It is that part of the year-when the Indian industry-wakes up after the festival euphoria ( for most businesses, Diwali time is a pretty big season, and for the employees a great reason for bonuses/ appraisals!)-and tries to take stock of -the impending future!
The graphic compares the figures by Ma Foi Ranstaad survey -is self explanatory.
The article also lists out a rather uncomfortable run down of some of the big names -across different industries-that have either announced recent lay-offs globally and some in India.
Not to mention the sense of uncertainty-that fuels the rumours of a possible recruitment freeze in the coming couple of quarters!
Interestingly, the traditional 'old economy' manufacturing industry seems to be the only growing sector -as most others 'hitherto' fast growing employers -especially in the real estate, Energy and BFSI seem to have hit speed breakers!
Education, Training & Consultancy, as well as Health care & hospitality -being touted as the 'recession proof' domains-together contribute to a fair amount !
Personally I feel the overall global sentiments have percolated to most sectors within the country too. Most companies have tightened their belts-and have laid off 'non performers' over the last couple of years, and most importantly, haven't felt the need for 'back-filling' the jobs.
And focussing on keeping overall costs down, most companies have resorted to a variety of different modes :
-adopt a wait -and -watch policy and see how the economic situation plays out.
-a 'need based' and very selective senior-executive hires.
- reduce the ratio of support roles as compared to revenue-generating roles
-increasing the employability of the talent rather than hiring for doing a job!
-outsourcing the non- core roles in the support functions
-increasing the ratio of 'temporary staffing' to that on permanent roles until they are sure of the value add is imminent!
-- a change in the hiring strategy and increasing their ratio of campus hiring. Interestingly, the starting salaries of the freshers from campus-hasn't changed since the last couple of years.
-hiring 3-4 junior level independent contributors instead of hiring a manager
It is all happening right?
What worries me is that the domestic Indian growth story has been also hampered -due to the increasing interest rates. One has lost count..but I trust there have been atleast 13-14 hikes in the RBI repo rate -since March 2010. And add to the inflationary trends that the increase in petrol prices ..contributing very aggressively, it could turn into a 'catch 22' situation if the industrial/manfacturing sector would be affected!!
(Unless ofcourse the fall in the rupee motivates the industry to export more..and hope the dollar remittances would compensate??)
On the flip side- the tough times will certainly bring out the best in all...and who knows, the long term growth story may well be nearer !!
I would love to have your impressions...