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Talent shortage, candidates’ demands delay hiring closures: Mint+Shine study
Summary
- A Mint+Shine study found that more than 77% of the employers and recruiters surveyed found it difficult or very difficult to close positions in the September quarter.
MUMBAI , NEW DELHI : A muted job market does not mean employers have it easy. The talent supply gap, candidates testing the market, a high dropout rate, and push for cost efficiency are forcing companies to take time to close their permanent hiring mandates.
A Mint+Shine study found that more than 77% of the employers and recruiters surveyed found it difficult or very difficult to close positions in the September quarter.
"A few hurdles in recruiting are talent shortage, high competition for the right talent, changing workforce preferences, evolving job roles, lengthy hiring processes, geographical constraints, etc.," found the study titled Mint + Shine Talent Insights Report.
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The study looked at the responses of 2,599 job seekers and human resources (HR) professionals, including HR heads, talent acquisition heads, and recruiters.
Top recruitment challenges
The study revealed that 39% feel the top challenge an organization faces in recruiting new talent is ‘high salary demand from qualified candidates’. One-third of respondents said there was a ‘shortage of candidates with the right skills'.
Besides, full-time qualified candidates increasingly expect additional perks like flexible work hours, career growth, and work-life balance, along with high salary demands.
"Today's candidates seek more than just a job—they want a role that aligns with their values, offers flexibility, and supports continuous growth. With expectations for work-life balance, advanced tech environments, and meaningful work, sticking to traditional models may leave even the biggest of organizations struggling to attract top talent," said Shirin Sehgal, chief people officer, PwC India.
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The consulting and audit firm highlighted that a "strategic approach to hiring" includes emphasizing opportunities in digital upskilling and developmental programmes as the "pull factor".
Ironically, the challenges in getting employees back to work have also pushed many IT firms to include office attendance as a parameter in their appraisal cycles.
“As organizations face talent shortages, the focus on employee retention and upskilling has intensified. Clear performance metrics and growth opportunities are becoming essential in attracting and keeping top talent in a competitive job market," said Akhil Gupta, chief executive, Shine.com.
Metros back to being job centres
The study highlighted that most hiring is now in the metros due to the larger skilled talent pool, better infrastructure compared to non-metros, and the concentration of employer organizations. This marks a complete U-turn from the two pandemic-hit years when firms went deep into the interiors, scouting for talent and offering them options to work from home.
Even salary demands have gone up significantly. Candidates now expect a 25-30% hike for the mid- to senior-level roles. "We see increased instances of candidates backing out at advanced stages or even when close to joining. They are either retained at their current organizations or develop cold feet, unsure of joining a new place," said Supratik Bhattacharyya, chief talent officer for RPG Group.
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Bhattacharyya said firms across sectors are, therefore, banking on developing internal people and upskilling them to take on newer roles.
Contract hiring on the rise
India’s job market is witnessing a significant shift as companies scale up contract hiring across the hierarchy—beyond the usual festive-season recruitment—as they beef up staffing to take on new projects and control their employee costs.
According to staffing experts Mint spoke with, contract hiring is expected to rise by 20% over the next few months, creating 600,000-700,000 jobs across the organized sector.
This demand for workers on contract for six months to a year comes when project visibility is low amid uncertain global economic conditions and wars, making companies reluctant to hire employees at high pay scales.
According to the survey, the top three skills that are no longer in high demand compared to a year ago are recruitment and selection (17%), project management (13%), and content marketing (13%). IT, manufacturing, banking, financial services, and insurance (BFSI) continue to remain among the top industries that are hiring.
