HIRING & BEYOND www.research.timesjobs.com VOLUME-I ISSUE1 OCTOBER 2010

EDITORIAL Workforce Employability The Indian workforce is at crossroads. A booming economic growth rate, well above global rates, means a surfeit of job opportunities. On the other hand, the economic slowdown of 2008-2009 has also taught the employable Indians that to be able to survive adversity you need to be equipped with the right skills. With appraisals just over and organisations focussing on retaining retainable employees, TJinsite takes a look at what drives the Indian workforce - salary, talent, skills or a progressive work profile.

Salary Blues A large part of the Indian workforce is unhappy with its current salary package. For HR Managers the ones who move bring talent with them and the ones who stay need skills for a better fit in the job profile. We delved deep into our databases to come up with where the demand for employees is and where the supply exists. Despite the all-pervasive cry about talent crunch, the jobs are not very far removed from where the skill sets are. (See Page 2)

Poll Vault We conducted a series of polls to delve into expectations of the workforce. Surprisingly, the workforce is pretty focussed on the job profile. Loyalty is at a premium as the general feeling after two years of crisis is `each one for his own’.

Expert Opinion Read what our experts from the industry have to say about the mismatch between skills expectations and what is available. Training and a realistic increase in salaries seems to be the salve that will help heal the wounds of the downturn. - Editor

Inside Insite n

Talent Crunch

Page 2

n

Salary Survey

Page 3-4

n

Poll Vault

Page 5-7

n

Interview

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n

News Bytes

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INDIA INC BATTLES 40% TALENT CRUNCH Corporate India’s biggest challenge today is the employability of the present and future workforce

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he country’s booming economy is expected to throw up over 80 million new jobs in the next five years. Also, over 80 per cent of the current Indian workforce is unhappy with the present salary and is seeking to switch jobs in the next six months. There is also a steady inflow of new employees who are graduating from the education system. Yet finding the right talent and the skills gap has overtaken HR mindspace over the fact that there is general unease about salary. After a year of slowdown, layoffs and even salary and jobs cuts, most organisations have reversed the damage to whatever extent they could with the appraisals process having concluded in most organisations. Today training the existing workforce and seeking the right skills in new employees is the top-most agenda of HR managers. Employers have made compensations on salary wherever possible and are now looking at curtailing attrition through training and enhancement of job profiles. The workforce too, is now willing to work towards better salaries. This includes moving out of the present location or even job profiles, secure training and learn new skill sets to fit into better salary brackets either within their own industry or even outside their industry.

What do you think is most important in getting a job? Skill Set

32% Knowledge

30% Experience level

27% Educational qualification

A poll on a database of 7000 candidates revealed that candidates rate skills, knowledge and experience over educational qualifications in finding a job.

Do you have an idea you want to voice or have an opinion about industry trends. TJinsite would love to hear from you. Write in to [email protected]

11%

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Demand and Supply The TimesJobs.com database has over 60,000 jobs listings and over 1.5 crore candidate resumes. We scanned our database to figure out which are the top 10 industries that are looking for candidates and are actively hiring and the top 10 industries where candidates are seeking a placement. The demand was largely on expected lines. And surprisingly so was the supply. If the industry demands what the candidates are looking for then where is the mismatch? There is no jobs crunch in India at the macro level. The database revealed that both employers and candidates are active in the jobs market today. But both are struggling to find the right match

...

