Hyderabad: Experts predict that recruitments in 2024 will be more data-driven while the salary hike would be slightly lower than the actual increase this year. Skill-based hiring including assessment of the candidate's skill sets and competency, will dominate over traditional academic knowledge.
Despite the growth in Indian economy, the overall hiring in IT sector may not be so good due to the low global outlook. However, IT-related hiring in tier II and III towns is expected to rise. Achal Khanna, CEO - SHRM India, APAC and MENA attributed this to the overall cost optimisation in the wake of global economic outlook and margin pressure.
"While heading towards 2024, focus is more on managing an inclusive and equitable organisation", said Sudakshina Bhattacharya, President and CHRO of HDFC ERGO General Insurance.
Contrary to the employees' apprehensions on to how AI (Artificial Intelligence) and ML (Machine Language) would impact career scopes, 2024 will see a rise in AI and automation-related hiring in IT, automobile, financial services and manufacturing.
In recent years, the expectations of both the employee and employer have changed. With employees looking for greater flexibility and an impartial hiring process, employers would come up with more advancement programmes with an eye on better work-life balance facilities and flexible working hour provisions.
2023 witnessed higher layoffs in startups and technology companies compared to the previous year. Thus, many well-funded companies have taken a cautious approach on hiring. The biggest hit was in the edtech sector starting with Byjus while many others in the same domain followed suit. The situation was same in other sectors too wherein employees of many major IT companies were handed over pink slips.
According to 'Salary Budget Planning India Report' by Willis Tower Watson, a salary hike of 9.8 per cent is expected in 2024 compared to a 10 per cent hike that was recorded this year. This is because the companies are still reviewing their cost structures. Jasvinder Bedi, Managing Partner of Biz Staffing Comrade Pvt Ltd said that the companies are focused on better utilisation of their resources due to slower revenue growth and would thus be cautious towards hiring and spending.
ManpowerGroup Employment Outlook Survey has projected a highest hiring in the Indian corporate sector across the globe in the next three months as 37 per cent of employers plan to increase their staff strength following domestic demand. Compared to the global average of 26 per cent, India and the Netherlands would have strongest net employment outlook at 37 per cent, followed by Costa Rica and the US at 35 per cent and the third position is held by Mexico with 34 per cent.
Companies determine their hiring plans based on several factors namely domestic demand, private investments and political stability of that area. The top three in the chart of priorities for the corporate sector are employee well-being, recruitment for skilled roles and adopting AI and technology.
Industries related to core infrastructure and essential goods and services like power and energy, fast-moving consumer durables and healthcare and pharmaceuticals show better hiring prospect in the October-March 2023-24. Investments in renewable energy is expected to propel hiring in the power and energy industry. The retail and education services too seem to return to normalcy after the huge layoffs.
"Companies must concentrate on linking talent with opportunities, instead of focusing on college tags," said Ankit Aggarwal, founder and CEO of Unstop, a community engagement and hiring platform for students and freshers.
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