The slowdown effect is visible in the job market. Voluntary movement of people within various segments of job pyramid in the corporate sector has dramatically fallen during the last six months to touch an 8-10-year low. However, involuntary movement in terms of lay-offs has increased, according to HR industry. Though difficult to quantify, primary observations of HR firms say squeeze in the number of openings, absence of salary hikes in job offers along with panic and uncertainty that recession has brought along have led employees to refrain from looking out for a job change.
?The number of people seeking an active job change has reduced substantially. Earlier, there was a lot of anticipatory hiring that implied companies would hire at a given time expecting contracts to materialise in future. Such recruitments have evaporated from the market,? said Synergy Consultants director GS Hora.
Job-hopping trend, where professionals doubled their salaries within two years, has vanished from the market. Last few years were increasingly witnessing a trend of around four job changes in a short span of two years, wherein one could first get a in-house annual hike of 20 to 30% and then make a move to another organisation with a salary hike of 30 to 45%, according to Yogesh Saigal, formerly with a leading HR firm.
?Till last year, any change that offered a salary hike less than 30% wasn?t considered. However, at present, an offer of 10 to 15% hike is considered good. Also, till last year people knew they could experiment with employers and opt for another jump if they were not happy with the first one. But now it is a known fact that any change means a long inning at an organisation, which makes people all the more cautious. Hence such decisions end up being more informed, careful and studied,? said Vishal Chhiber, head (HR) at Kelly Services. Those few taking a plunge are insisting on negotiating for hike in the fixed component of the salary, knowing well that the variable component could even be zero in these times. While salary hikes have become largely insignificant, as they have turned into a rarity, other variables such as job profiles and stability related issues in an organisation are supremely governing the decisions related to job changes, added Chhiber. Even at the top level, most of the exits are not strictly voluntary. But as such informations have always been closely guarded, even during favourable times, reason for a job change will not come forth during these turbulent times, feel HR analysts. The top-level and mid-level professionals are too image conscious to reveal forced exits, an analyst pointed out. The uncertainties attached to a new job are like that of a new marriage and at a time when options are limited, people aren?t willing to take chances, said Hora.
Sectors worst hit in terms of job scene include IT, ITeS, auto sector, high-value consumer durables, realty, metals, indicating segments where the consumers can either afford to defer decision on buying or overhead costs are very high or where speculation has a role to play. Pharma and telecom have emerged as the two most resilient sectors.
However, most HR firms believe the current lull will not last beyond April. The job market would start picking up by mid-2009, however, the dizzying heights of last few years may not come back in near future.
Shifting paradigm
• Voluntary movement of people within various segments of job pyramid has dramatically fallen during the last six months to touch an 8-10-year low
• Last few years were increasingly witnessing a trend of around four job changes in a short span of two years
• Job-hopping trend, where professionals doubled their salaries in two years time, has vanished from the market
• Till last year, any change in job where salary hike was less than 30% wasn?t considered desirable, while in present circumstances an offer with a 10 to15% hike is considered good
• Sectors worst hit in terms of job scene include IT, ITeS, auto sector, high value consumer durables, realty, metals
• Pharma and telecom have emerged as the two most resilient sectors
• HR firms believe the current lull wouldn?t last beyond April and market would start picking up by mid-2009