DEMAND

SUPPLY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

MANUFACTURING/INDUSTRIAL

BANKING FINANCIAL SERVICES & INSURANCE

BANKING FINANCIAL SERVICES & INSURANCE

MANUFACTURING/INDUSTRIAL

CRM/CALLCENTRES/BPO/ITES/MED.TRANS

CRM/CALLCENTRES/BPO/ITES/MED.TRANS

CONSUMER DURABLES/FMCG

ENGINEERING/PROJECTS

CONSTRUCTION/CEMENT/METAL/STEEL/IRON

AUTOMOBILES/AUTO COMPONENT/AUTO ANCILLARY

ENGINEERING/PROJECTS

CONSTRUCTION/CEMENT/METAL/STEEL/IRON

TELECOM

TELECOM

PETROLEUM/OIL AND GAS/POWER

ACCOUNTING-TAX/CONSULTING

PROJECTS/INFRASTRUCTURE/POWER/ENERGY

PROJECTS/INFRASTRUCTURE/POWER/ENERGY

AUTOMOBILES/AUTO COMPONENT/AUTO ANCILLARY

BIOTECHNOLOGY/PHARMACEUTICAL/MEDICINE

Talent Crunch and Skill Set Gaps ...So we asked our clients about talent gaps. Most said there was a 20-40% shortfall. This was mostly at the skills level and a lot of organisations undertook internal training to cover this shortfall. While the industry by-and-large prefers to hire from within, there are instances where because of acute skill gaps, they are forced to look outside. The gaps are mainly in experience levels and communication skills. In the Information Technology (IT) sector the gaps are also in terms of the industry wanting graduate degrees and having to put up with diplomas in the relevant fields. The industries with the biggest shortfall were manufacturing and engineering technologies. Even the BPO industry is looking for trained manpower and not having to spend a lot of time, effort and money into training freshers. Looming large over this exercise is attrition.

EXPERT SPEAK We hire diligently but if there is a shortfall in skills, we impart training internally. We prefer recruiting from within the industry. If that is not available only then do we look externally for talent. Manprit Kkomal Manager HR, Effort BPO

Talent shortfall can be as high as 40%. About 90% of hiring is at freshers level. We impart internal training to cover this shortfall. When looking for skills, we prefer to hire within the industry. Joyjeet Jana Proprietor, Symphonix Active Calling

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We have a 30% shortfall in skills at the middle management levels. We do cover the gaps with internal training but not much. We look within the industry and outside when sourcing talent. SV Ramanamurthy Manager HR and Admin, Advantec Coils Pvt Ltd

We have a 30-40% shortfall in skills and talent, especially when it comes to experience. We cover this shortfall by about 80-90% through internal training. We recruit from within our industry. S Ravi Branch Manager, Karnataka Soaps & Detergents Ltd

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SURVEY OR ACT F Y R SALA E H T

I want more Almost everybody across India in large cities and small want better salaries. The expectation of hikes was across the board too. They are willing to work towards it and switch jobs, locations, organisations and industries… Over 80% of the workforce is unhappy with their current salary. Men and women are unanimous in their dissatisfaction levels. The initial joy of economic independence keeps 22% of those with less than 2 years experience happy with their salaries. This drops dramatically to 10% once the novelty of earning wears off, and they are 3-5 years into their working life. Regionally as well there are differences visible. While overall dissatisfaction is high, it is lower in the west and the south where 20% (compared to

10% in other zones) say that they are satisfied with their current salaries. There are variations between the metros and the non-metros as well. About 20% of those in non-metros are happy with their salaries compared to only 10% in the metros. There is not much difference between the current and expected salaries among the metros and the nonmetros. A lower cost of living probably accounts for higher satisfaction among those in the non-metros.

Salary preferred over location?

Are you happy with your current salary package?

87

NOTES

13

No

Yes

77 Yes

23 No

figures in %

Workforce mobility The city of your dreams is the one that pays you the most. Men or women, all are willing to consider unfamiliar locations if the pay packet meets their expectations, which rise as the years of experience rises… he Indian workforce is highly mobile and is willing to move for more money. Almost 77% of those surveyed said that they would move if the salary offered was attractive enough. Interestingly, 62% of the female workforce is also willing to move for better salaries. As the years of experience go up, the willingness to move may also go down. However, this is not the case among men, where three quarters of even those with 20 or more

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years of experience are willing to move for salary. If the number of years of experience is taken as a surrogate for life-stage, then this is extremely high. The worforce mobility is highest among those with between 5-10 years of experience (80%). Across zones, in the North, the workforce is marginally more mobile. There is no appreciable difference between the metros and the non-metros.

