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Tech Hiring Boom in India and challenges faced by HR
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The pandemic has spurred the pace of digitization in India, leading to a surge in the demand for technology and software professionals. Consequently, individuals proficient in coding, machine learning, mathematical modeling, and strategic HR tools can confidently update their CVs and apply to numerous job openings from any internet café. However, before sending out resumes, it's crucial to recognize that India boasts a vast pool of IT talent, with nearly everyone having some level of tech proficiency. Consequently, the sheer volume of resumes and job applications inundating hiring managers is staggering, making it challenging to estimate your chances of success or secure your desired position. The hiring boom in India’s tech industry is good for the staggering one million people coming into the job market every month, but not so wonderful for hiring managers. To grasp the current hiring situation in India, let’s look at how this tech hiring boom is ramping up trouble for HR leaders and the probable solutions’ recruitment consultancy services are offering.
Robust demand for tech tools There is no denying that the tech industry is enjoying whirlwind dominance, sharply higher than most other sectors. But even as they are raking in the ridiculous moolah from this once-in-a-decade opportunity, brace yourself; this robust demand comes at a price.
CHALLENGE: It's indisputable that the tech industry is experiencing rapid and dominant growth, surpassing most other sectors by a considerable margin. However, while they're reaping immense profits from this rare opportunity, be prepared; this strong demand comes with its own set of consequences.
SOLUTION: Hiring managers must grasp that clinging to traditional methods is no longer viable. HR leaders must transition from mere CV/Resume screeners to adept professionals equipped to offer counsel and strategic foresight for reshaping the landscape of work. Presently, many internal HR teams lack the resources and know-how to meet the demands of this dynamic environment effectively. Hence, progressive tech companies would benefit from collaborating with recruitment consultancy service providers.
The demand and supply mismatch In contemporary times, our engagement with technology surpasses our interactions with fellow humans. Hence, it's unsurprising that our primary mode of communication with peers is through technological means. However, in a post-pandemic era, where over 56% of the population works remotely, this shift is beneficial. The autonomy and flexibility offered enable individuals to perform optimally at their own pace.
CHALLENGE: However, the bubble bursts due to the insufficient availability of talent. This shift in paradigm poses a challenge for HR leaders aiding tech companies in acquiring top-notch talent. The surge in demand for tech experts in India results in a diminishing talent pool, creating a disparity between supply and demand. Thus, how can hiring managers rectify this imbalance in demand and supply?
SOLUTION: HR leaders must embrace a mindset shift recognizing the fierce competition for top talent ignited by the tech industry's high demand. In such a competitive landscape, strategic planning becomes paramount. Recruitment consultancy services offer expert guidance on various aspects including recruitment, performance management, talent development, training, compensation, and enhancing employee experience. Entrusting your workload to them is advisable.
Finding, recruiting, and retaining the right skills Recruiting presents a dual challenge. An excessive workforce escalates expenses and diminishes profit margins. Conversely, a leaner staff can result in three consecutive quarters of declining performance. As the corporate giant strives to regain stability and India's hiring surge garners attention, tech firms with foresight require a steady stream of dependable personnel.
CHALLENGE: The high demand for exceptional talent has led numerous employers to urgently expand their workforce. Tech firms are intensifying their efforts in talent acquisition, with premier talent accelerators taking the lead by offering lucrative compensation packages. Consequently, sourcing, hiring, and retaining the necessary skills pose significant challenges, even for seasoned in-house HR teams.
SOLUTION: Top recruitment consultancy service providers emphasize the importance of attracting and retaining the right talent to maintain competitiveness. They advocate for HR leaders to foster remote-first or hybrid work environments and cultivate a company culture that promotes employee satisfaction and motivation. Additionally, they highlight the challenge posed by the lengthy 90-day notice period for hiring managers and small tech start-ups seeking top talent. Recommending a reduction in the notice period to 15 or 30 days can facilitate more efficient recruitment and retention of valuable skills.
High rate of change in the tech field Innovation is inseparable from technology, and it's evident that in India, the primary drivers of top talent are startups, small and medium-sized enterprises (SMEs), and Fortune 500 companies that are agile and adaptable enough to thrive amidst rapid change.
CHALLENGE: Many HR executives are grappling with the challenge of balancing the demand and supply misalignment for top-tier talent amidst the ever-changing landscape of technology. As India experiences a surge in hiring alongside a diminishing talent pool, the question arises: What strategies can HR leaders employ to navigate this digital transformation effectively? How can they stay abreast of the rapid pace of change within the tech industry?
SOLUTION: Firstly, acknowledge that change is constant—instead of running away from it or ignoring it, concentrate on obtaining resources that aid in understanding, discernment, and adaptation to changing industry dynamics and fleeting trends. Numerous recruitment consultancy services prioritize the adoption of HR technologies to enhance employee experiences, ranging from initial onboarding to eventual departure. By providing upskilling and training opportunities for new talents using interactive tools and applications, HR leaders can effectively manage the impacts of unexpected changes.
Talent acquisition and retention plans come with a cost -margins The criteria for recruitment are in a constant state of flux. Skills that were once considered timeless are now becoming obsolete. From coding to machine learning, from statistical modeling to arithmetic analysis, skill sets are undergoing transformation. It's fair to acknowledge that the workforce of the past is gradually disappearing. However, whether this shift is beneficial or detrimental depends on one's perspective.
CHALLENGE: The surge in hiring across India is fueling a growing eagerness to acquire new skills. However, a significant challenge arises from the scarcity of proficient individuals or the potentially high cost of their services. Schools have not yet met the demand for technology and software professionals, leaving companies grappling with persistent margin pressures.
SOLUTION: Master the art of retaining top talent. HR leaders should convince their employers to integrate salary increments, skill-based compensation enhancements, and promotions into their talent acquisition cost and retention strategies. While this approach can lead to incremental margin improvements, it's important to acknowledge that no recruitment consultancy service provider endorses the expectation of a 100 basis points margin improvement or the assurance of achieving double-digit revenue growth this fiscal year. A more realistic outcome would be a margin increase of 30-40 basis points.
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