The outlook for employment, as we enter 2017, is not easy to forecast. That’s because many factors are impacting the business environment and the larger social context. India’s economic outlook is positive, driven by macro factors, hopes of a rollout of the Goods & Services Tax regime, initiatives to improve ease of doing business and speculation about lower tax rates.

Yet, businesses will need to account for global factors such as the policies of a Trump administration, the impact of technology on jobs, and the economic scenario in various countries.

Given this context, any prediction is risky. Nevertheless, I see the following seven hiring trends in 2017.

IndiaShining As Indian organisations go global, there will be demand for global talent. At the same time, thanks to the growth and positioning of the Indian economy, “Indian experience” will become more valued and an important consideration for career growth in multinational companies. In multiple ways – hiring by Indian companies, movement of Indian talent and posting in India – India will become a locus in the Global Talent Chain.

Sharing Economy, Part-timing Talent will see an ‘Uberisation of skills’, and a marketplace for skills will develop. Both organisations and individuals will be more comfortable with part-time association (as consultant or part-time employment or contract or temp staff). This will be driven by the need for niche skills and the increased preference of professionals to go entrepreneurial. Organisations’ HR policies must adapt in order to to facilitate this.

Technology in Hiring We will see increasing automation in the hiring process, and the application of technology solutions will improve the efficiency of the process: it will eliminate activities that don’t add value, and reduce constraints (of distance, time, space). Social media hiring, already in place, will gain more traction. Technology will also improve the predictability of hiring decisions. With the use of Data Analytics, Artificial Intelligence and Machine Learning, lead indicators of performance can be obtained and error in hiring reduced.

Job Creation Across Sectors Hiring was subdued in Q3 of 2016, and we can expect a rebound in hiring in almost all sectors. FMCG, pharma, consumer durables and service sector industries will see jobs created in sales/customer/field force. There will be hiring in technical and specialist roles across sectors. E-commerce and real estate sectors will be cautious in the first quarter of 2017. IT companies will wait for clarity on the Trump administration’s policies and on European politics before committing big numbers. Across industries, jobs will be created in the logistics and supply chain functions, and senior- and middle-level jobs will see increased hiring.

Variable Compensation Compensation for top talent in India will benchmark itself with global levels. Compensation will become increasingly variable – with a large component being linked to performance and other parameters. ESOPs at senior levels will continue to be a component. Specialists will take home more than generalists. There will also be pressure to reduce costs at junior levels, with some jobs being replaced with automation.

Automation At Work The Internet of Things will drastically change the way organisations work: it could result in the elimination of about 100K jobs and the creation of about 20K jobs by 2021. We will start to see the impact in 2017. ‘Rule-based jobs’ at the lower and middle level will be affected. At the same time, service jobs at the lower level may be protected owing to socio-political reasons. Jobs that have a high component of individual discretion, with difficult-to-replicate components and are unique because of ‘human touch’ requirements will be less affected. Also, 2017 will see organisations reskilling their talent to prepare them for the automation effect.

Creation of Skills Businesses that are used to recruiting ready talent will invest more in creating new skills through innovative tie-ups with institutes, government and research bodies. There is wider realisation that the skills needed for the future are not readily available and ‘poaching’ limits efficiency and is not sustainable. Some companies have invested in building capabilities and this trend will spread and gather speed.

Given these trends, the hiring function will need to play an increasingly strategic role in organisations, and reorient itself to meet the organisation’s expectations.

What should be the structure, capabilities and responsibilities of the hiring function?

Whom should it report to?

And up to what point in the employee life-cycle should the hiring function be responsible?

Should it just recruit the candidate or should it be responsible for productivity?

Will 2017 herald a new paradigm for the hiring function?

Or will it continue to be driven by the traditional metrics?

We will have to wait and see.

(The author is Managing Partner of InHelm Leadership Solutions, which focusses on Executive Search and HR Consulting, and a member of the Advisory Board of ZingHR, a next-gen HR Solution firm. Previously, he headed HR for Thomas Cook, Cipla, among other firms.)

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