Hiring Trends To Watch Out For In 2021
After a pandemic-scarred 2020, with salary cuts and frozen, there is finally some sigh of relief for the employees. With the onset of vaccination process, the hiring trend is on its way back. According to Michael page global survey, 6 in 10 companies also intend to hand-out increments while 55 per cent are planning to give bonuses, covering 660 employees and 4600 professionals in India.
After almost a year of slump, hiring is finally picking up pace in India. Nearly 53 per cent Indian companies are intending to hire, as compared to 42 per cent APAC (Asian-Pacific countries) businesses, this year, says the Talent Trends Report 2021 prepared by the UK-headquartered recruitment company Michael Page.
2019 ended with an exceptionally low 3.5% unemployment rate, making the beginning of 2020 a candidate’s job market. However, March saw a complete turnaround with abrupt COVID-related business closures driving a massive spike in unemployment claims, peaking at a 14.4% unemployment rate in April.
2020 indeed was an year where in order to reduce the costs, businesses adopted a pretty conservative approach to keep their sailing boats afloat somehow, by reducing their headcounts. But now we all can clearly see that optimism certainly exists for 2021, as 42 per cent of businesses claim that they are already looking to increase headcount beginning from the first quarter of 2021. According to India Hiring Report of 2021, 20 per cent of companies are planning on prioritising hiring short-term contractors/temporary professionals to bridge skill gaps arising from investment in digital tools and organisation redesign.
This year its evident for recruiters to expect a surplus of candidates, according to a new study of job seeker sentiment by the American Staffing Association (ASA). Conducted among over 700 adults in the labor force, the study found that 80 per cent of working population is expecting a new job this year. Cynthia Davidson, senior director of research for ASA, said a lot of that turbulence "stems from all the economic uncertainty felt during this pandemic. Fears have been heightened and the need for security has grown."
Alongside, the new trend also witnesses a steady increase in average annual salary increase; such as 6.8% in Banking & Financial Services, 7.5% in E-commerce / Internet, Fast Moving Consumer Goods (FMCG) 7.6%, Healthcare & Life Sciences 8.0% Industrial & Manufacturing 5.9% Natural Resources & Energy 4.9% Professional Services 6.7%, etc. Though, maximum increments will be paid out in the technology and healthcare space in 2021 says a report by Michael Page India.
Nicolas Dumoulin, MD, Michael Page India, shares, “Hiring activities among internet-based businesses, such as e-commerce and educational technology (ed-tech), remained relatively robust across India and is expected to maintain the momentum in 2021 as well.”
A significant 74 per cent of technology firms in India expect are expecting a minimum 14 per cent spike in headcount. Companies also claim to hire a perfect fit even if the candidate is from any remote part of the country, providing remote working and high levels of flexibility.
Studies have shown that hiring at the leadership levels in private equity, venture capital, as well as other asset classes, including credit/distressed, hedge funds, public markets and impact funds has gone up and will continue to do so in 2021. MSectors such as NBFCs and fintech will be on the lookout for skilled talent well versed in analytics-driven risk, digital marketing, strategy-driven portfolio management collections, alliances and partnerships.
Across the country, 68 percent of e-commerce business organizations expect a 12 percent increment in headcount in 2021. Development in e-commerce has likewise prompted development of more tech-empowered stages in coordinations and warehousing. Modern warehousing has pushed up the interest in real-estate also. Around 44 percent of property and development organizations in India hopes to grow labor force by 10 per cent in 2021.
.Emerging trends according to surveys
• Keeping aside the market conditions, candidates with the right combination of experience and soft skills shall be continued to hire at high salaries
• Gig workers are expected to receive more job opportunities
• Soft skills such as leadership, teamwork, relationship management and communication will help recruiters hire a great talent onboard
• The human side of the hiring process, such as cultural fit, growth potential and evaluating soft skills will become more important in relation to growth opportunities
As Dumoulin rightly points out, “Companies will be looking at a dynamic working culture along with competitive remuneration and benefits package to attract talent. Start-ups in India, examined their core businesses and retrained their focus on profitability last year, while larger conglomerates, took the time to increase their reach and influence and establish new lines of business. This will continue in 2021.”
