HIRING TRENDS IN 2011

he signs are promising — hiring is on the rise, salaries and bonuses will be better this year. The future looks bright for India Inc. Have a look at hiring & salary prospects of five key sectors.

Auto

Industry outlook: Robust growth trend expected next year , rural sales potential, easy availability of financing, stable economic growth and increased affordable income.

Hiring Trends: The current employee strength of 13 million in the automotive industry will grow to more than 25 million, as per the Automotive Plan 2016. 

Salaries, bonuses and perks: With a stable industry performance and growth trend, corporates will be looking at very competitive salary offerings and bonuses, but linked to company and individual performance.

Challenges: Hiring, nurturing, training and retaining talent especially as the auto industry matures and competition hots up.

Dealing with attrition: It is not just a little more salary but long-term growth prospects in the organisation that will hold greater attention.

Consumer Electronics

Industry outlook: The industry is set to grow at 20%

Hiring trends: We expect the industry to increase its manpower base by 20-25%.

Salaries, bonuses and perks: The industry saw salary hikes of around 12-15% in 2010. The trend will continue this year too. Perks and bonuses will grow by around 15%.

Challenges: Building a talent pipeline

Dealing with attrition: Salary will not be the sole criterion to control attrition; issues like job satisfaction and building an emotional connect will play a vital role.

Insurance

Industry outlook: Growth rate will slow down

Hiring trends: Insurance companies will be much more choosy about selecting the right talent. Roles like customer service, sales and operations management will become more important.

Salaries, bonuses and perks: Salary hikes for 2011 may remain at the same level as last year, at around 11%. The variable portion will go up from the current 15% of the total salary to 25% over the next two years

Challenges: HR will play a much bigger role in the new regulatory regime.

Dealing with attrition: Getting the right talent is a challenge. Attrition has fallen from 12% last year to 8%. It may further fall by one or two percentage points this year.

FMCG

Industry outlook: The sector looks very promising this year, with the rural economy looking particularly good.

Hiring trends: Companies have begun hiring, especially on campus. This increases competition.

Salaries, bonuses and perks: A 12-15% hike is expected. Bonuses and perks will be better than last year. Performance-based variable pay will play a more prominent role.

Challenges:Increasing competition, especially with companies consolidating their businesses, Retaining talent

Dealing with attrition: Attrition will be at 10-12% this year, with firms expanding their footprint. FMCG firms have to maintain their hygiene factors.