Tag: TeamLease Services

TeamLease CFO says it’s still too early to tell if IT hiring has returned to normal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TeamLease Services, a recruitment and human resources services company,  headquartered in Bengaluru, says it’s too early to say if hiring in the information technology space is back to normal.

Speaking to CNBC-TV18, CFO Ramani Dathi said they have observed limited demand from only a few companies so far.

Fresh hiring at entry and mid-level at IT companies hasn’t really started yet. Most of the new hires are only as replacements of people who have exited.

A pullback in discretionary spending amid a global slowdown coupled with the progress in artificial intelligence (AI) has led to muted demand for Indian IT services over the past year or so.

Meanwhile, data from staffing solutions company, Xpheno, shows IT hiring mandates in February jumped 50% month-on-month, and 33% compared to December.

However, it must be noted that IT hiring mandates, which include IT services, software products, and tech startups, are given out by companies based on future prediction of demand. The mandates may not lead to actual hiring.

Naukri JobSpeak index, another hiring trends indicator, also shows a pick up in IT hiring for two consecutive months.

However, Dathi says the number of people they are hiring is less than 10% of what it used to be a year or two ago.

TeamLease prefers to wait for another quarter to get a clearer picture on the hiring trend.

However, global capability centres (GCCs) are hiring a lot.

“…the thing is GCC’s are hiring at higher skill set level and at higher salaries, more of niche skills and above four to eight year experienced. So that’s the bracket where the maximum hiring are happening,” Dathi said.

Read Here | NIIT sees early signs of recovery in IT services hiring

On general staffing too, hiring has been slower.

Dathi said they had a big hiring project last quarter, which boosted their numbers.

In the banking and finance sector, for instance, hiring was slow last quarter because of some government restrictions. But it’s picking up now.

They expect to hire over 10,000 people in the next quarter and are optimistic about hiring in the future.

Among other industries, Dathi observes more hiring in manufacturing, pharmaceuticals, engineering, and industrial sectors compared to the past couple of years. Hiring in FMCG continues at the same pace as before.

TeamLease has a market capitalisation of ₹4,639.70 crore. Its shares have risen 25% over the last year.

Also Read | This global IT services provider wants to expand its India team in FY25 — Will Indian peers follow suit?

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Naukri.com reports surging hiring in small and midcaps, outpacing larger firms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The midcap and smallcap companies in India have experienced a significant surge, reaching record highs. CNBC-TV18 is examining whether this market enthusiasm is supported by substantial growth in business activities at the lower levels of the corporate hierarchy. Nothing demonstrates a company’s confidence in its business more than its willingness to hire.

To start, Pawan Goyal, the chief business officer at Naukri.Com, pointed out that small and medium-sized enterprises (SMEs) are increasing their hiring more than larger companies. Industries such as oil & gas, banking, hospitality, and real estate have witnessed a consistent month-on-month (MoM) and year-on-year (YoY) rise in their recruitment efforts.

Goyal also mentioned that there has been minimal growth in hiring activity within the 3-5 years of experience category. The Naukri JobSpeak Index, on the other hand, has shown a steady increase of 6-7 percent over the past 15 years.

Meanwhile, Sunil Chemmankotil, the chief executive officer of Teamlease Digital, who has conducted an extensive survey on companies’ hiring intentions for the second half of 2023 (July-December), reported an overall uptick in hiring intentions across various sectors.

Our survey reveals that larger corporations are displaying a stronger inclination to hire, particularly in the digital and technology talent pool. The decision to hire junior versus senior employees appears to be more influenced by cost considerations.

He noted that the volume of hiring in global captive centres (GCC) is significantly lower than the hiring seen in IT services. Additionally, he mentioned that approximately 70-72 percent of employees fall into the informal employment segment.

“The formal sector is improving, increasing because of government initiatives, but it’s kind of slow and I am sure that in the coming years, we will see further propulsion in the formal sector,” said Chemmankotil.

For the entire discussion, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Clix Capital secures $20 million loan, puts green energy sectors in the spotlight with new fund investment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Clix Capital, a tech-led NBFC, has signed a $20 million loan from Global Climate Partnership Fund (GCPF). GCFP is a Luxembourg-based public-private partnership fund that finances renewable energy and energy efficiency projects across several developing and emerging nations.

