October 19, 2020
Impact of Covid on Hiring Activities
A recent survey conducted by ABC Consultants in collaboration with Numr uncovered interesting insights about the impact of Covid-19 on hiring activities across various Indian industries.
When asked about the change in manpower, the majority 46% responded that it has remained the same. Another 28% reported that the manpower in their company has reduced by 0-20%. 5% reported that it has reduced by over 20%. On the other hand, 17% claimed that since Covid-19, the manpower in their company has increased by 0-20%. And, for 4%, it has increased by more than 20%.
As far as pay cuts are concerned, the majority 64% of respondents did not undergo any pay cut.
Industry-wise, pay cuts appear to be the highest in ‘Consumer and Services (50%), followed by ‘Manufacturing’ (38%). Comparatively, 27% respondents from ‘Finance’ and 26% from ‘Tech’ underwent pay cut. Additionally, only 23% from ‘Pharma and Healthcare’ reported the same.
Interestingly, pay cuts were less common in smaller companies as compared to their larger counterparts.
Pay cuts were highest in companies with more than 5000 employees (40%). Whereas, they were the lowest in companies with 500 to 1000 employees (31%)
Additionally, for companies that did undergo pay cuts, the majority (38%) claimed that salaries will be restored ‘between Oct 2020 to March 2021’. Another 26% were unsure about when they will be restored. 21% have already restored them, and 16% believe they will be restored after April 2020.
The survey also inquired about the prospect of hiring new senior/middle management professionals in the next 6 months.
The majority 60% claimed that they are planning on hiring professionals in the next 6 months.
Interestingly, ‘Financial Services’ is most likely to hire new professionals (71%) and ‘Manufacturing’ is least likely (52%). Furthermore, 62% of respondents from ‘Consumer & Services’, 63% from ‘Pharma & Healthcare’, and 63% from ‘Tech & Outsourcing’ also reported that they are looking to hire in the next 6 months.
Also as per the report, Companies with 1001-5000 employees are most likely (65%) where as companies with less than 500 employees are the least likely to hire new professionals. (56%)
In fact, the majority (51%) companies will be hiring for both New and Replacement roles. On the other hand, 28% will only be hiring for Replacement Roles and 21% for only New Roles.
Across all industries, the majority of the hiring will potentially be for both New and replacement roles.
The survey also inquired about the kind of job roles that companies will be hiring for. The majority (54%) are looking to hire for ‘Sales & Marketing’, followed by ‘Technology’ (47%) and ‘Operations’ (42%).
Surprisingly, 57% are open to engaging with senior/middle management professionals on a project / gig basis for specific business needs.
65% Chairman / MD / CEO / COO / Business Head are open to this as compared to 54% Human Resource/ Talent Acquisition.
In contrast, 77% are NOT open to hiring senior/middle management professionals on a full time basis on 3rd party payrolls.
Only 20% Business Heads and 24% Human Resources / Talent Acquisition are open to hiring senior/middle management professionals on a full time basis on 3rd party payrolls.