Since the start of the Covid-19 pandemic, the HR industry has witnessed a paradigm shift like never before. From tectonic technological transformations to radical shifts in work arrangements to an ever-changing job market, the HR industry has undergone a sea change. The industry is emerging from the throes of a freeze in hiring, leave and layoffs in the past quarter and will witness optimism about hiring not seen since the start of the pandemic.
According to the ManpowerGroup Employment Outlook Survey, the hiring outlook for the third quarter of 2022 is expected to hit an 8-year high amid a 16-year shortage of high-level talent. As organizations rush to describe the post-pandemic recovery, sectors other than IT are also showing strong hiring intent. Following the lead of the IT and technology sectors, the banking, financial, insurance and real estate sectors hope to see a major recovery in hiring. The hiring prospects in India shine the best at 51 percent, ahead only by Mexico and Brazil.
The Great Recruiting Recovery
As the ‘great layoff’ paves the way for great hires, countries and industries around the world are embarking on their recovery from the pandemic. Despite hiring challenges in the previous quarter, such as hiring freezes, days off and layoffs, the HR industry is gearing up for an increase in hiring. According to the ManpowerGroup survey, 63 percent of 3,080 employers plan to hire more in the coming quarter, 24 percent are expected to keep their workforce stable and only 12 percent will witness a decline in hiring intent. As a result, the difference between organizations looking to hire and those expecting a decline in hiring is 51 percent.
Impact on the Indian labor market
As India braces itself to overcome the pandemic woes, the country’s thriving IT industry will be a springboard for economic recovery. In addition to the IT sector, technology, telecommunications, media, restaurants and hotels, education and healthcare will also intensify their recruitment. In addition to stronger hiring, employers in these sectors are also expected to post pay increases. With the allocation of Rs 283.5 crores for the Startup India Seed Fund Scheme (SIFS), the Indian startup ecosystem will also roll out a slew of youth employment opportunities.
Trends Driving Transformation
While the trends driving this transformation in the HR industry are not new, they have developed a newfound urgency. According to the World Economic Forum, the case for AI job relocation remains strong, but will likely be offset by the 97 million new features planned. With huge technological advancements, new roles and skills are constantly being created, leading to an increased need for staffing and retraining. Due to pandemic-accelerated digitization, 1 in 5 organizations struggle to find skilled technical talent, leading to a global talent shortage.
The global deterrent to talent shortage
The worst global talent shortage in 16 years is quelling unprecedented hiring optimism. The huge technological advancements are creating new roles and skills every day, but also shrinking the eligible talent pool. According to the survey, every three in four employers report that it will be difficult to find the talent they need in 2022. This difficulty in filling open positions is exacerbated by shifts in demographics, such as declining birth rates and early retirements. As talent becomes scarcer, countries such as Taiwan, Portugal, Singapore, China, Hong Kong and India are experiencing the greatest impact.
Most in-demand roles and skills
The most sought after occupations that employers worldwide covet are IT and data, sales and marketing, operations and logistics, manufacturing and manufacturing and customer centricity and front office. Organizations with the most in-demand talent also have the future. As digital roles and skills become more relevant to organizations worldwide every day, human skills once again transcend them. The most sought-after soft skills are reliability and self-discipline, resilience and adaptability, reasoning and problem-solving, creativity and originality, and creative thinking and analysis.
As the world recovers from the pandemic, industries and organizations are collectively scaling up, unleashing disruptive ideas and fostering fruitful collaborations around the world. Now is the time for the HR industry to create a brighter and brighter future of work characterized by skilled and diverse employees and wellbeing-oriented employers.
— Written by Yogita Tulsiani, MD & Co-Founder, iXceed Solutions (Global Tech-Recruiter Provider)
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