INDIAN TALEN T T MARKET

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1 INDIAN TALENT MARKET

2 TALENT IS ONE OF THE KEY DRIVERS FOR YOUR BUSINESS Know the current trends in the Talent Market in India to impact your business results! We re-entered the HR Services domain a few months ago in various cities of India, started working with companies spread over different industry sectors to find talent for them across various levels for permanent as well as temporary assignments. Soon we discovered that our clients can potentially take more informed and strategic decisions if they had an objective view of the talent market. We took it upon ourselves to research the trends and put them together in a meaningful manner for the leaders. That s how CIELWorks has taken birth. I have the pleasure of presenting the 1st edition to you. Ma Foi Analytics has put together this research. Over the last four years of its existence, it has been able to enable its clients across the globe, attract more customers and retain them longer by its analytics and research framework. 192 respondents participated in the survey, 90% of them are in strategic leadership roles and they are evenly spread across the cities of India and the industry segments. The findings tell us that most organizations can improve their leverage on technology and social media. Further, we see that Compensation and Competing Offers are the two most important factors driving talent acquisition process. We think, there are strategic interventions possible for an organization to strengthen its employer brand as a response to the market conditions. I hope, you will find this report meaningful. Look forward to your feedback at kpr@cielhr.com! K Pandia Rajan Chairman and Founder, Ma Foi Group and CIEL

3 CONTENTS EXECUTIVE SUMMARY TALENT ACQUISITION: WHAT S THE MAJOR CHALLENGE? TALENT ONBOARDING: CURRENT TRENDS EMPLOYER BRANDING: ARE WE KEEPING PACE WITH THE CHANGES? LOOKING AHEAD

4 EXECUTIVE SUMMARY Talent acquisition has evolved from a tactical backoffice process to a strategic endeavour that directly impacts organisational growth. We at Ciel HR understand how important hiring and retaining Top Talent for your organization is. In today s dynamic business environment, your acquisition strategies need to be tweaked and this is possible only if you had ready access to insights about the talent market. We surveyed 192 business executives across industry sectors in India to learn and understand the trends in talent market landscape, challenges in hiring and retaining the best talent in order to prioritise the focus areas for you to implement strategies and be better prepared for the future. THERE ARE 3 SECTIONS Onboarding, Employer Branding and finally, a few thoughts as the respondents look ahead into the future.

5 TALENT ACQUISITION For recruiters, compensation is still a hurdle in attracting the best talent Compensation and competition (multiple offers) were rated as the top challenges by executives for attracting the best talent for their company. TOP CHALLENGES IN ATTRACTING THE BEST TALENT Top challenges in attracting the best talent Compensation (Salary & Benefits) Competition (Multiple Offers) 2 Lack of awareness or interest in employer s brand 1 Unwillingness to relocate 1 Long notice period 1 34% Note: All valid responses to the question * What according to you are the top two challenges you generally face while attracting the best talent for your company? For candidates, compensation is not the only reason to take up a new job Compensation and Benefits was rated the most important motivator for taking up a new job for Entry Level candidates. For Mid-Level executives, Job Security and for Senior Level executives, Financial health of the company, Leadership and Long term vision and Designation came out to be the top motivators before selecting a new job. Entry Level Candidates % 35% 20% 10% 8% 35% 2 31% 5 Compensation and Benefits 2 10% 10% Title/ Designaton Long term vision, objectives, Leadership 10% 10% Job Security 30% 1 Financial health of the organization 1 Work Culture Not at all Important Somewhat Important Neutral Very Important Extremely Important

