report 1 – india’s job market © techpreneurs 1. table of contents supply and demand in total...

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Research on Indian Job MarketReport 1 – India’s Job Market

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Table of Contents

Supply and Demand in Total and by SegmentsRegionalIndustryType of Employees

Wages Analysis

Employee Behavior Analysis

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Supply and Demand in Indian HR Market•According to the Labour Ministry of Government of India:

Indian labour force is set to increase from 520 mn in 2009-10 to 574 mn in 2014-15Approx.10 to 11 mn people will be joining the labour force each year during this

period

•According to the Associated Chambers of Commerce & Industry (Assocham): Indian economy would create 87.37 million new jobs by 2015, and close to a million

new jobs in the year 2011 itself With a GDP growth rate of 8.8 % in Q1 2011 for India and a positive job forecast for

the rest of the year, hiring in sectors like Pharma & Healthcare, IT/ITES, Engineering & Manufacturing, BFSI and Education would be promising with major hiring plans for most of the companies.

Inspite of the positive outlook, there would be the major challenge of “Employability Gap” of the Indian employees across sectors

•India has a huge talent pool of highly educated workforce under 30’s (which is more than 50% of the population of the country). Despite the large population, there are skill shortages of the employees in the specialized markets and in the experienced space for sectors such as IT, IT Enabled Services, Banking, Telecommunications, FMCG, Hospitality and Retail. The senior management positions are difficult to fill because of the shortage of skilled managers

Source: ManPower Employment Outlook Survey India, Ma Foi Randstad Employment Survey, Kelly Services India,Recruitment International, Ministry of Labor (Govt. of India), Associated Chambers of Commerce & Industry

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Supply and Demand in Indian HR Market•Attrition in the Labor Market of India is generally quite high as:

The employees look to change their job every 2-3 years to gain a salary hike and experience working in a new company

More and more employees are looking to get jobs at Multi National Companies that can provide them with an international exposure and long-term career plan

•Some of the common trends observed in the Indian labor market are:Increasing tendency in the Indian organised manufacturing sector to hire their

workers through temporary staffing to carry out production Companies are deploying RPO solutions for volume hiring and employer brandingSocial media based hiring in India has also increased significantly There has been a continuous talent migration from Tier two cities to Tier one cities in

search of better job prospects and better lifestyle

Source: ManPower Employment Outlook Survey India, Ma Foi Randstad Employment Survey, Kelly Services India,Recruitment International, Ministry of Labor (Govt. of India), Associated Chambers of Commerce & Industry

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Supply and Demand in Indian HR Market

•According to Manpower Employment Outlook Survey for the fourth quarter 2011, the employers in India are expected to robustly increase their headcount. As per the Survey, the Net Employment Outlook in India for Q4 2011, stands at +34%. (Approximately 35% of employers expecting to increase headcount, 1% anticipating a decrease and 39% forecasting no change in their hiring trend)

•The hiring prospects for the Indian employers in Q4 2011, weakened both quarter-over-quarter and year-over-year. According to the Survey, the Net Employment Outlook in India for Q4 2011 declined by 13% over Q2 2011 and by 8% over Q4 2010.

Source: ManPower Employment Outlook Survey India (Q4 2011)

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Employers Expected to

Increase Headcount;

35%

Employers Expected to

Decrease Headcount;

1%

Employers Expected to Make No Changes in Hir-

ing; 39%

Employers Not Sure

About their Hir-ing Outlook;

25%

ManPower Employment Outlook Survey - Q4 2011

Q4 2011 Q3 2011 Q2 2011 Q1 2010 Q4 20100%

10%

20%

30%

40%

50%

60%

34%

47% 49%

41% 42%

Net Employment Outlook

Net Employment Outlook - ManPower Employment Outlook Survey (Q4 2011)

YoY Decrease of 8%

QoQ Decrease of 13%

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Regional Analysis:•According to Manpower Employment

Outlook Survey for India, the employers in all four regions of the country expect an increase in staffing levels during Q4 2011. The most optimistic hiring plans are forecast in the East, where the Net Employment Outlook stands at +40%. A buoyant hiring climate is also anticipated in the Southern region where the Outlook is +37%, and the North, with an Outlook of +34%.

