Hiring outlook resembles decline in business confidence: Survey

The survey by Naukri.com was based on more than 1,100 employers

The employment scenario in the country is not very upbeat and is closely following cues from the weakening economy, inflationary pressures and falling rupee.

Hiring outlook of India Inc. for the second half of 2013 looks muted, said a survey from Naukri.com. According to the survey 54 per cent recruiters have predicted new job creation in the second half of 2013 as compared to 68 per cent in January-13. The survey was based on more than 1,100 employers.

Auto along with ITES, has witnessed maximum dip in the forecast with only 43 per cent and 64 per cent forecasting new job creation for the second half of the year, this number in January of 2013 was 65 per cent and 78 per cent respectively.

A similar sentiment is echoed by the Banking and Pharma sector wherein 49% and 44% recruiters foresee new jobs creation in the coming six months.

One of the reason for a dip in hiring activity is the falling attririon rate. About 58 per cent of recruiters said that attrition level in thier cmpany is less than 10 per cent in thier organisation. Almost 45 per cent of respondents said that the attrition level has been stable over the last 12 months.

"The reason for a muted hiring outlook is both the domestic environment and hence an impact of attrition. People would rather hold on to what they have than make a move to a new company. The dip is due to drag in auto segment and some of the segements in the IT industry reducing their hiring numbers. We believe that auto may also witness layoffs," said V Suresh, Business Head, Naukri.com.

Within IT industry, players in the BPO, KPO segment have slowed down hiring. "In my talks with clients, it will be only till the second half of 2014 that many see things changing. But the situation is not as bad as 2008 when corporates did not know how to deal the situation. This time around they are much better prepared," he added.

Among those who still continue to hire is the IT services industry which has seen pick up due to improvement in US, and lifesciences segments.

The survey also revealed salary increments given to employees in the year 2013.   About 39 per cent recruiters said that the increment range given has been between 10 per cent & 15 per cent while 33 per cent said increments give were less than 10 per cent.

Lowest increments were given in the Auto and Pharma sector wherein a majority of the recruiters said that salary hikes in their organization were in the range of 5 -10 per cent in 2013.