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HY-II 2016 29

HALF-YEARLY RECRUITMENT REPORT-II

TREADING on a guarded path, the Indian consumer durables/FMCG sector witnessed stable hiring during Jan-Jun 2016, similar to Jul-Dec 2015 trend. In May and Jun 2016, the industry posted 4 per cent

rise. However, the double-digit drop in Apr 2016 coupled with sluggish hiring momentum in Jan and Mar hampered the pace of hiring in this sector. India is expected to become the fifth largest consumer durables market in the world by 2025. The Indian consumer sector has grown at an annual rate of 5.7 per cent from FY2005-15. Annual growth in the Indian consumption market is estimated to be 6.7 per cent during FY2015-20 and 7.1 per cent during FY2021-25, says a report by India Brand Equity Foundation. The report also reveals India is expected to witness increased consumer spending reaching USD 3.6 trillion by 2020. Consequently, the industry will benefit from the rising disposable incomes. The salary raise post-appraisals and seventh pay commission recommendations is also expected to boost the prospects of the sector in coming months, believe industry experts.

Middle level professionals most sought across key functions

Market average and demand

100.0

92.5

85.0

77.5

70.0

83

84

Jan 16 Jun 16

Market Average

Demand

n Sales specialisations sought across experience levels; demand fell only for senior level profiles

n Significant rise in demand for business management, consultants at junior and middle level

n Middle level professionals most sought-after, across most key roles and specialisations

n Relationship management, purchasing/sourcing, R&D and import/export skills in high demand

n Job share dropped in metros for mid and senior level; global locations had demand for mid level roles

KEY TAKEAWAYS

CONSUMER DURABLES/FMCG

83

79

HY-II 201630


n FMCG sales claimed maximum job share; demand rose by over 30%

n Retail sales saw 25% rise in demand; job share was 2%

n Channel sales saw 22% rise in demand in Jan-Jun 2016

n Supply chain management witnessed 20% rise in demand

n Production/manufacturing/maintenance posted 10% drop in demand

n With maximum job share, sales/BD posted stable demand in Jan-Jun 2016

n Demand for business management profile grew by 7% in Jan-Jun 2016

n Engineers with second-highest job share saw 1% drop in demand

n Demand for logistics professionals was stable; grew by 12% in Jul-Dec 2015

n Marketing profile saw 1% rise; demand fell by 2% in Jul-Dec 2015

n FUNCTIONAL AREAHiring for business management

n Delhi-NCR had maximum entry level job share, demand was stable

n Lucknow posted maximum (20%) rise in demand in Jan-Jun 2016

n Ahmedabad posted 4% rise in demand; job share was 4%

n Among states, Karnataka reported maximum (16%) rise in demand

n Mumbai posted a drop of 1% in demand; was up by 4% in Jul-Dec 2015

n TOP LOCATIONSTier II locations seek freshers

Share of jobs in top locations

Delhi-NCR

Mumbai

Bengaluru

Pune

Chennai

Others

20%

14%

8%

7%

4%

47%

n AREA OF SPECIALISATIONDemand up for sales specialisations

Share of jobs in area of specialisation

6%

FMCG Sales

Channel Sales

Corporate Sales

Retail Sales

Production/Manufacturing/

Maintenance

Others

4%3%

2%32

83%

Share of jobs in top functional areas

8% Marketing

8% Accounting

7% Administration

29% Others

35% Sales/BD

13% Engineering

SALES professionals clocked in maximum job share at entry level in the consumer durables/FMCG sector. Sales specialisations posted significant rise in demand at entry level during Jan-Jun 2016.

Production, manufacturing and maintenance specialists who were in demand in 2015 posted drop during this time. Demand was also there for accounting & finance, banking, insurance, financial services, business management and purchasing/sourcing functions. Demand for IT/telecom and logistics, supply chain professionals stabilised in Jan-Jun 2016. Together, metros such as Delhi-NCR, Bengaluru, Mumbai and Chennai accounted for nearly 45 per cent of entry level jobs. Small cities emerged as most active locations for hiring of entry level professionals. North-Eastern states too witnessed significant rise in entry-level talent demand.

