When employers expand their workforce, it means they are expecting growth and are confident that economic conditions will facilitate the same. They expect the health of their business as well as the sector in general to remain robust. A recent TeamLease survey shows that in the first half of FY 2024-25, Delhi has the highest proportion (53.21 per cent) of employers expanding their workforce size. Bangalore comes next with 50.46 per cent employers going for workforce expansion, followed by Hyderabad with 47.57 per cent.
In terms of business size and functional area, startups and micro/small businesses and medium-sized enterprises make up the highest proportion of employers expanding workforce size (57 per cent), followed by sales (58 per cent)
So which are the skills for which the highest proportion of employers are expanding workforce size?
Amongst the existing skills in the workforce, 54.13 per cent employers plan to expand the workforce for more communication skills. About 51 per cent wish to add more people with the skill of paying attention to detail, while about 49 per cent wish to add people with technical proficiency.
Among those employers seeking new skills in their workforce, 24.21 per cent are expanding the team size to bring in people with communication skills, 22.79 per cent wish to introduce talent with technical proficiency, while 20.32 per cent are looking for talent with organisation skills.
What are the primary factors that are influencing workforce size? Well, in 53 per cent of the organisations, economic conditions form the main factor influencing workforce size. With
India set to lead economic growth among G-20 nations in 2024, the positive economic environment that exists will help decide how the workforce should be changed. About 36 per cent of employers feel skill shortages will determine workforce size, while 35 per cent organisations see technological advancements influencing workforce size. After all, the impact of technology on the transformation of jobs and roles cannot be denied. This also makes it essential for skilled workers to embrace these emerging technologies. Naturally, the workforce will need to accommodate talent with specialised skills or tech expertise.
Organisational dynamics, including growth and restructuring seems to be affecting workforce size for 28 per cent employers, while policy changes are affecting 22 per cent. While these may not be primary factors, they are crucial. With organisational dynamics reflecting the goings on within organisations, and policies reflecting what’s happening in the regulatory environment, both are bound to affect hiring.