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THE manufacturing industry saw sluggish hiring trends in Jan-Jun 2016, with Feb and May being the only months posting positive hiring

activity. Apr 2016 saw highest drop of 7 per cent in talent demand, Jun 2016 posted stable hiring activity. Policy changes and new initiatives kept India Inc. guarded on the hiring front as organisations were unclear about which path to follow. This shifted focus from fresh hiring to consolidation, resulting in an average drop of 1 per cent in hiring. However, with the government’s focus on manufacturing industry with Make in India, the experts foresee changes in the coming months.* According to government projections and industry reports, India’s manufacturing sector can touch USD 1 trillion by 2025. There is potential for the sector to create up to 90 million domestic jobs by 2025. There will be a boost to hiring. Engineering graduates are likely to see increased demand and hiring will grow in metros as well as tier II and III locations, say experts.

Demand rises for fresh engineering graduates across

Market average and demand

100

90

80

70

60

70

79

71

83

Jan 16 Jun 16

Demand

Market Average

n Demand was high for entry level manufacturing, electrical, design, mechanical and civil engineer roles

n Sales specialisations were in-demand at middle level, production management skills most sought at top

n Opportunities in purchasing/sourcing increased at senior level in the manufacturing sector

n At middle and senior level, the volume of jobs rose for the logistics professionals

n Middle level saw increased hiring across key locations, while small cities were top job hubs for entry level roles

KEY TAKEAWAYS

MANUFACTURING & ENGINEERING

*PwC Report

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n Production, manufacturing had max job share; demand up by 20%

n Civil engineers with 4% job share saw 16% rise in talent demand

n Mechanical engineers saw 14% rise, design engineers reported 5% rise

n Electrical/electronics engineers posted 11% rise in demand in Jan-Jun 2016

n Drop by 4% in project management specialisation; up 16% in Jul-Dec 2015

n Engineers claimed maximum job share; demand was stable

n With second highest job share, sales/BD posted 3% rise in demand

n Business management, consultants registered 11% rise in demand

n HR professionals saw 5% rise in demand; posted 16% rise in Jul-Dec 2015

n IT professionals reported 4% rise in demand; job share was 8%

n FUNCTIONAL AREATalent demand rise for support roles

n Despite biggest job share, metros didn’t post rise in demand except Delhi-NCR

n Chennai posted stable hiring in Jan-Jun 2016; job share was 5%

n International locations reported 5% rise in demand; job share was 4%

n Among tier II locations, Lucknow posted over 30% rise in demand

n With negligible job share, north-eastern locations also posted rise in demand

n TOP LOCATIONSSmall cities seeking fresh talent

Share of jobs in top locations

Delhi-NCR

Mumbai

Bengaluru

Pune

West Bengal

Others

18%

15%

9%

7%

7%

44%

n AREA OF SPECIALISATIONDemand up for manufacturing engineers

Share of jobs in area of specialisation

10%

Production/Manufacturing/

Maintenance

Engineering

Civil

Electrical /Electronic

Design Engineering

Others

5%4%

3%2%

76%

Share of jobs in top functional areas

8% IT/Telecom

8% Accounting

5% HR/PM/TD

27% Others

33% Engineering

19% Sales/BD

SIMILAR to Jan-Jun 2015, core engineering roles clocked maximum job share in Jan-Jun 2016 too, however the demand dropped. The demand for engineers peaked between Mar and May 2016.

Production, manufacturing and maintenance engineers were most sought at entry level, followed by civil engineers. Business management professionals witnessed increased demand for candidates with less than 2 years of experience, as was the case in Jul-Dec 2015. Logistics professionals were also in demand during Jan-Jun 2016. Hiring was also up for HR, IT, accounting, finance and export/import roles. Metros retained maximum job share at entry level but talent demand was stable to negative, barring Delhi-NCR which posted 1 per cent rise in demand. Small cities emerged as new job hubs for entry level candidates during Jan-Jun 2016.

JUNIOR LEVEL[ MANUFACTURING & ENGINEERING ]

Emerging skills are Green Technology Engineers who are able to provide solutions to lower carbon emissions, Green Energy and cost optimisation solutions. Soon this shall become the strongest compliance for all industries.