Opportunities with respect to salary outside current functional area?

74 Y es

26 No

figures in %

While the majority is dissatisfied, the workforce in the non-metros is more satisfied than its counterpart in the metros

80%

of those with 5-10 years experience want to relocate

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SURVEY

Cash or content

OR ACT F Y R SALA E H T

Work profile and content had a clear edge over salary factors alone. Clearly HR managers will be able to hold talent with rich job profiles and skills upgrade n the trade-off between job profile and salary, profile and work content have an edge, proving that money alone cannot keep them back or prevent employee attrition. This is further emphasized by the fact that salary increases are expected to be significantly higher than predicted inflation rates, indicating that other factors such as job content and demand for talent will strongly influence salaries and attrition. Three quarters of the workforce feels that both job-profile and salary are equally important. Among women the proportion that feels that the job

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profile is as or more important than salary is marginally higher compared to men. When one looks at the years of experience there is a difference. In the early years of working life, job profile is seen as more important; double the number of those with less than 2 years of experience felt that the job profile was more important than the salary, compared to those with more years of experience. Between the zones it is the north and the south that are more money minded; 10% in each zone compared to 2-5% in others, feel that salary is more important.

NOTES

87 Yes

13 No

Oppourtunities with respect to salary outside current industry? figures in %

The grass is greener on the other side Employees are willing to look outside their organisations or even industry for the right job profiles and will negotiate salary to match. Loyalty to organisations and industries have given way in the search for the right job profile… n overwhelming proportion, 84%, feels that there are better salary opportunities outside their current industry. Approximately three quarters of the workforce also feels that there are better salary opportunities outside their functional areas. Both genders are unified in their

A

dissatisfaction regarding the remuneration in their current industry and function and have their eyes firmly fixed on opportunities over the horizon. The interesting thing when one looks at years of experience is that among the hard bitten veterans in an industry, (those with 20yrs+ exp) the feeling that money-wise,

opportunities outside their industry are better is higher than those with lower experience. It is clear that the Indian workforce is ready and willing to move, switch functions and jobs in pursuit of better monies. Employee loyalty will have to be won by factors other than higher salaries.

--

Job profile is more important than salary among quite a high proportion of the new entrants to the workforce

62%

of the female workforce is also willing to move for better salaries.

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Poll Vault

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salary survey helped us delve deep into the minds of employees who were shaken and stirred during the slowdown of 2008-2009. Yet they emerged with a new series of wants and aspirations, perhaps a little more mature than the heady days of 2006-2007, when ever-soaring salaries was the only criterion. The lessons learnt during the downturn are that salaries are important but the work profile is more so, needed a further drilling down. So we embarked on a series of polls across different segments of

our database. The respondents came forward freely and each poll has roughly 5000 or more respondents spontaneously participating in the polls on TimesJobs.com. The results were startling. You can even call them eyeopeners. It was clear proof, if any more was required, that the Indian workforce has temperamentally come of age. It was also clear that the `right here right now’ generation has no misplaced loyalties to anybody outside themselves, their jobs and their salaries. Yet this is a generation that will give its all to the right job and organisation.

Current Poll What do you seek most in a candidate while recruiting? g

Educational qualifications

g

Experience levels

g

Skills (Java, accountancy, sales etc)

g

Current Industry of candidate

g

Previous employer of candidate

To take the poll log on to http://hire.timesjobs.com

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Your pick - A job you like or one that pays well? APPROXIMATELY 71 per cent of the respondents feel that they would rather go for a job that they like but pays less. Rest believes in going for a good package. The results of this poll back our previous

analysis that workforce today can compromise on other aspects of a job but not on job profile. Here again the results assert the same sentiment. Job profile and satisfaction with work counts highest among

the current breed of the workforce. They are willing to compromise on salary but want a job that will provide them with good experience and one that they enjoy doing.

