INDIAN TALENT MARKET

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

CONTENTS

EXECUTIVE SUMMARY

TALENT ACQUISITION:

WHAT’S THE MAJOR

CHALLENGE?

EMPLOYER BRANDING: ARE

WE KEEPING PACE WITH THE

CHANGES?

TALENT ONBOARDING:

CURRENT TRENDS

LOOKING AHEAD

EXECUTIVE SUMMARY

Talent acquisition has evolved from a tactical back-office 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.

TOP CHALLENGES IN

ATTRACTING THE BEST TALENT

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

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.

34%

22%

Compensation (Salary & Benefits)

Competition (Multiple Offers)

Lack of awareness or interest in employer’s brand

Unwillingness to relocate

Long notice period

16%

12%

13%

TALENT ACQUISITION

Entry Level Candidates6%

17%20%

20% 10% 8%13%

33%35%

35%29%

17%11%

22%25%

25%

30%

31%13%

17%10%

10%

16%

19%56%

Compensation and Benefits

Title/ Designaton

Long term vision, objectives, Leadership

Job Security

Financial health of the organization

Work Culture

11% 10%

10%14%

25%

Not at all Important

Somewhat Important

Neutral

Very Important

Extremely Important

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.

Note: All valid responses to the question *“Select the top factors that prompt an employee to look out for a new job opportunity?”

Note: All valid responses to the question *“How important are the following factors for a candidate while taking up a new job?”

Senior Level Candidates

9%3%

23%

32%

33%

6%

3%

5%

11%

30%

25%

3%

9%

14%

0%

4%2%

6%

32%

15%

32%

31%23%

Entry Level Mid-Level Senior Level

10

20

30

40

50

60

70

80

90

100

0%2% 0% 0% 1% 1%6% 3%

3% 1% 1%

29%

5%

5%8% 14%

25%

28%

22% 35%

64% 67%

47%

68% 50%

Mid-Level Candidates0%

1% 0% 0% 0% 0%4% 0% 7% 2% 3% 0%16% 30%

46%

19% 26% 20%

47%43%

33%

38% 38% 46%

34% 26%15%

41% 33% 34%

Compensation and Benefits

Compensation and Benefits

Title/ Designaton

Title/ Designaton

Long term vision, objectives, Leadership

Long term vision, objectives, Leadership

Job Security

Job Security

Financial health of the organization

Financial health of the organization

Work Culture

Work Culture

Not at all Important

Not at all Important

Somewhat Important

Somewhat Important

Neutral

Neutral

Very Important

Very Important

Extremely Important

Extremely Important

Role Clarity

Company Peformance

Mismatch in values such as transparency and Meritocracy

Manager

Salary & Benefits

Inadequate career progression

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.

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?”

22%

0 50 100 150 200 250 300 350 400 450

17%

13%

17%

15%

12%

6%

13%

23%

19%

22%

22%

Company Website

Entry Level Roles below 4 lakhs CTC

Entry Level Roles 4 -10 lakhs CTC

Mid-Level Roles 10-25 lakhs CTC

Mid-Level Roles 25-50 lakhs CTC

Senior Level Roles above 50 lacs CTC

Recruitment Firms

Facebook

Linkedin

Employee Referral

Online Job Portals, Eg: Naukri, Monster etc.

11%

8%

8%

19%

24%

36%

5%

5%

3%

25%

27%

25%

18%

22%

22%

23%

15%

8%

ONBOARDING

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 33% of respondents respectively.

Percentage hike offered to candidates by vacancies

Benefits most frequently negotiated by levels

Entry Level Roles

Entry Level Roles

Entry Level Roles Mid-Level Candidates Senior Level Candidates

Mid-Level Roles

Mid-Level Roles

Senior 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?”

Note: All valid responses to the question *“What benefits are most frequently negotiated with a candidate?”

Onboarding Time: 120 days for Senior Level, 45-60 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 45-60 days. For Senior Level roles, 35% said, the average hire time is 60-90 days and another 32% said, it’s 90-180 days. Thus, an average of 120 days is a good estimate.

Time to get a new hire

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.

< 30 days

30-45 days

45-60 days

60-90 days

90-180 days

180+ days

0-10%

10-20%

20-30%

30-40%

More than 40%

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

16%

2%4%

17%

14%

9%

18% 18%

41%

30%

2%

6%

8%

3%6% 4%

67%

7%

8%

5%

4%5%2% 2%

33%

26%

6%11%

24%

6%31%

51%

14%3%1%

25%

35%

28%

10%2%

23%

35%

32%

3%4%

3%

33%

40%

15%

5% 7%

0%

54%33%

10%

1%2%

0%

New channels for employer’s brand promotion

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?”

EMPLOYER BRANDINGOnline 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, 39% 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.

Online Professional networks (LinkedIn, Job Portals)

Social Media (Facebook, Whatsapp)

Public Recognition/Awards

Friends/Family,Word of mouth

Others

39%

18%3%

16%

24%

Note: All valid responses to the question *“Rate the extent to which you agree or disagree with the following statements?”

Nearly half the universe is yet to leverage on the power of employer branding

Majority of the respondents (4 9 % ) a g re e d to t h e

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.

Respondent profile

We actively promote ourcompany as a preferred

work place on social media channels

Gender Distribution Industry Spread

Location Distribution Level in Organization Size of Organization

Female

Male

We keeps track of the latest trends in hiring and

tweaks our strategies accordingly

We use analytics to understand and improve our hiring

practices

We measure our employer brand relative

to our competitors

We regularly survey new hires to understand

our brand position

6%16%

18%

49%

0

20

4060

80

100

120

140

160

180

11%

9%

19%

20%

42%

11%

8%18%

17%

41%

16%

9%

23%

19%

39%

11%

8%14%16%

47%

14% Strongly Disagree

Disagree

Can’t decide

Agree

Strongly Agree

85%

9%

17%

12%

2% 2%1%

3%5% 5%

28%

17%

15%

ChennaiBangaloreHyderabadMumbaiDelhi.NCRPuneKolkataGujaratOthers

Senior level leading a lot of strategic initiatives

<50 employees

50-100 employees

100-500 employees

500-1000 employee

1000-5000 employees

5000+ employees

BFSIConsumer GoodsIT, ITES, OutsourcingAuto,Auto components, Heavy EngineeringEnergy,InfrastructureChemicals, Process, Oil &GasPharma, Life Science, BiotechTelecom, ISPRetail, Hospitality, Entertainment, Airlines, TourismConsultingOther

Mid level handling a lot of operational aspects apart from playing a role in strategic tasks

Junior level leading operational aspects and showing hands on leadership

Others

19%

25%

6%10%

13%

4%2%

7%

14%

47%

43%

7% 3%20%

9%

19%14%

25%

13%

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.

www.mafoianalytics.com

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.

www.cielhr.com

ABOUT CIEL HR