As many as 93% companies in India are looking to hire internally for vacancies, according to a study by professional networking and job search firm LinkedIn, with an almost equal number merging roles to reduce talent acquisition costs.
The inaugural Future of Talent study conducted across 3,500 respondents in January 2021 includes HR personnel, senior-level hiring managers and top management from 500 Indian companies.
The findings come at a time when companies are looking to optimise costs but keep businesses functioning after a year of wreckage across sectors due to the coronavirus pandemic that has left the workforce burned out.
“In 2021, India will see more companies merge roles, upskill their employees, and hire internally to maximise business growth without expanding operational costs,” said LinkedIn’s India director (talent and learning solutions) Ruchee Anand.
ALSO READ: HR challenge! Justifying expenditure on reskilling employees
Data-led hiring practices will also play a critical role in helping companies engage with their employees, attract the right talent, and hire more effectively in 2021, she added.
The Microsoft-owned company’s report shows that 7 in 10 companies in India hire internally to gain an insider’s perspective or a sense of progress. The benefits of reduced costs and increased speed in on-boarding an internal hire make it a preferred choice for HRs. For employees, too, a change of role can be rewarding as it allows them a chance to enhance their skills, develop new interests, and gain a more holistic understanding of the organisation, the report said.
The report also states that when hiring internally, the top three skills that companies in India look for are good communication, problem solving skills, and time management.
Further, in 2020, the rate of attrition increased 1.5 times in India as employees battled long shifts while working remotely, the study said. As remote work continues to be a big trend, the study found that 85 per cent of companies in India are already holding more engagement activities to keep employees inspired and connected with their teams despite working in isolation.
ALSO READ: Flipkart ties up with Adani Logistics to boost supply chain; Adani promises ‘thousands of new jobs’
The past year saw employees battle burnout, Zoom fatigue, disappearing boundaries between work and life, an increased burden of household chores, extended periods without social connection along with the fear of job loss.
LinkedIn commissioned independent market research firm, GfK, to conduct this research across the Asia Pacific region including Australia, China, India, Japan, Malaysia, Philippines and Singapore. A quantitative 20-minute online survey was conducted with over 3,500 respondents from small, medium and large enterprises across software and IT services, corporate services, manufacturing, consumer goods, construction, finance, education, retail, healthcare, transportation and logistics, agriculture, recreation and travel, public administration, and hardware and networking.
ALSO READ: MUDRA Yojana created 1.12 cr jobs in 3 years; loans worth Rs 14.9 lakh cr disbursed: FinMin