More companies gave double digit increments in the first six months of this year compared to the number that had expected to give such increments six months back, according to Naukri Hiring Outlook survey.
At an overall level, 68% recruiters gave increments more than 10% in 2015.
“The percentage of recruiters who actually doled out double digit increments in 2015 was higher than the percentage of recruiters who had expected to do so in the beginning of the year,” Naukri said.
However, much of the increase was in the above-15% category.
40% recruiters had expected to give increments in the range of 10-15% in the beginning of the year but only 34% recruiters actually gave increments in that range.
However, while only 16% of recruiters had expected to give increments in the range of 15-20% in the beginning of the year, 22% recruiters actually gave out increments out in that range.
“This trend was led by the Auto, BFSI, Media and Internet and Construction and Engineering industries where 29%, 13%, 39% and 23% of recruiters gave increments in the range of 15-20%.”
The increase in increments could possibly be led by the fact that the jobseekers are primarily being driven to change their job by the hike that they get in their salary, said the classifieds site.
In the first half of 2015, 42% consultants had reported salary as the primary driver for job change. This percentage increased to a whopping 86% in the second half of 2015. In addition to salary, 58% consultants reported Profile enhancement as a primary factor behind people changing jobs. These were followed by factors like location and work life balance with 40% and 36% consultants citing them as the main reason behind professionals changing jobs.
RISING ATTRITION, TALENT CRUNCH
As per the survey, while in the beginning of the year, 8% recruiters had said that the attrition rate in their organization was above 20%, in the second half of 2015, 11% recruiters admitted to more than 20% attrition in their organization. In contrast, while in the previous period 59% recruiters had stated that the rate of attrition in their organization was less than 10%, in the current period, 64% recruiters mentioned having less than 10% attrition in their organization.
On talent crunch, 58% of recruiters said talent availability has improved in the last six months, while 42% recruiters opined that talent crunch has intensified in the same time period.
The maximum talent crunch was felt in the experience bracket of 4-8 years followed by professionals with an experience of 1-3 years by 42% and 28% of recruiters respectively.
According to the survey results, 50% consultants said, in the current period, that 5-10% candidates drop our after being offered by a company. Six months back, only 40% of the consultants had said so.
Additionally, 34% consultants said that 10-20% candidates were likely to drop out after accepting an offer made to them.
Better job offers from other organizations and being retained by their companies were the main reasons behind candidates dropping out after accepting an offer.
The proportion of recruiters who expect ‘new jobs’ to be created in the coming six months fell to 66% for the second half of this year compared to the 69% that was recorded before the beginning of the first half.
Naukri Hiring Outlook is a half yearly survey which gauges the hiring sentiment across sectors and industries. The survey was conducted amongst more than 1900 recruiters and consultants.
IT sector continued to top the charts with most participants expecting maximum job creation to happen in that industry. However, while in the 1st half of 2015, 56% of respondents had expected maximum job creation to happen in the IT sector, in the 2nd half of 2015, this figure slipped to 41%.
Similar trend was seen in the banking and financial services sector as well, where the percentage slipped from 28% in the previous period to 19% in the current period. The percentage of participants expecting new jobs to be created in the manufacturing sector remained constant at 26%. Thus the top five sectors from a perspective of job creation are IT, followed by Manufacturing, Retail, ITES and BFSI.
“The Job market seems to be looking up in terms of creation of job opportunities in the second half of 2015. The growth in hiring activity is led by the BFSI and IT industries and is most likely to continue in favour of jobseekers. The increase in opportunities has led to higher increments in certain industry segments. The crunch for mid and senior level talent, however, continues,” said Sumeet Singh, EVP – Marketing and Corporate Communications, Info Edge– parent of Naukri.com.