Decoding Accelerated Hiring Demand For Tier 2,3 College Freshers

The year 2024 is poised to be marked by an ethos of revolution, from the facets of tech transformation to the realm of paradigm shifts in the hiring cycle. At the forefront of this seismic revolution lies an active shift made by organisations to foray into Tier 2,3 cities, in order to successfully reduce the gigantic demand-supply gap via hiring talent from these new and emerging talent odysseys. Characterised by the spirit of digitisation and abundance of robust skill sets, major private and government players are expanding their footprint in tier 2,3 cities, by fostering an intricate network of technophiles.

This paradigm shift particularly in the space of accelerated hiring demand for Tier 2, 3 cities talent may seem as a startling endeavour but in reality has been in the making since the past year, with recent data by CBRE clearly offering substantial evidence for the same. The report for the first half of 2023 showcased that one out of every five new global capability centres (GCCs) in India was established in a tier 2 city, in alignment with companies sought out to tap into dynamic talent markets. Moving beyond their viable locations, nominal operational costs, skilled professionals, and lucrative investment opportunities, these underdeveloped markets possess an energy of aspirations that synchronises with a collective business attitude, seeping into the roots of this nation.

Upcoming Hot Spots

The private sector, mainly MNCs, continue to enter Tier 2 & 3 cities with plump packages to offer a plethora of opportunities to the talent in these cities. According to a report by Nasscom and Deloitte, almost 11-15% of India’s techies reside in tier 2, and 3 cities and these cities possess 60% of India’s graduates in diverse fields.

As Tier 2 and 3 cities possess a robust base of talent , organisations are poised to actively shift their establishments and recruitment cycle in these regions.

Breeding Ground for Innovation

Emerging as the newest hub of innovation, Tier 2 and 3 cities are being amalgamated with the world of startups and multinational corporations (MNCs). With the sudden influx of incubators, co-working spaces and government support, the land of Tier 2 and 3 areas has become a fertile ground for incorporating millions of multifaceted startups, creating an elaborate network of hiring in every facet.

Backed by an undiscovered landscape of skilled workers, the development and scaling of startups in tier 2 and 3 cities has delivered robust medium to large enterprises the impetus to expand their footprint in these unexplored regions. The Nasscom and Deloitte report also noted that more than 39% of the country's startups are operating in Tier 2, 3 cities in industries ranging from DeepTech to Business Process Management (BPM). It also predicted that India will have a surplus of hiring in Tier 2,3 regions by 2030.

Prudent Talent Pool

There is no doubt that the talent pool in Tier 1 cities is far from being cost-effective but with the active growth in Tier 2 and 3 cities, which have become preferred destinations for both employment and innovation, employers have an unparalleled advantage to harness the cost-effective nature of talent pool. Organisations operating from Tier 2 and 3 cities have the undue perk of accessing 25-30% lesser cost of talent, making the set-up beneficial for both employers and employees. Furthermore, the low cost of living has added to the increasing surge in hiring in three areas, making it a viable living option for all, especially freshers.

Rise of Remote Work

Since the pandemic, remote work has become one of the most popular business models, allowing employees the flexibility to work from any remote corner and employers the benefit of accessing unparalleled services at nominal prices. Attracting, retaining and engaging workers incurs additional expenditures, in light of which firms are onboarding fresher talent from Tier 2 and 3 cities on a remote-work model basis, helping fresh college enthusiasts to gain hands-on experience with the top firms while accessing their talent and offerings at an unmatched price. Tapping into the prowess of remote work in secluded regions has delivered organisations access to an extensive talent pool.

The unprecedented growth in terms of hiring in Tier 2 and 3 cities is certainly not a fluke, but an effective outcome of the amalgamation of pivotal factors. As the technological revolution is not confined to metropolitan cities, it is underscoring the instrumental role of tier 2 & 3 hiring. From a symbiotic relationship between startups and MNCs to the increasing collaboration between government and private players, the proliferation of talent is turning these cities into most sought after hiring hub spots.