6 Mid-Level Candidates 0% 4% 1% 0% 1 30% 0% 0% 0% 0% 7% 0% % 47% 4 34% % 38% 38% 4 41% 3 34% Not at all Important Somewhat Important Neutral Very Important Extremely Important Compensation and Benefits Title/ Designaton Long term vision, objectives, Leadership Job Security Financial health of the organization Work Culture Senior Level Candidates 2 0% 0% 0% 1% 1% 1% 1% 5% 8% 2 5% 2 35% % 67% 28% 47% 68% 50% Not at all Important Somewhat Important Neutral Very Important Extremely Important Compensation and Benefits Title/ Designaton Long term vision, objectives, Leadership Job Security Financial health of the organization Work Culture Note: All valid responses to the question * How important are the following factors for a candidate while taking up a new job? Reasons to look out for a new job varies by level - Entry, Mid or Senior Salary and Benefits are the top factors that prompt entry level employees to look out for a new job. In case of mid-level executives, inadequate career progression is an additional reason for dissatisfaction. For senior level executives, company performance and mismatches in values (transparency, meritocracy) are the top two reasons that encourage them to look out for a new job opportunity % 5% 4% 70 15% 30% Role Clarity % Company Peformance Mismatch in values such as transparency and Meritocracy Manager Salary & Benefits Inadequate career progression Entry Level Mid-Level Senior Level Note: All valid responses to the question * Select the top factors that prompt an employee to look out for a new job opportunity?

7 ONBOARDING Recruitment firms do well for Senior Roles Job portals and company websites came out as the most effective hiring sources for entry level roles. Employee Referrals work across levels. LinkedIn works best for mid-level roles followed by recruitment firms. For senior level roles, recruitment firms are the most effective source Entry Level Roles below 4 lakhs CTC % 2 2 Entry Level Roles 4-10 lakhs CTC Mid-Level Roles lakhs CTC 1 5% 18% 2 Company Website Recruitment Firms Mid-Level Roles lakhs CTC 8% 24% 5% 27% 2 15% Facebook Linkedin Employee Referral Senior Level Roles above 50 lacs CTC 8% 3 2 8% Online Job Portals, Eg: Naukri, Monster etc. Note: All valid responses to the question * Rate effectiveness of each of the channels below; For each channel, choose the role it works the best for?

8 Onboarding Time: 120 days for Senior Level, days for Mid-Level, 45 days for Entry Level Roles When asked about the time to get a new hire on-boarded from the date of starting the search, 54% agreed that for entry level roles, the hire time is less than 30 days. 87% respondents say, it s within 45 days. 40% said that for mid-level roles the average hire time is days. For Senior Level roles, 35% said, the average hire time is days and another 3 said, it s days. Thus, an average of 120 days is a good estimate. 3 10% 0% 1% 54% Time to get a new hire 0% 5% 7% 15% 3 3 4% 2 < 30 days days days days 40% 35% days 180+ days Entry Level Roles Mid-Level Roles Senior Level Roles Note: All valid responses to the question * Please indicate the time taken to fill a position i.e. the time to get a new hire on-boarded from the date of starting the search? Percentage hike in salary - Mid and Senior Levels get the highest For entry level vacancies, salaries are largely governed by the pay structure of the employer and thus, the percentage hike offered over current salary is up to 30%. For mid and senior level vacancies, 20-30% hike is typically offered to attract candidates as stated by 51% and 3 of respondents respectively. Percentage hike offered to candidates by vacancies 28% 10% 1% 31% 24% % 10-20% 20-30% 35% 51% % More than 40% Entry Level Roles Mid-Level Roles Senior Level Roles Benefits negotiated while accepting an offer vary across levels Hike in salary is again the most important negotiation for entry level candidates. For mid-level executives, hike in salary is again the most important; Designation is the other most significant factor. Senior level executives negotiate on four factors with equal intensity - salary hike, designation, job role and variable pay. Benefits most frequently negotiated by levels 8% 7% 5% 5% 4% 67% 8% 4% 30% 41% 18% 18% 4% 1 Hike in salary Designation Work location Joining date/ time Variable pay and incentives Benefits (insurance, loans, car etc.) Overseas re- location opportunity Job role changes Entry Level Roles Mid-Level Candidates Senior Level Candidates Note: All valid responses to the question * What benefits are most frequently negotiated with a candidate?

