Deep insights and comprehensive overview of the mechanics of jobs, hiring, skills and their
drivers, trends and forecasts across eight cities and nine sectors in India.
EMPLOYMENT OUTLOOK REPORT
TEAMLEASE SERVICES
HY-2, 2014-15
1
PREFACE
The Team Lease Employment Outlook Surveys are designed to deliver
a deep and wide, analytical, insight about business and employment
sentiment trends across sectors and cities in India.
The surveys are structured broadly to capture the factors that influence
sentiment, job growth, employer needs and candidate aspirations, skill
and salary trends and state them at an overall and at city- and sector-
levels.
Project Objectives:
1. Map Employment and Business Outlook, Job Growth and
related trends across the country, cities and sectors.
2. Identify and profile the factors that influence sentiment and job
growth.
3. Explore skills employers need, candidate aspirations and map
salary trends across cities and sectors.
THIS
EDITION
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THIS
EDITION
carries a job profile
hierarchy in the area
of Big Data that
illustrates 8 different
career opportunities
with an increasing
order of skills. The
edition also carries a
follow up on the
attrition trends of the
previous report, with
an external influencers
perspective.
2
Contents
1. Executive Summary
2. Outlook and Jobs
2.1. Employment and Business Outlook
2.2. Job Trends
3. The big picture: what drive outlook and jobs
4. Sector and City Trends
4.1. Employment and Business Outlook Trends – by sector and city
4.2. Job Trends – by sector and city
5. Skills employers want
5.1. What skills are in demand for HY and what are not
5.2. Skills for tomorrow
6. Jobs candidates want
6.1. Aspirational jobs and gaps
6.2. Why employees call it quits
7. Outlook and Jobs by other key dimensions
7.1. Hierarchy, Geography and Functional Area
8. City-Sector sweet spots
8.1. What city-sector clusters top outlook
8.2. What are the [new] hiring grounds for the HY
9. The talent funnel: from acquisition to retention
10. The Salary Scene: what employers will pay
11. Research Methodology
11.1. Approach
11.2. Sample Design
11.2.1. Employers: City-Sector breakup
11.2.2. Employers: Business size-wise breakup
11.2.3. Candidates: City-wise breakup
3
EXECUTIVE SUMMARY
Business and Employment Outlook, and Job Growth, trends flag marginally after three subsequent half-years of growing at a blistering pace. The dip in Employment Outlook [-2%] is a wee-bit more pronounced than the Business Outlook [-1%], a pattern that has become familiar by now – employers prefer to have hiring lag business. Macroeconomic factors, mostly, play out this rather somber scenario as forecast for the coming half-year.
FMCD [+4%], Manufacturing and Engineering and Retail [+3%, each] and Delhi, Mumbai and Chennai [+5%,
each] do marginally better than the previous half-year on Business Outlook while Infrastructure and Telecommunication [-4%, each], and Hyderabad [+5%] and Kolkata [-7%] lose. The rest of the sectors and cities hold on to their previous outlook numbers.
IT, Manufacturing and Engineering and Retail [+4%, each] lead the sectors, and Delhi [+4%], Mumbai and Pune [+3%, each] lead cities for the Employment Outlook. Telecommunication, Hyderabad and Kolkata bring up the rear with a 5% loss, each, in Employment Outlook. The remaining sectors and cities have unappreciable changes in their outlook.
A significantly lower Job Growth rate for the half-year may still bolster jobs significantly for FMCD [+2.32%] and Infrastructure [+2.06%] among sectors, and Mumbai [+2.19%] and Bangalore [+1.58%] among cities.
The Junior- (1 – 3 years’ experience) [+4%] and Senior-level [+2%] hires continue to be popular with employers. IT / Engineering nd Blue Collar [+3%, each] hires are likely to be sought after as well, over the coming half year.
