By adapting to the remote and hybrid model of working, the cautiously optimistic corporates are looking to step up hiring and provide better appraisals in 2021 as the pandemic-ravaged 2020 comes to an end.
During the pandemic, work-from-home and remote working in the corporate world took center stage. Most companies in 2020 ‘deprioritized’ their hiring plans amidst the uncertainties in the economy. Industries like hospitality, travel& tourism, aviation, automobile, retail, and real estate were severely hit. However, there is a cautious optimism amongst the corporates now, and it is getting reflected in their recruitment plans for the New Year.
The Market Is Showing A Healthy Sign Of Recovery
With lockdown restrictions being eased out and markets opening up, the signs of recovery are positive, with almost all industries showing growth in hiring but with caution. While there is caution in hiring, the market is showing optimism. According to the Business Head, Mobilization, Team Lease Services, there is an increase in employment opportunities to about 50% from the lockdown days.
Since Diwali, pay cuts have been reversed in most organizations, and some have issued a few bonuses. Early appraisals have been declared by a few technology companies as well. According to a survey that covered 1518 employees across the nation conducted by the ManpowerGroup Employment Outlook Survey, corporate India shows healthy signs of recovery, and hiring would be stepped up in the first quarter of 2021 compared to the last quarter of 2020 ending in December.
With positive news coming on vaccine efficacies and the market getting back to pre-COVID levels, there is a positive sign of recovery in the job market. Moreover, as per market experts, this new employment category, ‘remote working,’ will open up many employers and employees’ niche skills opportunities.
The digital transformation in 2020 has changed the very fabric of the Indian corporates and is likely to heighten in 2021.
Increasing Adoption Of Tech-Based Solutions Will Further The Growth Of Businesses
In 2020, organizations have got an opportunity to evaluate, adapt, and pilot technology-based solutions for onboarding and hiring. AI-based facial recognition, video interviews, and tech-data-driven onboarding solutions were always discussed as futuristic, but now with the ongoing pandemic, it has become a reality.
Although the coronavirus pandemic forced organizations to adapt to a remote working model, most companies are now inclined to continue this practice in 2021. This model opens up a wider talent pool for most businesses. So the limitation of looking for a candidate in the immediate location who can travel to and fro from the office every day can now consider hiring from anywhere in the country.
Also, experts have suggested that this year has been great learning for the HR function. People who evolved were rewarded, and those who did not were hit hard.
Experts Forecast A Bullish Job Market
The change in the labor reforms where 29 legislations have been consolidated into 4 labor codes has brought about much-needed ease of doing business and will also encourage businesses across the country. Moreover, the proposition of fixed-term employment will also boost the job market with more formal hiring and broadening social security benefits.
According to job market experts, people will start getting appraisals since most companies plan to expand and go for fresh recruitment. A survey conducted by Aon, a leading global professional services firm, India has shown remarkable resilience despite the pandemic challenges and is on a positive recovery path. The survey also stated that in 2021, approximately 87% of the companies plan to give salary increments as compared to 71% in 2020. It also stated that the average pay increase in 2020 was the lowest since 2009.
A survey done on the latest salary trends stated that there would be an average pay hike of 7.3% in India in 2021.
The experts also suggest that in 2020, hiring women workforce has increased across almost all industries since corporates are adopting flexible/remote work models. The eCommerce and manufacturing sector has opened up many new opportunities for women.
This year, many organizations have invested in reskilling or up-skilling their employees through various online learning programs. It is being said that the trend would continue in the New Year since it helps in increasing employee productivity and longevity at the ground level.