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Hiring increases in Tier II cities as companies look beyond urban markets to tap the right talent: TeamLease Report

Tier-II cities experience a significant increase (3%) in hiring intent to 19% - an all time high, indicative of the talent supply potential of these geographies  Hiring at the Junior and Entry levels of organizational hierarchy are set to make a strong comeback with 17% and 11% increases in hiring intent - the biggest rise after more than 24 months of stagnant or negative growth in index value.  Net Employment Outlook for the quarter July - August 2010 rises by 6 index points to 64%  Net Business Outlook stands at 61%, an increase of 5% compared to the previous quarter

Bengaluru, Karnataka, July 23, 2010 /India PRwire/ -- Key Findings of Quarterly Employment Outlook Report

(July- September 2010)

  • Employment Outlook Index for Quarter -XV (July- September 2010) stands at 64 index points, which is 6% higher than the previous quarter. Sector-wise the increase in index point is driven by Infrastructure (with 57 points), Manufacturing & Engineering (with 66 points) and Telecom (with 59 points). Telecom in this quarter sees healthy growth after three stagnant quarters.
  • Employment Outlook index witnesses growth in most of the cities, in the lead being Capital of the country- New Delhi topping the chart with 62 points. Ahmedabad (with 68 points) and Mumbai (with 63 points) record the smartest recovery and growth, over the previous quarters, while Kolkata puts up a relatively poor show.
  • The New Business Outlook Index has shown an increase of 5 index points and stands at 61 points. The index points of most sectors are on the increase except Infrastructure. Telecom sector increased the most (by 16 points).
  • The Business Outlook index of all cities is 12 month high- sans Kolkata. The Business Outlook index of Ahmedabad (with 77 points), Bangalore (with 73 points) and Mumbai (with 52 points) has the best growth story to unfold over the previous 4 quarters. Hyderabad also exhibits recovery from its previous quarter slump.
  • Intention to hire at Junior and Entry levels of the hierarchy is all set to make a strong comeback with 17% and 11% increase respectively. Another positive move is the drop in the 'Not Hiring' category which is 12-month low and stands at 12%.
  • There is an increase in the intention to hire across all functions. Sales, Marketing & Customer Care register the highest increase of 8% among functional areas.
  • During the last quarter as well as the last 1 year, Delhi, Chennai, Hyderabad, Pune and Bangalore had the highest attrition rates compared to other cities. Ahmedabad maintains its position with the lowest attrition rate in the previous as well as the current quarter.

TeamLease Services Private Limited, India's largest staffing company, today released its latest Employment Outlook Report for the period July - September 2010.

According to the report, the hiring sentiment is at an 18-month high for the current quarter beginning July and ending September 2010. The Employment Outlook for the quarter has moved up by 6% and stands at 64%. The Business Outlook Index has also risen by 5% to 61 index points, but doubles itself over the course of 4 quarters.

TeamLease releases the Employment Outlook Report every quarter after a survey administered to the HR heads, CEOs and Senior Management of leading companies in India. The study, which covered 568 companies in the latest round, focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile. The report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario at major cities across the country. TeamLease has commissioned noted analytics solutions provider inTouch Analytics (www.be-in-touch.com) to conduct the study.

According to Sangeeta Lala, VP, TeamLease Services Pvt Ltd, "We are seeing positive hiring intentions over the past few months and are expecting this to continue. There is also a gradual increase in the intent to hire from tier II cities, which shows that companies are looking well beyond the urban markets for tapping talent. This is also an indicator of consistent and steady growth across business size, sectors and geographies. The opportunities in tier II cities are encouraging and might be an answer to the geographic mismatch present in the country."

CITY HIGHLIGHTS

Bangalore (previous Apr - Jun 2010)

  • Bangalore has seen the maximum increase in the Net Employment Outlook by 23 points.
  • The business outlook is up by 7%.
  • Telecom, Infrastructure and Healthcare & Pharma sectors are leading the employment growth followed by IT.
  • IT remains the biggest contributor to city's growth.
  • The attrition rate rises by 5% to 15%.

Bangalore (current July- September 2010)

  • Bangalore has seen the maximum increase in the Net Employment Outlook by 23 points.
  • The business outlook is up by 7%.
  • Telecom, Infrastructure and Healthcare & Pharma sectors are leading the employment growth followed by IT.
  • IT remains the biggest contributor to city's growth.
  • The attrition rate rises by 5% to 15%.
  • Bangalore has seen an increase of 4 points in the Net Employment Outlook and stands at 82%.
  • The business outlook has increased by 17%. Bangalore records growth rates that are twice as much as most other cities.
  • Bangalore is characterized by high attrition and thus seen to share positive Hiring sentiment as well.
  • 'Best salary package' remains the top most reason for an employee to look for better opportunities in IT sector.

Mumbai (previous Apr - Jun 2010)

  • The Employment outlook of the city has risen by 8 points after witnessing a dip of 10 points last quarter.
  • The Business Outlook has also zoomed by 21 points.
  • ITES leads the employment growth in the city followed by IT.
  • Infrastructure is the highest growing sector with 10 points followed by IT and ITES.

Mumbai (current July- September 2010)

  • The Employment Outlook for Mumbai has plummeted by 14 points and stands at 63.
  • The Business Outlook has risen up by 10 points.
  • Attrition due to improved compensation package charts the table sector- wise and city-wise respectively.

