Considering the pace that the Recruitment Consulting firms are growing in India, it can easily become a top destination across the globe in the next decade. Consulting companies that are working on the permanent placement and staffing generated an approximate revenue of rupees 27 crores in the financial year 2014 – 2015. This year it is expected to add another 5 percent to 7 percent on top of the last year’s revenue.
Recruitment firms will play a pivotal in next five to ten years and the permanent placements will slowly fade out to pave way for the staffing model. According to the Indian Staffing Federation, there are at present 1.3 million temporary workers in the organised sector, which is likely to increase to 9 million workers in the next 10 years. By 2025, it is expected that 10 percent of the overall workforce in India could be working in a flexible capacity through staffing companies.
In the changing dynamics of India’s recruitment sector, one will find a paradigm shift in the workforce behaviour as most of them will be interested in the contractual mode rather than being a long term employee in an organization. Few things that will motivate the workforce to move towards the flexi career are exposure to variety of jobs, work culture, enhanced roles and responsibilities in short span of time, meeting variety of people and get networked for future prospects, being able to devote more time for family, friends and one’s passion and the most important- no worry of less salary hike or tedious appraisal process.
Advantages for the employer to hire the contract employees are varied and in many cases extremely relevant such as resource availability in short span of time. That means the employer can kick start the project on time. He can now be proactive with no notice period waiting or buyout options. Employer will save more money as the hiring process and timeline will be reduced. The other reasons include less legal binding with the contract employees, Instant appraisal and capability identification of the resources. Employers can end the contract based on the project duration and capability of the resource, little or no expenses on health insurance, bonus and similar benefits that are provided to the permanent employees.
Consulting companies will evolve drastically in next 10 years and will add more value to its clients. Some noteworthy future contributions expected from them are listed below:-
Contractors (Resources) will be under the control of consulting companies than in the roles of corporate.
Consulting companies can provide a variety of jobs to the same resource and keep them in their long term payroll.
Brand building of the clients will be taken over by the consulting companies in order to pull more resources under their belt.
Extensive usage of all the sourcing channels including social media.
Consulting companies will become a solution provider than just supplying resources.
Recruitment companies have to quickly smell the next dimension in the evolution and quickly adapt to the change. They must understand and follow the global recruitment trends and invest time and money for periodical up gradation on the capability of the recruitment organization and the recruiters. Usage of right hiring tools at the right time to reduce the recruitment cost can act as a differentiator enabling the best hiring practices while also reducing flaws and issues in the internal hiring system.
India is a country with huge potential to start a recruitment business. So, if you desire to be part of this booming market, you need to possess right skills, team and tools before getting into the recruitment business.