Companies positive on hiring despite sluggish eco growth: TeamLease

Tier II & III cities to see good hiring trend

Despite the sluggish economic environment, companies across sectors are still positive about business and hiring. TeamLease’s half yearly (HY1) special forecasts 4% increase in the employment outlook index when compared to the previous half year (October 2012 to March 2013).

The business outlook too has grown by two per cent points when compared to the previous half year (second half of last fiscal), said TeamLease Services in its first Half Yearly (April-September FY14) Employment Outlook Report.

Sangeeta Lala, Senior Vice-President & Co-Founder, TeamLease Services, said “It is surprising that despite the economic downturn, the job market this half year shows a positive outlook in almost all the major sectors. Tier II cities are emerging as hiring grounds for cost effective talent, giving the mid level companies an opportunity to boost their employee base.”

The report further says that it is time for Tier II and Tier III cities to face the greener side of hiring. It predicts a four per cent increase in the hiring figures for Tier II & III cities which is significant growth.

Respondents believe rural BPOs that have emerged at locations such as Hosur, Kochi, Udupi, Falda and Chindwara are a good ground for hiring cost-effective support staff. Hiring in Tier I cities will see a marginal increase of one per cent this half yearly. It is after a long time that rural and Tier II locations are likely to outpace Tier I locations in hiring (incremental ratio).

 
The April-September, 2013-14 half year records a high level of optimism in terms of the hiring sentiment. There is a healthy growth of four percentage points in the Employment Outlook Index. Forecasts for the business sentiment are, comparatively mixed, with a marginal improvement of two percentage points in the Business Outlook Index.
 
In terms of sectors that will see significant growth in both the employment and business outlook indices are ITeS (five and four points respectively) and Healthcare / Pharma (four and five points respectively). Retail is projected to rise by five percentage points in employment outlook. Meanwhile, the only sector that badly loses is Infrastructure – the business outlook here goes down by five percentage points, said the study.

 
Across geographies, Tier-II cities lead hiring intent, with a big rise of 4 points. Metros follow suit, however, with a marginal improvement of a single point.

The study, which covered 614 companies in the latest round, focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile.