As the economy runs to a comeback path after an intense plunge last year amid the pandemic, a study has exhibited that 59 percent of companies in India plan to give salary increments to their employees in 2021.
According to staffing company Genius Consultants ’10th Hiring, Attrition and Compensation Trend 2021-22′, the market is expected to be stable with this impressive growth rate. The companies will also relook at their business continuity strategy along with strengthening the workforce.
This year, the increment scenario seems “welcoming with 59 per cent of companies saying that increment is on the cards, which will range between 5-10 per cent whereas 20 per cent thinks increment will be less than 5 per cent and around 21 per cent thinks that there will be no pay rise in 2021 too”, as per the study.
The study was conducted online among 1,200 companies during February and March across sectors including banking and finance, construction and engineering, education/teaching/training, FMCG, hospitality, HR solutions, IT, ITES and BPO, logistics, manufacturing, media, oil and gas, pharma and medical, power and energy, real estate, retail, telecom, auto, and ancillary.
The nationwide study further revealed that around 43 percent of the participants have said there are openings for new recruitments. In contrast, 41 percent have indicated towards replacement hiring.
However, 11 percent of the respondents said there is no hope of fresh hiring, it noted.
The study found that the southern market will lead to new job opportunities with 37 percent hiring, followed by the western zone with 33 percent.
It projected that the companies are re-evaluating in strengthening their workforce, with 21 percent saying that they are planning to increase the team strength by more than 15 percent. On the other hand, around 26 percent said they would add 10-15 percent, new employees to the team.
However, 30 percent of respondents have said employee strength will increase by 10 percent, followed by 23 percent saying there will be no hiring.
In terms of workforce downsizing, only 4 percent of respondents said lay-offs are on the cards in 2021.
The further study points that junior levels are more susceptible than middle and senior management people, and the western zone will see the highest attrition this year.
While most corporations have embraced the new working model of work from home, remote working, or hybrid working style, there is always a question about employee productivity, the study noted.
Addressing that, 33 percent of respondents said in terms of productivity or commitment, there is no change while adapting to a new working style.
On the contrary, 37 percent indicated that productivity fluctuates.
Organisations will focus more on hiring mid-level candidates followed by people with lesser experience and freshers. According to the study, the workforce is likely to mix women employees of around 51 percent and males of approximately 54 percent, respectively.
“India Inc is recovering quickly, and they are showing an optimistic outlook towards hiring in 2021. They are planning their overall business strategy, forward-looking the demand of the market and accordingly planning the hiring, compensation package considering their affordability and sustainability as the overhead costs increase year on year,” Genius Consultants Chairman and Managing Director R P Yadav said.
Moreover, he pointed out that the government aids and favorable policy encouraging the private sector will fall back on the growth trajectory.
“When things opened up last year, the hiring embargo was lifted and industries like banking and NBFC, consumer products, manufacturing, infrastructure, housing, hospitality, service, tourism, pharmaceutical and e-commerce were on the way to achieving their pre pandemic figures,” he added.