Deep insights and comprehensive overview of the mechanics of jobs, hiring, skills and their

drivers, trends and forecasts across eight cities and nine sectors in India.

EMPLOYMENT OUTLOOK REPORT

TEAMLEASE SERVICES

HY-2, 2014-15

1

PREFACE

The Team Lease Employment Outlook Surveys are designed to deliver

a deep and wide, analytical, insight about business and employment

sentiment trends across sectors and cities in India.

The surveys are structured broadly to capture the factors that influence

sentiment, job growth, employer needs and candidate aspirations, skill

and salary trends and state them at an overall and at city- and sector-

levels.

Project Objectives:

1. Map Employment and Business Outlook, Job Growth and

related trends across the country, cities and sectors.

2. Identify and profile the factors that influence sentiment and job

growth.

3. Explore skills employers need, candidate aspirations and map

salary trends across cities and sectors.

THIS

EDITION

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THIS

EDITION

carries a job profile

hierarchy in the area

of Big Data that

illustrates 8 different

career opportunities

with an increasing

order of skills. The

edition also carries a

follow up on the

attrition trends of the

previous report, with

an external influencers

perspective.

2

Contents

1. Executive Summary

2. Outlook and Jobs

2.1. Employment and Business Outlook

2.2. Job Trends

3. The big picture: what drive outlook and jobs

4. Sector and City Trends

4.1. Employment and Business Outlook Trends – by sector and city

4.2. Job Trends – by sector and city

5. Skills employers want

5.1. What skills are in demand for HY and what are not

5.2. Skills for tomorrow

6. Jobs candidates want

6.1. Aspirational jobs and gaps

6.2. Why employees call it quits

7. Outlook and Jobs by other key dimensions

7.1. Hierarchy, Geography and Functional Area

8. City-Sector sweet spots

8.1. What city-sector clusters top outlook

8.2. What are the [new] hiring grounds for the HY

9. The talent funnel: from acquisition to retention

10. The Salary Scene: what employers will pay

11. Research Methodology

11.1. Approach

11.2. Sample Design

11.2.1. Employers: City-Sector breakup

11.2.2. Employers: Business size-wise breakup

11.2.3. Candidates: City-wise breakup

3

EXECUTIVE SUMMARY

Business and Employment Outlook, and Job Growth, trends flag marginally after three subsequent half-years of growing at a blistering pace. The dip in Employment Outlook [-2%] is a wee-bit more pronounced than the Business Outlook [-1%], a pattern that has become familiar by now – employers prefer to have hiring lag business. Macroeconomic factors, mostly, play out this rather somber scenario as forecast for the coming half-year.

FMCD [+4%], Manufacturing and Engineering and Retail [+3%, each] and Delhi, Mumbai and Chennai [+5%,

each] do marginally better than the previous half-year on Business Outlook while Infrastructure and Telecommunication [-4%, each], and Hyderabad [+5%] and Kolkata [-7%] lose. The rest of the sectors and cities hold on to their previous outlook numbers.

IT, Manufacturing and Engineering and Retail [+4%, each] lead the sectors, and Delhi [+4%], Mumbai and Pune [+3%, each] lead cities for the Employment Outlook. Telecommunication, Hyderabad and Kolkata bring up the rear with a 5% loss, each, in Employment Outlook. The remaining sectors and cities have unappreciable changes in their outlook.

A significantly lower Job Growth rate for the half-year may still bolster jobs significantly for FMCD [+2.32%] and Infrastructure [+2.06%] among sectors, and Mumbai [+2.19%] and Bangalore [+1.58%] among cities.

The Junior- (1 – 3 years’ experience) [+4%] and Senior-level [+2%] hires continue to be popular with employers. IT / Engineering nd Blue Collar [+3%, each] hires are likely to be sought after as well, over the coming half year.