In an interview with Startup Street, Rakesh Kaul, the Managing Director and CEO of Clix Capital, expressed their ongoing interest in investing in startups and Micro, Small, and Medium Enterprises (MSMEs) with robust business models.

Kaul said, “We are always on the lookout for investing in startups and MSMEs that have a sound business model. So, the companies that we are now going to focus on a lot more will be companies that are either focused on supplying to EV value chains, companies that are focused on waste management, and companies that are supplying to let us say, solar panel manufacturers. So, all the sectors, which are classified under green energy are the sectors that we are now going to double down on with this investment that you have found from the impact fund.”

The e-commerce industry is expected to generate almost seven lakh gig jobs in the second half of 2023 as companies gear up to fulfil consumer demands during the festive season sales. This is as per findings of a study conducted by Teamlease Services. The study says that this year’s festive hiring is anticipated to witness a 25 percent increase in gig jobs compared to the same period last year. To talk about the findings of this report Balasubramanian A, Vice President and Business Head at Teamlease Services spoke to Startup Street.

A householder name in the Indian television market-Vu Televisions recently launched its 98′ inch television in association with Amazon. Speaking to CNBC-TV18’s Yash Jain, CEO Devita Saraf said that the company’s focus will remain on profitability. She also spoke about finding the right investors for future investments.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IT and startup recruitment see significant drop, hiring may pick up post Sept quarter: Teamlease

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As companies gear up for the second quarter earnings season beginning July 12, staffing firm TeamLease Services believes the hiring trend for the April to June period as well as the current quarter will be muted, similar to the previous two quarters. It, however, expects hiring to pick from the end of the September quarter.

“The companies have already reached their full capacity and for any incremental projects, they have to start hiring. So, we are expecting the hiring numbers to pick up from the end of the second or early third quarter, but the first and second quarters will continue to remain the same as what we have seen in the last two quarters,” Ramani Dathi, CFO, TeamLease Services told CNBC-TV18 on July 11.

As the trend has been for the past few months, hiring in IT and startups has been seeing a significant drop compared to the last few years while non-IT hiring has been picking up gradually.

“The second segment is the startups, the new age emerging companies like edtech, fintech; it’s largely driven by the fact that they ran out of their funding and the hiring also has slowed down. Therefore, except for these two segments, we have seen positive hiring trends across all other industries,” Dathi said.

Also Read: TeamLease renegotiates associate salary contracts, says margin boost unlikely until IT hiring picks up

The top ones, according to TeamLease, are telecom, banking, financial services, and insurance (BFSI), fast moving consumer goods (FMCG), fast moving consumer durables (FMCD), manufacturing, engineering, pharma.

Another trend that has become prominent lately is the rise in hiring in tier 2 and tier 3 cities. Dathi explained that as far as IT is concerned, there is a slowness, mainly in metro cities as companies are coming under cost optimisation and margin expansion pressure, which is why they are hiring more mid and senior level people in tier 2 and 3 places.

The metro city hiring has come down in IT, whereas on the non-IT side, still a large number of hiring is happening in tier 1 and tier 2 places, she added.

Teamlease CFO also highlighted that the staffing firm expects hiring to pick up in rural areas. However, if one looks at banking, financial services and insurance (BFSI), fast moving consumer goods (FMCG), and fast moving consumer durables (FMCD) manufacturing, as of now numbers have not picked up.

Watch the accompanying video for more

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Hiring trends decline in April-May — will they pick up in Q2? Here’s what the experts say

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The hiring and job market globally is not having a good time. In 2023, as per data by Layoffs.fyi, so far more than two lakh employees have been laid off across the world. Additionally, key companies, including tech giants Amazon, Meta, Apple and Microsoft, are on hiring freezes.

When it comes to India Inc, the hiring activity in the country’s white-collar professional segment, as per various reports from staffing agencies, has been on a flat growth path and has even declined compared to year-ago and quarter-ago levels.

As per data from Naukri JobSpeak Index, the job postings for white-collar hiring for April-May 2023 stood at 2,782 declining 5 percent from January-March levels of 2916

When it comes to job postings for the month of May, as per the report, the number for white-collar recruitments in May 2023 was 2,849, against 2,863 in May 2022. The relative flatness in the index masks strong divergence in hiring trends across different sectors and geographies, said the report.

