Hiring may go full throttle by January next year, Technology News, ETtech

Hiring across the board is expected to resume completely by January after a lull caused by disruptions due to the Covid-19 pandemic although campus recruitment is expected to take a hit, recruitment firm CareerNet Consulting said in a report that was shared exclusively with ET.

Most companies have selectively begun filling up positions but will take six months at least to become fully active, it said.

For instance, companies that had paused hiring are also likely to bounce back, with 43% of them indicating they would become active in six months.

Illustration: Rahul Awasthi
Illustration: Rahul Awasthi

“This seems to be a 15-16 month cycle and by April the momentum should touch pre-Covid-19 levels, even though this would be at a lower base given the downsizing over the last six months,” said Anshuman Das, co-founder of CareerNet.

Campus hiring will, however, likely be impacted, with 27% companies not planning to go to campuses this year, while an additional 39% are still unsure.

Only a third of the 100 decision-makers in human resource and talent acquisition teams at organizations said they planned to hire this year, according to the report.

Illustration: Rahul Awasthi
Illustration: Rahul Awasthi

“This year, campus hiring has already been deferred… we also expect this to be more phased out. It won’t be concentrated on a few days. When the economic recovery begins, organizations will re-start their plans,” Das told ET.

The study was inconclusive about whether employee numbers would be at par with pre-Covid-19 levels.

“Most companies today are cautious and are still trying to re-calibrate their demand, economics, and external fundraising environment,” the CEO of a startup valued at over $1 billion said, requesting anonymity.

“For the offshoring industry, this slowdown is not a new phenomenon, but for a lot of startups, it’s happening for the first time. While in IT the overall sentiment was to wait and watch, in startups the reaction was more extreme,” Das said.

Three out of four employers – largely led by IT services providers — are honouring offers and onboarding employees, the report said.

Pravin Rao, chief operating officer of Infosys told analysts in April that the company would go slow on hiring in the coming year across all regions.

“We will hire only on a need basis and any incremental hiring will be only from a skill perspective. We also have opportunities to rotate our subcontractors and replace them with our own people,” he said.

Cross-town rival Wipro has also forecast similar hiring plans.

Across startups, operational and sales teams will be most impacted, while product and technology teams would be relatively immune from the slowdown.

“We’re scaling our technology, product, and design teams… over the last 18 months, a lean team of 15 members in engineering have built out Khatabook, and as we expand, we are looking to get to a 40-member technology team by year end,” said Ravish Naresh, CEO of Khatabook, which raised $60 million (about Rs 454 crore) in May led by B Capital Group.

Other startups, including Unacademy, NoBroker and Shadowfax also continue to expand their technology teams.

(With inputs from Ayan Pramanik in Bengaluru)

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