A month after demonetization was announced, digital wallet and fintech companies have been on a hiring spree as digital payment slowly begins to grip everyone. However, on the other hand, certain sectors such as the fast-moving consumer goods (FMCG), consumer durables and retail, a slight sluggishness has been noticed in terms of hiring candidates.
The above-mentioned sectors have been focusing more on replacement if not a complete freeze. Major companies in the FMCG sector appear to have been most affected by demonetization and thus they are currently in a wait-and-watch mode in terms of hiring new employees. Instead they are promoting talent from within till there is some clarity on the outcome of demonetization.
Joseph Devasia, MD, Antal International India, said: “Some of our clients have gone on a hiring freeze and have voluntarily asked us to stop working on a few active roles or not to share candidate profiles until further notice”.
Based on his interactions with a number of leaders across industries, Ronesh Puri, MD, Executive Access (India), said that he sees a temporary postponement in hiring activities especially in FMCG and retail sectors. He is of the opinion that, while industries like infrastructure are hopeful of a positive outcome, on account of demonetization, sectors like real estate and FMCG are facing a hard time. However, he is optimistic that this sluggishness is just a temporary phase, post which corporate India will come to terms with the new reality.
Technology space and financial infrastructure are however, showing a differing trend of enhanced hiring. While digital wallet companies seem to be scouting for talent, tech startups are playing safe with their recruitment and hiring processes. According to Devasia, tech startups and various other companies are currently not focusing on growth roles, neither considering new profiles. Sales have been hit as people are alert about spending owing to cash crunch and this has led to downgrading of results for the coming quarter.
Among management consultancies, the scenario is somewhat similar to that of FMCG. While they haven’t completely turned a blind eye towards hiring new employees, but line managers are taking time to decide whether to hire or not.
As a result, candidates who have been interviewed and already selected are either awaiting their offer letters or haven’t heard from their employers. Experts say that there is an atmosphere of uncertainty as to how to economy will perform in the next quarter; however, on the whole they are optimistic that demonetization will eventually turn out to be good for the overall Indian economy and of course the corporate sector.
Source: Times of India