The Hindu Business Line : One too many job offers for any fresher

"Barring a handful of international search firms, which work only at board levels and only on retainer basis, 95 per cent of recruitment is on contingency fee model."

Hyderabad , Sept. 22

Did you know that in the technology sector in India, it is a routine practice for job seekers to accept offers, without thinking about joining the company?

At the junior level, software professionals, generally, do not hesitate to change up to three jobs a year. This, perhaps, explains the high levels of attrition in the industry.

The Indian recruitment industry, which is amongst the fastest growing in the region, and estimated at about Rs 2,000 crore to Rs 4,000 crore, is witness to some unique traits. These include the fact that at engineering colleges, students take up to three offers and may not join any.

In a sector snapshot brought about by the Executive Recruiters Association (ERA), it is spelt out that barring a handful of international search firms, which work only at board levels and only on retainer basis, 95 per cent of recruitment is on contingency fee model.

Even when an interview is scheduled, about 50 per cent appear and in the second interview, this drops to 30 per cent and about 50-70 per cent actually offer to join. Even at middle and senior levels, the mobility is high.

For instance, large companies in the IT and BPO sector, which is witness to hectic hiring, engage anywhere between 10 and 50 consultants across the country. Significantly, this practice has shifted to other industry verticals.

As per ERA estimates, the compensation trends show that the hike is about 30 per cent per annum both in the IT and ITES sector across skills. The entry level salary is about Rs 2.5 lakh for IT and Rs 1.5 lakh for BPO, this goes up to Rs 5 lakh and Rs 4 lakh, respectively, when the experience is about three years.

The ERA has estimates that the requirement of manpower in the IT sector is about two lakh and BPO one lakh in one year. The high demand scenario and the limited supply of talent is increasing the salary and putting additional pressure on recruitment.