A job you like but with less salary

71%

A job you dont like but with good salary

29%

Would you overlook location if offered an attractive salary package? TJinsite, the research wing of TimesJobs.com conducted a poll to find out the preference of the workforce for salary over location. The poll revealed that 77 per cent of the Indian workforce is more than willing to overlook location if offered an attractive salary package. Location is a key factor while choosing a job. However, recession has taught the working class a long-term lesson. They now want

to earn and earn big, and for this they are ready to compromise on location. The location can be compromised on but not the job profile. Yes, this is what the Indian workforce feels. Money does matter to them but they all are very well aware that job profile is important to sustain. Corroborating the poll findings TJinsite’s Salary Survey captured the opinion of the Indian workforce on both issues - would they overlook location

77%

Yes No

for an attractive salary and would they overlook job profile as well for big bucks. The answer to the first one was a straight yes. But job profile was given as equal a weightage as salary. That’s why though monetary benefits score high on the preferences of the workforce, work profile is what holds them to a job.

23%

Better prospects outside? APPROXIMATELY 75 per cent of the Indian workforce feels they have better opportunities with respect to salary, outside their current organisation. A poll conducted by TJinsite, on the TimesJobs.com database

revealed that a major percentage of the workforce is not satisfied with their current compensation. This clearly indicates that the aspiration for today’s workforce is highly driven by the

75%

Outside your organisation Within your organisation

salary component. Other factors such as job profile, location, designation are crucial but they need to seek the attractive pay package whereever it is available.

25%

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How long do you expect to remain in your current job? APPROXIMATELY 39 per cent of the Indian workforce expects to remain in their current job for less than six months. A poll conducted by TJinsite, on the TimesJobs.com database revealed that a larger section of the workforce do not want to continue with their current jobs for more than six months. They want to reap the short term benefits and

would like to move on. Workforce, today, is driven by salaries. The lay-offs during recession have made one thing clear to them – love your job but not your organisation. They don’t want to stick to an organisation for long, but would rather like to move on to get good hikes and job profiles.

Still, there is a handful in the workforce which doesn’t mind staying in their current job for 1-2 years or 2-4 years. Probably those whom organisations should hold with good experience at their current job. After which they will look for opportunities outside their industry and functional areas as well.

39%

<6 months

14%

6 months-1 year

2-4 years

17% 16%

>4 years

13%

1-2 years

Best way to look for a new job? A POLL by TJinsite revealed that about 60 per cent of the Indian workforce prefers to register on job portals. About 16 per cent of the respondents believe that friends and colleagues also help in seeking a new job. Majority of the job aspirants prefer to register with multiple job portals. It is easy to use and access. It helps in assessing your CV vis-a-vis employers expectations and

market demand. With a growing need of the online media, the probability of getting a job offer is higher than in the offline medium. A sudden boost in web portals and global connectivity has resulted in a shift from the print industry. Professional networking sites have emerged as another area of choice. It allows professionals to stay connected and explore

61%

Online job portals Friends and colleagues Newspapers Networking sites

novel business opportunities. Open discussion forums can lead to better interchange and advice. However, volume, reach and usability are still limited. Friends and Colleagues serve as a strong reference on your CV and brighten your chances of getting through the job. They are regarded as the credible source at both ends company and the job seeker.

16% 14% 9%

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Interview

REFINING COMPETENCY

orgee,t e G e c Celinr People Fa

e Partn

Companies today work on engagement of employees through skills training What are companies doing to enhance employee morale, post-appraisals? Companies today have to work on engagement of employees. There are several initiatives currently underway. In many cases performance alignment on the basis of conversation with employees is taking place. There are moves to train and develop the line managers who can then carry the conversation to lower levels. At the senior levels it is the fine-tuning of competencies that has maximum HR mindspace. Companies are focusing on using all mediums to communicate with employees – face-to-face meetings, social media etc. The idea is to get the employees to integrate much more into the system. Companies are using technology to build this infrastructure.

it’s a question of remaining where you are and upgrading yourself before making a switch.

