As the world struggled with layoffs last year, India's corporates were troubled by high attrition rates, and even offered hikes as high as 100 per cent to hire new employees or make the stay. This resulted in a massive 10.6 per cent spike in salaries, which was more than most developed economies including the US. But as global recession seeps into Indian markets and inflation remains a concern, India Inc is expected to exercise caution while hiring new people in Januart to March quarter of FY23.
According to a survey conducted by the ManpowerGroup, even though 48 per cent firms are looking at increasing their staff, 16 per cent will slash their workforce, while 34 per cent won't swing either way. This means that half of all employers won't be hiring new professionals, but a significant number may even lay off existing employees. These results based on interviews, show that the net employment outlook will be restricted down to 32 per cent.
Hiring sentiment is down by 17 per cent compared to the past year, and 22 per cent from the October-December quarter.
Although the impact of recession on India is expected to be short term, it has triggered a balanced approach in a country with 7 per cent GDP growth.
Payrolls on the other hand, may grow during the quarter across India, and professionals with digital skills will be the most in demand. Hiring is also being constrained because of a skill gap, which corporates and educational institutes need to address in collaboration.
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