Pawan Goyal, Chief Business Officer, Info Edge, told CNBC-TV18 that hiring intent is expected to pick up from July. “April-May there is a decline, but you take a three-month window March-April-May, which is a more stable metric, it’s roughly flat year on year. What we typically see is hiring intent picks up year on year from July onwards, and this period remains relatively flat. So, at this time, it’s not very concerning. Only June and July will inform whether the traditional pickup happens or not. Just this period is not concerning to me when I look at it from a long-term point of view.” he added.

Meanwhile, as per Foundit’s (formerly Monster APAC & ME) foundit Insights Tracker (fIT), hiring activities have slowed down by 7 percent in May compared to the same month last year mainly due to companies adopting a cautious approach and cutting expenses on the back of economic slowdown. On a month-on-month basis, the hiring activity declined to 265 in May, down 4 percent from 276 in April 2023.

“I think …it’s the third consecutive month that we see month-on-month drop, albeit in like small numbers. However, this quarter traditionally has been slow  in terms of hiring, the next quarter is one that usually picks up. So, we would like to see data from the next quarter before we say that it’s back or we need to worry more.” said Sekhar Garissa, Founder, Foundit.

The TeamLease Employment outlook report highlights that in Q1 CY23, intent to hire declined to 64 percent among companies polled compared to 68 percent in Q1 CY22.

Ramani Dathi, CFO, TeamLease Services told CNBC-TV18 that the IT sector and startups are pulling down the hiring intent specifically. “There are two specific sectors which are pulling down these numbers, the 4 percent drop that we are talking about is largely driven by the IT hirings as well as hirings in startups be it edtech, fintech. So, there has been a complete freeze there on new hirings. These two sectors having a sharp drop has overall impacted the hiring trends,” she added.

IT sector seeing a slowdown in hiring but non-IT is on track

The Naukri report highlighted the IT sector seeing a major correction in terms of hiring. In May 2023, job postings in IT and software saw a 23 percent decline. Further, Foundit data showed that hiring trends for the IT sector declined 6 percent month-on-month in May. On a year-on-year basis the number declined 20 percent.

Meanwhile hiring looks positive in non-IT sectors.

Additionally, the demand for IT roles in non-IT industries is also growing. As per the Teamlease report, nearly 78 percent of employers in the services sector and 56 percent of employers in the manufacturing, engineering, and infrastructure sector have expressed an intent to hire for IT skills and marketing roles, respectively.

“Non-IT is a bright spot and that will continue to be. Typically, a global slowdown tends to come back into positive territory for us even from an IT perspective. I think companies, at this point in time, are a little conservative, but they will come back.” said Garissa.

On the basis of job levels, how has the hiring activity impacted?

As per Naukri data, hiring for freshers and mid-level positions remained muted, with a dip of 7 percent compared to May last year. Both Goyal and Garissa noted that hiring in entry-level jobs is struggling. Additionally fresher hiring is challenging and that is likely to be bad news for campus recruitment  in the coming season.

“We see that there is a lot of pain in the entry-level hiring because you can logically detect that these resources made a lot more investment before they are productive. So, the companies are looking for resources that can directly be put to work and therefore in times like this, you will see entry-level hiring being a bit impacted,” added Garissa.

However, Damani pointed out that in the entry-level jobs, as per their data, the hiring trends are very good in sales, profiles, marketing, office services, and even to some extent blue-collar jobs. “However, at senior and mid-level, it’s only the attrition. The new positions, we haven’t been seeing any large number of hirings happen to be it in IT or non-IT in mid and senior level,” he added.

CNBC-TV18 had earlier reported that in the initial campus placements rounds, freshers in India specifically from tech colleges are seeing a slowdown in placements.

The hunt for talent shifts to tier 2 and 3 cities

Although metro cities have been the major target for employers when it comes to hiring, data now suggests the shift to tier 2 and 3 cities in India.

As per Naukri’s report, cities with heavy presence of IT-focused companies, such as Bengaluru, Hyderabad, Chennai and Pune, were the hardest hit in terms of hiring activity in May 2023.

Non-metro cities emerged as new hiring trendsetters, led by Ahmedabad, Vadodara, and Jaipur — primarily driven by banking and auto sectors. On the other hand, hiring activity stayed flat or declined marginally in large metros, except in Mumbai and Delhi.

Foundit’s data noted that the hiring index in May 2023 fell 5 percent in metros and was up 1 percent in tier 2 cities.

