Category: Campus to Corporate


India’s challenges in manufacturing sector

Posted By:   |  Feb 26, 2014

Manufacturing long term  Indias challenges in manufacturing sector Manufacturing GDP has to rise, if the Economy has to improve – long term . The manufacturing sector’s outlook will largely influence the job scenario.

http://indianexpress.com/article/business/banking-and-finance/job-target-now-hinges-on-manufacturing/

There has not been any significant job additions in the manufacturing sector .   The job additions were more in the informal sector.    The challenge is to make the National Manufacturing Policy into a workable framework and then re look at the skills development initiatives.

If India plans to create 100 million jobs over the next decade,  it has to have a very practical orientation to understand where these jobs are going to come from.   Else it is a tall talk, in the dark and as usual.

Not to sound cynical, however, there seems to be an absolute lack of focus.  The problem is on aligning initiatives in the Government and Private Sectors.   With about Rs.1000 crores to be additionally invested into the NSDC,  the question still remains on whether the current job training is translating to actual jobs.   Just looking at the statistics that from August 2013 around 168,043 youth enrolled into NSDC and related programs.  Around 78,000 completed training.    24 sector skill councils , 442 training partners and 17 assessment agencies are part of this program.  At the NSDC partner’s meet at Chennai recently,  Mr. Ramadorai, the NSDC head, raised questions on the data that was available to the NSDC.  The challenge for India is only compounding.

Old Labor laws -  a main deterent to the growth of the sector

The Government needs to focus on some immediate priorities to translate its actions to happenings.

The most pressing need for India is to revisit the old archic labor laws and statutory laws with a  clear time frame.   And this is something, no Government wants to touch.

Consider this.   A manufacturing Unit has to comply with 70 laws and file over 100 returns a year.   There is an urgent need to reduce this burden if the entrerprise has to focus on growth.      And without touching basics,  the government cannot just churn out training and jobs.   The entrepreneur should be encouraged to venture into manufacturing.

The industrial Disputes Act 1947 needs a comprehensive make over.  It needs to be changed to address the needs of the employer.  With present laws,  many entrepreneurs shun away setting up manufacturing facilities – which are actual indicators of a growing economy.

There is a need to revisit the statutory deductions.   A paradox, the lesser you earn the lesser you take home.  For a person with a salary of Rs.6000/- per month has a net take home which is just 52 % of his gross salary.   With poor governance of the EPF and ESIC, what is the Government trying to achieve ?

http://indianexpress.com/article/opinion/columns/a-toxic-employment-benefits-regime/

This certainly leads to informal employment of 15 persons or less.   While in China, over 80 % of garment business comes from organizations employing 200 persons and above,  in India, the same comes from organizations employing 15 persons or below.

 

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The jobs outlook : 2014 – 2015

Posted By:   |  Feb 21, 2014

No jobs 265x300 The jobs outlook : 2014 – 2015  Not to sound too pessimistic,  but the job outlook for the next six months will be slow.   With the elections and the slowing down of bureaucracy, will have its effect for at least upto December 2014.

The Automobile industry showcased a number of new releases with a cautious optimism.  The International Labor Organization’s  (ILO) Report on  global employment trends 2014 shows that the global unemployment will raise to 6.1 % in 2014.   Around 4.2 million jobs will be at stake during this period.   While unemployment rate is set to decline from 2018 onwards,  the near future looks not too promising in the South Asian markets including India.

http://www.thehindubusinessline.com/features/investment-world/global-investor/bleak-jobs-outlook/article5696199.ece?homepage=true

It is a sad fact that between 2010 and 2012, jobs grew by a mere 2 % per year.

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Jobs… the year that was 2013

Posted By:   |  Jan 21, 2014

JObs 300x200 Jobs…  the year that was  2013

Assocham has released its report on Hiring for 2013.   Highlights of this report

  1.  During the period January – December 2013,  5.50 lakh jobs were created.   This is a dip over the earlier period job statistics that stood at 5.52 lakhs
  2. A overwhelming 43 % of jobs were created in the IT and ITES segments, besides IT Hardware sectors.  Thereby indicating a drastic decline in the recruitment in other industry segments.
  3. Delhi ( with NCR) still commands the numero Uno position when it came to recruitments.   Bengaluru and Hyderabad take the second and third places.   Hyderabad’s growth is much to its IT & ITES growth, which beats the political uncertainty and slower growth.   And this is due to the good infrastructure and investment friendly government initiative.
  4. Much of the growth has been coming in the tier II category.   Chandigarh, Kanpur, Ranchi, Raipur,  Vizag have all clocked over 15 % growth.

