THE GOOD NEWS ON JOBS
Forget the
political slugfest over jobs. At both ends of the labour market — CXOs to blue
collar — and in between, job creation prospects are strong across most sectors.
The exceptions: telecom, pharma, life sciences. ET does a sector-by-sector
analysis
Where are the jobs? The question crops up at most
primetime slugfests on the state of the economy. But beyond the political
rhetoric, barbs on jobless growth, and counterclaims of job creation exists a
complex and fast-evolving world that is being reshaped by the emergence of new
technologies, changing workplace demographics, and a dynamic marketplace for
businesses. Here’s what ET found after a deep dive into
different segments of the job market
BOTH ENDS OF SPECTRUM
There is a boom in hiring by non-banking financial
institutions (NBFC) but not in pharma. Ecommerce and startups are on a roll,
while telecom and life sciences continue to be laggards. IT services and
product companies have started to see an uptick in the last six months. Both
ends of the job market — temps and CXOs — are growing at a fast pace.
Headhunters, placement firms, and market watchers are
unanimous about the state of the market — it is growing and doing well, barring
some pockets of distress.
Human resource services provider TeamLease in its
latest Jobs and Salaries Primer, shared exclusively with ET, indicates strong job creation
opportunities in the near future. Its assessment is supported by indicators in
the macroeconomic environment signalling healthy increase in overall economic
activity levels.
Rituparna Chakraborty, cofounder, Teamlease,
explains, “We see GDP growth back on track at 7.5%; there has been an increase
in public investment in sectors such as infrastructure and logistics; the
government is taking affirmative initiatives to support hospitality and
startups; private investment continues at a steady pace in the banking,
financial services and insurance (BFSI) and fintech, ecommerce, healthcare,
retail and telecom sectors. We are beginning to see revival in industrial
activity and manufacturing sector is now seeing an increase in hiring.”
Besides, initiatives such as creation of smart
cities, Make in India, Digital India, Startup India, and GST will start
yielding benefits in the near term and provide impetus for growth, which will
further accelerate job creation, she says.
The 2018 job market is continuing the 2017 journey,
according to Arun Das Mahapatra, chairman and partner-in-charge, India,
Heidrick & Struggles. “If you look at the long-term job market, 2017 would
be one of the peaks. It’s business as usual at the moment and this trend will
continue till the elections are over,” he says.
“You hear people talking about jobless growth and
others are saying the market is booming. For us, it’s neither,” says Shiv
Agrawal, managing director, ABC Consultants. “The job market is doing fine if
you consider that we are a direct reflection of it. Even on a larger base, we
will grow in double digits, in line with the last three-four years.”
Then there are the likes of Pankaj Bansal, co-founder
of PeopleStrong, a leading HR solutions company, who feel that jobs are a
global economic agenda and should not be politicised.
“There is lot of negativity in the market, under
which positive news like growth in full-time jobs and increase in employability
from 33% in 2014 to 45% in 2018 are not getting the necessary focus,” he says,
quoting the United Nations Development Programme’s India Skills Report.
SECTOR STORIES
So, where is the double-digit growth coming from? “Of
the 24 sectors we work across, just a couple are down, but most are up. Not
with a boom, but doing fine,” says Agrawal of ABC Consultants.
The auto and the auto-ancillary industries have been
showing steady growth. Despite increased automation in back-end activities,
several companies are going in for capacity building. A recent ET story had
highlighted how large consumer goods and auto companies were anticipating a 10%
growth in the run-up to the 2019 elections that will see higher liquidity in the
market.
The education and BFSI sectors are doing well,
especially NBFCs, which are on an aggressive recruitment drive across levels, a
large chunk of this focused on tier II-III cities.
“NBFCs are ahead of everybody in terms of hiring;
there are easily 50,000-100,000 getting hired in the sector this year across
levels,” says Kamal Karanth, co-founder, Xpheno, a specialist staffing firm.
Plus, more innovation across sectors has created
demand for new job profiles that command high salaries.
“Tech startups have upped the ante for AI (artificial
intelligence) and blockchain talent. Even blue-collar skills commanded
ever-increasing premium and this includes the tens of thousands of delivery
staff at ecommerce companies,” adds TeamLease’s Chakraborty.
As per a ManpowerGroup Employment Outlook Survey of
4,612 Indian employers for the second quarter of 2018, companies expect to
increase staffing levels in seven industry sectors during the upcoming quarter.
The strongest labour market is anticipated in the wholesale and retail-trade
sector, followed by services. Information technology (IT) trade association
Nasscom president Debjani Ghosh recently announced that the IT industry will
create about 100,000 new jobs in 2018-19.
Pharma is seeing muted hiring, but there is job
growth in healthcare, with more hospitals opening and larger chains expanding
their footprint. Doctors, nurses, and administrative staff are in demand.
Logistics is growing and expected to scale up further. The power sector is down
but renewables are growing significantly. While retail and hospitality are
growing, telecom has taken a hit.
