There was nothing much to cheer about for the workforce in 2012. It was a relatively dismal year in terms of hiring compared with 2011. The industry chamber, Assocham, estimates that though 5.2 lakh jobs were created during the year, the country’s job creation actually dipped by 21%.
The second half of the year saw a drop of 40,000 jobs compared with 2.8 lakh created in the first half. Layoffs and downsizing became the norm in sectors like BFSI and telecom, which trimmed staff strength to cut costs. However, employees are crossing their fingers that the tide may turn and the new year may bring better news.
Outlook for 2013
The hiring outlook for the new year will vary, depending on the performance of key sectors. While sectors like FMCG, retail, pharma and healthcare remain upbeat and will continue to hire in significant numbers, HR consultants and placement firms are not as optimistic about real estate, infrastructure and telecom.
Though hiring has dipped in the current quarter, HR experts expect it to pick up towards the end.
“Most companies spend time planning for the next year during this period and one hardly notices any out-of-the-ordinary hiring during this phase.
As we come closer to the end of the quarter, hiring picks up, and given the signs so far, it definitely will,” says Rituparna Chakraborty, co-founder and senior VP, TeamLease Services.
While industries like ITeS and IT will continue to be sluggish, given their over-dependence on global economies, other sectors will display a positive outlook towards hiring, she adds.
However, the employees are likely to feel the pinch when it comes to salaries. A recent report published by the management consultancy firm Hay Group estimates that professionals can expect an average pay increase of 11.2% across job roles in 2013. This is a slight reduction compared with the average hike of 12% in 2012. Even bonus payouts could be lower.
Companies and consultants believe these will be in the range of 12-17% of the CTC this year. On an average, it is usually 10% for junior management and 20% for the senior management.
“A company’s performance is an integral part of variable payouts. Most of the firms have not performed as well as they were expected to this year, so they will not be able to share their gains.
Bonus payouts will remain the same as last year for others,” says Rahul Taneja, senior vice-president and head, corporate HR at Essar. He believes the going is especially tough for companies in the core sectors. Those like FMCG and consumer durables might be the exceptions.