JUNIOR LEVEL[ CONSUMER DURABLES/FMCG ]

There is great demand for skills like key account management, project management and project sales especially in professional trade/B2B space. For R&D, there is demand for skills like embedded control, Cloud, Big Data, data scientists and App development.

Kiran Brar,CHRO, Philips Lighting India

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n With most mid-level jobs, channel sales saw 10% rise in demand

n FMCG and corporate sales posted over 30% rise in demand

n Demand up by 30% in retail sales, production/manufacturing/maintenance

n Demand for software engineers and IT saw 8% rise in Jan-Jun 2016

n Relationship management posted 5% rise in demand; job share negligible

n Sales claimed highest job share, saw over 30% rise in demand

n Marketing and logistics professionals too posted over 30% rise in demand

n Demand for engineers grew by 17% at middle level; job share was 1%

n IT, customer support and HR professionals saw 30% rise in demand

n Business management, consultants saw 30% rise; up by 9% in Jul-Dec 2015

n FUNCTIONAL AREAKey functions report rise

n Despite decline in job share, metros posted over 30% rise in demand

n International locations had maximum job share, over 30% rise in demand

n Delhi-NCR, only metro to report drop (6%) in demand in Jan-Jun 2016

n Hyderabad with 2% job share also posted over 30% rise in demand

n Pune and Ahmedabad saw 30% rise in demand in Jan-Jun 2016

n TOP LOCATIONSDemand rise in metros

n AREA OF SPECIALISATIONMost jobs in FMCG sales


9%

Channel Sales

Retail Sales

FMCG Sales

Corporate Sales

Sales/BD

Others

5%5%

4%3%

74%


7% Hospitality

4% BFSI

3% IT/Telecom

64% Others

12% Sales/BD

10% Engineering

S IMILAR to the trend in Jul-Dec 2015, talent demand surged across core and support function areas at the middle level in Jan-Jun 2016. These included sales, engineering, logistics, marketing, HR and IT.

Quality control, accounting and business management roles also reported significant rise in demand at middle level in the consumer durables/FMCG sector. Like the trend at junior level, sales specialisations saw increased demand for talent at middle level also. Hiring continued to rise for software engineers and relationship management roles. Metros posted increased hiring activity. Except Delhi-NCR, all other metros witnessed rise in hiring at middle level during Jan-Jun 2016. However, the job share declined in these locations. International locations grabbed maximum job share and posted considerable rise in demand as well.

MIDDLE LEVEL[ CONSUMER DURABLES/FMCG ]

The FMCG industry has nominal growth. While the typical increase in fixed salary

is an average of 10.5 %, focus on variable pay will increase. This will be done to balance ideal remuneration scenario.

Anjali Sachdeva,Head - Human Resources, Groupe SEB India (P) Ltd.

(Maharaja Whiteline)


International

Chennai

Bengaluru

Pune

Lucknow

Others

28%

4%

3%

3%

3%

59%

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n Sales/business development roles clocked max job share; demand fell by 10%

n Production/manufacturing/maintenance saw over 30% rise in demand

n Channel sales too posted 30% rise in demand; job share was negligible

n Institutional sales saw 20% rise in demand; job share was 2%

n Demand in operations dropped by 5%; grew by 9% in Jul-Dec 2015

n Electronics engineers had maximum job share; demand was up by over 30%

n Legal/law professionals too posted 30% rise in demand in Jan-Jun 2016

n Demand for export/import function was up by 10% at senior level

n Business management posted 30% drop; grew by 12% in Jul-Dec 2015

n Customer support role dipped by 20%; demand rose by 10% in Jul-Dec 2015

n FUNCTIONAL AREADemand for support roles

n International locations with max job share saw over 30% rise in demand

n Mumbai, Chennai, Bengaluru saw 30% drop; up by 30% in Jul-Dec 2015

n Delhi-NCR posted 20% drop in demand; up by 4% in Jul-Dec 2015

n Among Tier II locations, Chandigarh clocked over 30% rise in demand

n West Bengal continued to witness increased talent demand (over 30%)

n TOP LOCATIONSMost jobs in international locations


International

Madhya Pradesh

Gujarat

Karnataka

Chandigarh

Others

10%

5%

4%

3%

2%

76%

n AREA OF SPECIALISATIONHiring up in production


9%

Sales /BD

Engineering

Production/Manufacturing/

Maintenance

Quality Assurance

Institutional Sales

Others

5%3%

3%2%

78%


3% Export/Import

1% Cust. Service

1% HR/PM/IR/TD

87% Others

5% Electronics3% Business Mgt.

