79% companies bullish on hiring more, retaining talent in H2 FY24
The Indian employers are up for a hiring boost in the last quarter of the financial year following muted activity in the third, with 79% of companies bullish on expanding or sustaining their workforce till March 2023-24.
The increasing hiring momentum is being attributed to stronger-than-expected gross domestic product (GDP) growth in the second quarter of FY24 at 7.8%. For companies, economic conditions, business growth and skill shortages seem to have become top factors, which in turn is propelling hiring momentum.
According to ‘TeamLease's Employment Outlook Report’ for H2 FY24 (October 2023 to March 2024), which surveyed 1,306 businesses (employer reach 1,820), including 209 startups, 757 medium enterprises, and 340 large companies, shows an increased demand for growth specialists, technical workers, and healthcare professionals in India for 2023.
"In India, the non-tech sector now employs over 7.65 lakh tech professionals and is experiencing an extraordinary demand for additional tech talent. With a rapid 7.53% CAGR, the non-tech sector is on track to employ 11.15 lakh tech professionals by FY 2027-28," the report flags.
Around 84% of employers expect an increase in hiring in their respective industries in the October-March 2023 period, and 67% predict business growth.
Not only are the companies upbeat on enhancing hiring activity (79%), replacement hiring will also see increasing momentum at 74%. "Demand for technology roles in non-technical organisations is booming, especially in the Construction, Retail, and Hospitality industries. Overall, a cheerful mood persists across the Indian hiring landscape."
Among the industries, educational services and healthcare & pharmaceuticals lead the chart with 86% of employers planning incremental hiring. Electric vehicle & infrastructure (85%), e-commerce & allied start-ups (81%), and fast-moving consumer durables (84%) follow suit and it also shows increasing consumer and lifestyle shifts towards sustainable living. Additionally, employers in travel & hospitality, consulting, and textile industries (68-69%) also expect incremental workforce expansion.
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Sectors like power & energy (88%), fast-moving consumer durables (85%), and healthcare & pharmaceuticals (84%) top the sectors' list when it comes to incremental hiring. "A combination of fierce competition and potential investments in renewable energy is driving replacement hiring in the Power and energy industry," the TeamLease report says.
The major cities like Bangalore (89%), Chennai (83%), Mumbai (82%), and Hyderabad (79%) foresee a pronounced surge in workforce expansion. In incremental new hiring, Bangalore (87%) and Mumbai (86%) lead the chart because of reasons like industry concentration, larger talent pools, and robust economic activities.
In incremental new hiring, the human resources profession will remain in demand, with 92% of companies seeking candidates in this field. Marketing (87%), information technology (86%), engineering (86%), and office services (86%), says the report, signal a balanced enterprise growth strategy.
On its outlook, the report underscores the need for businesses to work towards inclusive and innovative workplaces. It also flags the role of technology in shaping the future of work as more innovative jobs come into play.