Employee attrition low, says Naukri Hiring Outlook Survey

The survey reavealed a minor improvement in hiring sentiment versus July 2912

Employee attrition is low and business confidence has improved, said the Naukri Hiring Outlook survey, conducted by job-site Naukri.com. The survey added that recruiters across sectors are adopting a cautious stance amid the global economic crunch and rising inflation rates.

The survey conducted with 1,200 plus employers revealed a minor improvement in hiring sentiment when compared to July 2012, but is would be lower than what it was in the beginning of 2012.

The survey also revealed the pay hike that organizations plan to give out to their employees in 2013. About 40% recruiters said that the range will be between 10% and 15% and 36% employers said there will be single digit percentage hikes. Lowest increments were predicted by Banking sector employers where about 60% of them said that salary hikes in their organization will be less than 10% in 2013.

According to the survey, 68% recruiters said that new jobs will be created in 2013 as compared to 72% in January 2012. It was 62% in July 2012. "While, Banking and IT sector recruiters have stated a positive hiring outlook for 2013, Pharma and Auto sector have revealed low sentiments with only 59% and 52% opting for new jobs to be created in the year," said the survey.

A city wise segregation showed that recruiters from Hyderabad and Bangalore were most optimistic with 74% and 71% stating that new jobs will be created in their cities. About 43 % recruiters predicted that jobs will be created for the mid-level (4-8 years) category.

Ambarish Raghuvanshi, Chief Financial Officer, Info Edge India said, "While the indicators are weaker than the position a year back, the positive aspect is that they represent a minor improvement from what could have been a trough (in July 2012).While businesses are understandably cautious, improvements in government decision making, macro environment and financial markets should lead to a better hiring climate over the next few months."

The survey said that widening gap between demand and supply for talented workers has become a major cause of worry. The concern was highest among Auto and Pharma sector where 78% and 73% recruiters said that the talent crunch scenario has worsened over the years. Further, about 42% of respondents said that the maximum talent crunch was witnessed in the 4-8years experience bracket.

 The Naukri Hiring Outlook survey is conducted twice a year to gauge hiring trends across sectors. It is a half-yearly e-mail survey which is sent out to the registered clients of Naukri.com.