Sales, across experience levels lead talent demand in...

HY-II 2016 41

HALF-YEARLY RECRUITMENT REPORT-II

THE Indian retail sector saw a drop of 1 per cent during Jan-Jun 2016. The drop was more reflective in the first three months of 2016.

Between Apr to Jun 2016 demand was stable. Feb was the best month for hiring in retail sector. Talent demand grew by 8 per cent in Feb but dropped to 9 per cent in Mar and by 7 per cent in Apr. According to government statistics, the Indian retail market is expected to nearly double to USD 1 trillion by 2020 from USD 600 billion in 2015, driven by income growth, urbanisation and attitudinal shifts. Overall retail is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent. With the e-commerce segment expanding steadily in the country, the manpower demand is expected to increase manifold in time ahead. Currently, sales specialisations, marketing, logistics, IT, engineering, customer service and business management roles are in high demand, according to the RecruiteX data for period of Jan-Jun 2016.

Sales, across experience levels lead talent demand in retail sector

Market average and demand100

85

70

55

40

50

79

83

52

Jan 16 Jun 15

Demand

Industry Averagen Most jobs at entry/junior level but talent demand rose significantly for middle level professionals

n Sales and related specialisations grew in demand across all the experience levels

n Purchasing/sourcing specialisations saw increased opportunities at the entry level

n Demand in production, manufacturing and packaging grew at middle level in the first half of 2016

n Entry and senior level demand up in Tier II locations while metros had more opportunities for mid level staff

KEY TAKEAWAYS

RETAIL

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n With maximum job share, retail sales witnessed 25% rise in demand

n Software engineers which saw 16% rise in Jul-Dec 2015, saw 5% drop

n Demand for purchasing/sourcing role rose by 15% in Jan-Jun 2016

n Charted accountants and relationship managers saw 6% rise in demand

n Specialisation in merchandising and relationship management saw 3% rise

n Sales/BD with maximum job share witnessed stable demand in Jan-Jun 2016

n Business management professionals saw 11% rise; job share was low

n Customer support professionals posted 4% rise in talent demand

n Demand for IT professionals went up by 3%; posted 5% drop in Jul-Dec 2015

n Logistics and marketing professionals reported stable demand in Jan-Jun 2016

n FUNCTIONAL AREABusiness management lead demand

n Despite maximum job share, Delhi-NCR posted 1% drop in demand

n Bengaluru was the only metro to witnessed rise (1%) in hiring in Jan-Jun 2016

n Among tier II/III locations, Lucknow saw over 30% rise in talent demand

n Chandigarh reported 18% rise in demand, Vadodara had 14% rise in demand

n Among states, Karnataka (except Bengaluru) saw over 30% rise in demand

n TOP LOCATIONSSmall towns see rise in hiring

Share of jobs in top locations

Delhi-NCR

Mumbai

Bengaluru

Ahmedabad

Hyderabad

Others

26%

22%

11%

4%

3%

34%

n AREA OF SPECIALISATIONDemand up in retail sales

Share of jobs in area of specialisation

12%

Retail Sales

Corporate Sales

Channel Sales

Merchandiser

FMCG Sales

Others

6%5%

4%3%

70%

Share of jobs in top functional areas

8% Marketing

8% Administration

7% Logistics

40% Others

27% Sales/BD

10% Accounting

SIMILAR to Jul-Dec 2015, entry level jobs had maximum share in retail sector but talent demand was sluggish during Jan-Jun 2016. Except administration, no top functions reported rise in talent

demand. Retail sales, merchandising, purchasing/sourcing, logistics and facilities management roles were sought after. Business management, customer support, HR, IT and quality control professionals were also in demand entry level talent. Software specialisation and hospitality roles, which were in demand during Jul-Dec 2015, dropped during Jan-Jun 2016. Customer engagement, relationship management, selling and delivery were also in demand. Among locations, Bengaluru was the only location to report a rise in hiring. International locations witnessed major drop in talent demand. Tier II locations kept up the hiring momentum.

