The positive economic sentiment in India could help employment scenario in India move up and, according to a survey, the country could see the highest rise in hiring process this year among Asia-Australia region.
A majority (83 per cent) of Indian executives expect their companies to hire more employees and 52 per cent of respondents expect employment to grow by over 10 per cent, the ninth annual Global Business and Spending Monitor survey conducted by American Express in partnership with CFO Research has found.
"Sustained high level of optimism towards growth will see India as a bright spot for hiring as companies get ready to add to the government's initiative towards improving job-oriented skills in the country," American Express Global Corporate Payments Country Business Head Saru Kaushal said.
The survey, based on the opinion of senior finance and corporate executives from large companies around the world, said that globally financial executives expect their companies' headcount to increase by 9 per cent on an average in 2016, largely owing to decent rise in recruitments by companies in the US, Mexico, and India (13 per cent each).
Going forward, however, a talent crunch is expected to affect the recruitment drive of Indian companies, the survey has found.
"Seven out of 10 Indian executives polled that their companies' performance goal has been impeded by inability to hire requisite positions in sales and marketing," the report said, adding that 60 per cent of respondents say their companies have been affected by difficulty in hiring more skilled and specialised workers.
Moreover, half of the respondents find it difficult to fill positions for IT staff, administration and support staff and offshore or outsourced positions.
Also, around 60 per cent of Indian executives surveyed expect to raise wages or salaries in order to attract or retain employees, while 53 per cent would be looking at improving the working environment and rotate key employees through different functions or departments in order to retain them.
"From improving working environment to rotating employees through various departments, companies are planning to introduce measures in this direction and trying to keep their attrition rates at the lowest levels," Kaushal said.