Top three sectors (by city) in terms of employment outlook growth are - o Mumbai: FMCD (3%) / Manufacturing & Engineering (3%) / Information Technology (2%) o Delhi: Manufacturing & Engineering (3%) / Information Technology (2%)/ FMCG (2%) o Bangalore: Infrastructure (2%) / Telecom (1%) / FMCG (1%) o Kolkata: Manufacturing & Engineering (4%) / Financial Services (1%) o Chennai: Manufacturing & Engineering (6%)/ Information Technology (3%) / Healthcare & Pharma (3%) o Pune: Information Technology (2%)/ FMCG (2%)/ Retail (2%) o Hyderabad: Healthcare & Pharma , Telecom(1% each)

o Ahmedabad: Infrastructure (3%) / FMCD (2%)

New domains such as Big Data and Predictive Analytics are accelerating the need for a highly sophisticated workforce, and at scale. The skills required for a Big Data analytics function are diverse and are rooted in mathematics and statistics, besides programming skills. This domain, by itself, affords an entire hierarchy of data analyst job profiles, each of which is both intellectually and monetarily rewarding. Demand, across the hierarchy illustrated here, will likely far outstrip supply.

Startups and Recruitment Process Outsourcing (RPO) are emergent trends associated with rapidly increasing scale of hiring. The next edition of the report would elaborate on these trends.

4

OUTLOOK AND JOBS

BUSINESS AND EMPLOYMENT OUTLOOK

The steady climbs that the Business and Employment Outlook trends had showcased over the past two

half-year periods is somewhat halted for now, with minute (1 – 2 point) dips forecast for the coming

half-year. This could be a sign of an overheated talent market which is trying to rein in some

exuberance.

While the economic fundamentals that drove business and hiring sentiment the last time round continue

to prevail and new age sectors continue to fuel demand, the more recent fillip for manufacturing from

the buzz around Make in India and the resurging GDP growth have ensured the sentiment is kept

up.

Apr '13-Sep '13

Oct '13-Mar '14

Apr '14-Sep '14

Oct '14-Mar '15

Apr '15-Sep '15

Employment Outlook 79 76 80 88 86

Business Outlook 74 77 82 91 90

R² = 0.6961 R² = 0.9218

20

30

40

50

60

70

80

90

100

110

% R

es

po

nd

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ts

[Ne

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f p

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nd

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on

se

s]

Outlook Trends Current HY period: Oct 2014-Mar 2015; Forecast HY period: Apr 2015-Sep 2015

A small dip in both the Outlook statistics, but the long term trend remains intact.

5

JOB TRENDS

The blistering pace at which jobs were created over the past three half-years had to cool, and the

forthcoming half-year seems to be appropriate for much deserved consolidation. Job growth remains

strong at 11.3%, a significant increase year-on-year, although slower than the previous HY.

H R Managers are also toying with alternate models of engagement with employees and are building

agile capacities by leveraging contract workforce. Therefore, while the net addition to the workforce

is projected to be somewhat lesser than in the preceding half-year, the talent acquisition activity

would continue to be robust as in the previous couple half-year periods.

11.0%

8.3%

10.0%

Current HY, 12.8%

Forecasted HY, 11.3%

R² = 0.3128

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Apr '13-Sep '13

Oct '13-Mar '14

Apr '14-Sep '14

Oct '14-Mar '15

Apr '15-Sep '15

% growth in jobs over the previous HY

Job Growth Current HY period: Oct 2014-Mar 2015; Forecast HY period: Apr 2015-Sep 2015

Current HY

Forecasted HY

6

THE BIG PICTURE

WHAT DRIVE / SLOW OUTLOOK AND JOBS With technology and consumer demand feeding off each other, and newer skills no longer having to

wait in the wings, the factors that are influencing outlook and job growth are mostly macro-economic

and policy initiatives besides two key shortcomings related to investment.