New Delhi (previous Apr - Jun 2010)

  • The Net Employment Outlook has increased by 8 points and currently stands at 43.
  • The Business Outlook has also increased by 4 points.
  • The biggest contributors to Employment Growth in the city are FMCG, Retail and Healthcare & Pharma.
  • Infrastructure has shown a negative growth.
  • The highest growing sectors are FMCG and Retail.

New Delhi (current July- September 2010)

  • The Net Employment Outlook has increased by 19 points and currently stands at 62.
  • The Business Outlook is 49 and increased by 9 points.
  • The rise in attrition rates explains Delhi's voracious appetite for hiring and its lead over other cities on Employment Outlook while still trailing on Business Outlook.

Hyderabad (previous Apr - Jun 2010)

  • The city has seen an increase of 3 points in the Employment Outlook, and currently stands at 57 points.
  • The Business Outlook for the city has increased the maximum among the cities by 28 points.
  • FMCG & Retail and Manufacturing & Engineering are the biggest contributors towards the employment growth.
  • Financial Services and Healthcare & Pharma are the biggest growing sectors.
  • Attrition rate remains one of the highest in Hyderabad and stands at 17%.

Hyderabad (current July- September 2010)

  • There is a rise of 6 points in the Employment Outlook index of Hyderabad and stands at 63.
  • The Business Outlook for Hyderabad exhibits a smart recovery from its previous quarter slump. Business Outlook has increased by 9 points and stands at 74.
  • Hyderabad is however facing a manpower crunch. Attrition rate though less than previous quarter stands at 12%.

Pune (previous Apr - Jun 2010)

  • The Employment Outlook for Pune has grown by 5 points.
  • The Business Outlook has seen a dip by 2 points, but remains one of the highest in the country.
  • IT, ITES and Infrastructure are the biggest contributors to Employment growth.
  • Infrastructure followed by ITES is the largest growing sectors.

Pune (current July- September 2010)

  • The Employment Outlook for Pune sees an increase of 4 points and stands at 79. Pune builds on the heady index values built over past three quarters.
  • The Business Outlook has seen a rise of 5 points and stands at 80, the highest in the country.
  • From an employment perspective, Pune shares positive hiring sentiment as well as a relatively high positive business sentiment.

Kolkata (previous Apr - Jun 2010)

  • The city has seen an increase of 16 index points in the Net Employment Outlook.
  • The Business Outlook is up by 20 points.
  • Healthcare & Pharma (22 points) is the largest contributor to the Employment outlook of the city, followed by ITES.
  • The biggest growing sector is Healthcare and Pharma.

Kolkata (current July- September 2010)

  • In comparison to the previous three quarters, Kolkata has relatively poor record and sees a dip by 9 points.
  • Amongst all cities, Kolkata also sees a dip in the Business Outlook by 2 points.
  • The attrition rate stands at 8%.

Ahmedabad (previous Apr - Jun 2010)

  • The Net Employment Outlook of the city has witnessed an increase of 17 index points and stands at 54.
  • The Business Outlook has increased by 28 index points. One of the highest in the country.
  • Healthcare & Pharma are the biggest contributors to the employment growth, followed by Financial Services.
  • Healthcare & Pharma and ITES are the largest growing sectors.
  • Attrition remains the least in the country, among the cities covered.

Ahmedabad (current July- September 2010)

  • Ahmedabad has recorded the smartest recovery and growth, respectively, over the 4 quarters. The city has witnessed an increase of 14 index points and stands at 68.
  • Ahmedabad has the best growth story to unfold over the 4- quarter period. The Business Outlook has increased by 18 index points and stands at 77.
  • Attrition remains low at 4.5%.

Chennai (previous Apr - Jun 2010)

  • The Net Employment Outlook shows an increase of 10 points and currently stands at 64 points.
  • The Net Business Outlook has seen an increase of 9 points and currently stands at 69.
  • Telecom is the biggest contributor to Employment growth.
  • Telecon and ITES are the highest growing sectors in the city.

Chennai (current July- September 2010)

  • The Net Employment Outlook shows a fall of 2 points and currently stands at 62 points.
  • Conservative Chennai exhibit an opposite attitude by maintaining a negative Employment Outlook for a very modest Business Outlook and a considerably high attrition rate.
  • The Net Business Outlook has seen a rise of 3 points and stands at 72.
  • The attrition rate stands at 12%.

Notes to Editor

About TeamLease Services Pvt. Ltd

TeamLease Services (TeamLease™), India's largest Staffing Solutions company, has been spearheading the Temporary Staffing revolution in India for more than eight years now. In this short span of time, TeamLease has deployed more than half a million candidates, and in doing so, it has emerged as one of India's largest private sector employers. The company currently has over 65,000 employees on its rolls, in over 700 locations across the country, working for more than 1200 clients.

TeamLease serves its clients, associates and candidates through a network of 24 offices, a nationwide toll-free helpline [600 12345], online employment exchanges in partnership with state governments, the web (www.teamlease.com), a host of employability initiatives such as assessments, training and counseling and through its wholly owned subsidiary IIJT Education. IIJT has been one of the fastest growing education brands in the country. Established in year 2006, IIJT today operates through over 250 academic centres spread across the country. IIJT specializes in three domains i.e. Finance, Retail and IT. The organization goes out of the way to groom the trainees into industry ready professionals by enriching their knowledge in specific domains as well as with full module of soft skill training. Thus in about a year's time, the candidate is ready to take up the challenges of any job.

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