Top three sectors (by city) in terms of employment outlook growth are - o Mumbai: FMCD (3%) / Manufacturing & Engineering (3%) / Information Technology (2%) o Delhi: Manufacturing & Engineering (3%) / Information Technology (2%)/ FMCG (2%) o Bangalore: Infrastructure (2%) / Telecom (1%) / FMCG (1%) o Kolkata: Manufacturing & Engineering (4%) / Financial Services (1%) o Chennai: Manufacturing & Engineering (6%)/ Information Technology (3%) / Healthcare & Pharma (3%) o Pune: Information Technology (2%)/ FMCG (2%)/ Retail (2%) o Hyderabad: Healthcare & Pharma , Telecom(1% each)
o Ahmedabad: Infrastructure (3%) / FMCD (2%)
New domains such as Big Data and Predictive Analytics are accelerating the need for a highly sophisticated workforce, and at scale. The skills required for a Big Data analytics function are diverse and are rooted in mathematics and statistics, besides programming skills. This domain, by itself, affords an entire hierarchy of data analyst job profiles, each of which is both intellectually and monetarily rewarding. Demand, across the hierarchy illustrated here, will likely far outstrip supply.
Startups and Recruitment Process Outsourcing (RPO) are emergent trends associated with rapidly increasing scale of hiring. The next edition of the report would elaborate on these trends.
4
OUTLOOK AND JOBS
BUSINESS AND EMPLOYMENT OUTLOOK
The steady climbs that the Business and Employment Outlook trends had showcased over the past two
half-year periods is somewhat halted for now, with minute (1 – 2 point) dips forecast for the coming
half-year. This could be a sign of an overheated talent market which is trying to rein in some
exuberance.
While the economic fundamentals that drove business and hiring sentiment the last time round continue
to prevail and new age sectors continue to fuel demand, the more recent fillip for manufacturing from
the buzz around Make in India and the resurging GDP growth have ensured the sentiment is kept
up.
Apr '13-Sep '13
Oct '13-Mar '14
Apr '14-Sep '14
Oct '14-Mar '15
Apr '15-Sep '15
Employment Outlook 79 76 80 88 86
Business Outlook 74 77 82 91 90
R² = 0.6961 R² = 0.9218
20
30
40
50
60
70
80
90
100
110
% R
es
po
nd
en
ts
[Ne
t o
f p
ositiv
e a
nd
ne
ga
tive
re
sp
on
se
s]
Outlook Trends Current HY period: Oct 2014-Mar 2015; Forecast HY period: Apr 2015-Sep 2015
A small dip in both the Outlook statistics, but the long term trend remains intact.
5
JOB TRENDS
The blistering pace at which jobs were created over the past three half-years had to cool, and the
forthcoming half-year seems to be appropriate for much deserved consolidation. Job growth remains
strong at 11.3%, a significant increase year-on-year, although slower than the previous HY.
H R Managers are also toying with alternate models of engagement with employees and are building
agile capacities by leveraging contract workforce. Therefore, while the net addition to the workforce
is projected to be somewhat lesser than in the preceding half-year, the talent acquisition activity
would continue to be robust as in the previous couple half-year periods.
11.0%
8.3%
10.0%
Current HY, 12.8%
Forecasted HY, 11.3%
R² = 0.3128
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
Apr '13-Sep '13
Oct '13-Mar '14
Apr '14-Sep '14
Oct '14-Mar '15
Apr '15-Sep '15
% growth in jobs over the previous HY
Job Growth Current HY period: Oct 2014-Mar 2015; Forecast HY period: Apr 2015-Sep 2015
Current HY
Forecasted HY
6
THE BIG PICTURE
WHAT DRIVE / SLOW OUTLOOK AND JOBS With technology and consumer demand feeding off each other, and newer skills no longer having to
wait in the wings, the factors that are influencing outlook and job growth are mostly macro-economic
and policy initiatives besides two key shortcomings related to investment.
