MNCs (40%) are offering 30-50% hike to overcome hiring challenges: Report
Amid the talent shortage and Great Reshuffling happening right now, 72% of the recruiters witness increasing offer declines and no-shows in this competitive landscape. It states that 88% of recruiters face increased challenges in hiring and retaining skilled employees across sectors.
A survey conducted by Scaler revealed that the already inflated tech recruitment market is creating new recruiting challenges due to increased opportunities and salaries. The annual Hiring Trends Report 2022 of Scaler revealed that while 56% of recruiters believe that there is a shortage of skilled and experienced candidates, 49% are facing the challenge of inflated salary expectations because of the inflated talent market.
It further shows that organisations across ed-tech, the internet, and IT offer an average increment of 50-75% to their employees. While 40% of MNCs are extending a 30-50% hike, 25% of MNCs have also witnessed an increment of up to or more than 100%.
It was recorded that according to 83.5% of respondents, the average time taken to fulfil open positions has increased significantly, resulting in longer recruitment cycles. The number of open positions taking more than a month to be filled has also increased by 12%. This increase in turn-around-time results in decreased organisational productivity, high hiring costs and increased stress on other employees.
The survey also revealed that employee referrals and LinkedIn are the most common channels, with ~90% of recruiters utilising these platforms. Job listing platforms and recruitment consultants are also prominent channels, with ~70% of recruiters using them.
Commenting on the findings, Abhimanyu Saxena, Co-founder, Scaler, said, “Over the last six months, the attrition rate at India’s IT majors has spiked dramatically to touch a range of 20-30% per annum. The increasing proliferation of startups and global talent competition contributes to the existing challenges. India is now home to over 91 unicorn startups, and more than $39Bn has been invested in Indian startups in 2021 alone. On the other side, MNCs are aggressively setting up capability centres in India, which is expected to hit 500 by 2025 and effectively pull in thousands of skilled professionals every year. If we fail to address this grave skill-gap issue now, the trend of high attrition rates and inflated salaries will only amplify in the coming years.”