Chennai: With companies adopting cost cutting measures in the wake of the economic downturn, the next three to six months are expected to be a tough period for private sector companies, according to a top official of a HR service provider.
“The next three to five months will be a more tough period for companies in terms of recruitment”, managing director of leading HR service provider Ma Foi Group and Randstad India, K Pandiarajan said, expressing fears that the number of stimulus packages announced by the Centre may ‘vanish’ post the coming Lok Sabha polls.
Participating in a colloquium here on Tuesday night on HR trends, global employment environment and the impact of current economic crisis on the Indian job market, he said “there is going to be further dip in recruitment in the organised private sector in the country”.
“The salary hikes given to employees by private companies are also going to be affected” he said that a Ma Foi survey had found that the estimated a 8.8% increase in salary hike was expected to come down by 4% this year.
On the number of people going abroad for placements, Pandiarajan said 5.26 lakh people had left overseas for work (in 2007), a figure which would further decline this year.
He said graduates from colleges should be more employable and that the skill development initiative adopted by the Centre should also be focused now. In Tamil Nadu alone,30% of engineering graduates (about 53,000) are unemployed due to the recession.
“This is of serious concern and more focus should be on the candidates becoming employable” he said.
Randstad Holding CEO and chairman Ben Noteboom said there are ‘contradictory’ trends in India as many companies were adopting cost cutting measures.
Randstad Holding executive board member Brian Wilkinson said that revenue of companies has also been ‘dramatically falling’ due to the recession.