HALF-YEARLY RECRUITMENT REPORT-I. HALF-YEARLY REPORT-i 2016 TRENDS & PROJECTIONS HY-I

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1 HALF-YEARLY REPORT-i 2016 HiRING TRENDS & PROJECTIONS 2016 HY-I

2 Demand to increase for key functions as sector picks pace in 2016 CONSUMER DURABLES/FMCG HALF-YEARLY RECRUITMENT REPORT-I KEY TAKEAWAYS Significant demand rise across key domains, including engineering at middle and senior level Entry-level professionals saw heightened demand across specialisations Premium selling skills, relationship management, sourcing skills are the emerging areas Digital marketing, R&D, technology support roles likely to see huge demand Metros were top job hubs; talent demand rose in international locations too Market average demand and industry demand FMCG Market average Jun 15 Dec 15 Base year Dec 2010 = 100 The Indian consumer durables/fmcg industry saw stable hiring trends during Jul-Dec In the first three months of the second half of 2015, the industry posted a 3 per cent rise. However, because of a sluggish market, talent demand started to drop from October. While July saw maximum rise of 8 per cent in demand, November reported highest drop (10%). With the 7th Pay Commission recommending an average per cent hike in salaries and pensions, consumers will have additional $15 billion in their hands. The increased spending is expected to boost growth prospects of the sector. Consequently, manpower demand will also increase across key job roles with, engineering and logistics leading the pack. In the latter part of 2015, and related specialisations saw maximum demand. Experienced professionals in quality assurance were also in demand. The industry is expected to grow 12 per cent in 2016 reaching $49 billion, says a Nielsen report. According to KPMG, the Goods and Services Tax is likely to bring the most significant changes in HY-I 2016

3 [ consumer durables/fmcg ] JUNIOR LEVEL Companies are looking for professionals with cross-functional skills and experience, strong domain knowledge and problem-solving approach. Demand for quality and regulatory, security and app developer profiles is going to grow. Deepak Shetty, Senior Director-HR, Philips Innovation Campus, Bangalore Demand was huge across and its specialisations at entry level in the consumer durables/fmcg industry during the Jul- Dec 2015 period. Sales professionals not only grabbed maximum share in jobs at entry level but also posted highest rise in demand. Production, manufacturing, maintenance specialists continued to report increased demand, similar to Jan-Jun Demand was also there in supply chain, logistics, quality control and purchasing/sourcing function. Like in the first half of 2015, hiring declined for IT/telecom and marketing profiles. Together, top metros such as Delhi NCR, Bengaluru, Mumbai and Chennai accounted for nearly 50 per cent of entry-level jobs. Mumbai beat Chennai to emerge as the most active metro for entry-level hiring. Hyderabad too reported increased hiring activity in Jul-Dec Share of jobs in area of specialisation FMCG Channel 5% 4% Corporate Retail 78% Production/ manufacturing/ maintenance AREA OF SPECIALISATION Demand up for specialisations FMCG claimed maximum job share; demand rose by 15% Retail saw 26% rise in demand; job share was Production/manufacturing/maintenance posted over 30% rise in demand Supply chain management witnessed 22% rise in demand in Jul-Dec 2015 Quality assurance saw 16% rise in demand; job share was negligible Share of jobs in top locations Delhi NCR Mumbai West Bengal 9% Bengaluru 8% Pune 42% 20% 14% TOP LOCATIONS Mumbai seeks freshers Delhi NCR had maximum entry-level job share, demand was up by 1% Mumbai posted maximum (4%) rise among metros in Jul-Dec 2015 Hyderabad saw 6% rise in demand, was 1 up in Jan-Jun 2015 Among non-metro locations, Ahmedabad posted 4% rise in demand With miniscule job share, international locations saw 30% rise in demand Share of jobs in top functional areas 29% 9% Marketing 8% Accounting 16% 8% Administration 30% FUNCTIONAL AREA Hiring up in With maximum job share, /BD posted highest (15%) rise in demand Engineers with second-highest job share saw 2% rise in demand Demand for logistics professionals grew by 12% in Jul-Dec 2015 HR professionals saw 5% drop; was in-demand profile in Jan-Jun 2015 Marketing profile saw 2% drop similar to the trend in Jan-Jun 2015 HY-I

