After a harsh 2009 for jobseekers, 2010 is promising a much more buoyant employment outlook. While the majority of privately held businesses (PHBs) in India are optimistic about the employment scenario in 2010, employees would be wrong to think the worst is over, according to 2010 employment report by Grant Thornton International Ltd, one of the world's leading organisations of independently owned and managed accounting and consulting firms.
PHBs across the world decreased their employee numbers during 2009. This was the first time since Grant Thornton began researching employment issues in its International Business Report (IBR) in 2003 that the number of businesses cutting headcount has exceeded those increasing it. The survey, of over 7,400 PHBs across 36 economies, shows a global balance of -8% compared to +21% in 2009 - a drop of 29 percentage points.
Indian PHBs had a percentage balance of +33% while the Asia Pacific region had a balance of +19%. North America is at the bottom with a balance of -30%, followed by the Nordic countries (-27%) and the EU (-19%).
Vinamra Shastri, Partner, Grant Thornton India, said: “While job losses, were an unfortunate and significant reality in most of the world; India managed to fare far better than its global peers while reducing headcount. It speaks volumes about the resilience of the Indian economy in general and Indian PHBs in particular that they have managed to stave off the pressures to pare down business-critical staff during the year. The current turbulence has helped many PHBs focus on man-power costs, and also strategically shed non-performing human assets"
Further, when asked about their intentions for employee salaries in the year ahead, 49% PHBs in India expressed that they will increase their employee salaries in line with inflation. 29% PHBs said that they will not offer pay rises this year, while an encouraging 12% said that they will increase their employee salaries by more than inflation. Pune (30%) topped the chart, followed by Delhi (24%) and Bangalore (21%).
“These numbers reflect the improving business environment in India. However, it will be worthwhile to use this as an opportunity to consolidate more, and avoid the trap of over optimism,” commented Rajul Mathur, Client Service Director, Grant Thornton India.
The global employment index shows businesses in some of the world's more mature economies suffering the greatest decreases in employee numbers, including Ireland (with a balance* of -54%), Spain, Denmark (both -38%) and the US (-33%) while emerging markets
Grant Thornton enjoyed some of the biggest increases in headcount during 2009, including Vietnam (+54%), India (+33%), Botswana (+31%) and the Philippines (+29%).
The report also shows how creative PHBs became as they tried to avoid compulsory redundancies of permanent staff in 2009. 50% of businesses indicated that they needed to introduce measures to avoid redundancies and the survey results suggest that every possible approach was introduced. Reducing working hours (11%) and redeployment of staff (10%) were among the most popular measures globally but pay cuts, voluntary redundancies, career breaks, reduced benefits and laying off contract staff were all used to protect existing permanent staff and the business itself.
PRABHAKAR MANI
PGDM 2 SEM
PHBs across the world decreased their employee numbers during 2009. This was the first time since Grant Thornton began researching employment issues in its International Business Report (IBR) in 2003 that the number of businesses cutting headcount has exceeded those increasing it. The survey, of over 7,400 PHBs across 36 economies, shows a global balance of -8% compared to +21% in 2009 - a drop of 29 percentage points.
Indian PHBs had a percentage balance of +33% while the Asia Pacific region had a balance of +19%. North America is at the bottom with a balance of -30%, followed by the Nordic countries (-27%) and the EU (-19%).
Vinamra Shastri, Partner, Grant Thornton India, said: “While job losses, were an unfortunate and significant reality in most of the world; India managed to fare far better than its global peers while reducing headcount. It speaks volumes about the resilience of the Indian economy in general and Indian PHBs in particular that they have managed to stave off the pressures to pare down business-critical staff during the year. The current turbulence has helped many PHBs focus on man-power costs, and also strategically shed non-performing human assets"
Further, when asked about their intentions for employee salaries in the year ahead, 49% PHBs in India expressed that they will increase their employee salaries in line with inflation. 29% PHBs said that they will not offer pay rises this year, while an encouraging 12% said that they will increase their employee salaries by more than inflation. Pune (30%) topped the chart, followed by Delhi (24%) and Bangalore (21%).
“These numbers reflect the improving business environment in India. However, it will be worthwhile to use this as an opportunity to consolidate more, and avoid the trap of over optimism,” commented Rajul Mathur, Client Service Director, Grant Thornton India.
The global employment index shows businesses in some of the world's more mature economies suffering the greatest decreases in employee numbers, including Ireland (with a balance* of -54%), Spain, Denmark (both -38%) and the US (-33%) while emerging markets
Grant Thornton enjoyed some of the biggest increases in headcount during 2009, including Vietnam (+54%), India (+33%), Botswana (+31%) and the Philippines (+29%).
The report also shows how creative PHBs became as they tried to avoid compulsory redundancies of permanent staff in 2009. 50% of businesses indicated that they needed to introduce measures to avoid redundancies and the survey results suggest that every possible approach was introduced. Reducing working hours (11%) and redeployment of staff (10%) were among the most popular measures globally but pay cuts, voluntary redundancies, career breaks, reduced benefits and laying off contract staff were all used to protect existing permanent staff and the business itself.
PRABHAKAR MANI
PGDM 2 SEM
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