hiring trends | jobs growth: Strong hiring trend to continue for next few quarters, says Teamlease CFO

“We used to have an average salary inflation, annual inflation of anywhere between 4% and 6% over the last few years. Last year, we saw a very substantially higher salary inflation, almost 10% in general staffing business and in IT almost a 12-13% hike, “says Ramani DathiCFO, Teamlease Services.

What is happening with hiring? What are the trends you are seeing across industries, especially the service ones?
We are seeing very strong demand from the last couple of quarters and we expect a similar trend to continue for the next few quarters as well. Also the BFSI, e-commerce, retail and consumer verticals are seeing a much stronger demand. IT, we believe, will continue with the very strong demand trend for maybe one or two years. Also, in terms of the overall industries opening up on the manufacturing and auto side, the demand for formal staffing also has gone up. Those are the other verticals where we are expecting a stronger demand in the coming quarters.

Which are the sectors that are showing a weaker trend? Do you think sectors which have been hit hard by Covid are the ones that are looking weaker or are they seeing a faster than anticipated recovery?
We have seen very faster recovery for industry verticals like BFSI, consumer and ecommerce. Some of these verticals like e-commerce was never impacted. Immediately after Covid, we have seen substantial improvement in the ecommerce demand. There are few verticals where the demand is still not up to the pre-Covid levels like retail, aviation and tourism. But these sectors’ numbers got compensated by higher demand in other verticals.

As I said ecommerce has taken over a substantial chunk of our headcount which otherwise used to be in retail and now higher demand is seen in industrial, automobile, engineering and other emerging markets.

What are the average salary increments looking like now?
That is a very good question because we used to have an average salary inflation, annual inflation of anywhere between 4% and 6% over the last few years. Last year, we saw a very substantially higher salary inflation, almost 10% in general staffing business and in IT almost a 12-13% hike. Now it looks like we have settled at those levels. We currently have an average salary of about Rs 23,000 in our general staffing business and about Rs 55,000 in our IT and specialized staffing business.

Just to talk a bit more about the new tech rolls, IT side rolls. How much does tech now actually have a bearing on the new rolls that would come in?
In our specialized staffing business, we have our customers under three clusters. IT service companies, products and captives. Typically for IT service companies, the skill sets that we work on at the mid level include Java and other regular tech skill sets whereas with product companies and captives, the requirement is more on niche skill or higher skill sets where the average salaries are also upwards of Rs 1 lakh per month. This kind of trend will continue and we are seeing more demand from product and captive companies with also the GCCs and ODCs increasing their numbers in India. We are expecting a stronger demand to come at the upper level of IT talent.

What is the availability of skilled and unskilled labor? Are people ready to switch? Is it difficult to find people?
At this point in time we are not seeing any challenge with availability of labor. It is more about matching the right talent to the kind of open positions that we have. That is where we are leveraging a lot on our technology platform. We have our own database and matching engine that we have built and if matching can be fixed at a much faster rate, that would solve a majority of our demand supply engines. At this point in time, we are not seeing any shortage of talent.

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