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2017 India employment outlook: Hiring activity to stay positive
India has enjoyed a good 2016 so far and going into 2017, we expect the country to continue its positive growth, largely unaffected by the global economic slowdown. This positivity is mostly due to the continued influx of foreign direct investment under the government’s “Make in India” campaign.
Most employers have shared the same sentiment. Eighty per cent of the respondents in the 2017 Salary and Employment Outlook, released today, are optimistic about the economy with hiring activity ranging from steady to strong over the next 12 months — numbers higher than the Asian average.
Specifically, 60 per cent of over 300 companies we surveyed said they will be adding new headcount to their businesses.
Salaries and bonus payouts are expected to stay healthy too. Eighty-eight per cent of companies will offer pay increments of 6 to 15 per cent and 51 per cent are expected to give out bonuses in a similar range.
Key sectors that are experiencing solid growth include the financial services sector, as more non-banking financial companies (NBFCs) establish themselves in Mumbai, the nation’s economic capital. NBFCs are seen as popular lending alternatives for entrepreneurs and small and medium-sized enterprises that experience challenges securing loans from traditional banks.
Outlook for the healthcare sector remains favourable as well, facilitated by the relative low cost of pharmaceutical talent in India, market dominance of cheaper generic medicines and encouragement from the government to manufacture more active pharmaceutical ingredients.
While e-commerce thrived last year, we have seen this sector stabilise. Investors have turned cautious amid volatility in the start-up sector and are now choosing to invest in sustainable businesses. Still, the industry continues to attract top Indian talent currently based overseas, with many returning to the country to set up or join technology and engineering ventures.
The growing Indian economy has resulted in intense market competition as employers race to secure top talent. That is why attracting and retaining talent are key areas of focus for employers. Survey career progression, salary increments and learning and development programmes are the top three factors in talent retention.
Another interesting observation is that companies are also going beyond gender when addressing workplace diversity. Gradually, more employers are looking to foster an environment where employees, regardless of race, age and abilities, can succeed at the highest levels. Such a progressive outlook will help engender innovation and productivity in the long run.