UNLIKE Jul-Dec 2015, demand for senior-level professionals dropped across top functions and locations. Senior jobs claimed 30 per cent share, demand was sluggish for most key functions

and specialisations. With most jobs at senior level, demand also grew for electronic engineers in Jan-Jun 2016. Content, export/import and legal/law professionals reported rise in demand. Logistics, supply chain, IT and quality assurance roles which saw heightened demand during Jul-Dec 2015, posted a drop in Jan-Jun 2016. Demand for production/manufacturing/maintenance reported maximum growth, followed by channel sales specialists. Engineering and quality assurance specialisations also recorded growth in demand, similar to the scenario in the second half of 2015. International locations claimed maximum job share.

SENIOR LEVEL[ CONSUMER DURABLES/FMCG ]

We will look for only those who have hunger to learn, unlearn and relearn, besides the technical expertise. Being innovative, enterprising and leader are some traits that shall be the key differentiators during hiring.

Satyendra Malik,Head HR, Intex Technologies

*Except Ahmedabad and Vadodara

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Companies will focus on retaining critical talent and drive sharper differentiation in terms of reward programs and payouts which may be in the range of 1.7x to 2x for top performers”

Game changern Building and communicating a strong employer brand: This unique offering needs to be communicated not just during the hiring stage but broadcasted to the talent market to get people excited about your organisation. n Social media: This is becoming an important source to hire and understand talent better. This is also influencing the employment models with traditional employment contracts giving way to flexible, assignment-based employment models. n Analytics: Recruitment analytics is moving away from focusing on process efficiencies to predictive analytics such as forecasting the talent needs and identifying the best talent sources. n Mobile-based technology solutions: Increasing access and user acceptance would enable a lot of mobile based recruiting tools to enhance the speed, flexibility and overall recruitment experience.

Skills in demandThe FMCG sector will see a rise in demand for roles in digital marketing, innovation, R&D, business management, information technology, sales and procurement. At entry level, the skills which will be relevant are IT, communication and strong domain understanding. At mid and senior levels, niche skills in R&D, digital marketing, data analytics, supply chain, IT and analytics will help business performance. In terms of functional requirements, ability to influence others, high focus on execution and adherence to organisations’ objectives will be important.

Role of technology in HRToday, an employee’s life cycle within an organisation - from recruitment, on-boarding, performance management, learning and development, payroll, etc. - are fueled by technology. Integrated technology enabled talent management suites are providing HR and the organisation’s leadership team a holistic view of their talent; all of which is facilitating faster and more informed workforce decision making.

Compensation trendsThe consumer products sector has been one of the top sectors for salary increase in the past and will continue to be so in 2016. However, niche skills will be in demand and command premium in the consumer durables/FMCG industry. Based on various talent segments and their performance, companies will focus on engagement and retention of critical talent and drive sharper differentiation in terms of reward programs and payouts which are expected to be in the range of 1.7x to 2x for the top performers as compared to average performers. This trend will be relevant for all levels of management.

Emerging skillsn Market research and data analytics n Social media managers n IT and enterprise system skills

Future outlookWith the global expansion of Indian FMCG companies, especially in the emerging markets, the demand for local talent will increase in times ahead. The hiring requirements over a long term in the consumer durables/FMCG sector will grow steadily as the average disposable income increases and consumption moves to FMCG goods in emerging economies.

Consumer products sector to be on top for salary hikes; driven by technology

CONSUMER DURABLES/FMCG INTERVIEW Ashutosh Telang Chief Human Resource Officer (CHRO), Marico Limited

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