Suman Rudra,India HR Leader, NCR Corporation

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n Channel sales had maximum job share; demand rose by over 30%

n Specialisation in technical sales posted an increase of 20% in demand

n Corporate sales reported 2% drop in demand; was up by 8% in Jul-Dec 2015

n Production, maintenance, manufacturing engineers reported 20% rise

n Civil engineers saw 7% drop in demand in Jan-Jun 2016

n Sales/BD with highest job share reported over 30% rise in demand

n Accounting with second highest job share also posted over 30% rise in demand

n Engineers reported 6% rise in demand; job share was just 1%

n Electronic engineers posted 29% rise in demand; job share was negligible

n Business management profile continue to see increased demand (over 30%)

n FUNCTIONAL AREADemand up for sales professionals

n Job share in metros dropped, demand rose by 30% in Delhi-NCR, Bengaluru

n Chennai saw 16% rise in talent demand in Jan-Jun 2016

n Mumbai was the only exception to witness drop (over 30%) in demand

n Chandigarh marked over 30% rise in demand; saw 12% drop in Jul-Dec 2015

n International locations had 30% rise in demand; posted 6% drop earlier

n TOP LOCATIONSHiring up in key locations

n AREA OF SPECIALISATIONDemand for channel sales

Share of jobs in top locations

Delhi-NCR

International

Pune

Gujarat*

Maharashtra^

Others

8%

7%

6%

5%

4%

70%

Share of jobs in area of specialisation

4%

Channel Sales

FMCG Sales

Technical Sales

Corporate Sales

Other Sales/Business Dev.

Others

3%3%

2%2%

86%

Share of jobs in top functional areas

9% Logistics

6% Marketing

5% Quality Control

52% Others

16% Sales/BD

12% Accounting

M IDDLE level accounted for nearly 35 per cent of total jobs in the manufacturing sector. Specialisation in channel sales clocked the highest job share and saw maximum rise in demand

as well. Civil engineers who were in high demand at middle level in Jul-Dec 2015 reported drop in hiring in Jan-Jun 2016. Demand for quality assurances picked up pace, unlike the trend in Jul-Dec 2015. Production, manufacturing, maintenance engineers saw heightened demand during the stated period. Job share of engineers dropped to just 1 per cent in Jan-Jun 2016 from 24 per cent in Jul-Dec 2015. Sales/business development profiles had maximum job share and posted significant rise in demand. HR, accounting and finance, business management, consultants, customer service were the other sought-after profiles at the middle level.

MIDDLE LEVEL[ MANUFACTURING & ENGINEERING ]

Skills in demand include digital marketing, mobile product developers,

data analytics, skilled technicians, supply chain professionals. At middle level, there is demand for technology

professionals with a strategy.

Surabhi Mittal,VP, Head-HR, IR and Admin, LANXESS India

*Except Ahmedabad and Vadodara^ Except Mumbai and Pune

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n Specialisation in FMCG sales had max job share; demand fell by over 30%