HOT PROFILES
In the IT sector, new technologies are driving the
hiring activity. The bulk of the new jobs will be in technologies such as AI
and Big Data analytics, says Nasscom. The total demand for professionals in
these fields will be 511,000 in 2018, which will increase to 786,000 by 2021.
In the startups and ecommerce space, the improved
investment scenario has changed the job market considerably, increasing demand
for talent across levels and functions. “Companies are investing in creating
brands and strengthening finance and HR functions to align with growth. The
adoption of digital, data science, and analytics is becoming more relevant
across industries. We see CFO (chief financial officer), CMO (chief marketing
officer), CDO (chief digital officer), and head of data science and analytics
as key roles in demand,” says Anuj Roy, managing partner, FIDIUS Advisory.
Sales will continue to grow, as companies across
sectors make a more aggressive play in small towns and cities to drive the next
level of growth. “There’s huge demand in the area of technology and
digitalisation, and a huge shortage of skills. Every company in every industry
is thinking of how to digitise and get efficient, and that is resulting in
hiring across levels, right up to CDO,” says Agrawal of ABC.
WHAT CAN CXOS EXPECT?
For senior-level roles, there is a lot of activity in
the consumer, fintech, automobile, BFSI, and retail sectors, which are driving
the major share of business.
“Consumer is very active, with demand for talent
coming from ecommerce and tech companies along with consumer MNCs,” says
Mahapatra of Heidrick & Struggles, adding, “Auto sector is continuing its
growth journey.”
Across the BFSI spectrum, companies are looking out
for CXOs. There’s growth all around — multinational banks, NBFCs, fintech and
insurance. Every four to six years, there’s upskilling of talent, which seems
to be happening now.
“Companies are getting talent with fresh perspective.
There is huge demand for talent that is ahead of the times and is aware of
global trends,” says Monica Agrawal, head, financial services, and co-head,
board services, India, at organisational consulting firm Korn Ferry.
Risk-function, technologyfunction, and operational
leaders, and business-focused chief human-resource officers are in big demand.
Hikes of 25%-40% while making a move are par for the course. From a CXO
perspective, it’s a high-growth market.
However, the jobs at CXO levels are for specific
skills rather than generic ones. Says K Sudarshan, CEO at executive-search firm
EMA Partners International in India, “Job creation at the CXO level continues
to be good. What is not there today are run-of-themill jobs. Companies are
looking at specific skill sets, for which they want to pay what it takes.”
More than ever, companies want chief executives who
can adapt to change, are agile, and are skilled in innovation as well as
execution.
BLUE-COLLAR JOBS GROW
Blue-collar job growth in manufacturing is mainly
incremental. The more prominent growth is primarily at the front-end, which is
the customer-experience side.
There’s growth on the services side too — courier and
delivery staff, hands to manage last-mile connectivity in ecommerce, etc. “At
any given time, there is a demand for 40,000-plus people in this space,” says
Karanth of Xpheno.
“The other side where we see huge growth is home
services. Unlike doorstep delivery, where skills are minimal, this area
requires specialists like plumbers, electricians, etc. Logistics is also
growing, including at the warehousing end,” he adds.
Microfinance companies are also largely employing
unskilled people, who are part of the local community. Big microfinance companies
will each employ 8,000-10,000 such people nationally. Notably, NBFCs are
looking at hiring a lot of women for districtlevel assignments. Hands are also
required for last-mile connectivity in financial services, for services such as
collections and picking up forms for loans.
Then there are pesticide and fertiliser companies who
need ground staff to connect with farmers and push their products. These are
like sales jobs, but no specific qualifications are required and
relationship-building is key. What they should be able to do is speak the
farmers’ lingo. There is a demand for 8,000-10,000 such people.
And of course, there are the thousands of Ola/Uber
drivers who are part of the gig economy.
WHAT EMPLOYEES CAN EXPECT
India Inc is slowly warming up to the idea that it
needs to take care of its talent pool to win in the marketplace. So, companies
are aligning salaries and incentives to support talent attraction and
retention. The advent of digital has not only disrupted the business landscape
but has also had an impact on the talent landscape. More and more sectors are
beginning to value the knowledge and the tech skills that are required to power
the enterprise of the present day, according to TeamLease’s Chakraborty.
Employees need to accept the fact that the job market
and indemand skills are completely different from what they were five years
ago. The major forces impacting such demand are globalisation, expanding
domestic Indian markets, and adoption of exponential technologies like AI,
robotics, etc.
Says Bansal of PeopleStrong, “Employees need to
reskill themselves to stay relevant in the job market. An auto-engine design
engineer needs to upskill for electric-motor vehicles, and the retail frontline
workforce needs to reskill to be fashion consultants. Work would be more
meaningful when transactions get widely automated.”
Gigs are a reality, too. “Employees might want to
explore this model, which can help them earn up to three times higher than a
full-time job,” says Bansal.
Saumya Bhattacharya &
Sreeradha D Basu
ET14AUG18
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