With a rise in the demand for good talent, Indian organizations are looking beyond urban markets for their hiring needs. According to the latest Teamlease Employment Outlook report for the July- August ’10 quarter, the hiring intent in the Tier II region stands at an all time high – 19%.
This is indicative of the talent supply potential of these geographies and the willingness on part of employers to tap the best talent from any nook and corner of the country. “This is also an indicator of consistent and steady growth across business size, sectors and geographies,” explains Sangeeta Lala, VP, TeamLease Services. “The opportunities in tier II cities are encouraging and might be an answer to the geographic mismatch present in the country,” she adds.
The study shows that the net employment outlook for this quarter has risen by 6 points to 64% from the last quarter’s 58%. “We are seeing positive hiring intentions over the past few months and are expecting this to continue,” confirms Lala. Employment Outlook index witnesses growth in most of the cities, with New Delhi topping the chart, Ahmedabad and Mumbai record the smartest recovery and growth, over the previous quarters, while Kolkata still lags behind in comparison.
Sector-wise, the increase in hiring is driven by Infrastructure, Manufacturing & Engineering and Telecom. Interestingly, Telecom in this quarter sees healthy growth after three stagnant quarters.
The other key trend that has come out in this report is that of hiring trend at the bottom of the organizational pyramid. Junior and entry levels of organizational hierarchy are set to make a strong comeback with 17% and 11% increases in hiring intent – the biggest rise after more than 24 months of stagnant or negative growth. Another positive move is the drop in the ‘Not Hiring’ category which is 12-month low and stands at 12%. Moreover, there is an increase in the intention to hire across all functions. Sales, Marketing & Customer Care register the highest increase of 8% among functional areas.
Lot of this perhaps can be linked to the steady growth in the Net Business Outlook which currently stands at 61%, an increase from previous quarter’s 56%. The Business Outlook index of all cities is at a 12 month high – sans Kolkata. The Business Outlook index of Ahmedabad (with 77 points), Bangalore (with 73 points) and Mumbai (with 52 points) has the best growth story to unfold over the previous 4 quarters. Hyderabad too exhibits recovery from its previous quarter slump. Industry experts believe that things will only get better in the months to come. We sure would hope so!
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