1. GDP forecasts, forex reserves, looking good:

Most rating agencies and the government’s own estimates have put GDP growth for the current

fiscal to be around 7.4% – 7.8%, a significant uptick over the past numbers. Add to this, the $355

billion forex reserves and the country is sitting pretty in terms of growth potential.

2. Coal and Mining activity unfettered:

Industrial activity is set to receive a major boost with the government unlocking the coal and mining

activity following a long stalemate. Businesses see this as a step in the right direction and hope that

the audacity displayed in shaking away the taint of corruption here would encourage investment.

3. Capital formation has slowed:

The dampener, still, is a hitherto lack of initiative by both the private sector and the government in

priming the investment engine enough to let the floodgates of economy fully open up. The

conservatism is a paradox and runs counter to the bold political intent of the government.

4. Debt-ridden corporate sector a threat to growth:

A debt pile-up by the corporate sector threatens to undo much of the good anticipated to happen to

the Indian economy over the near term. These debts constitute a major proportion of the Non-

Performing Assets of financial institutions and point to rather poor financial health of corporates.

Pros and cons notwithstanding, businesses are looking forward with hope and are keeping the tempo of

job creation high. With solid underlying fundamentals employers have reason to believe that the dip

anticipated for the coming half-year is temporary and long term prospects for both business and

employment continue to trend up.

7

SECTOR AND CITYTRENDS

EMPLOYMENT AND BUSINESS OUTLOOK

EMPLOYMENT OUTLOOK

Moderately positive-to-neutral Employment and Business Outlook across most sectors and cities,

following an ebullient three half years in succession, could be interpreted as much needed

consolidation of the sentiment.

The most notable cases are those of Manufacturing & Engineering, which seems to be riding the

‘Make in India’ wave and Retail, which is flourishing in all its avatars – most notably online, among

sectors and Delhi and Mumbai among the cities, traditional bastions of politics and high finance the

hopes and expectations from a resurgent India are vested in.

The Telecommunications sector, with its poster child – Internet services – in the eye of the Net

Neutrality storm, has singularly turned cautious on both business and employment sentiment.

BUSINESS OUTLOOK

% r

espo

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en

ts

% r

espo

nd

en

ts

4

1

5

3

3 5

0

5

0 2

4 6

8

JOBS

Double-digit job growth rates continue to shine on half the sectors and even more cities. Growth has

mellowed, however, compared to the previous half-year and for most sectors and cities. The lead

sectors (Manufacturing and Engineering and Retail) and Mumbai, the lead city for Business and

Employment Outlook are positioned to deliver on jobs as well..

JOB GROWTH

City Key

MUM MUMBAI

DEL DELHI

BLR BANGALORE

KOL KOLKATA

CHN CHENNAI

PUN PUNE

HYD HYDERABAD

AHD AHMADABAD

Sector Key

IT INFORMATION TECHNOLOGY

FMCD FAST MOVING CONSUMER DURABLES

FMCG FAST MOVING CONSUMER GOODS

FS FINANCIAL SERVICES

INF INFRASTRUCTURE

RET RETAIL

M&E MANUFACTURING & ENGINEERING

TEL TELECOMMUNICATION

% respondents

9

SKILLS EMPLOYERS WANT

WHAT SKILLS ARE IN DEMAND FOR THE HY AND WHAT ARE NOT

IN-DEMAND OFF-DEMAND

Delivery and Logistics Tele-Sales

Mobile Apps Web Design

Data Science and Data Exploration Business Intelligence and Reporting

Facility Management Cashiers and Tellers

WHAT DRIVES DEMAND

Fundamental changes in consumer habits

The potential business value of Big Data

Proliferation of modern retail and office spaces

WHAT’S BRINGING DOWN DEMAND

Online and mobile as popular sales channels

Smarter business / analytical tools

Innovation in banking and financial systems

SKILLS FOR TOMORROW

Employers are placing far more emphasis on soft skills than ever, while planning talent acquisition for

the next half year. The following are an indicative list of skills employers would be seeking out in

tomorrow’s marketplace:

Content Curator: Sourcing content and visuals on the Web, focus on brand initiatives to

drive audience engagement. [Indicative Salary: Rs. 3.5 lacs p.a.]

