In Bengaluru: TeamLease Services, a staffing solutions company, in its latest report, projects that the temporary hiring has gained traction as compared to the previous year and and zips ahead at 17% towards the last quarter, a rate of growth last seen half a decade ago.
According to the report, while the industry may not be cautious anymore while hiring, they sure are being very choosy while rewarding talent. Probably some lessons learnt from the recession. Salaries have risen across industries and cities, in general, but the spoils are not shared across the board - businesses have begun to incentivize smartly and cherry pick to acquire and retain valuable talent.
The report reveals that the Information Technology sector is back in the reckoning after almost three years of staying in the shadows. A sure sign that the sector is on the recovery mode. Temporary staff hiring is up by as much as 19% in the Year 2010 for IT and salary increments are between 10% and 12%. The sector leads the rest of the industries on both these counts. Automobile, Telecommunication and Healthcare follow far behind on hiring, with about 15% growth, and closely on salary raises, with between 9% and 10% growth.
Bangalore strengthens its number 1 position with an enviable salary growth rate of 8.3%. Mumbai (7.8%) retains the second place and Delhi (7.3%) reclaims the third place from Chennai. Indore (3.9%), Goa (4.2%) and Jaipur (4.4%) are cities with the lowest salary growth rates.
Industry Trends:
Amongst the trends, salary raises spread and new skill-salary clusters emerge: According to the study, salary raises are now spread over a larger set of profiles across industries and cities. This is primarily because of the rush and need for skills and the right talent. This phenomenon has pushed the median salary increment to 7.3%, up from 5.25% in 2009. This cheer is only going to spread wider over the next couple of quarters. The report also notices a new trend of multiple clusters of high-skilled, high-paid profiles mushrooming in 12 of the 14 cities covered in the study. Automobile, FMCG, Food & Hospitality, ITeS and Retail lead the new charge in the pay-for-skills department while Agriculture / Agrochemicals, FMCD and Healthcare continue to improve on their ability to identify, assess and reward skilled talent.
While services sector has traditional been the leader in temporary hiring, the report finds that this scenario may soon change. Thanks to healthy growth in hiring as well as salary increments in the Agriculture/Agrochemicals, Automobile, Power & Energy and FMCG industries, the Manufacturing sector now trails the fast growing Services sector by a thin margin. Hiring in the above industries is up to more than 7%, and salary growth to 6.33%.
There are certain industry-city pairs that are soon going to be impossible to beat, because they seem to be outperforming the market, according to the study. The most effective of these pairs in terms of incrementing salaries are Chennai-Automobile, Delhi-Food & Hospitality, Mumbai-Healthcare & Pharma and Bangalore-IT. Salary growth rates across these industry-city pairs are 7.5% and above, with Bangalore-IT being the most rewarding pair of all at 12%.
Attrition raises its head again:
The increase in hiring within sectors and opening up of different sectors to temporary hiring has their downside too. Newer avenues for employees are increasing and as a result, the longevity of a temporary employee in industries like Agriculture / Agrochemicals, FMCG and Manufacturing & Allied Industries has gone down by up to three percentage points. The BFSI, Hospitality, IT and Telecommunication sectors experience a 1.5 to 4 percentage point drop. However, this is also an indication that temporary staffing is truly the springboard to permanent orbit, the study says.
According to Sangeeta Lala, Vice-President, TeamLease Services, "The Indian temp market is simultaneously maturing and growing. Not only is temporary staffing spreading across job profiles within industries but the traditional temp laggard manufacturing sector is fast catching up with the services sector. The current 90 million temp workforce in India is only the tip of the iceberg as salaries converge between temp and perm jobs. The industry plays a vital role as a portal for unorganized sector workers to enter the organized sector and a vehicle that allows employers to take potential employees for a test drive. As the only temporary staffing company with a 200+ retail training network, our temps are well positioned to capture the higher salaries because of higher skills."
The report covers 13 key industry verticals that have active temporary staffing practices namely Agriculture & Agrochemicals, Automobile & Allied Industries, Consumer Durables, Power & Energy, FMCG, Manufacturing & Allied Industries, BFSI, Telecommunication, Hospitality, Healthcare & Allied Industries, Information Technology, ITeS and Retail. The functional domains analyzed are Accounts, Administration Blue Collar, Support Services, Engineering, Human Resources, IT and Sales & Marketing while the locations covered are Ahmedabad, Goa, Kolkata, Bangalore, Hyderabad, Lucknow, Chandigarh, Indore, Mumbai, Chennai, Jaipur, Pune, Delhi and Kochi.
Data points covering these attributes for temp staff working across 318 different Job Profiles, 13 Industries and 8 Functional Domains in 14 major locations in India have been processed and analyzed for this purpose. The Primer serves as a guide for both job seekers and employers to obtain relevant information and useful insights on talent, skills, salaries, increments and longevity.
This report compiled by TeamLease is based on the information gathered from the following sources:
* Recruitment companies offering temp placements
* Temp employees in different companies
* TeamLease Associates working in 800 locations
* TeamLease Alumni
* Information on temp staffing in India from a variety of secondary sources
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