JUNIOR LEVEL[ RETAIL ]

In the present scenario, creating stronger HR capabilities to attract talent is a must. Skill sets like communication skills, leadership should be recognised and enhanced through various training programs for career progression.

Anjali Goel,GM-HR, V MART Retail Ltd

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n Counter sales had maximum job share; demand fell by 5% in Jan-Jun 2016

n Specialisation in channel sales most sought, posted an increase of over 30%

n Specialisation in operations saw 12% rise; demand peaked in Mar 2016

n Retail and FMCG sales reported 10% rise in demand in Jan-Jun 2016

n Production/manufacturing/maintenance and packaging saw 5% rise in demand

n Sales/BD had highest job share; demand grew by over 30%

n Logistics function with second highest job share saw 3% rise in demand

n IT profiles too claimed significant job share; demand rose by 12%

n Demand for HR professionals was up by 25%; saw 3% rise in Jul-Dec 2015

n After a year of sluggish demand, engineers saw over 30% rise at middle level

n FUNCTIONAL AREADemand grew for sales role

n With maximum job share, International locations posted 30% rise in demand

n Delhi-NCR posted a rise of over 30% in demand; Bengaluru saw 4% rise

n Chennai with second-highest job share posted 10% drop in demand

n Lucknow saw 30% rise and Chandigarh reported 18% rise in demand

n Hyderabad saw 29% rise in demand; posted 3% rise in Jul-Dec 2015

n TOP LOCATIONSDelhi-NCR top job hub

n AREA OF SPECIALISATIONHiring for channel sales


International

Chennai

Bengaluru

Pune

Chandigarh

Others

8%

4%

3%

3%

3%

79%


3%

Counter Sales

Retail Sales

Channel Sales

Operations

FMCG Sales

Others

2%2%

2%2%

90%


8% IT/Telecom

6% Retail Services

5% Accounting

58% Others

14% Sales/BD

9% Logistics

MIDDLE level accounted for 35 per cent of total jobs in the retail sector across domains and locations. In Jul-Dec 2015, the share was 30 per cent. Channel sales specialists continued

to be in demand in Jan-Jun 2016, just like Jul-Dec 2015 period. Demand was up for most roles at the middle level in retail sector. Sales/business development function witnessed the highest rise in demand at middle level. Engineers, accounting & finance, business management and administration functions also reported considerable rise in demand of middle level talent in retail sector. Similar to trend in Jul-Dec 2015, Delhi-NCR was the best performing metro at middle level while some key Tier II/III locations and international locations also clocked significant rise in talent demand at middle level during Jan-Jun 2016.

MIDDLE LEVEL[ RETAIL ]

Engineering, operations and business development are most demanded profiles in the hyperlocal space. In

coming months, there is going to be boom in requirements for professionals working on Big Data tools like Hadoop.

Praveen Singh,Director-Marketing, ZopNow.com

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n Specialisation in operations had maximum job share; demand rose by 2%

n Demand in channel, retail and institutional sales went up by over 30%

n FMCG sales posted 20% rise in demand; job share was miniscule

n Financial analysts reported 3% drop; was up by 30% in Jul-Dec 2015

n Demand in production and packaging grew by 8%; job share was negligible

n Engineers had maximum job share; witnessed over 30% rise in demand

n Administration function also saw over 30% rise in senior level talent demand

n HR function saw 16% rise; demand grew by 21% in Jul-Dec 2015

n Despite negligible job share, logistics professionals saw 30% rise in demand

n Marketing roles posted 30% drop in demand; rose by 15% in Jul-Dec 2015

n FUNCTIONAL AREADemand for engineers and admin roles

n International locations had maximum job share; demand rose by over 30%

n Chennai saw 13% rise; demand dropped in other metros in Jan-Jun 2016

n West Bengal with 5% job share reported 9% rise in demand

n Among Tier II cities, Ahmedabad and Chandigarh saw over 30% demand rise

n Bengaluru continued to witness drop and demand dipped by over 30%

n TOP LOCATIONSInternational locations hiring for senior roles


International

Karnataka*

Maharashtra^

Hyderabad

Chennai

Others

10%

7%

7%

6%

4%

65%

n AREA OF SPECIALISATIONDemand in sales specialisations


3%

Operations

Sales/ BD

Production

Marketing/Brand/Product

Other Top Mgmt.

