Human resource is the most precious resource for any organization. Recruitment of right person on the board of a company is indispensable for success of the organization. Human resources solution providers consist of dedicated team of experts which provides its clients with workforce solutions like hiring right candidate (temporary and permanent nature) to streamline the human resource processes at the clients end. Staffing industry works in an increasingly dynamic business environment today and has seen utmost transition in recent years. It has emerged its status from only “replacing absentee workers” to become “strategic partner” for its clients by providing entire gamut of employment solutions like providing corporate training, pay-roll processing, recruitment process outsourcing, etc.
The staffing industry in India is highly fragmented and provides services in varied streams such as Finance, Sales, Engineering, Information Technology and Management. Recent developments on the economic front like opening up of various segments like retails, aviation, etc. for FDI is also a boost for the segment as this will lead to increase in hiring activity. Growth economics shown by India has also attracted large MNCs to set their foot in the nation and ride the growth tide.
The Indian recruitment industry is driven by a number of factors including the growth of key client industry, large conglomerates entering into new business domains, entry of multinational companies in the Indian markets among others. Indian economy has been growing at an attractive rate backed by growth in its key customer industries like IT, ITES, retail, banking, health care and hospitality among others.
Also the industry is characterized by the increasing trend of private equity transactions and a number of mergers and acquisitions. Also, a number of companies have started outsourcing their recruitment processes to third party recruiters.
The report gives an in-depth analysis of the Indian recruitment market with major focus on permanent and temporary recruitment segments. It assesses the key opportunities in the market and also outlines the factors that are and will be driving the growth of the industry. Further, key players of the industry have been profiled and growth of the industry has been predicted taking into consideration the previous growth patterns, the growth drivers and the current and future trends
With GDP growth rate being pegged at 5.5 per cent against 4.7 per cent during the last financial year, according to the mid-year economic analysis 2014-15, businesses across all sectors are expected to grow. In addition, India enjoys the competitive advantage of demographic dividend which would, together with the hiring intensity, mark a new era of recruitment in the country.
We chart out some key trends that would define the job market:
Match-making: With an outlook on changing needs, and characterizing manpower as key to business growth, increased job opportunities and a reservoir of available talent pool, hiring would not be only about sourcing, interviewing candidates, and getting the vacancy filled. Instead, it would be increasingly about matching the requirements of a role to a candidate’s capability and vice versa. Organizations would be increasingly looking for a quality talent pool for their open positions and right kind of matchmaking would definitely hold the answers to business growth and expansion.
Outsourcing: It has already been observed in recent times that business leaders, including many CEOs, are driving the talent agenda. The recruitment industry and especially the recruitment process outsourcing (RPO) specialists are increasingly making use of social media and analytics to deliver both efficiency and experience. These two important factors would be the new favourites while looking for quality talent and strategizing to retain the talent. In the present socio-economic scenario, this model would be easily adapted beyond the mass hiring sectors to the niche hiring ones like core pharma, and public services. The RPO systems working on a strong technology platform have the capability to perform job-candidate matchmaking and deliver world class experience to all parties involved while simultaneously managing cost and time efficiencies.
Hiring through Social Media is going to get bigger and bigger: With 243.2 million internet users and 106 million active social media users among a total population of over 1200 million, the social media wave is yet to get into the heart of India. Talking of using social media for recruitment, this penetration has been equally low, especially when compared to the global markets (where more than 90 per cent recruiters consider social media as one of their major tools). However, given its numerous benefits and ease of usage, there would definitely be an increased focus on social media channels in 2015. While the penetration might not reach 90 per cent in this year itself, according to ISR 2015, the number of recruiters accepting social media as recruitment and sourcing channel will certainly double.
Technology adaptability: As increasing number of employers reach out to Tier II and Tier III cities to meet their hiring needs, increased usage of technology would not be a choice but a necessity. This would increase the adaptation of innovative tools like video interviewing, asynchronous interviewing and online assessments that not only will increase the efficiency of the hiring process by 50-60 per cent, but at the same time help in increasing the quality of hire.
