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Over 15% top level managers are high cost: GlobalHunt

BS Reporter / Mumbai/ Ahmedabad July 19, 2011, 0:42 IST

With market inconsistencies and increasing wage bill eating into profits of companies, hiring of high cost professionals seem to have taken a beating. Instead, companies are keen on hiring core executives, says GlobalHunt India Pvt. Ltd., a recruitment solutions firm.

"While hiring may have picked up across sectors, at the top level, firms seem to be avoiding high cost professionals. For instance, at the top level, the industry is witnessing a trend where a professional with 15 years of experience is doing the same job as that of an eight years professional. Yet since the former is costing higher, companies are preferring lower experienced professionals at the top level since they cost less," said Sunil Goel, director, GlobalHunt.

According to Goel, companies have begun hiring people by looking "at the relevancy of their experience" at the top level. Apparently, about 5-10 per cent of personnel in the top level management in firms are high cost professionals, Goel stated. Among sectors, infrastructure, power and energy, and IT are witnessing major hiring across levels. On the other hand, hiring seems to have slowed in telecom, insurance, broking and real estate sectors, while the same is moderate in education sector.

Goel said, "Couple of quarters ago, a person had at least two offers on hand. This showed that hiring had been moderate across sectors due to lack of supply. However, now with the market synchronising and companies building a bench strength by visiting more campuses, the human resource supply has increased."

Meanwhile, as per GlobalHunt figures, attrition rate has been more or less stagnant at 15-20 per cent.

Source: http://www.business-standard.com/india/news/over-15-top-level-managershigh-cost-globalhunt/443128/