Layoff – An Opportunity to Grow
By Piyush Lakhote, Sr. Manager – Human Resources
Why is this happening?
Reinventing Workforce Strategies:
In today’s rapidly digitizing world, to keep up with anticipated demand, companies were under pressure to hire more resources which led to an influx of new hires. However, as we enter a more uncertain economic climate, many companies are starting to restructure their workforce leading to job cuts. This may mean fewer job opportunities in the upcoming months. They had to tighten the budget and align themselves with the strategies for their workforces of the future
The Wipro chairman, Rishad Premji, mentioned in an Interview, ”People came for cost, stayed for quality, and now India is a true talent destination.” With the growth limitations during the pandemic, many used this time to move ahead and look for a new position. As per the indeed hiring tracker for Q4, the salary was the second most crucial factor per 85% of the job seekers, with nearly 53% considering it to be the most important. With the abundance of market positions, talents grabbed it as an opportunity and moved on with good hikes
Layoffs vs a talent gap:
This is an odd conflict, around 75% of businesses in India need help finding the talent they require, which is a 16-year high. Hiring should get more accessible, given the skills availability, even with the market’s current layoffs. However, new positions are being focused on hiring quality over quantity. This is important with a talent shortage of 84% across the IT and Technology segment. Cross-training and reskilling might push for results
Due to cost constraints and focus on growth, we have also seen the emergence of a few emerging locations. Locations like Ahmedabad, Vadodara, Jaipur, and Coimbatore have seen a rise in opportunities. Start-ups in these areas have been driving hiring in these cities. With government’s ‘Make in India’ campaign, we have seen many start-ups emerging in areas of Aerospace, engineering, and others
An Opportunity to Grow: what future holds?As rightly said by Bryant McGill – whatever makes us uncomfortable is a significant opportunity to grow. Of course, a slowing global economy poses risks. The International Monetary Fund (IMF) warns that a third of the world economy may face a recession in 2023. With a large global economy exposure, India cannot be insulated. The export-import (Exim) data already indicate trade moderation. Still, a resilient domestic economy, led by manufacturing and demand from urban centers, should keep growth hopes alive for everyone. After the challenging past few months, the future holds wonderful things for the right talent. The opportunity to differentiate is more available in this environment. So, this presents an opportunity for employees to reskill and relaunch. Focus on Digital Transformation, AI/ML, Blockchain, and IoT will continue to be there, and newer enterprise platforms like Salesforce.com, ServiceNow, and Freshworks will find greater adoption.
Overall hiring outlook in India is improving again as per the recent trends. As per the report from Business Standard while optimizing was also a reason to see the down in hiring, but it will surely improve.