The much awaited cheer in the Indian job market is back indeed with organizations returning to the hiring mode. And it’s not just the permanent staffing business that’s seeing a rise but also the temporary and contractual staffing industry.
Temping gains ground
According to the latest Teamlease Temp Salary Primer ‘10, the Indian Temping industry is all set to grow by 18% in the next 1 year. “With the organized sector recognizing temping as a key people staffing strategy, temporary staffing practices have evolved considerably,” notes Rajesh A R, VP, Temporary Staffing, TeamLease Services.
Telecommunication and Energy together stepped up hiring by about 16% which beats the average quarterly market growth by a wide 4%. The IT sector too has begun hiring contractual and temporary workforce in good numbers. “The Indian temporary staffing market is fast maturing and employers are giving valuable skills due recognition and rewarding them well,” adds Rajesh.
Rewarding skills
Covering temporary staffers working across 264 different job profiles, 13 Industries and 8 Functional Domains in 14 major locations, the study indicates that the temporary staffing market is not yet very generous in incrementing salaries across the board. In general, organizations have kept salary growth at very modest single digits, the average being 5.25%. The good news though is that a significant number of employers have rewarded select profiles with a fairly large dosage of increment.
Thus, rewarding valuable skills will be the silver lining for the coming year and special skills sets are likely to be highly valued. “Now that salary increments are back, a 7.5% to 15% raise for temporary staff, based on capabilities, is seen to be well in order to retain well-skilled people,” shares Rajesh.
Industry is handpicking highly skilled profiles and paying them much higher increments than the rest. For instance, Agriculture / Agrochemicals businesses in Bangalore have rewarded many of their sales profiles with increments in excess of 10%. Likewise, many an engineering and a blue collar profile received similar hikes across multiple cities from Automobile companies.
Sector Trends
According to the study, Infrastructure and essential services, as well as the IT/ITeS sectors that largely employ skilled labor and knowledge workers will raise salaries. The raise here is expected to be between 7.5% and 15%. While Manufacturing industries and traditional services sector business (except for Retail), that mostly employ relatively less skilled/semi-skilled workforce, are not likely to increment payouts.
Telecommunication and Energy have increased salaries by over 7.5%. Telecommunication companies in Bangalore, Chandigarh, Delhi, Mumbai and Pune as well as Energy businesses in Hyderabad, Mumbai, Pune and Bangalore upped the ante and doled out a 10% plus increment for several profiles.
Few sectors like Agriculture / Agrochemicals, BFSI, FMCG, Hospitality, Manufacturing and Retail are still conservative and maintain sub-5% increments at an aggregate level.
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