Others

3%2%

2%1%

90%


5% Administration

5% Hospitality

3% Bus. Mgmt

75% Others

7% Engineering

5% Cust. Service

SALES roles were the focus of senior level hiring in retail sector during Jan-Jun 2016. Demand for supply chain, warehousing, material management and plant maintenance also increased in this period.

Financial analysts, which posted significant rise at top level in Jul-Dec 2015, saw demand dip in the first half of 2016. Similar to Jul-Dec 2015, support roles had maximum demand at senior level during Jan-Jun 2016 too. Hiring was also up for HR and customer support roles. Engineers retained biggest job share and demand went up by over 30 per cent. International locations had the maximum job share and posted highest rise in talent demand for senior professionals. Except Chennai, no other metro posted rise in senior professionals demand.

SENIOR LEVEL[ RETAIL ]

Skills in demand include store management, merchandising, channel sales and operations. Since digital technologies have transformed retail, a huge revolution is expected in retail trends over the next decade.

AG Rao,Group Managing Director, ManpowerGroup India

*Except Bengaluru^ Except Mumbai and Pune

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In the industry, 100% FDI in online retail (goods/ services) with a check on the fluctuating discounts, capping total sales originating from a group company or one vendor at 25% is one of the key policy interventions required”

Game changers in 2016n Humanising technology: Wide use of social media and Big Data to spot relevant candidates (active/ passive) enhancing turnaround time, hit ratio, profile suitability and recruiter efficiency/ effectiveness.n Shift to skill-based hiring: This would be prevalent as opposed to work experience-based hiring.n Recruitment marketing: With power shifting into hands of candidates than recruiters, an overhaul from assessment based model to excellence in ‘selling candidates’ is required.

Role of technology in HRn Fast and easy application process which is engaging and user friendly.n Visualisation techniques to provide recruitment agencies with real time data insights, enabling more informed decisions.n Digital profiling which provides holistic insights into the candidate others than the traditional resumes.

n Online videos, accounting for > 50% percent of all mobile traffic, video job descriptions are other upcoming trends to attract candidates.

Skills in demandEntry level: Market/ sector understanding, negotiation and influencing skills. Focus on customer experience/ delight.Middle level: People management, partner management, planning and forecasting. Senior level: Understanding of the P&L, understanding of different GTMs, strong 4P knowledge.

Emerging skillsPartnering as ‘customer advocates’: Understanding customer’s business and be able to set a plan to meet their needs.Problem solving: Objectively analysing a problem situation and fixing the root cause.Core technical knowledge: With so much information available around, guiding the customer with relevant and in-depth information. Creating harmony the offline and online (omni-channel) GTM.

Key policy interventionsn 100% FDI in online retail (goods/ services) with tab on fluctuating discounts, capping total sales originating from a group company or one vendor at 25%.n Proposal to expand the scope of equalisation levy to online sales of goods/ services.n ‘Make in India initiative’ launched by the central Govt to boost the manufacturing sector.n ‘Digital India’ initiative being executed by the central Govt for e-governance, public internet access program, electronics manufacturing. Digilocker provides great opportunities for this sector.n Smart Cities Mission requiring IT infrastructure enablement is a boost for the sector again.

Future outlookn Changing consumer behaviour: Consolidation of PC industry but still the offline trade will flourish in India with demand for sales talent.n Surge for technical talent: Skills in the Cloud and Big Data computing, Software-as-a-Service (Saas), Infrastructure-as-a-Service (IaaS).n Shift towards hand held devices: Recruitment demand for smart connected devices selling (volume selling due to thin margins).

People who can partner as ‘customer advocates’ will be in demand

RETAIL INTERVIEW Rohit Sandal HR Director, Lenovo India

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