SMEs and Educational Service Sector Registers a Steep Climb In Their Hiring Intent: Report
An in-depth analysis, as per the report the revival of the intent is not restricted to sectors or hierarchies, there is optimism even in geographies. In fact, the hiring intent in Metros & Tier1 cities has increased by 5% point from the previous half-year (April- September 2020).
The easing of the lockdown and the resultant opening up of the economy is having a positive impact on employment outlook states TeamLease Employment Outlook Report for Q3. According to the report, while the large business and the medium size businesses continue to lead in the overall intent to hire, it is the Small Size business (SMEs) that has recorded a significant growth in the current quarter (Oct-Dec 2020). The hiring intent of Small size businesses (SMEs) has nearly doubled (+6%) from the previous half year (April- September 2020) indicating a recovery in the sector. Similarly, Educational Service Sector continues to take the lead in terms of sectors who are planning to strengthen their talent pool. The intent to hire by the sector has grown by 7% in the current quarter (Oct- Dec, 2020).
A comprehensive study analyzing the hiring intent across the different sectors, cities and hierarchies, as per the report the overall the intent to hire seems to be moving in the upward direction. The intent to hire has registered a 3% point jump. Further, out of the 21 sectors reviewed all have indicated a positive hiring intent of varying magnitudes indicating a recovery of the employment scenario. Some of the sector that are leading in terms of the intent to hire are Healthcare & Pharmaceuticals, Educational Services, Ecommerce & Technology Start-ups and knowledge Process Outsourcing.
The optimism is not restricted to sectors, the intent to hire across hierarchies is also on a positive growth trajectory. More than 30% of the respondents indicated intent to hire talent at senior levels. Respondents were also keen on ramping up their mid-level (20%) and junior- level (18%) talent. But the biggest growth in hiring intent has been in the entry level. Though only 14% of the respondents have indicated intent to hire entry level talent, the section has registered an 8% point growth from the period April to Sept, 2020.
KEY FINDINGS OF THE STUDY
· India trend- The overall ‘Intent to Hire’ metric seems to have turned the corner and is set to witness a noticeable 3% increase over the October – December 2020-21 quarter
· Metro and Tier-1 cities are likely to benefit significantly from the unlock initiatives with a 5% increase in Intent to Hire
· Sector trend- Eight of the eleven sectors post appreciable improvements to their Intent to Hire, over the five unlock periods, enabling an overall restoration of sentiment.
Commenting on the report, Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “India Inc is on a gradual recovery path. Though we are yet to reach the pre-covid levels the economy is rebounding and this cautious optimism is reflecting in the hiring scenario as well. Most of the sectors intend to ramp up their hiring. While signs are encouraging, still too early to predict how Q4 shall pan out given traditionally it is a tepid hiring quarter.”
An in-depth analysis, as per the report the revival of the intent is not restricted to sectors or hierarchies, there is optimism even in geographies. Barring for rural market which is muted, all the other 3 geographies – Metro, Tier1, Tier2, and Tier3 are showing positive hiring intent. In fact, the hiring intent in Metros & Tier1 cities has increased by 5% point from the previous half-year (April- September 2020). From a city point of view, apart from Bangalore with an 8% point increment, Ahmedabad has also registered a positive growth. While Ahmedabad may be 5th in the overall contribution, with a 8% point increase from the previous half year, it is on par with Bangalore in terms of growth. Dwelling deep into the profiles, while blue collar continues to be the sought after profile, the stress from businesses to revive the market is having a good impact on the Sales and Marketing roles. The intent to hire this profile has increased by 8% points.
The TeamLease Employment Outlook Report is a forward-looking study reflecting the hiring sentiment across 14 cities and 21 sectors like Educational Services, Information Technology, Healthcare & Pharmaceuticals, Ecommerce & Technology Start-ups, Financial Services, Manufacturing, Engineering & Infrastructure, Knowledge Process Outsourcing, BPO / ITeS, Telecommunications, Fast Moving Consumer Goods, Retail (essential), Logistics, Agriculture & Agrochemicals, Power & Energy, Construction & Real Estate, Retail [Non-Essential], Consulting, Marketing & Advertising, Fast Moving Consumer Durables, Media & Entertainment