•As per the survey, in fourth quarter 2011, for q-o-q employers report weaker hiring prospects in three of the four regions. The hiring prospect for the West in Q4 2011 decreases by 19% q-o-q, while the North shows a 15% fall q-o-q

•For Q4 2011, the Net Employment Outlook for the Eastern Region decreases only by 1% y-o-y. All other regions recorded sharp fall in Net Employment Outlook on yearly basisSource: ManPower Employment Outlook Survey India

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North Region East Region South Region West Region0%

10%

20%

30%

40%

50%

60%

70%

34%40%

37%

29%

49% 43% 44%48%52%

58%55%

38%

31%

40%45% 46%

ManPower Employment Outlook Survey - Net Employment Outlook 2011

Q4 2011 Q3 2011 Q2 2011 Q1 2011

East Region

South Region

North Region

West Region

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

40%

37%

34%

29%

41%

43%

42%

38%ManPower Employment Outlook Survey - YoY Analysis

Net Employment Outlook - Q4 2010 Net Employment Outlook - Q4 2011

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Industry Analysis:•According to Manpower Employment

Outlook Survey, the employers in all seven industry sectors expect an increase in personnel levels during the fourth quarter of 2011. The most optimistic hiring prospects are expected in the Services sector, where the Net Employment Outlook is +39%. The Manufacturing sector employers report strong hiring intentions, with an Outlook of +35%, and robust hiring plans are evident in the Mining & Construction sector, where the Outlook is +34%

•In Q4 2011, the employers report weaker hiring plans in all seven industry sectors, quarter-over-quarter. The most noteworthy fall of 17% is in the Wholesale & Retail Trade sector, while employers in the Finance, Insurance & Real Estate sector report a decline of 16%

Source: ManPower Employment Outlook Survey India

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Finance, Insurance & Real Estate

Manufacturing

Mining & Construction

Public Administration & Education

Services

Transportation & Utilities

Wholesale & Retail Trade

0% 10% 20% 30% 40% 50% 60%

33%

35%

34%

23%

39%

32%

33%

49%

46%

49%

30%

53%

41%

50%

42%

36%

42%

55%

45%

29%

29%

ManPower Employment Outlook Survey - Sectors

Net Employment - Q4 2010 Net Employment - Q3 2011Net Employment - Q4 2011

Hiring Intentions Weaken in Q4 2011 across all Sectors quarter-over-quarter. Hiring Outlook for fourth quarter 2011 Increases y-o-y for ‘Wholesale & Retail Trade’ and ‘Transportation & Utilities’ sectors

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Healthcare is expected to add the maximum number of jobs in 2011 (248,500 nos.), representing a yearly increase by 7.4%. It is followed by Manufacturing - Non-Machinery Products (223,400 nos. – yearly increase by 5.0%) and IT & ITeS (183,000 nos. – yearly 9.5% increase)

Source: Ma Foi Randstad Employment Trends Survey (MEtS)

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0

50,000

100,000

150,000

200,000

250,000

300,000

80,700

107,500

24,900

248,500

183,000

68,400

223,400

126,100

49,400

144,700

38,600

93,300

Ma Foi Randstad Employment Trends Survey - Employees Across Sectors

Estimated Increase in Employees (2011)

8.90%1.10% 2.80%

7.40%9.50%

6.00% 5.00%9.30%

17.40%16.80%

5.90%3.50%

%age Increase Yearly

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Mumbai is expected to add the maximum number of new jobs in 2011 (102,884 nos. – yearly increase of 15.7%), followed by Delhi & NCR (102,616 nos. – yearly increase of 17.5%) and Chennai (68,134 nos. – yearly increase of 18.3%).


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Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune0

20,000

40,000

60,000

80,000

100,000

120,000

7,527

20,794

68,134

102,616

13,489

31,759

102,884

14,720

Ma Foi Randstad Employment Trends Survey - Employees Across Cities

Estimated Increase in Employees in 2011

16.20%17.10% 18.30% 17.50%

15.10%

18.60%15.70%

22.10%

%age Increase Yearly

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Type of Employees: The Hospitality Industry had the maximum proportion of Freshers (experience < 3 yrs.) as a part of its workforce (approx. 70.94%). The Energy Industry had the maximum proportion of Experienced Manpower in its workforce (approx. 55.65%)


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Banking, Finance Services & Insurance

Energy

Hospitality

Manufacturing – Machinery & Equipment

Media & Entertainment

Real Estate and Construction

Transport, Storage and Communication

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

47.32%

62.54%

44.35%

56.70%

70.94%

48.07%

57.72%

55.53%

63.35%

47.72%

57.11%

65.70%

67.87%

52.68%

37.46%

55.65%

43.30%

29.06%

51.93%

42.28%

44.47%

36.65%

52.28%

42.89%

34.30%

32.13%

Ma Foi Randstad Employment Trends Survey – Sectors (Dec 2010)

Proportion of Experienced Workforce Across Sectors Proportion of Fresher (exp.<3yrs) Workforce Across Sectors

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Type of Employees: Pune had the largest proportion of Freshers (64.75%), followed by Hyderabad (59.29%), Chennai (58.97%) and Kolkata (57.29%).


