Genius Consultants, a prominent name in hiring, talent acquisition and workforce management in India & Dubai, has conducted a thorough “Hiring, Compensation, and Attrition Management Survey”, to forecast the trends and probabilities in the Indian job market for the new financial year 2024-25. The survey, designed to delve into hiring patterns, experience level preferences, diversity initiatives, and regional dynamics, provides valuable insights into the strategies that will predictively shape talent acquisition and retention strategies in the coming year.
According to the survey findings, the hiring outlook in FY 2024-25 indicates a focus on new position hiring, constituting 27 per cent of the recruitment activities, while replacement hiring is projected to be the least at 23 per cent. This strategic emphasis on new roles aligns with the evolving demands of the market and the need for fresh talent infusion.
In terms of experience levels, the data prioritises employees with 4 to 8 years of experience, with 32 per cent of the hiring dedicated to this segment. Only 15 per cent of participants hailing from major corporates and leading IT organisations showed focus on Freshers hiring, which means that even though the industry’s commitment to nurturing young talent and providing opportunities for entry-level professionals to kickstart their careers is in focus, but freshers hiring might face a set-back this year.
The survey also sheds light on the type of manpower hiring planned for FY 2024-25, with non-contractual temporary roles accounting for 27 per cent of the hiring initiatives, fixed term contractual hiring accounting for 25 per cent, gig-staffing accounting for 24 per cent, while permanent positions make up for the remaining 24 per cent. This sheds a light on the generated focus on flexible staffing avenues available in the market, while also reflecting the strategic workforce planning to meet both short-term project requirements and long-term organizational needs. The prediction follows the current market scenario which has seen respectable growth in terms of flexi & contractual staffing requirements in the FY 2023-24.
Diversity and inclusion are key focus areas, as showcased by the expected recruitment ratio of 60 per cent male and 40 per cent female candidates, garnering the highest percentage at 30 per cent, followed by equal make & female candidates hiring standing at 29 per cent. Additionally, efforts to avoid gender discrimination include an inclusion ratio for non-binary candidates, with 53 per cent of organisations looking at constituting their organisational manpower with 0.0 – 0.4 per cent of non-binary candidates. This confirms the positive impact of Diversity, Equity & Inclusion Initiatives that has been in the limelight for quite some time for most organisations now.
In terms of regional hiring trends, the East zone in India is expected to exhibit the highest hiring ratio at 34 per cent, followed closely by the West and South zones at 25 and 21 per cent respectively. This regional diversity highlights the opportunity to tap into talent pools across the country.
Looking at the projected increase in manpower strength, the survey anticipates that a solid 36 per cent of organisations won’t opt for increase of their current strength while 25 per cent of organisations project a 10 to 15 per cent growth in their direct manpower strength.
As the above factor suggests that companies will look for more retention, the projected increment ranges comparison shows that 29 per cent organisations will be choosing 5-7 per cent increments for existing employees, followed by 20 per cent of organisations expecting to roll out 7-10 per cent of increments. On the contrary, 22 per cent organisations are expected to provide less than 5 per cent increments in the upcoming year, shedding light on the market economical crunch that is expected to hit this year. Aligned with these parameters, it is expected that mid-senior level employees expected to experience higher salary hikes, as projected by 28 per cent of survey-takers, followed by 25 per cent of organisations suggesting higher increments of senior-level employees.
Similar to manpower hiring trends, East is expected to exhibit the highest increment range during the FY 2024-25, as expressed by 26 per cent of survey attendees, followed by West & South at 25 per cent each.
The market trends suggest that at least 39 per cent organisations are expecting 5-10 per cent attrition ratio during this financial year while 20 per cent of organisations are expecting 10-20 per cent of attrition ratio. This sheds light on the fact that talent movement will remain quite on the foot as it was last year as well. Factors like work-from-home facilities, intervention of AI technology and employee perspectives of having a work-life balance can be considered as major factors contributing to this attrition rush. It’s also been predicted that mid-senior levels are most susceptible to attrition, as expected by 40 per cent of organisations, which might be the reason why organisations are expected to roll-out higher increments for this employee band, to avoid the predicted attrition levels.
In terms of regional attrition ratio trends, the North zone in India tops the list with 36 per cent organisations predicting the same, followed by the West and East zones at 22 per cent each.
As companies gear up for FY 2024-25, the focus remains on leveraging Consultants and Workforce Solution Providers as the primary candidate sourcing avenue, with a 16 per cent preference, followed by focus on AI technology-based apps and websites at 14 per cent, showing the growing importance of the role of artificial intelligence in the workforce industry. The fields of IT Engineering, Electrical and Automation Engineering, Civil & Other Engineering fields are expected to have the highest recruitment drives at 18 & 13 per cent respectively, predicting the focus of all industries on the technical & IT field.
Commenting on the same, R P Yadav, CMD, Genius Consultants said, “The insights from our survey provide a comprehensive view of the Indian job market for FY 2024-25. The projections underscore forthcoming trends on new position hiring, talent development & opportunities for freshers, and leveraging innovative technology for efficient recruitment processes. The upcoming opportunities hold great promise for businesses and provide them with valuable insights into top-notch talent solutions.”
This strategic approach to adopting innovative solutions for efficient talent acquisition processes remains constant as we continue to evolve and adapt to the ever-changing demands of the job market, ensuring that we stay at the forefront of industry trends and best practices.
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