“In terms of locations, places which are highly indexed on IT are showing a decline because that is the sector that has been pulling the index down. So, the usual suspects like Bengaluru, Hyderabad, and Pune are going down. In tier 2 cities like Ahmedabad, Baroda, and Coimbatore, the numbers going up… places which are not indexed on IT, but on other sectors like banking, retail, etc. are less impacted.” said Garissa.

Also read: April white-collar hiring trend: Retail sector is on the lookout but overall reading poor

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TeamLease renegotiates associate salary contracts, says margin boost unlikely until IT hiring picks up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Human resource company TeamLease Services has begun renegotiating associate salary contracts to pass on the inflation impact to its customers, the company’s chief financial officer Ramani Dathi said on June 10.

“We have been stuck at the average realisation of Rs 700 per associate per month for a long time and this has impacted our overall margin as well in the last year. So, we have started renegotiating the contracts wherein we can pass on the inflation impact in our associate salaries back to the customers, but we are finding it extremely difficult,” she told CNBC-TV18.

When asked if this meant current contracts of employees were being reworked, TeamLease said that they used to charge a Rs 700 markup when average salaries were around Rs 20,000 per month. However, post-COVID-19, there has been an almost 20 percent inflation in associate salaries with the average going to Rs 24,000 per month.

“We are trying to renegotiate the contracts to convert the markup to variable percentage on salaries instead of the fixed amount so that with an increase in salaries we also get inflation in our markup…We are not renegotiating salaries, but only the markup model in contracts, for both existing as well as new contracts,” the staffing firm explained separately on June 12

This comes against the backdrop of the great resignation wave in 2021 following which companies, especially in the IT sector, offered enormous raises to hire or retain talent. However, come 2022, with macro challenges on the global market, many IT companies have either laid off employees or implemented hiring freezes that have continued in 2023 as well.

Teamlease Services’ CFO said in the financial year 2022-23, the firm’s margin-contributing businesses — IT staffing and degree apprenticeship — have had very strong headwinds. With this as the global scenario, IT high hiring was on freeze and some headcount was lost too similarly regulatory changes and uncertainty around the degree apprenticeship programme too posed challenges.

Given these factors, Dathi said the staffing firm’s bottom-most margin level could be 1.6 percent. However, with initiatives on cost optimisation and with the staffing business growing well quarter-on-quarter, the firm is confident of improving margins consistently from the July to September 2023 quarter, especially in the general staffing business, she said. The firm expects to see a net addition of 10,000 employees for its clients on a quarter-on-quarter basis in general staffing business, and growth across segments and across industries.

“That will be the main margin expansion contributor. In case IT staffing gets picked up, that can be a window on our back, we can accelerate our margin expansion further,” she added.

Teamlease’ Dhati, however, said that getting to a 2 percent margin won’t be possible in FY24 until and unless there is a huge turnaround in the IT staffing business, because, in general, staffing business, the firm’s gross margins are 3 percent whereas, in IT, it’s almost 16 percent.

Last week, brokerage firm Motilal Oswal said TeamLease’ stock has seen significant de-rating, down 59 percent from the peak (as of June 6), due to growth moderation and margin pressure following wage increases and a slowdown in technology staffing. It believes Teamlease’s current valuations are focused on near-term challenges.

However, MOSL sees scope for a re-rating in the stock as these challenges ease out. It expects It staffing to see a recovery in the second half of FY24, leading to a strong bounce-back for specialised staffing in FY25. The brokerage sees strong structural tailwinds to drive sustainable long-term growth and upgraded its rating on the stock to ‘buy’ with a target price of Rs 2,890 on June 6.

Watch the accompanying video for more

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Indian employers are willing to pay higher stipends to bridge skill gap, create sustainable talent supply: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Remember how until a few years back, you probably struggled to make some pocket money as an apprentice? However, according to a recent report, Indian employers are now recognising the importance of investing in apprenticeships and are willing to pay stipends higher than industry standards. This proactive approach aims to bridge the skill crisis and establish a sustainable talent supply chain.

The TeamLease Degree Apprenticeship’s ‘Stipend Primer Report’ for FY-2022 reveals that stipend growth in India has surpassed salary growth in various industries. Many sectors are even offering stipends higher than the minimum prescribed amounts. This highlights the increasing value employers place on apprentices and their potential to contribute to the workforce.

