It’s a wrap!
With some good and not-so-good times, it is finally time to bid goodbye to an eventful year. As we prep ourselves for 2017, here’s a look at what 2016 was like for the HR domain
There are no doubts about the fact that 2016 has been a year of some path-breaking events and sharp twists and turns. The year has been productive and has also seen some downfalls. But as they say, all is well that ends well, and it is time to bid farewell to 2016. Here is a look at the top HR trends that redefined the people management function in 2016, enlisted by some experts in the field.
Summing up the year that is ending, Adarsh Mishra, CHRO Panasonic India, expresses, “The year 2016 has been productive from an HR perspective as the business climate within the industry has increased considerably. With the implementation of the 7th pay commission and a good monsoon season, we have seen the business ecosystem really expand wholesomely this year. This, in turn, augmented the recruitment process as well in the industry which also saw an increase in lateral hiring. Generally, consumer electronic companies elevate people internally to fill out the vacant positions across divisions, but with the growing competition in the market and expanding capabilities of doing business, lateral hiring was seen in full flow in 2016.
According to Mishra, some of the most relevant HR trends in 2016 were:
- Hiring through social media: Social media has become an excellent tool to drive business initiatives, they also enable HR to view over subjects which potentially couldn’t have been revealed during the course of interviews. Social media enables employers to get a glimpse of who candidates are outside the confines of a resume or cover letter.
- Risk takers: Playing it safe is no longer enough to help an employee get a job or stroll through the ladder of success in a corporation. Companies especially consumer tech companies which today function in an extremely competitive environment, now have to have a group of people with the intellectual ability and desire to take risks in crucial moments.
Naresh Sharma, managing partner, Antal International India shares his views on the growth trajectory of various industries in 2016, “India’s logistics and supply chain industry is witnessing a rapid growth in both, B2C and B2B domains. In the past year, we saw lots of e-commerce players getting their business on the growth trajectory and we have seen an increase in demand of professionals in supply chain functions. Though the sentiments in the e-commerce industry in the second half of 2016 saw a major downturn with hiring freeze by giants, there was a steady requirement by other players in the domain. Government’s ‘Make in India’ programme also is boosting sentiments in the industry and we have seen a positive traction in manufacturing including automotive. The retail sector has also seen demand picking up leading to enhanced activities in the manufacturing and distribution space.”
For Sharma, the top three HR trends of 2016 were:
- Business orientation of HR: HR is no longer considered a support function whose job is to only fill vacancies. We have seen HR getting more involved in the strategic thinking and being equal partner in planning for the future with business outlook. It was heartening to see many organisations analysing their hiring strategy as to how it impacts the business.
- Succession planning: Organisations are constantly moving towards having a succession plan in place not only for leadership roles but also for all key roles. There is greater awareness to the cost of discontinuity in important roles.
- Candidate-driven market: Organisations are increasingly realising that getting the right talent is the most important aspect of their business. They need to actively look for appropriate talent and need to realign their sourcing strategy in a candidate-driven market.
According to Thammaiah BN, managing director, Kelly Services India, start-ups that were the poster boys of recruitment in the past year went easy on volume hiring, particularly in the ecommerce sector. Most of the start-ups invested in hiring sales and marketing talent. “IT companies embraced automation in fullest measure possible this year leading to lower hiring particularly at the bottom of the pyramid. However, we are seeing continued significant demand from IT due to high levels of attrition (2 to 8 years work experience). The fall in oil prices meant banks put a squeeze on hiring. Pharma sector continued to be recession proof devoid of any impact. Traditional consumer and FMCG companies saw some talent moving to online retail.”
Thammaiah BN shares the top HR trends in 2016:
- The hiring model for fresh recruits in the IT sector changed due to the shift to non-linear growth models. Labour arbitrage has shrunk and the reputation of India started moving from IT outsourcing to analytics and product development.
- Retail, banking and healthcare sectors are increasingly offering flexi work options to women, which will lead to a significant rise in flexi staff workforce from 2.1 million to 8.5 million in the coming few years.
- With the rise of app-based companies, a gig economy on lines of US is on the rise wherein freelancers take up ‘gigs’ alongside their regular jobs or multiple gigs. Government initiatives like ‘Digital India’ will further fuel this trend. Acqui-hiring also gained traction among established technology companies and start-ups.
This article appeared in Times Ascent on Jan 18, 2017, it carries a quote by Mr. Naresh Sharma Managing Partner Antal International, Jaipur