http://www.deccanchronicle.com/140120/news-businesstech/article/city-sees-flat-growth-jobs

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BFSI – recruitment and temporary staffing challenges and opportunities

Posted By:   |  Jan 17, 2014

BFSI 300x199 BFSI – recruitment and temporary staffing challenges and opportunitiesThe Banking and Financial Services sector (include BPO in this segment as well) is expected to be  major job creator between 2014 and mid  2015.  With over 28 applications with the RBI for licences, that include the likes of L & T Finance,  LIC Housing, Shriram Group,  Aditya Birla, Religare,  Edelweiss,  J.M Financial  (to name a few),  the opportunities and challenges loom large to the players in this segment.

When granted licenses,  the opportunities in the new banking segment will certainly give the needed boost , to the recruitment sentiments.   New Banks will definitely be building a data base of needed people at various positions.  The focus will be on people who have stayed long in their existing banks, which will prove that they have worked upwards.   There is also a list of people from India, now overseas, who would want to return back to India, to take advantage of the growth happening here.   However, knowledge of local markets and working experience in local markets will be the clincher in Retail Banking.  

Ratnakar Bank,  ( where the Bank is planning to increase its employee strength by an additional 1000 numbers this year) and  Axis Bank are Banks that are planning large scale expansion this year.   It is very important for Temporary Staffing (Temp staffing ) companies to come up with a list of people who have taken voluntary retirement or have opted early exists to pursue other interest.  Many of the Banks will need expertise forgo to market” strategy, which the old timers can effectively implement.   The consultant (temporary specialist) and the owned employee co existing and working towards a common goal, can be the catalyst to key growth in Banking Sector.

It is interesting that the growth of the retail segment, depends to a large extent on feet on street.   And this is a huge area of opportunity for the temporary staffing companies.   Instead of being mere “parking lots”,   Temporary staffing companies can ride this wave through innovating needs for the Banks.   Large sales teams will need administration , which means, the companies that offer a customized solution to the infrastructure, technology and training needs will stand to gain .   Banks like HDFC have built large captive companies like HBL Global, ADFC which has been largely successful to them.  One it arrests the flight of talents as these employees stand to benefit as any other regular employee would.  ICICI Bank had I Solutions and I process on lines of HDFC’s  HBL Global and ADFC.   The new Banks will have to look at this route as well.

Banks must also look out for experts who have worked on such models.   Selection of a temporary staffing agency should be on basis of their understanding of the business, and not merely on the number of “heads” a player carries in this business.

On Campus hiring, is another area of Recruitment Process Outsourcing that Banks can involve experts in.  With slack in recruitment,  many of the college pass outs are still struggling for jobs.   An effective screening followed by a training module, can help convert these raw material into valuable resources.  Many of them can be offered jobs from streams like BBA,  B.Com, M.Com etc.,  at entry level processing jobs.   And at local levels.  The Banks can embark on an all-round training module.  Small branches, with effective people have long outplaced large bank establishments.   A three member bank in a small village / district is very common these days.

Many of the NSDC partners are also training people for the Banking & Financial Services (BFSI) Sector.  And therefore there could be a positive recruitment flow from here also.   There are needs in various departments in a Banks growth.   Departments like Security handling,  administration, technology, real estate , infrastructure management,  facilities management etc., will ride this wave along with the Banks.

However, one industry that is being affected by a high attrition is the Insurance industry.  And here, it is not the top of the pyramid that is worrying them.  It is the flight of frontline staff that is hurting the insurance companies.    While a senior industry player has put the churn as close to 100 %, it is a very alarming situation.     This could be because of the low growth rate of less than 5 % in the industry (which was much touted as the sunrise industry just a few years back), or the lack of direct employer employee interactions.    The compensation offered by IT or ITES industry is comparatively better, but then the individual, needs to have clarity on where he will have a long term career plan.     This is an area where the insurance companies can work on an incentive based recruitment plan, where the staffing agency can be paid an incentive based on the longevity of the candidate in the system.