According to the report, the average stipend pay outs witnessed a two percent increase in the financial year 2021-2022, compared to the previous fiscal. It notes that while the overall percentage increase has been a marginal spike, there is a significant variation in stipend pay-outs across industries, cities and educational qualifications.

Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said, the upward trend signifies a growing recognition among companies of the immense value and return on investment that come with engaging apprentices in their organisations.

He said firms are witnessing the first-hand transformative impact apprentices can have on their operations. In the last few years, the government too has taken various initiatives to promote apprenticeship adoption, he added.

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“Introduction of optional trade for broader coverage of job roles, availability of TPA support to industry to improve adoption and execution, financial incentives under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS), and the recent Direct Benefit Transfer (DBT), which streamlines the payment system, ensuring greater efficiency, transparency, and financial inclusion for apprentices, are all progressive steps,” Kumar said.

Top jobs with the highest stipends include agriculture field officer (Rs 15,200 per month), retail sales (Rs 13,800 per month) and HR (Rs 13,600 per month), the Teamlease report said.

As per the Teamlease report, in the manufacturing sector, six out of ten industries provided a higher stipend in 2022 as compared to 2021.

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Agriculture and agrochemicals, with current stipend of Rs 14,000, witnessed a 12 percent growth. Similarly, apparel and textiles (22 percent), FMCG (8 percent), handicrafts and jewellery (6 percent), and infrastructure and capital goods (5 percent) also witnessed an increase in payouts. On the other hand, industries like power and energy (-10 percent) and healthcare (-7 percent) saw a decline.

In the services sector, 11 out of 13 industries provided a higher stipend in the fiscal. The top industries included media and entertainment (18 percent), services including repair and maintenance (11 percent), education (9 percent), life science (8 percent) and e-commerce and tech products (8 percent). However, despite the technology boom and the advent of 5G, telecommunication (-4 percent) and IT/ITeS (-2 percent) saw a dip in the fiscal.

Among top cities with highest stipends, Chennai topped Rs 13,100 stipend, followed by Kochi (Rs 13,000), Bengaluru (Rs 12,900), Coimbatore (Rs 12,900) and Pune (Rs 12,400).

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Hiring in services and manufacturing to see 10% jump in April-June 2023 compared to last year: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The intent to hire new employees, especially entry and junior levels, in the services and manufacturing sectors is 10 percent higher for the April to June 2023 period compared to the same quarter last year, a new TeamLease Services report suggests. However, the outlook is four percent lower compared to the January to March quarter of FY23.

Nearly 64 percent of employers (compared to 54 percent in Q1, 2022) are keen to increase their resource pool across industries, the staffing firm’s report titled ‘Employment Outlook Report’ said.

It adds the outlook is strong for entry and junior-level employees, in both service (73 percent and 71 percent, respectively) and manufacturing (49 percent and 55 percent, respectively) sectors. The outlook for mid-level (54 percent) in services and (32 percent) in manufacturing is also balanced.

Kartik Narayan, CEO – Staffing, TeamLease Services, said, “Industries around the world, including those in India, have been severely affected by the current global unrest, which has resulted in large-scale layoffs, a hiring freeze, and an imminent economic downturn. Despite this, hiring prospects in India have continued to improve over the past year.”

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He believes the main reason for this is the changing global investment dynamics and the precautionary measures that businesses are taking.

The Teamlease report also claims that from a business size perspective, large-sized organisations in the services (86 percent) and manufacturing (73 percent) sectors have weathered the recession well and have higher levels of hiring intent than in the previous quarter. Across the two quarters and sizes of companies, the services sector has higher levels of hiring intent than the manufacturing sector, it noted.

Job opportunities witnessing a spree in the services sectors include telecommunications, followed by financial services, ecommerce and allied startups, retail and education. Meanwhile, those looking to build a career in the manufacturing space will see higher hiring intent in industries like healthcare and pharmaceuticals, FMCG as well as EV and infrastructure.

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The report adds that the demand for skilled workers has increased to three percent and 2 percent in Q1 Apr-Jun FY 2023-24 for services and manufacturing, respectively. In contrast, in Q1 Apr-Jun FY 2023-24, the intent to hire for blue-collar job roles decreased by six percent for services and eight percent for manufacturing, while the engineering function increased slightly. Companies are also focusing more on digital marketing strategies in order to adapt to changing consumer behaviour.

