India’s temporary job market is likely to see 18 per cent rise in hiring this year, while average salary hikes may stay in single digits, staffing firm TeamLease said.
According to the ‘TeamLease Annual Temp Salary Primer 2010’, growth in hiring in most industries may impact salary increment structures with companies likely to give modest single digit hikes this year.
“Hiring numbers would be stepped up from the current 11-14 per cent to about 18 per cent over first quarter of 2010 as new practices to gauge capabilities mature,” it stated.
“The flip side to the growth in hiring is that most industries have slackened increment structures and kept salary revisions and growth to the minimum - a few even brought the numbers down,” it added.
However, some employers have rewarded select profiles, which require specialised skills, with fairly large pay hikes.
Among sectors, telecommunication and energy have emerged as the new growth engines with hiring increasing by about 16 per cent and salary hikes of 7.5 per cent, it added.
Infrastructure, essential services, and the IT/IT enabled services sector, that largely employ skilled labour and knowledge workers, are expected to raise salaries between 7.5 to 15 per cent this year.
Manufacturing and traditional services sector businesses (except for retail), which employ relatively less skilled workforce, are not likely to increment payouts.
“The Indian temp staffing market is fast maturing and employers are giving valuable skills due recognition and rewarding them well. There is evidence that people retention and longevity is positively impacted by a fair distribution of salary increments in tandem with skill levels,” TeamLease Services Vice President(Temporary Staffing) Rajesh A R said.
The report stated that services sector is providing a much needed fillip to salary growth, with an average 6 per cent growth, contrasted with the rather low, sub-5 per cent salary growth average for the manufacturing sector.
“With the organized sector recognizing temping as a key people staffing strategy, temp staffing practices have evolved considerably. Not only are businesses narrowing the margin of difference between temp staff and permanent staff salaries, they are also rewarding the best sought after skills disproportionately,” Rajesh said.
Among cities, Bangalore (6.4 per cent), Mumbai (6 per cent) and Chennai (5.75%) lead growth with highest salary hikes, with Chennai dislodging Delhi from the top three high growth cities from the previous year. Indore, Jaipur and Ahmedabad are cities with the lowest growth rates in salary.
The report surveys various attributes of employment market for over 5,00,000 temp staff working across 264 different job profiles, 13 industries in 14 major locations in India.
