Decoding Hiring Trends in India: Aon Hewitt Hiring Study
2015 will be a year of growth, but employers must match the pace
Vikas Verma
Director, Talent & Performance
Aon Hewitt
Nitin Sethi
Partner, Talent & Performance
Aon Hewitt
Arpita Chakraborty
Consultant,
Aon Hewitt
Industry Insights on Hiring
Hiring strategies can have a big impact on a company's performance, so management must stay abreast of new industry trends to be used to the advantage of the corporation. At Aon Hewitt, we surveyed 95 organizations across 14 industries to identify emerging hiring trends for 2015. Our survey shows 30% to 64% of companies across industries will hire more people, and almost half will have a higher budget compared to previous years. While the bulk of hiring will be at junior levels, senior level recruitment is also likely to increase in talent and knowledge-based industries. With job satisfaction and intra-company growth being prime recruiting tools, it has never been more important to match the right man to the correct job. Well-informed employers will be better placed to make discerning hiring decisions. With hundreds of candidates across the country, a lack of knowledge of efficient hiring methods and options can have implications on effectiveness. Tracking the Rate of Investment (ROI) on sourcing channels and by levels is imperative to determine hiring effectiveness. We divided our research into four core industries Automotive, hi-Tech/IT, FMCG/FMCD, manufacturing and pharmaceuticals.
1. Automotive and Auto-components Industry
Junior level hiring is set to accelerate in 2015, comprising 56% of open positions. We also found that while two-third of companies in the automotive and auto-components industry plan to fill their entry level positions by recruiting from campuses, they lack a skilled team dedicated to active recruitment. While senior level recruiting would be as low as 10%, filling those specialist positions has been a problem across all levels of hiring. Vendor and recruitment team costs are the two most prevalent factors accounting for Cost per Hire. Companies have been increasingly filling positions internally across all levels. By our assessment, structuring talent acquisition teams across levels is key. This will increase effectiveness, including adapting skill assessment tools to cater to diverse talent pools.
2. Manufacturing
Over 64% of the manufacturing companies we polled said they expected a higher influx of new employees than the year before. Many of the open positions are found in the mid level posts, followed by junior hires. They want employees who will produce top quality work in minimal turnaround time, but at present, manufacturing companies lack objective and standard measures to track effectiveness of their hires. One way to achieve this would be to streamline methods to gauge hiring effectiveness. Using multiple sources for a data-driven approach to track performance will lead to desired business outcomes.
3. FMCG/FMCD
The FMCG industry may not expect to see a significant spurt in new hiring this year, with the focus largely being on revamping current sales methods. Nevertheless, companies are showing an increasing preference for online talent acquisition, while maintaining special hiring teams. We found that while employers are broadening their hiring methods, they are not seeing a return in terms of actual employee selection. Only 11% of organizations report more than 90% selection ratio across channels. Going forward, structuring hiring teams is the way for greater effectiveness, leading to predictive hiring and enabling talent selection. We also foresee filling open senior and mid level positions internally for this industry. This will increase both talent retention and employer brand value.
4. Hi-Tech/IT
IT companies have taken a hit this year and are expected to cut hiring by half, focusing instead on obtaining and keeping efficient employees. We found that once talent is hired, 70% of the companies polled lack objective methods to track efficiency of new hires to report ROI back to the business. Tracking ROI will have a positive impact on talent sourcing strategies and increased spending in Recruitment Process Outsourcing (RPO) this year also means that companies will adopt advanced technology across HRMS and ATS to optimize efficiencies. Overall, 2015 will be an exciting year for India Inc. However, for companies to maximize their Gains per Hire, they must be willing to change with the times. The key theme is centered on attracting and retaining the best employees. It may cost a little extra in the moment, but investing in acquiring the right person for the job can be the extra edge a company needs in these increasingly competitive times.
Budget Allocation
"Social media, online assessments and branding" Top priorities for the coming year
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