Indore: From being a employers' market, tables have turned in Information Technology (IT) sector, especially for start-ups in tier-II, as it's an employees' market now. IT employees are taking full advantage of the situation and getting hike of even 60 to 70 per cent as they switch jobs.
While the pandemic has challenged many businesses, it has boosted some too. Many large-scale companies have laid off employees, even cut down functions by about 50 percent, but IT sector has seen a boom.
From educational applications to online tools and development, most IT start-ups have continued to expand their functioning and garnered more projects. There was a brief time, when despite projects, companies faced a cash crunch, but it’s all back on track now.
With over 500 IT-based start-ups in Indore, the city is a hub of young professionals working globally. However, now since the outbreak of coronavirus, these young professionals want to work from home and are demanding salaries that surpass the usual standards of remuneration in tier-II cities.
Fresh hiring not possible due to lockdown
“For the past 2 years, we have not been able to hire fresher as we did earlier,” Kuldeep Kundal, founder of Cyber Infrastructure said. Further, due to lockdown enforced for controlling Covid-19, companies are unable to train new employees.
Kundal explained, “As we need senior employees to train them, and with everyone working from home, we cannot train new employees.”
This has made senior resources a scarce commodity. There are a lot of vacancies for senior human resources especially in IT.
Employee efficiency down due to WFH stress
With the extension of lockdown, over 77% of white-collar employees said that work from home has become less enjoyable, according to a global survey by Barco.
Over 49% of employees are feeling left out while working from home and missing the office social life.
“Also, employee’s efficiency has gone down due to stress and inability to cope with the new protocol of working from home,” Kundal said.
He explained that in India, most people stay in smaller homes with large families. “Due to which, people get little privacy which affects focus,” Kundal said.
He added that now, due to delivery pressure from investors and customers, companies have to employ extra people. “This also made the situation worse as now companies needed more senior employees,” Kundal said.
From 20%, now 60% hike given, yet no retention!
“There is a saturation of IT companies now, it seems. The demand for skilled IT professionals continues to rise, but finding such individuals is a challenge,” Shawez Shaikh, founder of an IT start-up, said.
He explained that hiring is a major issue, as employee retention and packages are a growing issue. “Earlier, the trend was to give 15 percent hike to high paid employees on new hiring and about 20 to 30 percent for junior developers,” Shaikh said.
However, now with the option of work from home, many employees are joining multinational companies with higher packages generally offered in metro cities. “Now, we are offering 60 to 70 per cent hike and packages similar to metro cities as we are also pressed from customers, but still, employees are joining and leaving the moment they get a higher package,” Shaikh said.