Slow-down hits online hiring activity: Report
Online hiring activity registered a decline of nearly 4% in July over the same month a year ago amid weak economic conditions, according to a research by job portal Monster.com.
On a month-to-month basis, the index witnessed even a sharper decline as it was down by 6.10% to 123 in July from 131 it registered in June.
"The decline in annual growth is reflective of the prevailing challenging economic conditions. Keeping in mind the uncertain economic/ political scenario, companies are adopting a cautious approach while hiring which is reflected in the index," Monster.com (India/ Middle-East/South-East Asia) Managing Director Sanjay Modi said.
A sectoral analysis shows that 12 of the 27 industry sectors monitored by the Monster Employment Index registered expansion in online recruitment activity between July 2012 and July 2013.
While hiring in telecom/ISP sector improved by 20% followed by BPO/ITeS sector (up 18%), chemicals/ plastic/ rubber, paints, fertiliser/ pesticides (down 13%) showed steepest annual decline.
Online demand improved in six of 13 occupational groups monitored by the Monster Employment Index between July 2012 and July 2013.
The most substantial annual gains amongst occupational groups was registered in customer service (up 18 per cent) followed by hospitality and travel (up 10%).
Among occupation groups, senior management exhibited the steepest annual decline (down 56%).
Online recruitment activity was up on the year in six of 13 locations monitored by the index.
Kolkata (up 21%) followed by Chandigarh (up 15%) led all cities in annual growth, while, among major metro-areas, Kolkata (up 21%) followed by Hyderabad (up 2%) registered the highest annual growth.
The Monster Employment Index India is a monthly gauge of online job posting activity based on a real-time review of millions of employer job opportunities culled from a large representative selection of career Web sites and online job listings across India.
Source : TOI
No wage hike in IT sector yet: Report
The improved demand environment for the Indian IT sector has neither resulted in higher attrition level nor led to a hike on wages, says a report.
The usual acceleration in wage pressure that accompanies improving demand seems absent this time around as attrition has remained low and wage inflation remains in single digit, Credit Suisse said in a research note.
"Unlike earlier years, an improving demand environment has not caused any accelerated pressure on the supply-side as yet," IT added
Attrition has remained low. Offshore wage inflation also remains relatively low --- both for experienced employees and entry-level engineers.
"The bargaining power of companies with respect to the latter is at its peak with real wages at their lowest point in more than 15 years," it added.
Credit Suisse noted that "while some of the reasons for this may be cyclical and could reverse, we believe that part of the reason is structural, too".
Mid-sized companies such as Tech Mahindra and Hexaware have been able to postpone wage hikes without any significant increase in attrition, the report said, adding that TCS's guidance of entry-level hiring is the same as FY 2009 despite twice the overall employee base and a vastly different outlook (more positive) on the demand environment.
Moreover, Indian companies have also stepped up overseas hiring.
The companies have entered new areas of IT services where local talent and expertise become important. Also, given potential immigration issues and the difficulty in getting visas, companies have ramped up hiring onsite at the cost of local hires.
"While this may create margin issues, it does ease the pressure on wages domestically," Credit Suisse added. Moreover, there is a significant improvement in supply of engineering talent.
Engineering college capacity has seen an over 20% compound annual growth rate over the past several years. While the quality of some of this increased capacity may be varied, the bargaining power of companies has increased, the report said.
Source : TOI
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