to normalize and household consumption is expected to grow. At the same time, the number of recruiters foreseeing an increment below 10% reduced from 37% to 33%.
Campus hiring back on track
The campus hiring is showing signs of improvement since last year. In the previous survey, a majority of recruiters had put campus hiring on hold. But this year, most of them expect campus hiring to go as planned. As many as 47% of the recruiters surveyed confirmed going ahead with the placements in the next few months, while only 16% feel that there may be a reduction in the number of candidates that will be hired from campuses.
Changing workplace models
Indian companies are preparing to call their employees back to office, with 41% recruiters confirming the same, which marks a significant increase of 10% when compared with the July-December 2121 survey. A little over two out of five (42%) recruiters believe that work from home is as productive as work from office, while around 14% recruiters said they would be back to office with a restricted team size.