Hiring, better appraisals back on India Inc agenda amid Covid-19 pandemic

Adapting to the new hybrid normal of working remotely as well as from office, cautiously optimistic companies are looking to hire more people and provide better appraisals in 2021, as they step out of pandemic-ravaged 2020.
 
The pandemic emerged the biggest inflection point for the Indian job landscape. For corporates, work-from-home and remote workers became the new normal, while for professionals, online learning and digital skills took centre stage.
 
In 2020, most companies “deprioritised” their hiring plans amid the uncertain economic outlook, while industries such as travel, hospitality, retail, aviation, real estate, construction, and automobile were severely hit. Nevertheless, there is cautious optimism among corporates, which is getting reflected in their recruitment plans for the new year.
 
“Yes, the market is showing positive signs of recovery with almost all industries showing growth in hiring but with caution. Overall, the intent to hire recovered smartly from 11 per cent during the lockdown period to 18 per cent for HY (half year), and this number is growing,” said Deval Singh, business head, mobilization (hiring), at TeamLease Services.
 
Though there is caution in hiring, the market is showing optimism. According to Singh, there has been a 50 per cent increase in employment opportunities since the lockdown.
 
Pay cuts have been reversed since Diwali in most organisations, with bonuses being given in a few. Some technology companies even declared early appraisals, noted Singh.

 
According to the ManpowerGroup Employment Outlook Survey, which covered 1,518 employers across the country, corporate India was showing “healthy signs of recovery” and plans to hire more people in the first three months of 2021, compared to the December quarter.
 
“With encouraging results of vaccine efficacies and the market largely back to how it was, there is a positive sign of recovery in the job market. Today, with the emergence of a hybrid work model, I believe there will be a big push for Agile Talent. ‘Remote working’ as an employment category is going to open up many opportunities for both employees and employers for niche skills,” said Krishna Prasad, senior director (HR and Operations) at Skillsoft India and APAC.
 
Experts believe there is no going back to the pre-Covid world in entirety, and the digital transformation that changed the very fabric of the Indian workforce in 2020 is likely to accelerate further 2021 onwards.
 
The year 2020 was also a great year for organisations to evaluate, pilot, and adapt technology based solutions for hiring and on-boarding.
 
“Solutions such as video interviews, artificial intelligence (AI)-based facial recognition tech, data driven on-boarding — which were being talked about as being futuristic as early as 2019 — were being quickly adapted to, by many organisations in 2020,” Nishith Upadhyaya, director (advisory services) at SHRM (APAC and MENA), said.
 
Upadhyaya added that the pandemic has forced firms to adopt a remote workforce model. Most companies will be inclined to retain this practice in 2021 too, as remote work opens up the talent pool wider than ever for most businesses.
 
“Instead of only considering candidates in the immediate area who have the ability to travel to and from office, they can consider pretty much everyone.
 
“Hence, we feel most companies will be inclined to retain this practice in 2021 too,” he said. Experts said 2020 has been a year of great learning for the HR function. It rewarded people who evolved and hit those who did not, hard.
 
“In 2021, we will see a lot of focus on automation and data-driven hiring by the use of analytics and AI. Hiring will increase in locations where companies may not have physical presence; freelancing and fixed-term hiring will rise in numbers,” said Sunil Goel, managing director of GlobalHunt, a leading executive search organisation.
 
On labour reforms — wherein 29 legislations have been consolidated into four labour codes — Goel said “it was much needed from a long time for ease of doing business and will encourage businesses across industry”.
 
The fixed-term employment proposition will boost the job market further by way of more formal hiring. Broadening the social security benefit, too, is a positive, he noted. Goel is also bullish about the job market going forward.
“Recruitment will increase and people will start getting appraisals, given that most firms are planning to expand and go for fresh recruitment and float appraisals from the first quarter in 2021,” he said.
 
According to a survey by Aon, organisations in India have shown tremendous resilience this year, and are betting on recovery. Up to 87 per cent of firms are planning salary hikes in 2021, compared to 71 per cent in 2020, it showed.
 
The survey added that firms in India gave an average pay increase of 6.1 per cent during 2020, the lowest since 2009 when the average was 6.3 per cent.
 
The latest Salary Trends Survey in India also noted that companies in India will give an average pay hike of 7.3 per cent in 2021.
 
Experts also opined that in 2020, the share of women hiring increased across almost all industries as corporates adopted flexible work models. Manufacturing and e-commerce industries opened new opportunities for women.
 
Moreover, this year, most organisations invested in upskilling or reskilling their workforce through learning programmes. This trend will continue even in 2021 for this helps increase the employee longevity and productivity on the ground.