9 EMPLOYER BRANDING Online Networks and Social media are the most effective tools in employer branding When asked about the new channels or tools most effective for propagating their employer s brand (apart from traditional channels like print ad, TV/Radio and company website, 3 of respondents said that they found online professional networks (LinkedIn, job portals) as the most effective channel to spread their employers brand, followed by 24% who mentioned social media (Facebook, Whatsapp) as the most effective channel. New channels for employer s brand promotion 1 18% 24% 3 Online Professional networks (LinkedIn, Job Portals) Social Media (Facebook, Whatsapp) Public Recognition/Awards Friends/Family,Word of mouth Others Note: All valid responses to the question * Rate effectiveness of each of the channels below; For each channel, choose the role it works the best for?

10 Nearly half the universe is yet to leverage on the power of employer branding Majority of the respondents (4) agreed to the statement that they actively promote their companies as the preferred work place on social media channels. Moreover, 47% also agreed that they keep track of latest hiring trends and tweak their strategies accordingly % % % 18% 8% Strongly Agree 47% 1 8% Agree Can t decide Disagree Strongly Disagree We actively promote our company as a preferred work place on social media channels We regularly survey new hires to understand our brand position We measure our employer brand relative to our competitors We use analytics to understand and improve our hiring practices We keep track of the latest trends in hiring and tweak our strategies accordingly Note: All valid responses to the question * Rate the extent to which you agree or disagree with the following statements? Respondent profile 28% Gender Distribution Male Female 15% 85% Industry Spread 1 5% 5% 1% BFSI Consumer Goods IT, ITES, Outsourcing Auto,Auto components, Heavy Engineering Energy,Infrastructure Chemicals, Process, Oil &Gas Pharma, Life Science, Biotech Telecom, ISP Retail, Hospitality, Entertainment, Airlines, Tourism Consulting Other Location Distribution Level in Organization Size of Organization 7% 4% 1 10% 1 Chennai Bangalore Hyderabad Mumbai Delhi.NCR Pune Kolkata Gujarat Others 7% Senior level leading a lot of strategic initiatives Mid level handling a lot 1 20% of operational aspects apart from playing a role 47% in strategic tasks Junior level leading 4 operational aspects and showing hands on leadership 1 Others <50 employees employees employees employee employees employees

11 About our Research Partner MA FOI ANALYTICS Ma Foi Analytics is a leading-edge innovator in advanced analytics solutions, serving varied clients across the globe, helping them unlock value by leveraging analytics and empowering them to embrace analytics as a way of life in their organizations. Headquartered in Bangalore and with offices in Chennai, Ma Foi Analytics is powered by a team of 50+ passionate professionals ranging from data scientists, statisticians to marketing strategists and industry experts. The company has been conceived by renowned entrepreneurs and experienced practitioners across organizations like GE, HSBC, TNS, IBM, Infosys, CapitalOne, Barclays, Genpact and Oracle. For the unique vision and pioneering work in the field, Gartner named Ma Foi Analytics, a representative vendor in the June 2015 Market Guide for Advanced Analytics Service Providers, featuring 36 of the foremost advanced analytics providers in the world.

12 ABOUT CIEL HR Ciel HR marks the return of HR visionaries to the HR Services industry, powered by technology and analytics. The Founders of Ma Foi, the pioneer of the HR services sector in India, along with some of the finest brains in the HR Services Industry have envisioned and built the firm, Ciel HR, to deliver the full range of Recruiting services from Executive Search, Recruitment Process Outsourcing and Staffing Permanent as well as Temporary roles through its offices in India and Middle East. Ciel is a French word meaning sky. For us, it s the peak of excellence that we strive to achieve as we fulfill your talent needs and meet career aspirations of candidates. Advanced data sciences and analytics have been applied by the in-house technology team to build a unique IT system for Ciel HR that helps us find the most suitable candidates in the shortest possible time.

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