Says founder CEO of recruitment company Headhunters India, K Lakshmikanth, The growth in hiring is not just confined to the new economy. I have never seen such a boom in the recruitment industry during the past two decades. Placements during the first seven months of this fiscal have been 40% to 50% higher compared with the same period last year, he added.
Interestingly, recruitment during the third quarter, a period which generally reports a lull due to upcoming holiday season, is active this fiscal, riding on bulk recruitment in the IT sector. HR consultancy firm Alp Management Consultants director Jaychandran Pillai said, There is no slowdown in hiring this quarter. In fact, hiring has been going on in large-scale for IT biggies like IBM, Accenture as well as for software start-ups coming to India. Bulk recruitment is on.
However, the gap in salaries has widened between the top and the bottom-rung executives, with a top executive drawing almost 50 to 70 times more than an entry-level employee. Attrition rates in the BPO and the IT sectors remain high and employees have started to selectively retain the staff they want to keep, said a recruiter.
Meanwhile, salaries have registered an uptrend too, growing between 12% and 18%, especially in the IT and the ITES sectors.
The rate of growth in salaries may fall to around 15% next year to help companies cut costs, said Adecco People One managing director Ajith Isaac. The company had hired 4,000 professionals during 2005 and has so far taken 8,600 people this year.
Temp staffing is growing. There is a tremendous surge in the billable category of people with four to eight years experience, he said.