March 17 2016, 17.14 PM IST || Pocket News Alert
Chandigarh, March 17, 2016: Buoyed by positive economic sentiment, the employment scenario in the country is set to move up, according to the ninth annual Global Business and Spending Monitor conducted by American Express in partnership with CFO Research.
India to see the highest rise in employment in 2016 among Asia/Australia region
A significant 83% of Indian executives expect their companies to hire more employees and more than half of the respondents, 52% of them, expect employment to grow by over 10%.
Financial executives across the globe expect their companies’ headcount to increase by 9% on an average in 2016, but the improvement can be traced primarily to large hiring increases expected by companies in the U.S., Mexico, and India (each, 13%).
However, it would be an uphill task to increase the headcount. Seven out of ten Indian executives polled agree that their companies’ performance goal has been impeded by inability to hire requisite positions in sales and marketing. In addition, 60% say that their companies have been affected by difficulty in hiring more skilled and specialized workers in order to meet their growth targets. Half of the respondents find it difficult to fill positions for IT staff, administration and support staff and offshore or outsourced positions.
Saru Kaushal, Country Business Head, Global Corporate Payments, American Express said, “Sustained high level of optimism towards growth will see India as a bright spot for hiring as companies get ready to add to the government’s initiative towards improving job-oriented skills in the country. As the companies expect increase in hiring, they also consider retaining existing talent a major task. From improving working environment to rotating employees through various departments, companies are planning to introduce measures towards this direction and trying to keep their attrition rates at the lowest levels."
60% of Indian executives expect to raise wages or salaries in order to attract or retain employees. More than half of respondents from India (53%) would be looking at improving the working environment (e.g. reconfigure office spaces, provide more amenities etc.) An equal number of Indian executives expect to rotate key employees through different functions or departments in order to retain them.
More than 60% of Indian executives will look at on-shoring i.e. moving positions from overseas to domestic locations in order to meet their staffing needs. It is interesting to note that 76% of Indian respondents are of a view that independent contractors, freelancers or temporary workers form a critical or an important part of their companies’ practices. The executives see no diminishing in this trend in the coming years.
Globally, finance executives continue to believe that their companies need to find more skilled or specialized workers in order to meet their business growth targets. Most respondents also are focusing more on the need to add staff that would directly boost revenue growth (e.g., sales and marketing, business management) rather than on staff that are revenue-neutral (e.g., back office, support).
Half of the respondents globally in the survey (51%) agree that their company’s performance goals have been impeded by the inability to hire skilled or specialized workers. In addition, 44% say that their companies have been affected by difficulty in hiring adequate sales and marketing specialists, and 43% cite shortfalls in hiring for management positions and for IT staff.
While the survey exhibits optimism for the job market in India it also gave some insights on areas that are important for a company’s senior finance officer to develop in order to assume a broader leadership role. 50% of the respondents from India expect senior finance officers from their companies to acquire deeper understanding of company’s business while 43% believe in harnessing better technical skills in finance and accounting. A significant 47% of Indian executives believe their CFOs need to have better networking and interpersonal skills for assuming a broader leadership role in the company.