1. GDP forecasts, forex reserves, looking good:
Most rating agencies and the government’s own estimates have put GDP growth for the current
fiscal to be around 7.4% – 7.8%, a significant uptick over the past numbers. Add to this, the $355
billion forex reserves and the country is sitting pretty in terms of growth potential.
2. Coal and Mining activity unfettered:
Industrial activity is set to receive a major boost with the government unlocking the coal and mining
activity following a long stalemate. Businesses see this as a step in the right direction and hope that
the audacity displayed in shaking away the taint of corruption here would encourage investment.
3. Capital formation has slowed:
The dampener, still, is a hitherto lack of initiative by both the private sector and the government in
priming the investment engine enough to let the floodgates of economy fully open up. The
conservatism is a paradox and runs counter to the bold political intent of the government.
4. Debt-ridden corporate sector a threat to growth:
A debt pile-up by the corporate sector threatens to undo much of the good anticipated to happen to
the Indian economy over the near term. These debts constitute a major proportion of the Non-
Performing Assets of financial institutions and point to rather poor financial health of corporates.
Pros and cons notwithstanding, businesses are looking forward with hope and are keeping the tempo of
job creation high. With solid underlying fundamentals employers have reason to believe that the dip
anticipated for the coming half-year is temporary and long term prospects for both business and
employment continue to trend up.
7
SECTOR AND CITYTRENDS
EMPLOYMENT AND BUSINESS OUTLOOK
EMPLOYMENT OUTLOOK
Moderately positive-to-neutral Employment and Business Outlook across most sectors and cities,
following an ebullient three half years in succession, could be interpreted as much needed
consolidation of the sentiment.
The most notable cases are those of Manufacturing & Engineering, which seems to be riding the
‘Make in India’ wave and Retail, which is flourishing in all its avatars – most notably online, among
sectors and Delhi and Mumbai among the cities, traditional bastions of politics and high finance the
hopes and expectations from a resurgent India are vested in.
The Telecommunications sector, with its poster child – Internet services – in the eye of the Net
Neutrality storm, has singularly turned cautious on both business and employment sentiment.
BUSINESS OUTLOOK
% r
espo
nd
en
ts
% r
espo
nd
en
ts
4
1
5
3
3 5
0
5
0 2
4 6
8
JOBS
Double-digit job growth rates continue to shine on half the sectors and even more cities. Growth has
mellowed, however, compared to the previous half-year and for most sectors and cities. The lead
sectors (Manufacturing and Engineering and Retail) and Mumbai, the lead city for Business and
Employment Outlook are positioned to deliver on jobs as well..
JOB GROWTH
City Key
MUM MUMBAI
DEL DELHI
BLR BANGALORE
KOL KOLKATA
CHN CHENNAI
PUN PUNE
HYD HYDERABAD
AHD AHMADABAD
Sector Key
IT INFORMATION TECHNOLOGY
FMCD FAST MOVING CONSUMER DURABLES
FMCG FAST MOVING CONSUMER GOODS
FS FINANCIAL SERVICES
INF INFRASTRUCTURE
RET RETAIL
M&E MANUFACTURING & ENGINEERING
TEL TELECOMMUNICATION
% respondents
9
SKILLS EMPLOYERS WANT
WHAT SKILLS ARE IN DEMAND FOR THE HY AND WHAT ARE NOT
IN-DEMAND OFF-DEMAND
Delivery and Logistics Tele-Sales
Mobile Apps Web Design
Data Science and Data Exploration Business Intelligence and Reporting
Facility Management Cashiers and Tellers
WHAT DRIVES DEMAND
Fundamental changes in consumer habits
The potential business value of Big Data
Proliferation of modern retail and office spaces
WHAT’S BRINGING DOWN DEMAND
Online and mobile as popular sales channels
Smarter business / analytical tools
Innovation in banking and financial systems
SKILLS FOR TOMORROW
Employers are placing far more emphasis on soft skills than ever, while planning talent acquisition for
the next half year. The following are an indicative list of skills employers would be seeking out in
tomorrow’s marketplace:
Content Curator: Sourcing content and visuals on the Web, focus on brand initiatives to
drive audience engagement. [Indicative Salary: Rs. 3.5 lacs p.a.]