Mayur Taday, Chief Business Officer, TeamLease Services said, that looking at the current 5G rollout, adoption and increasing number of use cases, the telecommunications sector in India is seeing an increase in infrastructure investment to meet the growing needs of both local and global clients.

Also Read: Freshers most wanted as hiring intent in India rises — skills and sectors to look out for

“As a result, telecom companies plan to invest Rs 2,000 crore in the construction of large hyper-scale data centres, resulting in steady growth and job creation for blue-collar, gig, and grey-collar workers. Additionally, the information technology industry is also looking to establish data centres,” he said.

Shedding light on at the attrition trend, the report says the services industry is seeing a low talent retention rate, especially in growth businesses (11 percent) and mature businesses (15 percent) whereas the manufacturing industry is observing a positive increment across segments like textile (2.23 percent), power and energy (6.47 percent), and manufacturing, engineering and infrastructure (8.14 percent), the same industries had observed the attrition of 1.22 percent, 5.63 percent, and 7.51 percent respectively in Oct-Dec 2022.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TeamLease announces Rs 100 crore share buyback via tender offer – stock ends higher

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of TeamLease Services ended 3.6 percent higher on Friday after the company announced a share buyback proposal, a week after reporting weak quarterly results.

The company on Friday announced that it will buyback not more than 3.27 lakh equity shares or 1.92 percent of the company’s total equity. The buyback amount of Rs 3,050 per share is a premium of 35 percent to Thursday’s closing price.

Record date for the buyback, which will be done through the tender offer route, will be determined later. The total amount to be utilised for the buyback would be Rs 100 crore.

The Board of TeamLease Services has formed a Buyback Committee, appointing the company’s Company Secretary, Alaka Chanda as the compliance officer of the buyback.

Edelweiss Financial Services Ltd has been chosen as the  Manager to the Buyback.

Shares of TeamLease had fallen to a 52-week low late last month after a weak December quarter.

The company attributed a muted revenue growth to weaker festive demand in the December quarter compared to the September quarter and prior periods.

TeamLease said that its margins would be under pressure for the coming quarters as well given the soft demand, realisation pressure, and the NEEM (National Employability Enhancement Mission) impact.

Shares of TeamLease ended 3.6 percent higher at Rs 2,329.

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Hiring in Q4 to remain slow even for entry level jobs, says experts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Businesses’ intent to hire is only three percent higher in the fourth quarter of the fiscal year compared to the previous quarter ended December 2022, so, overall hiring will remain slow even for entry-level jobs, staffing firm TeamLease Services said on Monday.

“Historically, Q3 is a very strong quarter for entry-level jobs, especially in sales, marketing, and for delivery boys. This time, despite the festive season in Q3, we haven’t seen many hirings happening. Also, if I look at the Q4 trend on a quarter-on-quarter basis, it used to be about 5-6 percent growth between Q3 and Q4, but this time our outlook is the intent to hire is only 3 percent quarter on quarter,” Ramani Dathi, Chief Financial Officer, TeamLease Services, told CNBC-TV18.

Dathi of TeamLease, which mostly deals with entry- and mid-level jobs, explained that the October to December quarter is typically a weaker one because of furloughs and the holiday season. However, even going by the past trends, there is weaker hiring within IT, and early trends for Q4 are also very weak. “So, we believe the next two quarters as well in IT may continue to remain a little slow on overall hiring,” she said.

Also Read: IT hiring unlikely to pick up soon but techies need not lose hope

Meanwhile, Pawan Goyal, Chief Business Officer of Naukri.com, believes that non-IT sectors continue to see robust momentum. Reflecting on his outlook for the current quarter, he said, historically, when things slow down in the US, with some lag, IT usually picks up in India.

Goyal also said the white-collar job market is robust in non-metro cities, especially in the segment of eight years plus experience.

On the other hand, TeamLease’s Dathi said, “The good sign is that all the three IT companies have reported gaining new mandates and orders. And also, for the last two quarters, they haven’t done any substantial hiring, so we believe that there will be some pickup and some momentum in the hiring starting this quarter but having said that it is not going to be very strong.”

Also Read | Jobs 2023: Non-tech, 5G-fuelled telecom to dominate hiring

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow