Battle for IT talent in small towns as stakes rise
MUMBAI: The battle for talent is now being played out in India’s smaller towns and cities, where the workforce is no longer coming cheap.
Recruitment firms note that given the right profile, many potential hires would prefer to stay in smaller towns rather than be swayed by bigger brands and shift to large metros where the cost of living does not match the incremental increase in pay packets. This tussle comes at a time larger companies, especially in the IT, Ites and retail sectors, are tapping small towns, with some even opening offices there to attract talent.
“In tier II and III today, employees are looking beyond brands. If a smaller company can give them the work experience, then they are opting for it.
A lot also depends on the negotiations, and the workforce in smaller towns are including costs of travel back home if they need to be shifted to larger metros,” said A.R. Ramesh, director of digital business solutions, professional staffing and international engagement of Adecco India.
Salary data for junior roles collated by skillset platform myxp, where executives can log in for jobs and internships, showed that companies such as Webhopers Infotech Pvt. Ltd, which offers ₹2-2.2 lakh per month in Panchkula, Young Minds Technology Solutions Pvt. Ltd gives ₹2.4 lakh in Tirupati and Softobiz Technologies Pvt. Ltd offers ₹4 lakh in Sahibzada (Mohali), among others.
Nikhil Sikri, co-founder and chief executive officer of myxp, said that larger tech and retail firms hire entry-level executives in tech, sales, and field operations starting at ₹2.5 lakh.
“There is barely a 20% salary difference, and people prefer to stay in home towns. Although resistance is not much to move to the metros if the jobs are unavailable in their hometowns,” Sikri said.
Big companies such as IBM, Tech Mahindra and many others are hiring in places like Indore, Vijayawada, Coimbatore, Kochi, Ahmedabad, and the suburbs of cities such as Hyderabad. There is a cost advantage for largescale startups and tech recruiters, and with remote working for the last two years, companies have turned location agnostic. But with remote working morphing into a hybrid form where employees are put into a roster, and many have to head office a couple of times a week, a shift closer to the workplace is forcing employees to think twice.
“There is a definite tussle between larger firms, especially tech, and smaller companies for talent in small towns. The employee may join for six months in an unknown company, but for better exposure, he will have to move to a larger firm,” said Guruprasad Srinivasan, group chief executive at recruitment firm Quess Corp.
According to Quess, the open mandates between metros and small towns was 80:20 before the pandemic. That has now changed to 70:30.