Demand for talent will have positive impact on salaries, says TeamLease report
GN Bureau | May 19, 2015
In his first blog published on the newly launched portal of NITI Aayog on Monday, vice-chairman Arvind Panagariya had said that due to limited potential of the agriculture sector in bringing prosperity to a vast population in the long run, the country should emphasise on creating more employment in industrial and services sectors.
And such sentiment is going to be witnessed in the job market. A report by TeamLease Services, a leading hiring and personnel outsourcing agency, says that there is a increasing demand for talent and that is having a positive impact on salaries this year.
“The overall improvement in the business scenario, coupled with right initiatives by the government, seem to be having a positive effect on hiring and salaries this year. The growing optimism and resultant movement of talent will not only compel corporates to loosen their purse strings but help them access a wider talent pool,” said Rituparna Chakraborty, senior vice-president & co-founder of TeamLease.
According to its ‘Jobs & Salaries Primer’ report, retail and telecom steal the show with a 12–15 per cent increment in salaries. Health & pharmaceuticals, media & entertainment, power & energy, consumer goods and durables are also expected to see a positive growth.
Further, Mumbai tops the chart as the highest salary-paying city in as many as seven industries.
"Mumbai does not just steal a march over Bangalore and Delhi, by now the formidable triumvirate, it is also the top salary paying city across as many as seven industries," the report said.
Delhi leads across four industries, while Bangalore in 1, it revealed.
It also stated that certain city-industry clusters are proving to wield enormous clout in consistently attracting the best salary growth rates over time like Bangalore-IT (14.7 per cent),
Mumbai-FMCG (13.6 per cent), Bangalore-healthcare and pharmaceuticals (13 per cent) and Pune-power and energy (12.5 per cent) are the city-industry clusters that dominate this scene.
The report says median pay for some of the blue-collar profiles is around 30 per cent and 50 per cent higher than the minimum wage. Apart from the hard skills, traits such as honesty, personal hygiene and mannerisms are increasingly gaining in demand.
Job creation is also witnessing slight deviations. Those in technological innovation are much sought. Software roles dominate top-tier jobs across sectors, reflecting the severe talent shortage here. Technological skills are the most valued and businesses across industries are willing to pay well for these. Java developers, project managers and infrastructure architects are commanding monthly salaries upwards of Rs 50,000, at least a 50 per cent mark-up from the median salaries for the rest of the job profiles, states the report.
Rising demand for talent seems to have a positive impact on salaries as candidates are expected to witness a double-digit growth of up to 15 per cent in remunerations this season, according to a report.
It also says that the variance between temporary and permanent jobs coming down. The average salary difference between temporary and permanent jobs is 2.2-2.5 per cent, compared with last year’s low of 4.7-5 per cent. This gap has lessened significantly in even no-metros such as Pune and Ahmedabad, between the salaries for temps and people on the rolls. This indicates a maturing of the job market.
From an overall perspective, candidates undergoing appraisal this season are expected to see a salary growth of 10.5-15 per cent across sectors and functions, setting an upbeat tone for the year.
Full Report: Click Here