Analytics: The business now expects HR leaders to be strategic partners. As the growth wave in business fires up the hiring engine of the organization, talent acquisition leaders are expected to have the armor of data. By using analytics, HR professionals would be ready to move from intuition-based decision making to data-driven decision making. A recent study by LinkedIn on global recruitment market shows that most organizations do not use data well in the space of talent acquisition. Though India, with 55 per cent score, is well above the global average of 24 per cent on how well analytics is used for talent acquisition process, this number would grow further as analytics enters more into workforce planning, workforce utilization, and simultaneously into untouched areas like sourcing.
Employee Referrals will grow in size and importance: Employee referrals will gain in importance with top global organization look at recruiting at least 50% of their new hires through employee referrals. The reason for the growing popularity of employee referrals will be more as a source of sourcing passive talent that would not otherwise be accessible to the organization.
Recruiting will increasingly rely on hard number based data to make decisions: As with all other business decisions, data will increasingly drive recruiting decisions as well as technology makes it possible to track the cost effectiveness and efficiency of different sourcing methods and techniques
Candidate experience: With everyone fighting the war to attract the best talent, it is only obvious that organizations are now focusing on delivering an unparalleled experience to candidates. Though a year ago this intent was limited to industries like IT/ITES, it will soon be adapted by others too. A good candidate experience is brilliant marketing for an organization and a bad hiring experience may cause the right applicant to turn down the job. Top talent has no desire to work in a disrespectful organization with leaders who simply don’t care about the recruiting process.
Online assessment: When you are operating in a country like India, which is on the verge of reaping the demographic dividend, frontline hiring becomes an integral part of the hiring mix. Conducting interviews is a mammoth task and does not deliver desired results. Online assessments are proving to be the best solution in such situations. Claiming to bring efficiencies in the range of 40-60 per cent, assessments are the new favorites amongst the industries like insurance, IT, BPO/ITES where frontline hiring forms a major pie of hiring mix. Many companies are working in a direction where interviews would be replaced by much more reliable online assessments.
Passive candidates will be targeted equally if not more than active candidates by employers: They have been attracting recruiters’ attention for quite some time now. And as increasing focus of organizations falls on “quality of talent” rather than time to fill or hiring manager’s satisfaction, this trend would grow further. There will be an upsurge in usage of tools like social media that encourage collaboration and help in engaging this set of job seekers. One can expect increasing number of organizations to have specific strategies for both active and passive jobseekers.
Passive Candidate Recruiting: India In Global Top 3
1.) Increase in Indian companies reaching out to passive candidates via proactive sourcing. India ranks 3rd (69%) compared to other countries in terms of hiring passive candidates.
2.) Companies in the US (83%) and China (72%) are most aggressively recruiting passive candidates.
3.) Globally, 75% of professionals consider themselves “passive” yet only 61% of companies consider recruiting passive talent.
Employer branding will be a key pull factor for candidates: In today’s world of talent wars, attracting candidates is considered as important as attracting customers. In such a scenario, recruiting will increasingly resemble a marketing function. Employer branding would gain more importance than ever. The near future will see employers across industries focus on building attractive employer brands, and using channels like social media and video marketing to reach the workforce apart from the traditional methods.
Recruitment on mobile phones: India is home to about 350 million unique mobile phone users that use this medium to surf the Internet. When talent spends such a large portion of their time on mobile, it makes sense for the recruiters to be there to attract their attention. As per a recent LinkedIn report, there has been a 90 per cent increase in the number of mobile users who look out for job opportunities and 75 per cent increase in the users who apply for jobs through this medium. This would encourage a large number of employers to have mobile-optimized career sites and job postings.
The Future of Recruitment in coming years-
1.) Global recruiting leaders agree that social and professional networks are the most essential and long-lasting trend in recruiting. Indian firms consider utilising social and professional network as the most (39%) essential and long-lasting trend in recruiting for professional roles, followed by boosting referral programme (31%) and upgrading employer brand (27%).
2.) Candidate and job matching could reshape the recruiting industry – Improved candidate and job matching (personality fit, culture fit, etc) will the most (58%) important role in shaping the recruiting industry for the next five to 10 years.
The war for quality talent is bound to intensify in the coming decades, with more & more companies tapping to new innovative forms of sourcing candidates or exploring newer forms of talent pools available to bring on board. With the advent of social media platforms, leveraging social networks to hire candidates will be on the rise.
This will be applicable both for Indian companies, global companies as well as companies who are planning to set up captives in India.
Ankita Gaur (HR Manager)