Over three-quarters of companies eager to expand hiring and retain talent in latter half of FY24

15 Dec, 2023

Over three-quarters of companies eager to expand hiring and retain talent in latter half of FY24

Indian employers are gearing up for a substantial hiring upswing in the final quarter of the financial year, a stark contrast to the subdued activity experienced in the preceding quarter. A staggering 79% of companies are enthusiastic about either expanding or maintaining their workforce until March 2023-24.

The surge in hiring momentum can be attributed to the robust gross domestic product (GDP) growth of 7.8% recorded in the second quarter of FY24. Economic conditions, business growth, and the scarcity of skilled professionals have emerged as pivotal factors driving this escalating hiring trend.

The 'TeamLease Employment Outlook Report' for H2 FY24, encompassing insights from 1,306 businesses (reaching out to 1,820 employers), including 209 startups, 757 medium-sized enterprises, and 340 large corporations, reveals a heightened demand for growth specialists, technical professionals, and healthcare experts in India for the year 2023.

Notably, the non-tech sector in India currently employs over 7.65 lakh tech professionals and is witnessing an unprecedented surge in demand for additional tech talent. With a rapid 7.53% Compound Annual Growth Rate (CAGR), the non-tech sector is on course to employ 11.15 lakh tech professionals by FY 2027-28, as highlighted in the report.

Approximately 84% of employers anticipate a surge in hiring within their respective industries during the October-March 2023 period, with 67% foreseeing substantial business growth.

The optimism among companies extends not only to augmenting hiring activities (79%) but also to an increasing momentum in replacement hiring (74%). "There's a burgeoning demand for technology roles in non-technical sectors, particularly in the Construction, Retail, and Hospitality industries. Overall, a positive sentiment pervades the Indian hiring landscape."

In terms of industries, educational services and healthcare & pharmaceuticals lead the way, with 86% of employers planning incremental hiring. Sectors like electric vehicle & infrastructure (85%), e-commerce & allied start-ups (81%), and fast-moving consumer durables (84%) closely follow, reflecting a noticeable shift in consumer and lifestyle preferences toward sustainability. Moreover, industries such as travel & hospitality, consulting, and textiles anticipate an incremental workforce expansion ranging from 68% to 69%.

In sectors like power & energy (88%), fast-moving consumer durables (85%), and healthcare & pharmaceuticals (84%), incremental hiring takes precedence. "The power and energy industry witnesses a blend of intense competition and potential investments in renewable energy, driving the need for replacement hiring," notes the TeamLease report.

Major cities such as Bangalore (89%), Chennai (83%), Mumbai (82%), and Hyderabad (79%) anticipate a substantial surge in expanding their workforce. Bangalore (87%) and Mumbai (86%) lead in incremental new hiring, attributable to factors like industry concentration, abundant talent pools, and robust economic activities.

Roles in human resources are expected to remain in high demand, with 92% of companies actively seeking candidates in this field. The report also highlights the significance of marketing (87%), information technology (86%), engineering (86%), and office services (86%) in signaling a well-balanced enterprise growth strategy.

The report concludes by emphasizing the imperative for businesses to foster inclusive and innovative workplaces. It underscores the pivotal role of technology in shaping the future of work, foreseeing an emergence of more innovative job roles.