The Impact of employment in India will be worst, worse than we would ever imagine. Yes, COVID -19 is going to leave a big impact on employment. The overall hiring sentiment in our country is likely to witness an adverse impact with 60-65 percent interviews getting delayed. Especially in the services sector, following the slowdown across industries triggered by the corona-virus pandemic. As the COVID-19 pandemic continues to grow globally, several companies are delaying hiring decisions, and in many cases, putting a complete freeze on fresh recruitments.
Sectors like banking, financial services and insurance, retail, logistics (delivery) where a lot of frontline-hiring takes place are likely to witness this delay. There are many sectors like aviation, hospitality, travel, and leisure who are among the worst-hit because of the global outbreak. Consumer, Retail and Services Sector (which includes travel, tourism, hospitality, logistics), hiring will be severely impacted. Manufacturing and other core sectors of the economy such as power, infrastructure, mining, agriculture will be very much cautious in hiring.
Sectors such as healthcare are bound to see significant uptick in the wake of the Corona-virus contagion. Hiring in e-commerce and e logistics sectors is bound to grow in the coming months despite the COVID-19. At the same time,hiring in the pharma sector, FMCG and telecom will be up in the coming months as these are the sectors that will witness growth in the coming months.
On the other hand, there could be some delays in appraisals, both from the process and cost management perspective. Organizations will wait till things go back to normal and they resume working from office before holding discussions and rolling out the appraisals. Many companies are in a cash-conservation mode and are delaying or canceling bonus payouts and increments. Moreover, In some cases, companies are asking employees to take a 30-40% pay cut in order to reduce layoffs.
While there is no single bullet to suit all types of organizations, retention of employees will be dictated based on client needs, skill requirements, and financial health of the company. The move towards contract hiring has been a trend across the various industries, but it had become more visible in the IT-ITeS sector because of the high requirements for project-based work. However, an uncertain business environment due to COVID-19 is forcing organizations to review their business and employment strategies.
The times are tough, very tough. As it can be been seen there is a kind of inflationary pressure around. As more and more good people will chase bad jobs, salaries will tumble and increments will vanish for a while. Jobs most at risk, are high salary jobs at the top of the job chain. At the same time, entry-level hiring will be postponed as far as possible.
If the current situation persists for long, there will be a possibility of projects getting delayed. If things move to the next stage, all companies will have to bear the brunt with varying degrees of impact. All companies are adopting a wait-and-watch strategy during this crisis.