Buoyed by positive economic sentiment, employment scenario in India is set to move up and the country is expected to see the highest rise in hiring activity this year as against Asia/Australia region.
On an average, respondents in Asia/Australia expect to see an increase in hiring of 8%. India is among those countries expecting to increase hiring the most (by 13%), followed by Australia (by 10%), Singapore and Japan (each, by 8%), China (by 6%) and Hong Kong (by 5%).
According to the ninth annual Global Business and Spending Monitor survey conducted by American Express in partnership with CFO Research, 83% of Indian executives expect their companies to hire more and 52% respondents expect employment to grow by over 10%.
“Sustained high level of optimism towards growth will see India as a bright spot for hiring as companies get ready to add to the government’s initiative towards improving job-oriented skills in the country,” said Saru Kaushal, American Express Global Corporate Payments Country Business Head.
The survey based on sampling of senior finance and corporate executives from large companies around the world said that globally financial executives expect their companies’ headcount to increase by 9 per cent on an average in 2016, largely owing to decent rise in recruitments by companies in the US, Mexico, and India (13% each).
However, talent crunch is expected to affect the recruitment drive of Indian companies going forward.
See: Hiring Confidence is Strongest in India, Japan, Taiwan, Colombia and Guatemala in Q2 2016
“7 out of 10 Indian executives polled that their companies’ performance goal has been impeded by inability to hire requisite positions in sales and marketing,” the report said, adding that 60 per cent of respondents say their companies have been affected by difficulty in hiring more skilled and specialised workers.
Moreover, half of the respondents find it difficult to fill positions for IT staff, administration and support staff and offshore or outsourced positions.
The survey further noted that around 60% of Indian executives expect to raise wages or salaries in order to attract or retain employees, while 53% would be looking at improving the working environment and rotate key employees through different functions or departments in order to retain them.
“From improving working environment to rotating employees through various departments, companies are planning to introduce measures in this direction and trying to keep their attrition rates at the lowest levels,” Kaushal added.
Executives in Hong Kong (66%) say their performance goals have been affected by difficulty in hiring skilled or specialized workers. In India (70%), China (68%) and Japan (53%) finance executives cite difficulty in filling sales and marketing positions. In Singapore companies say they have difficulty hiring management and skilled or specialized workers (each, 58%).
In order to address their hiring challenges, companies in Singapore (59%), Japan (55%), Hong Kong (53%) and Australia (47%) will make greater use of temporary or contract workers. Companies in both India (63%) and China (56%) will move some positions from overseas to domestic locations.
Also read: India: Companies Not Responding to Job Applicants Risk Losing Talent Forever: Study Reveals
Image credit: forbesindia.com