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Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

55.64% 55.37%58.97%

51.85%

59.29%57.29%

53.31%

64.75%

44.36% 44.63%41.03%

48.15%

40.71%42.71%

46.69%

35.25%

Ma Foi Randstad Employment Trends Survey – Cities (Dec 2010)

Proportion of Fresher (exp.<3yrs) Workforce Proportion of Experienced Workforce

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Wages in Indian HR Market

According to Ma Foi Randstad Employment Trends Survey, Trade (including Consumer, Retail and Services) would register the maximum increase in wage bills in 2011 (12.81% yearly), followed by IT & ITeS (12.40% yearly) and BFSI & Pharma with (11.20% each)


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Banking, Finance Services & Insurance

Energy

Hospitality

Manufacturing – Machinery & Equipment

Media & Entertainment

Real Estate and Construction

Transport, Storage and Communication

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

11.20%

10.76%

8.82%

10.39%

10.00%

12.40%

10.16%

10.48%

11.19%

11.20%

10.32%

12.81%

10.99%

Ma Foi Randstad Employment Trends Survey – Wages Across SectorsExpected Average Increase in Wages for 2011

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Wages in Indian HR Market

According to Ma Foi Randstad Employment Trends Survey, Pune would record the maximum increase in employee wages in 2011 (yearly 12.40% increase), followed by Delhi & NCR (yearly 12.10% increase) and Bangalore (yearly 11.10% increase)


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Ahmedabad Bangalore Chennai Delhi & NCR Hyderabad Kolkata Mumbai Pune9.50%

10.00%

10.50%

11.00%

11.50%

12.00%

12.50%

13.00%

10.60%

11.10%

10.70%

12.10%

10.80%

10.60%10.70%

12.40%

Ma Foi Randstad Employment Trends Survey – Wages Across Cities

Expected Average Increase in Wages Across Cities in 2011

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Employee Behavior Analysis - Indian HR Market

Source: MyHiringClub.com Survey 2011

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According to a study conducted by MyHiringClub.com, the IT and ITES sector in India had the highest attrition rate of 23% in the first quarter of 2011. In contrast, the Banking and Financial Services sector recorded an attrition rate of 18%, followed by Healthcare (12%), FMCG (11%) and Automobiles and Manufacturing (11%).

IT & ITeS Banking and Financial Services Healthcare FMCG Automobiles and Manufacturing0%

5%

10%

15%

20%

25%23%

18%

12%11% 11%

MyHiringClub.com Survey - Attrition Across SectorsEstimated Attrition Across Sectors (Q1 2011)

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Employee Behavior Analysis - Indian HR Market

Source: MyHiringClub.com Survey 2011

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•As per the survey by MyHiringClub.com, the main reason for an employee in India to switch a job is pay packages (21%), followed by career level growth (16%), dissatisfaction with supervisors (15%) & work pressure (14%)

•According to the survey by MyHiringClub.com, the employees with experience of up to five years had the highest attrition rate of 39%, while it was 27% for those with 5-10 years of experience and 22% in the 10-15 years experience bracket. The senior-level employees (experience more than 15 years) at the Indian companies had a comparatively low attrition rate of 15%

Work Pressure

Dissatisfaction with Supervisors

Career Level Growth

Better Pay Packages

0% 5% 10% 15% 20% 25%

14%

15%

16%

21%

MyHiringClub.com Survey – Attrition FactorsMain Factors Responsible for Attrition in %age

Experience > 15 yrs

Experience of 10 - 15 yrs

Experience of 5 - 10 yrs

Experience < 5 yrs

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

15%

22%

27%

39%

MyHiringClub.com Survey – Attrition LevelsEstimated Attrition Levels in %age (Q1 2011)

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Thank You

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