Valuation and Market Risk Analysis: Understanding of capital market, Analyze

valuation signals from market, Valuation of illiquid securities. [Indicative Salary: Rs. 12 lacs p.a.]

Neural Networks and N L Programming: Time series Forecasting using econometric

techniques and auto-neural networks. [Indicative Salary: Rs. 8 lacs p.a.]

Dental Hygienists: Diligence and highest degree of precision, focusing on techniques in

oral hygiene and care. [Indicative Salary: Rs. 5 lacs p.a.]

It may be noted that the Information Technology sector, where demand for most futuristic skills arises,

still employs a far bigger proportion of traditional job roles such as Systems Engineers, SAP

Consultants, SQL, DotNet and Java Developers, Database Administrators and Project Managers.

10

JOBS CANDIDATES WANT

THE BIG DATA SKILL VALUE CHAIN

The analytics domain is opening up enormous opportunities for those that are mathematically inclined.

Data orientation, an eye for detail, statistical skills and knowledge of data visualization tools are the

prerequisites for a job in the analytics industry. The above visual illustrates a skills-hierarchy,

specifically for the Big Data analysis function.

Incre

asin

g c

om

ple

xity,

so

ph

istica

tio

n a

nd

sa

lary

11

WHY EMPLOYEES CALL IT QUITS

We update the findings of the previous edition – where we had looked at employee dissatisfaction as

the determinant of attrition – this time round with external factors that prod employees to move on. Net-

net, employer and candidate perceptions match relatively better on this count.

Better job and career-fit:

An outside job significantly better suited to ones capabilities and aspirations.

Great compensation and perks:

Substantially better payouts as well as attractive perquisites offered by a prospective employer.

Employer Brand:

The stature of the prospective employer as perceived in the talent market.

Better company culture:

More freedom [including a ‘flexi’ option], open communication and ideation, meritocracy.

Talent Management Practices:

Training, assessments, and research / publication opportunities that enhance credentials.

Short Commute:

For a small proportion of the respondents, distance to work makes a big difference.

12

78%

54%

43%

29%

12% 8%

Better job and career-fit

Great compensation and perks

Employer Brand

Better company culture

Talent Management Practices

Short Commute

% of respondents [Base: 165 candidates] Includes overlapping responses

13

Why employers believe attrition occurs

Career switch / Sabbatical

Better career opportunities

Better utilization of Skills

Expectation mismatch

Why employees actually quit

Great Compensation & Perks

Employer Brand

Better Company Culture

Talent Management Practices

Three overlapping attributes

14

EMPLOYMENT OUTLOOK

BY OTHER KEY DIMENSIONS

HIERARCHY, GEOGRAPHY AND FUNCTIONAL AREA

EMPLOYMENT OUTLOOK

% r

esp

on

de

nts

Tier-1

represented

along with

Metros

previous HY

15

Junior-, and mid-level, hiring activity is set to go up appreciably, as would the demand for IT /

Engineering skills and Blue Collar workers. Metro and Tier-1 cities corner the incremental increase in

hiring sentiment.

This edition on, we are also reporting hiring activity by Size of Business. Trends here seem to be in

proportion with the attribute – bigger the business size, the more positive sentiment is.

SMS: Sales & Marketing Services | IT/ENG: Information Technology / Engineering | OS: Office Services | BC: Blue Collar Workforce Metros - Delhi, Kolkata, Chennai, Mumbai Tier I Cities - Bangalore, Hyderabad, Pune, etc. Tier II Towns - Ahmadabad, Chandigarh, Mangalore, etc. Tier III Towns - Raipur, Meerut, Ranchi, etc.

