The financial services industry is witnessing an upswing in employment patterns, with the percentage of employers looking for an increase in incremental new hiring reaching 79 per cent and for replacement positions, which is at 70 per cent.
Between 2012 and 2022, India’s employment rate averaged 44.25 per cent. The Post-Covid effect, employment rate in India increased to 45.20 per cent in Q4 2022-23 compared to 44.70 per cent in Q3 2022-23. There is a positive outlook for the financial services industry as a whole, while banks, NBFCs, and Fintechs show steady momentum in hiring, revealed a latest report by TeamLease.
Interestingly, while new-hiring is likely to be robust (at 79 per cent), replacement hiring is happening at a rapid pace (74 per cent) as well, implying a flourishing employment landscape.
The data suggests an increased demand for growth specialists, technical workers, and healthcare professionals in India for 2023. Within BFSI, functional areas that will lead hiring is human resources with incremental new hiring at 15.7 per cent, closely followed by Office Services at 14.9 per cent and Information Technology at 14.7 per cent.
The report further added that with technological advancements and the governments’ efforts towards a Digital India, demand for technology roles in non-technical organisations is booming, especially in the Construction, Retail, and Hospitality industries. Overall, a cheerful mood persists across the Indian hiring landscape.
City-wise employment trends
In terms of recruitment preferences, Kolkata is the most desirable location for BFSI companies in H2, with an additional staff increase expressed by 11 per cent of employers, surpassing both Mumbai and Hyderabad, which have 9.3 per cent, the report highlighted.
With 13 per cent for new hires, Mumbai and Kolkata top the way in incremental replacement recruiting. Delhi, Hyderabad, and Indore are next, at 8.7 per cent. Additionally, for incremental new hires, BFSI firms are focusing on Kolkata, where the rate is 11.5 per cent, followed by Hyderabad and Mumbai at 9.6 per cent.
Substantial workforce amplification is on the horizon in metros like Chennai (83 per cent), Mumbai (82 per cent), and Hyderabad (79 per cent). It is likely driven by the diverse economic activities in these areas, including IT, finance, and manufacturing sectors, all undergoing growth phases that necessitate an increase in the workforce.
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