Valuation and Market Risk Analysis: Understanding of capital market, Analyze
valuation signals from market, Valuation of illiquid securities. [Indicative Salary: Rs. 12 lacs p.a.]
Neural Networks and N L Programming: Time series Forecasting using econometric
techniques and auto-neural networks. [Indicative Salary: Rs. 8 lacs p.a.]
Dental Hygienists: Diligence and highest degree of precision, focusing on techniques in
oral hygiene and care. [Indicative Salary: Rs. 5 lacs p.a.]
It may be noted that the Information Technology sector, where demand for most futuristic skills arises,
still employs a far bigger proportion of traditional job roles such as Systems Engineers, SAP
Consultants, SQL, DotNet and Java Developers, Database Administrators and Project Managers.
10
JOBS CANDIDATES WANT
THE BIG DATA SKILL VALUE CHAIN
The analytics domain is opening up enormous opportunities for those that are mathematically inclined.
Data orientation, an eye for detail, statistical skills and knowledge of data visualization tools are the
prerequisites for a job in the analytics industry. The above visual illustrates a skills-hierarchy,
specifically for the Big Data analysis function.
Incre
asin
g c
om
ple
xity,
so
ph
istica
tio
n a
nd
sa
lary
11
WHY EMPLOYEES CALL IT QUITS
We update the findings of the previous edition – where we had looked at employee dissatisfaction as
the determinant of attrition – this time round with external factors that prod employees to move on. Net-
net, employer and candidate perceptions match relatively better on this count.
Better job and career-fit:
An outside job significantly better suited to ones capabilities and aspirations.
Great compensation and perks:
Substantially better payouts as well as attractive perquisites offered by a prospective employer.
Employer Brand:
The stature of the prospective employer as perceived in the talent market.
Better company culture:
More freedom [including a ‘flexi’ option], open communication and ideation, meritocracy.
Talent Management Practices:
Training, assessments, and research / publication opportunities that enhance credentials.
Short Commute:
For a small proportion of the respondents, distance to work makes a big difference.
12
78%
54%
43%
29%
12% 8%
Better job and career-fit
Great compensation and perks
Employer Brand
Better company culture
Talent Management Practices
Short Commute
% of respondents [Base: 165 candidates] Includes overlapping responses
13
Why employers believe attrition occurs
Career switch / Sabbatical
Better career opportunities
Better utilization of Skills
Expectation mismatch
Why employees actually quit
Great Compensation & Perks
Employer Brand
Better Company Culture
Talent Management Practices
Three overlapping attributes
14
EMPLOYMENT OUTLOOK
BY OTHER KEY DIMENSIONS
HIERARCHY, GEOGRAPHY AND FUNCTIONAL AREA
EMPLOYMENT OUTLOOK
% r
esp
on
de
nts
Tier-1
represented
along with
Metros
previous HY
15
Junior-, and mid-level, hiring activity is set to go up appreciably, as would the demand for IT /
Engineering skills and Blue Collar workers. Metro and Tier-1 cities corner the incremental increase in
hiring sentiment.
This edition on, we are also reporting hiring activity by Size of Business. Trends here seem to be in
proportion with the attribute – bigger the business size, the more positive sentiment is.
SMS: Sales & Marketing Services | IT/ENG: Information Technology / Engineering | OS: Office Services | BC: Blue Collar Workforce Metros - Delhi, Kolkata, Chennai, Mumbai Tier I Cities - Bangalore, Hyderabad, Pune, etc. Tier II Towns - Ahmadabad, Chandigarh, Mangalore, etc. Tier III Towns - Raipur, Meerut, Ranchi, etc.
