Since the break-out of the pandemic, lay-offs and salary-cuts have become the buzzwords in the job market inculcating fear in the employees’ mind. However, when Naukri.com surveyed the HR heads and recruiters, only 15% confirmed layoffs are being announced whereas one third assured that there will be no lay-offs, this contrasts with the jobseeker sentiment when asked via separate survey undertaken by over fifty thousand jobseekers wherein almost 21% confirmed layoffs. Further to this, only one in every five HR heads confirmed salary-cuts. This clearly indicates the need for transparent and frequent conversation between the employer and employees. Another good news for jobseekers was around job-offers; 42% HR Heads and recruiters confirmed that job offers made prior to the lockdown will be honoured while only 6% indicated that they will be withdrawn and the balance indicated the offers being valid with deferred joining dates.
On the hiring front, as companies are striving to manage their current workforce, hiring has been frozen in most organisations. Overall, one-third HR heads and recruiters confirmed that they have completely paused the hiring while only 10% revealed that hiring is happening as usual. The most impacted sectors from a hiring standpoint has been Hospitality, Aviation, BFSI, Construction and Staffing. However, Pharma and Healthcare industries are the least impacted.
Large businesses (> 1,000 employees) are the least affected in terms of hiring while organisations with less than 50 employees are worst affected. In large businesses, 62% of the recruiters confirmed that they are still hiring while 63% of the recruiters from small sized companies (> 50 employees) confirmed hiring being completely paused for the time being.
About 38% of the companies surveyed indicated only critical hiring taking place in their organization, and within that the 2-5 yrs followed by 6-10 years experience band will see maximum hiring. As the organization continues to ramp up their exposure to digital channels - application development followed by IT support & maintenance are the key domains where critical hiring is taking place even amidst this crisis.
When asked to predict the time when hiring activity will return to normal, the majority of recruiters felt that it’ll take 3 – 6 months for hiring to return to pre-COVID levels while 15% still feel that it could take more than a year for the same to happen.
The recruiters confirmed that the 2-5 years experience band is most affected by layoffs whereas Sales/Marketing, HR/Admin and Ops are the most affected Functional Domains. Freshers and employees from the Data Sciences/Analytics domain are least affected. Out of companies that are laying off, 26% recruiters from those companies say that they will be laying off more than 25% of the workforce while 35% confirm that less than 10% of the workforce will be laid-off. 58% of CHROs and recruiters whose companies are laying off or will lay-off in the near future say they are interested in Outplacement Services.
Close to 44% recruiters confirmed that salary cuts are not likely to happen in their respective organizations while only 21% confirmed an announcement of the same. Companies with a large workforce are most impacted by salary-cuts with more than 32% of the CHROs & recruiters in such companies confirming that salary-cuts are likely to be announced in the near future. BPO/ITES, Education/Teaching, Auto/Ancillary & BFSI are the most impacted industries when it comes to salary cuts being announced.
When asked about their campus hiring plans for this year, 65% CHROs and recruiters say campus hiring has been put on hold while only 16% confirmed that hiring will go as planned. 100% CHROs and recruiters from BPO/ITES, BFSI, Auto/Ancillary, Construction and Education industries reported that campus hiring has either been put on hold or reduced.