4 [ consumer durables/fmcg ] MIDDLE LEVEL C ontrary to the trend in Jan-Jun 2015, talent demand surged across core and support function areas at the middle level in Jul- Dec These included, engineering, logistics, marketing and IT. Quality control, front office roles and content writers also reported significant rise in demand at middle level in the consumer durables/ FMCG sector. Similar to junior level, specialisations and production/ manufacturing/maintenance roles saw huge demand for talent. Hiring was also up for software engineers, purchasing/sourcing profiles, relationship management and material management verticals. Unlike the trend in Jan-Jun 2015, when none of the metros posted increased hiring, Mumbai, Delhi, Bengaluru and Hyderabad emerged as top hiring locations at middle level. These locations claimed considerable job share and an average rise of over 30 per cent in demand. Demand for data analysts, digital marketers and brand managers will be on the rise. Sales, marketing and brand management roles will also be in demand. Soft skills will act as gamechangers since they are often found lacking by hiring managers. Ameet Naik, Head HR, Metro Shoes Ltd AREA OF SPECIALISATION Jobs in FMCG, channel Mid-level jobs, FMCG and channel saw over 30% rise in demand Corporate and retail too posted over 30% rise in demand Demand in operations was up by 10%; IT saw rise in Jul-Dec 2015 Demand rose by 30% in production/manufacturing/maintenance Production management posted 12% rise in demand; job share was negligible Share of jobs in area of specialisation 8% FMCG Channel 6% Retail Corporate 4% 4% 71% TOP LOCATIONS Demand rise in metros Share of jobs in top locations Mumbai 11% With over 30% job share, metros posted 30% rise in demand in Jul-Dec 2015 Chennai reported 4% rise in demand; it had fallen in Jan-Jun 2015 Hyderabad with 5% job share also posted 30% rise in demand Pune saw 20% rise in demand; Ahmedabad posted over 30% rise Gujarat (except Ahmedabad and Vadodara) saw 20% rise in demand Delh NCR Bengaluru West Bengal 6% Chennai 5% 61% 10% FUNCTIONAL AREA Active hiring across domains Share of jobs in top functional areas Sales claimed highest job share, saw over 30% rise in demand Engineers and logistics professionals too posted over 30% rise in demand Demand for marketing grew by 22%, was down by 2% in Jan-Jun 2015 IT professionals saw 12% rise in demand; 8% rise in customer support Business management/consultants posted 9% rise in demand 1 44% 8% Logistics 6% Marketing 5% IT/telecom 25% 4 HY-I 2016

