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What the booming Indian market means for employers and employees
The outlook for employees and employers in India is generally positive, according to the findings of the 2015/16 Michael Page Salary & Employment Outlook. The market has grown steadily over the last 12 to 18 months, and from a recruitment perspective we've seen some clear changes.
The growth of the ecommerce sector has had a significant impact on talent and hiring in India. Many of the candidates who are taking up positions, or seeking roles, with ecommerce ventures have exited from the retail or FMCG sectors, which is creating a shortage of talent in those markets.
This is compounded by the hunger amongst start-ups, and the market in general, to secure talent that is both highly technical, but also business minded. Capable candidates who can effectively operate across these two sides of the business are an immense asset, but their rarity means they are in short supply and can be a costly acquisition for a business.
Highly talented candidates in other markets may be reluctant to join a start-up, instead preferring to leverage their marketability to secure roles at top-tier, brand name companies and to negotiate lucrative compensation package. However, this is not the case in India with many workers seeing the chance to join a start-up as a huge opportunity, with the potential for huge success outweighing the risks.
However, there is also a risk that candidates may get caught up in the hype that surrounds these fast-growing sectors and jump at any opportunity to get involved, regardless of whether it is the right opportunity for them.
This feeds into a paradox we have observed between what candidates say they want from their employer - long-term career growth and opportunities for development - and what they're being lured by, which is generally a higher salary. While the immediate lure of a salary increase is understandably tempting, it is our hope that candidates will give consideration to how changing roles will impact both their short-term interests and long-term career prospects.
With increased willingness to move among candidates, we have also naturally seen an increase in the number of buy-back offers on the table. While this can certainly allow workers to secure a large increase in their salary, we generally find that buy backs are a poor method for retaining and satisfying workers, as it often fails to address the core concerns that drive attrition and contributes to upward pressure on salaries.
Looking forward, there will be a lot of pressure on the ecommerce sector to deliver strong performance that justifies the enormous investment we've seen. According to Bloomberg, foreign hedge funds, asset managers and investment firms have invested almost $4 billion in ecommerce and technology start-ups over the last 15 months. While this is a huge endorsement for the sector's potential, there are also questions as to whether these expectations are realistic, and if Indian's will readily acquire the purchasing power needed to support an ecommerce boom.
With this in mind, it is wise for candidates - particularly those considering a transition to the ecommerce sector from one of the more established industries - to consider the long-term prospects and strategy of an organisation before changing roles.
The Michael Page India 2016 Salary & Employment Outlook is a report based on survey findings of more than 240 employers across India. The report aims to provide an overview on market and employment conditions, wages, and an outlook across the different sectors. The report can be viewed in full here.