16

CITY-SECTOR SWEET SPOTS

WHAT CITY-SECTOR CLUSTERS TOP OUTLOOK

EMPLOYMENT OUTLOOK

Mumbai and Chennai house a handful of sectors where the hiring sentient has favourably trended.

Hyderabad and Kolkata, on the other hand, are host to a few sectors that attract a net negative hiring

sentiment. Business sentiment has not varied much across city-sector clusters.

Positive growth (> 3) in hiring sentiment.

Negative growth (< -3) in hiring sentiment.

% r

espond

ents

17

BUSINESS OUTLOOK

Positive growth (> 3) in hiring sentiment.

Negative growth (< -3) in hiring sentiment.

% r

espond

ents

18

THE TALENT FUNNEL

ATTRITION TRENDS

ATTRITION TRENDS

% a

ttritio

n r

ate

0.4

0.2

0.6

0.7

0.2

0.5

19

THE SALARY SCENE

WHAT EMPLOYERS WILL PAY

# City Sector Job Profile Salary (Rs. per month)

1

Mumbai

IT Project Lead 44,000

2 RET Promoter 18,000

3 BFSI Insurance Sales Representative 19,000

4

Dehi

CRE Supervisor 22,000

5 TEL Customer Care Executive 13,000

6 FMCG Back Office Coordinator 12,000

7

Bangalore

BFSI Business Analyst 29,000

8 IT Software Engineer 42,000

9 H&P Lab Assistant 19,000

10

Kolkata

M&E Operations Associate 15,000

11 HOSP Resort Attendant 14,000

12 IMA Recruitment Executive 16,000

13

Chennai

M&E Marketing Executive 18,000

14 RET Packer Boy 80,00

15 IT System Administrator 29,000

16

Pune

FMCD Loader and Picker 11,000

17 CRE Survey Executive 22,000

18 M&E Technician 18,000

19

Hyderabad

IT Network Engineer 32,000

20 AGRI Machine Operator 8,000

21 BPO Purchase Manager 33,000

22

Ahmedabad

AGRI Accounts Assistant 16,000

23 CRE Site Engineer 25,000

24 M&E Projectionist 14,000

Job Profiles Sampling Criteria: Profiles have been selected for the sheer number of jobs they

represent, and the representative salary they carry, in the respective city-sector clusters.

20

RESEARCH METHODOLOGY

.APPROACH

Business environment, influencers: Secondary research / literature review

Industry and Job trends, Sentiment and # Jobs, Salaries and Skills: Quantitative research [email

/ tele-surveys]

Attrition, root causes and talent retention: Depth surveys

SAMPLE DESIGN

Employers Mumbai Delhi Bangalore Kolkata Chennai Pune Hyderabad Ahmedabad Total

IT 10 12 11 10 10 10 9 10 82

FMCD 9 11 12 9 10 10 10 8 79

FMCG 9 9 9 9 10 10 9 10 75

FS 11 10 10 8 9 9 12 9 78

RET 8 12 10 8 9 9 11 10 77

INF 9 11 10 9 11 11 11 9 81

M&E 10 8 10 8 11 8 9 8 72

TEL 9 7 12 7 9 10 11 9 74

H&P 13 10 12 9 10 8 10 10 82

Total 88 90 96 77 89 85 92 83 700

Business

Size

Small [Up to 249 employees]

Medium [250 – 999 employees]

Large [1,000 + employees] Total

Mumbai 14 55 19 88

Delhi 12 66 12 90

Bangalore 15 61 20 96

Kolkata 10 55 12 77

Chennai 19 51 19 89

Pune 12 55 18 85

Hyderabad 18 60 14 92

Ahmedabad 16 54 13 83

Total 116 457 127 700

Candidates

Mumbai 21

Delhi 19

Bangalore 22

Kolkata 17

Chennai 20

Pune 23

Hyderabad 18

Ahmedabad 25

Totals 165

21

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