89% of employers are struggling to fill vacancies: Report
Employers in large organizations report the most optimistic outlooks with 48 per cent intending to hire in the fourth quarter compared to 38 per cent in companies with less than ten employees, according to a statement. (Media Report)
Employers across India predict a hiring rebound for Q4, however, 89 per cent of employers are struggling to fill vacancies – above the global average of 69 per cent, according to the ManpowerGroup Employment Outlook Survey released on Tuesday by ManpowerGroup India. Employers in large organizations report the most optimistic outlooks with 48 per cent intending to hire in the fourth quarter compared to 38 per cent in companies with less than ten employees, according to a statement. Employers in the West report the strongest hiring intentions for Q4 followed by East, North and south. Besides, employers predict a bounce back in hiring as the strongest year-on-year improvements are reported in Services (51 per cent), Manufacturing (43 per cent) and Finance, Insurance and Real Estate (41 per cent).
As per the study, technical skills and compulsory training including compliance are a key focus for HR leaders as 76 per cent have already invested/plan to invest in accelerated upskilling (6 weeks or less) in technical skills for employees as well as compulsory training including compliance. As more employers’ plan to upskill workers, knowledge or strategy on what areas to skill the workforce (21 per cent), access to the right upskilling training partner (17 per cent) and money (14 per cent) were cited as the biggest barriers businesses faced. The survey of 3,046 employers – conducted in July 2021 – asked the employers on how difficult they are finding filling vacancies and nearly 90 per cent reported at least some difficulty. The most popular strategies to overcome hiring challenges include offering training and skills development, offering more flexibility in work schedules, and location. Hiring plans by region Employers in all four regions expect to grow payrolls during the fourth quarter of 2021. The strongest hiring pace is anticipated in the West, where the Net Employment Outlook stands at +49 per cent. Dynamic hiring activity is also forecast in the East and the North, with Outlooks of +45 per cent and +43 per cent, respectively, while the Outlook for the South is +37 per cent. Hiring prospects strengthen in all four regions when compared with the previous quarter.
Sharp increases of 44 and 40 percentage points are reported in the West and the East, respectively. In the North, the Outlook improves by 36 percentage points, while employers in the South report an increase of 31 percentage points. Hiring plans by industry An increase in payrolls is forecast for all seven industry sectors during the coming quarter. Services sector employers report the strongest hiring intentions with a Net Employment Outlook of +50 per cent. Vigorous hiring activity is anticipated in the Manufacturing sector and the Finance, Insurance & Real Estate sector, with Outlooks of +43 per cent and +42 per cent, respectively. Mining & Construction sector employers expect a brisk hiring pace, reporting an Outlook of +34 per cent, while the Outlook for the Wholesale & Retail Trade sector stands at +33 per cent. In the Transportation & Utilities sector, employers forecast solid payroll gains with an Outlook of +28 per cent, and the Public Administration & Education sector Outlook of +24 per cent reflects healthy hiring plans. “Corporate India is showing healthy signs of recovery and an overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained the Indian economy over the years like geopolitical stability, diversified economy, demography, etc, are likely to play a pivotal role in the new normal.” said Sandeep Gulati, Group Managing Director, ManpowerGroup India. “Vaccine rollouts gaining tremendous momentum with most of corporate India due for the second vaccine coupled with the onset of the festive season may be the probable cause of the spike in optimism. The intent into action, however, needs to be observed considering the fear of the third wave and the continued talent shortage that most industries are finding difficult to bridge,” Gulati added.