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Business News/ Economy / The Great Resignation is over; here comes caution and stability
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The Great Resignation is over; here comes caution and stability

The coming year will see a big rise in gig economy as even the skilled workforce prefers to work for few hours a week

The coming year is expected to be one of consolidation where hiring will stabilize. Premium
The coming year is expected to be one of consolidation where hiring will stabilize.

Mumbai: Indian companies’ ability to manage people has been tested this year by a series of unpredictable events. The halt on hiring frenzy, the push to get workforce back to office, the overhauling of HR policies to make way for gig workforce and looking at moonlighting in a different light has made the largest firms across sectors rethink their workforce strategies.

“Considering the multi-generational workforce, purpose and flexibility at work will be hygiene factors for attracting talent," said C. Jayakumar, executive vice president and head-corporate HR for Larsen & Toubro Ltd.

Jayakumar expects that hybrid work will continue to stay and employee experience and “employee well-being will have renewed focus".

The coming year is expected to be one of consolidation where hiring will stabilize, the concept of hybrid workspace will tilt with more employees in their offices and retention policies will mean more training courses and benefits than cash in hand.

“2023 will be a year of opportunities and the demand for talent will not slow down but the Great Resignation will not happen," said Alok Kumar, senior director global sales of recruitment firm Manpower.

“Great Resignation" was the term given to describe employees switching employers in large numbers amid a flurry of offers and counter offers as companies went on a hiring frenzy after two years of covid-induced lull. However, after the first half of the year, balance sheets became stretched, inflow of global funds dried up and corporates realized they had overhired.

This will turn companies “cautious" in their recruitment in the coming year, Kumar said. He expects India to become a talent hub for the European market, which is facing a “manpower crunch", as recruiters are receiving queries from European markets for Indian talent.

While sectors such as IT, IT-enabled services, startups are relooking their hiring plans, automobile, manufacturing and retail will drive manpower demand on the back of a revival in consumer consumption.

“Focus will be on talent development and career cushioning where employees are trained to deal with swift changes in technology at the workplace. Companies will offer higher variable bonus, stock options during salary negotiations," said Aditya Narayan Mishra, chief executive at Ciel HR Services.

The coming year will see the formidable rise in gig economy as even the skilled workforce prefers to work for few hours a week.

Sumit Sabharwal, CEO, TeamLease HRtech Ltd estimates corporates to adopt human capital management platforms that will have work suites and payroll suites to manage gig workers as conveniently as full-time workers.

The result: More people can log in remotely but only certain profiles will be allowed that flexibility.

While 2022 saw polar opposite trends like quiet quitting versus hustle culture; 2023 is expected to be a stabilizer where focus will be on keeping teams lean, upskilling them and retaining via stock options, retention bonus and clawbacks in senior posts.

“With the dynamic global scenario, leadership talent acquisition and mobilization of skilled workforce will take centre stage. Organizations must continue to focus on reskilling and multi-skilling their talent," said Jayakumar at L&T.

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ABOUT THE AUTHOR
Devina Sengupta
Devina tracks and writes on workplaces, human resources and education for Mint. She also occaisionally writes an opinion column. She hosts a podcast on interesting HR trends in corporate India called The Working Life.
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Published: 27 Dec 2022, 10:21 PM IST
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