n Production management specialists saw over 30% rise in demand

n Quality management experts witnessed 27% rise in demand

n Specialisation in purchasing/sourcing posted 20% rise in demand

n Chartered accountants saw 10% rise in demand; saw 30% rise in Jul-Dec 2015

n Despite max job share, accounting & finance saw over 30% drop in demand

n Among support roles, business management & HR saw 30% rise in demand

n Demand for logistics professional also rose by 30% in Jan-Jun 2016

n Technology profiles posted over 30% drop; was up by 30% in Jul-Dec 2015

n Demand for engineers dropped by 20%; was most sought in Jul-Dec 2015

n FUNCTIONAL AREAMost jobs in accounting & finance

n Mumbai had max job share; demand fell by over 30% in Jan-Jun 2016

n Pune saw over 30% rise in demand; posted 27% rise in Jul-Dec 2015

n Ahmedabad posted 20% drop in demand in Jan-Jun2016

n Among states, Karnataka reported over 30% rise in demand in Jan-Jun 2016

n Hyderabad with 3% job share posted over 30% drop in demand

n TOP LOCATIONSPune top hiring location

Share of jobs in top locations

Mumbai

Karnataka*

West Bengal

Tamil Nadu^

Vadodara

Others

15%

5%

5%

4%

4%

67%

n AREA OF SPECIALISATIONDemand in production management

Share of jobs in area of specialisation

3%

FMCG Sales

Production Management

Total Quality Management

Purchasing/Sourcing

Service and Repair

Others

3%2%

2%2%

88%

Share of jobs in top functional areas

4% Logistics

4% Marketing

4% BFSI

80% Others

4% Accounting4% HR/PM/TD

AS THE drop in job share for senior professionals continued in the manufacturing sector, their demand was also affected. Unlike the trend in Jul-Dec 2015, amid falling job share, demand for

senior professionals too dropped in Jan-Jun 2016. Business management, consultants and HR professionals saw significant increase in talent demand at senior level during this period. Engineers saw nearly 20 per cent drop in demand. The profile witnessed over 30 per cent increase in demand during Jul-Dec 2015. Senior level sales professionals witnessed drop in demand. Post Jul-Dec 2015, this profile has not posted rise in demand. Similar to Jul-Dec 2015, specialisation in production management, quality management and purchasing/sourcing were sought after at top level. Pune was top hiring location for senior level professionals.

SENIOR LEVEL[ MANUFACTURING & ENGINEERING ]

Professionals at senior level are required to have greater foresightedness, impeccable business acumen and should be an inspirational figure who can drive employees by motivating and setting good examples.

Rajesh Tripathi,VP & Head-HR, GHCL

*Except Bengaluru^ Except Chennai

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People skills and knowledge are expected to be the cutting edge in this industry. The industry will witness more diversity coming in and ability to manage diversity, global and cross-border working, highly connected and informed workforce”

Game changers in 2016 The industry will see a lot of retirements of baby boomers in the next five years. Smart companies will tend to prepare and augment their entry level talent from the colleges in higher numbers than usual. The students in campus will also choose to join manufacturing industry, since it provides them opportunities in their core area of specialisation.

Role of technology in HRCreating a good HR infrastructure will help organisations manage operational processes well. The millennials are tech savvy and it is easy to communicate, manage and engage with them through use of best technology platforms. HR analytics is playing a big role in decision making process and companies are investing in analytics, since mere data hardly provides any advantage.

Skills in demandn Entry level: Mostly analytical skills, subject knowledge, ability to articulate,

learning agility, mobility.n Middle level: Ability to manage teams, understanding of business, multi-tasking, cross functional and cross border. n Senior level: People skills, potential to manage other functions, mobility across businesses, P&L experience, operational excellence etc.

Emerging skillsThe technology platforms have become world class; people skills and knowledge are expected to be cutting edge in the industry. The industry will witness more diversity and ability to manage diversity, global and cross-border working, highly connected and informed workforce. For example mechanical engineering is moving more towards ‘mechatronics’, there will be robotics, nano science, influence of smart technology, sustainability and energy conservation which will play a major role in defining the workforce skills.

Compensation trendsn Entry level: Compensation for engineers starts at Rs 3.25 lakh per annum and management trainee at Rs 5 lakh per annum.n Middle level: The compensation at this level depends on what is defined as middle level in different organisations. For example, those with 10-15 years will be at a median of Rs 20 lakh per annum with benefits and perks extra.n Senior level: Senior level compensation differs company to company and starts at Rs 80 lakh per annum and beyond with benefits, perks and equity.n Premium/high paid profiles: These are typically subject matter experts and it is difficult to put a number to their compensation since it largelly depends on the criticality, competency, demand and supply.

Future outlookSome of the key policies that will influence manufacturing behaviour and compliance are GST, environmental and health, conversation of natural resources, sustainability, energy and carbon cover, community development etc. These are mandated through law and the industries are expected to plan, invest, manage and comply in accordance to these. There will be a new breed of specialists in the manufacturing sector that will be part of organisations in ensuring that these are covered as part of business operations.

Smart manufacturing companies to augment entry level talent

MANUFACTURING & ENGINEERING INTERVIEW Mukund Menon Director-HR and Communications, International Paper India