Retail, auto, new hiring hotspots as IT slows down
The slowdown in IT sector hiring has pushed recruiters to bank on other industries like retail, auto and manufacturing to make up for lost business. The development has effectively swivelled the job market 180 degrees from an employee’s market to that of the employer.
“About 18 months ago, 80% of our placements were from the IT sector; now it is 40%,” said Alok Kumar, president of Manpower, a subsidiary of recruitment firm ManpowerGroup. “We have shifted focus; 60% of our permanent placements are now on the back of retail and manufacturing.”
Anshuman Das, chief executive and co-founder of Careernet, a talent solutions provider, said that a middle management position in the top four IT firms takes almost three months to close these days, compared to a month less than two years ago.
“For a job posting in the middle management level of IT sector, there are more than 100 applications of candidates who have more than eight years of work experience,” added Das. About a year and a half ago, Das had to line up 20 candidates at most to close such a position, indicating the protracted sifting process at companies.
IT’s loss clearly has been the other industries’ gain. Recruiters say candidates with digital skills are most wanted in retail, EV (electric vehicles) part of the auto business, manufacturing, core sector companies, and in the FMCG (fast-moving consumer goods) industry.
Demand for junior to middle management is seeing the maximum flux. This is because IT firms often get their younger workforce from campuses, and companies from other sectors are now preferring employees with some years of work in the IT sector.
To be sure, job switches remain at a moderate 20-30% and none of the other industries are dishing out steep offers.
“The movement is largely from small and mid-sized IT firms, rather than from the more established ones, who are unwilling to change their firms now,” Aditya Narayan Mishra, chief executive of Ciel HR Services, said. “Those fearing retrenchments are in a rush, but IT services companies are in no hurry.”
Ciel HR Services has seen a