5 [ consumer durables/fmcg ] SENIOR LEVEL Looking at the current positive outlook of the economy, our focus will be on targeting quality resources through focused search such as headhunting and social networking for senior and critical positions. Satyendra Malik, Head HR, Intex Technologies Demand for senior-level professionals increased across top functions and locations unlike Jan-Jun Along with claiming a major job share, demand also grew for, business development professionals and engineers in Jul-Dec Logistics, supply chain, IT and quality assurance roles also reported heightened demand at senior level. By area of specialisation, demand for production/ manufacturing/maintenance reported maximum growth while FMCG specialists were most sought in Jan-Jun specialisations also recorded growth in demand, unlike the scenario in the first half of Recovering from the subdued talent demand in Jan-Jun 2015, metros posted a rise in talent demand with Bengaluru topping the charts. International locations also saw significant talent demand at senior level in the industry during Jul-Dec Share of jobs in area of specialisation 9% 5% Production/ manufacturing/ maintenance Sales /BD Quality assurance Institutional 2% 78% AREA OF SPECIALISATION Hiring in production, quality Production/manufacturing/maintenance, with top job share, rose by over 30% Core engineering specialisation and quality assurance saw 30% rise in demand Institutional too posted 30% rise in demand; job share was 2% Material management saw 2 rise in demand in Jul-Dec 2015 Demand in operations grew by 9%; job share was negligible Share of jobs in top locations Delhi NCR 18% Bengaluru 10% Pune 9% Mumbai 9% West Bengal 8% 46% TOP LOCATIONS Hiring up in big cities Delhi NCR has maximum job share; witnessed 4% rise in demand Mumbai, Chennai and Bengaluru saw over 30% rise in demand Demand in international locations also grew by 30% in Jul-Dec 2015 Among tier II locations, Ahmedabad clocked 14% rise in demand West Bengal continued to witness increased talent demand (over 30%) Share of jobs in top functional areas FUNCTIONAL AREA Demand for core IT roles 29% 24% 10% Logistics 8% Quality control 5% IT/telecom 24% Engineers accounted for maximum job share; demand was up by over 30% Sales, logistics, quality control and IT too posted 30% rise in demand Demand for marketing professionals was up by 15% in Jul-Dec 2015 Business management, consultants saw 12% rise in demand Customer support role reported 10% rise in demand at senior level HY-I

6 Apart from the knowledge and skill required for the job, employers will give more importance to candidates with the right attitude and those who will culturally align with the organisation. CONSUMER DURABLES INTERVIEW S Ramachandran Vice President-Human Resource, CavinKare Pvt Ltd Marketing, package development will be best paid profiles Recruitment game-changers There will be a complete shift in the nature, process and skill requirement of the hiring process in More opportunities within the organisations will open up for younger people who demonstrate high performance and potential. Use of social networks has already become a favourite of recruiters. Moreover, emphasis will be laid on employee referrals, for this has become a tested method of hiring the right talent and also helps in engaging the employees. Apart from the knowledge and skill required for the job, employers will give more importance to people with the right attitude who will culturally align with the organisation. Also, the rehiring trend will pick up considering the many advantages it offers. The challenge largely is no longer about finding talent. It is about engaging them and building the kind of relationship needed to transform a passive job seeker into an active candidate. In-demand skills At all experience levels and job roles, going beyond skills, we have started looking at right behaviour. It is necessary to have right people with us who are right in attitude. There will always continue to be a demand for value creators, who are into marketing, and research professions in the FMCG sector. There has always been a demand for quality people in the packaging division. Year 2016 will see a different approach to marketing, with digital marketing, visual merchandising, advertisements and, to a major extent, packaging picking up pace. Role of technology in HR Tapping talent anywhere anytime will become a trend in HR. There is a huge demand on reducing the turnaround time in recruitment. Technology is going to enable and significantly reduce the time taken in the recruitment cycle by challenging traditional processes. Companies will adopt CRM for talent acquisition to run targeted campaigns, nurture leads and develop passive candidates. Interviewing will go virtual because even small, emerging companies will face the challenge of managing multiple teams spread across multiple locations and functions. Emerging skillsets for freshers New entrants must fundamentally have speed of execution, understand and anticipate shifts in consumer needs, have the ability to understand consumer behaviour, big data analytics, brand behaviour insights and interpretation, conceptualising and building significantly winning and differentiated products with commercial acumen. Compensation trends in 2016 A salary increment of an average 12 per cent can be expected, which can go up to 22 per cent for high performers. Marketing and packaging development will take a major pie. Thoughts are going around on the need to relook at the traditional appraisal system and replace it with the continuous evaluation process, thereby eliminating the need for the bell curve. Salary meter (average range) Junior: Rs 4 lakh per annum Middle: Rs 15 lakh per annum Senior: Rs 30 lakh per annum 6 HY-I 2016

7 HY-I

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