Has the crisis of 2008-09 made any difference to the working of companies? Last year was disturbing in a lot of ways. Companies felt the stress of individuals who were being asked to leave. Some companies went the clinical way of saying that we have to lay-off at any cost. Today, all types of companies now have to work on rebuilding the trust factor among employees.

Is there more mobility among the workforce? Among employees there is an openness to learn new things. The attitude is let’s get into and learn something different. Many with 10-15 years experience, who are part of double income households are getting out of salaried jobs and considering entrepreneurship. Many of these are in finance, micro-finance, consulting and research, human resources and not-for-profit ventures. I had this CFO coming to me the other day and saying that `the designation is good, salary is good but the job profile is not exciting – I need help’. It’s less about `I am this expert, come let me teach you. The attitude is more like I will learn with you’.

What is the change we are seeing in employee attitude? Among candidates, most people have seen those within their close circle of family and friends who lost jobs in 2008-2009 and have not made it. So, they are wary of making a sudden switch. In many cases

N E W S High attrition hits IT cos’ bottomlines WITH the economic recovery gathering pace in India, desi IT companies are finding it hard to retain employees. This, coupled with rising wages, is beginning to hurt bottomlines of companies. Earnings before interest, tax, depreciation and amortisation (EBITDA) margins — also known as operating margins — have started to dip for most of the IT biggies in recent quarters, largely because of the spurt in wage inflation. n The Economic Times, Aug-2010

FMCG cos hire in small towns to fire up growth SMALL towns are emerging as the new big hiring zones, as consumer goods companies drive deep into the country. Companies are hiring field staff in areas like Kalpa in Himachal Pradesh, Mangaliya in Madhya Pradesh, Kota in Rajasthan and Shirdi in Maharashtra to sell products as diverse as shampoos, edible oil and even pizzas. n The Economic Times, Aug-2010

Manufacturing cos look to invest in white collar jobs MANUFACTURING companies are trying to oil their productivity machine, taking a leaf out of the software industry’s books. Like

So what is the difference in attitude among employees and employers? Employees have made a qualitative shift – they look at job and work profile and also a good work-life balance. They are now prioritizing friends, family and factors such as this. Many are talking to clients and using technology voluntarily rather than travel and this time the initiative is coming from employees rather than because of management cost cutting. Employers too are looking at developing and nurturing talent. They want to recruit well and retain better.

B Y T E S software firms, they are planning to create a ‘bench’ of trained white collar employees as they battle huge capacity constraints in almost all sectors from product design to accounts. Companies are also redeploying staff to cut costs. n The Economic Times, Aug-2010

GM to hire 500 engineers at B’lore facility GENERAL Motors India will hire 500 engineers at its technical centre in Bangalore. This will take GM’s headcount at its technical centre to 2,100 from the present 1,600. At present, GM’s existing employees at the technical centre, are engaged in vehicle and engine development, design and R&D activities. n The Times of India, Aug-2010

World sans borders for talent play SOFTWARE engineering services is projected to be a $45-50 billion export business in a decade, says a Nasscom-Booz Allen study of the sector. This is expected to force Indian companies to import engineers to tap the opportunity, feel industry players. Bringing in overseas people will be necessary because of severe talent shortage, said Ketan Bakshi, chairman and managing director of Neilsoft, an engineering services company. n The Economic Times, Aug-2010

Disclaimer: Information provided in this newsletter shall not be reproduced, published, re-sold or otherwise distributed in any medium without the prior written permission of TimesJobs.com and a clear acknowledgement to TimesJobs.com. Contact: TJinsite, TimesJobs.com, Plot No 6, Sector 16A, Film City, Noida. Write in to [email protected] Copyright ©2010 Times Business Solutions Limited. All rights reserved.