16
CITY-SECTOR SWEET SPOTS
WHAT CITY-SECTOR CLUSTERS TOP OUTLOOK
EMPLOYMENT OUTLOOK
Mumbai and Chennai house a handful of sectors where the hiring sentient has favourably trended.
Hyderabad and Kolkata, on the other hand, are host to a few sectors that attract a net negative hiring
sentiment. Business sentiment has not varied much across city-sector clusters.
Positive growth (> 3) in hiring sentiment.
Negative growth (< -3) in hiring sentiment.
% r
espond
ents
17
BUSINESS OUTLOOK
Positive growth (> 3) in hiring sentiment.
Negative growth (< -3) in hiring sentiment.
% r
espond
ents
18
THE TALENT FUNNEL
ATTRITION TRENDS
ATTRITION TRENDS
% a
ttritio
n r
ate
0.4
0.2
0.6
0.7
0.2
0.5
19
THE SALARY SCENE
WHAT EMPLOYERS WILL PAY
# City Sector Job Profile Salary (Rs. per month)
1
Mumbai
IT Project Lead 44,000
2 RET Promoter 18,000
3 BFSI Insurance Sales Representative 19,000
4
Dehi
CRE Supervisor 22,000
5 TEL Customer Care Executive 13,000
6 FMCG Back Office Coordinator 12,000
7
Bangalore
BFSI Business Analyst 29,000
8 IT Software Engineer 42,000
9 H&P Lab Assistant 19,000
10
Kolkata
M&E Operations Associate 15,000
11 HOSP Resort Attendant 14,000
12 IMA Recruitment Executive 16,000
13
Chennai
M&E Marketing Executive 18,000
14 RET Packer Boy 80,00
15 IT System Administrator 29,000
16
Pune
FMCD Loader and Picker 11,000
17 CRE Survey Executive 22,000
18 M&E Technician 18,000
19
Hyderabad
IT Network Engineer 32,000
20 AGRI Machine Operator 8,000
21 BPO Purchase Manager 33,000
22
Ahmedabad
AGRI Accounts Assistant 16,000
23 CRE Site Engineer 25,000
24 M&E Projectionist 14,000
Job Profiles Sampling Criteria: Profiles have been selected for the sheer number of jobs they
represent, and the representative salary they carry, in the respective city-sector clusters.
20
RESEARCH METHODOLOGY
.APPROACH
Business environment, influencers: Secondary research / literature review
Industry and Job trends, Sentiment and # Jobs, Salaries and Skills: Quantitative research [email
/ tele-surveys]
Attrition, root causes and talent retention: Depth surveys
SAMPLE DESIGN
Employers Mumbai Delhi Bangalore Kolkata Chennai Pune Hyderabad Ahmedabad Total
IT 10 12 11 10 10 10 9 10 82
FMCD 9 11 12 9 10 10 10 8 79
FMCG 9 9 9 9 10 10 9 10 75
FS 11 10 10 8 9 9 12 9 78
RET 8 12 10 8 9 9 11 10 77
INF 9 11 10 9 11 11 11 9 81
M&E 10 8 10 8 11 8 9 8 72
TEL 9 7 12 7 9 10 11 9 74
H&P 13 10 12 9 10 8 10 10 82
Total 88 90 96 77 89 85 92 83 700
Business
Size
Small [Up to 249 employees]
Medium [250 – 999 employees]
Large [1,000 + employees] Total
Mumbai 14 55 19 88
Delhi 12 66 12 90
Bangalore 15 61 20 96
Kolkata 10 55 12 77
Chennai 19 51 19 89
Pune 12 55 18 85
Hyderabad 18 60 14 92
Ahmedabad 16 54 13 83
Total 116 457 127 700
Candidates
Mumbai 21
Delhi 19
Bangalore 22
Kolkata 17
Chennai 20
Pune 23
Hyderabad 18
Ahmedabad 25
Totals 165
21
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