Regulatory Changes to Augment Hiring in 2018
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With the government's introduction of many regulatory changes and the ongoing Make in India initiative, 2017 has seen plenty of debate around digitization and its implications. The job market in India has seen the effects of these developments and we are optimistic for the progress and trends that this is likely to bring in 2018.
SECTORS IN ACTION
Hiring activity has increased across sectors and this trend is expected to continue. Sectors such as renewable energy, specifically the solar energy segment has seen a push from the Indian government and has piqued the interest of international companies, who want to invest in this sector. Another sector we expect to see a boost in hiring is the infrastructure and manufacturing sectors. As a result of the Make in India drive, there has been a thrust towards development of infrastructure (roads, railways, ports) in India. With the groundwork beginning on these projects, we see an increase in the employment opportunities. Furthermore, the introduction of the Goods and Services Tax (GST) has pushed businesses in the transportation, logistics as well as warehousing sectors towards an organized model and we anticipate hiring in these sectors too. With regards to financial services, we observe growing trends in micro financing companies, NBFCs, fintech firms and high-skilled functional areas in banking. However, there is likely to be a decrease in demand for hiring lower-level employees in the retail banking and branch banking segments. We also observe an upward hiring trend in the consumer, data analytics, automotive, chemicals and pharmaceutical sectors. Furthermore, there is an expected surge in the need for professionals working in the IPO, corporate finance and fund raising spaces. Regulations introduced or modified by the Indian government and the ongoing government initiatives will also create jobs in the year ahead. The growth of employment opportunities will be seen significantly in the data sciences space. In addition, we expect larger demands for roles of the independent power producers in renewable energy sector, taxation in finance, R&D within healthcare, talent management in HR and head of manufacturing and COO profiles in the engineering and manufacturing spaces.
Salary hikes, while they are expected to pick up in the financial sector, will remain at an approximate average of 10-15 per cent, across industries that will further vary based on the job levels and skill sets. Outside of monetary benefits, more organizations are recognizing the importance of implementing employee engagement strategies to retain employees. This trend will gain momentum in the coming year with employers introducing flexible working hours, salary increments, career progression as well as learning and development programs. To stay engaged with the growing millennial and digital native workforce, we have also observed a number of companies in India harnessing the use of innovation and technology. Leveraging the use of these new advances in recruitment processes will see a rise in 2018. We are also likely to witness the actualization of many of the plans and projects, which were being discussed over the past two years. This will in turn increase the number of jobs and hence boost hiring activity
(This article was first published in the December issue of Entrepreneur Magazine. To subscribe, click here)