HR Policies and Trends News, Updates Online - The Economic Times
Overall employability of Indian graduates dipped slightly in 2024, although proficiency in AI and ML roles improved. Increasing expectations for technical and soft skills resulted in a marginal decline, with non-technical skills requiring more development time. Online courses contribute to skill enhancement.
India's outsourcing sector is transforming, with 81% of organizations planning to increase efforts due to technological advances, expertise access, and cost efficiency. Strategic services and AI-driven outsourcing are expanding, leading to outcome-based contracts. Combining GBS centers, third-party providers, and BOT models, India remains a preferred destination for outsourcing, offering significant cost savings and innovative solutions.
Driven by the demand for renewable energy and grid modernisation, 63% of India's power and energy sector companies are planning to expand their workforce. Significant investment and ambitious targets are creating a need for skilled professionals in engineering, sales, and ICT roles to support the nation's sustainability and energy efficiency goals.
Corporate India's annual salary hikes this year are expected to range from 6-15% depending on industry and role, with emerging skills seeing increases up to 40%. Rapid digital transformation and growth in the Banking, Financial Services, and Insurance sectors are driving demand for specialists with niche skills.
India's job market has seen a significant increase, with white-collar hiring surging 32% year-over-year in January, driven by strong economic conditions and government policies. The hiring index rose by 4% month-over-month, reaching 347. Green job opportunities, particularly in sectors like semiconductors and energy, have grown, with Bengaluru leading at 23% of job opportunities.
Top talents in emerging skills like AI, ML, and cybersecurity are receiving significant salary hikes and fast-tracked promotions due to high demand. Companies are offering competitive salaries, ESOPs, and long-term incentives to attract and retain these professionals, reflecting resilience in the Indian job market.
Donald Trump's executive orders targeting DEI programmes are impacting US MNCs with Indian entities, with some pausing or modifying their initiatives. However, Indian companies, driven by government mandates, are likely to continue their DEI efforts to attract diverse talent and enhance workplace culture.
India simplifies tax regulations for foreign tech experts aiding electronics manufacturing, imposing tax on only 25% of their remuneration. This change, along with scrapped tariffs on smartphone inputs and tax-free imports for lithium-ion battery production, is set to boost the electronics sector's growth and competitiveness.
Demand for temporary or contractual workers is increasing as quick commerce expands. Companies like Swiggy Instamart and BigBasket are hiring more for technology, merchandising, and logistics roles. Temp hirings help control costs, with quick delivery personnel and dark store workers seeing varying monthly earnings with added incentives.
Bengaluru leads India's BFSI operations, contributing 19% of the headcount in global capability centres (GCCs). Demand for professionals grew 15% in Q1 CY2024 despite fluctuations later. The city excels in specialized operations, with a balanced workforce composition and emerging talent in other key areas.
Private sector banks are facing high turnover rates, especially in loan and credit card sales roles, with attrition more than doubling by December. TeamLease Services recorded a 103% attrition rate among front-line employees. Key challenges include junior staff seeking quick salary raises. RBI's deputy governor has urged banks to improve employee engagement and retention strategies.
Talent solutions provider Careernet is expanding into the US market with Sunil Chaudhary leading the effort as Partner, Longhouse. Chaudhary will focus on leadership and permanent hiring solutions in key tech hubs, leveraging his 25 years of industry expertise. Further expansions are planned for the Middle East, Europe, and Southeast Asia.
Blackrock is planning to expand its support hubs in Mumbai and Gurugram by hiring nearly 1,200 new employees to enhance its artificial intelligence capabilities. This will increase the headcount to about 3,500. Additionally, through a proposed acquisition of data provider Preqin, Blackrock will inherit a global capabilities center in Bengaluru with around 1,500 staff members.
Indians show reluctance towards AI coaching as the Human Progress Index improves, revealing a cultural preference for human mentorship. The report highlights the growing importance of skill-based credentials over traditional degrees in India. With 65% of Gen Z workers concerned about staying relevant amid technological advances, continuous skill development becomes crucial.
India remains optimistic about education and socioeconomic mobility, with 70% of Indians positive about their education system and 76% confident about future improvements. However, challenges such as access to quality education and teacher shortages persist, highlighting the need for policy initiatives and non-profit support.
Indian job market enters 2025 on steady footing; white-collar hiring in Jan marks 4% YoY growth
India's white-collar job market began 2025 on a positive note with a 4% increase in hiring. Strong demand in sectors like FMCG, Insurance, and Pharma bolstered growth despite a dip in IT hiring. Emerging tech hubs like Jaipur and sector surges in Aviation, Media, and unicorn hiring contributed to the market's stability and growth.
Load More...