References :

http://timesofindia.indiatimes.com/business/india-business/Bank-hiring-zooms-ahead-of-new-licences/articleshow/28862334.cms

http://www.hindustantimes.com/hteducation/greatcareers/india-inc-wants-you/article1-1168051.aspx?hts0021

http://www.thehindubusinessline.com/industry-and-economy/banking/flight-of-frontline-staff-hurting-insurance-firms/article5570655.ece

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Unemployment in Indian Youth

Posted By:   |  Dec 11, 2013  |  1 Comment

Unemplyment youth Unemployment in Indian YouthIndia’s demographic dividend is fast becoming a bane.   While the politicians and the economists in general have been lauding the fact that India will be the youngest nation in the global arena,   the advantage is becoming a huge disadvantage.  It can well become a social disaster.

http://articles.economictimes.indiatimes.com/2013-12-01/news/44619576_1_unemployment-rate-15-to-29-years-labour-ministry  puts that India’s unemployment in the age groups of 15 – 29 is estimated to be in the region of 13.3 %.   Now considering that the majority of Indian population is in this age group,  a 13.3 % is like the danger mark or a flood warning.  It can well swarm into a Tsunami if the government, policy makers and the general public do not act now.  As this age group will naturally move to the next age group of 30 plus.

Just like the rhetoric “India is a developing nation” that we have been hearing since two or three decades,   India should focus on the population problem and start looking at avenues that will engage this population most productively.   Things like making India a manufacturing hub will take time.  However ,  India can immediately look at its labor policy and make changes that will immediately impact the population on a positive note.  Tenacity to act and a will to do it will certainly make positive inroads.   India should look at making the labor policies to date and in tune with current global scenario.  The labor or staffing industry, if provided with sops like the IT sector was given, can see wonders in the next decade.  This will call for a comprehensive re-haul of certain departments like the labor law at the state and central level.   The effort should be taken at each MLA constituency level.   Each MLA should be given targets to increase the employment ratio in his region.  And this will actually lead to some light, at end of the tunnel

India should learn from China on this.  China put a “one child one family” policy some years back, to address the issue of being the most populous state.  And also in the process started the industrialization process on a fast track.  And the combination is significantly adding to its strategy of becoming an economic super power.  Which it has already become.   Wake up India – it is already late.

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Global jobs for BCom graduates

Posted By:   |  May 29, 2013

Bcom students Global jobs for BCom graduates“  B.Com stream has attracted significant hiring opportunities in the recent times.   Many global organizations like Goldman are wooing students in the first and second years of the three year stream by offering summer placements.   The catch is from the reputed colleges who offer this stream.   With Tally making accounting easier for organizations,  a skilled Commerce graduate is always in demand. With a bit of sharpening of core skills,  the opportunities to get a good job is always bright.   Also,  the organizations are keen on hiring bright graduates as compared to a lesser known business school graduate, from point of stability.   Recently CBSE has more of takers for Commerce, which was once considered as an option, when one did not make it to group 1 (Science).  However, it has now become a course of choice.

Also click to read the findings of the survey done by Timesjob recently.

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Campus to Corporate

Posted By:   |  Apr 05, 2013

C2C Campus to Corporate

 

The recent hiring trends in engineering companies and Information technology companies have been a start difference to earlier hiring habits.   A very interesting article recently in Economic Times has touched upon this aspect.   Large companies like Goldman have moved into the college stream for fresh hiring and interns, than go to the B Schools.   At least the trend indicates that the opportunities for a bright graduate are certainly something to watch out for.   An interaction with senior HR heads and function managers point out to three significant reasons for this trend :

  • A graduate is a fresher mind and is moldable.   Graduating from a recognized and acknowledged institution certainly leap frogs a bright candidate from obscurity to main league.
  • The education system and the lesser known B schools lack  practical orientation.  They students may be theoretically fine, but lack the practical orientation
  • Retention factor :  Stability is seen more from a graduate in terms of job stickiness than that of a MBA from a not so recognized school

Surprisingly,  cost was not the top most in the mind of the hirers.  What mattered was a fresh mind open to learning,  stability and return on capital (in terms of training to employee stickiness).   This also puts a competitive perspective for admission into the recognized colleges where the ala crème of merit join.   From a student’s perspective,  it gives them options to understand what they are capable of doing and then structuring their career accordingly.

The target audience for corporates here are not the top 10 or 15 % as most of them will pursue higher education,  but the immediate next layer of students.   Internship during graduation also gives the student a sense of fitment or liking for a job, thus making the practical orientation worthwhile.

The subject also brings to light the need for a skilling of candidates during the graduation period into areas of expertise like accounting software,  communication development etc.,     Many universities are also mulling the idea of introducing a foreign language as a special area of skill development, that brighten the prospects of students when they finish graduating.   While it may not open immediate vistas, it certainly positions the student at a greater advantage with off shoring jobs.