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Small businesses are now hiring in large numbers
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Small businesses are now hiring in large numbers
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“Su-Kam is a growing company in a fast growing segment. I could see that it is entering into new segments such as telecom and auto, and there was an opportunity to contribute to its growth from one to multiple products,” says Kotnala.
Su-Kam`s expansion plans had come to a grinding halt in October last year. All plans were put on hold as banks suddenly slowed down lending in the wake of the global crisis. “We had just started new solar and telecom verticals at our company when this happened,” says Kunwer Sachdev, managing director, Su-Kam. After a long wait plans have again been activated over the last few months and hiring has resumed. The company is hiring 30 senior and mid-level executives for its solar business and another 10-12 for its new telecom business.
“As the economy improved SMEs have restarted expansion plans that had been dormant during the slowdown,” says Rajeev Karwal, founder, Milagrow, a small business advisory firm. Companies across sectors are scouting for talent at all levels and the last two quarters have been much better. “The improvement might not be comparable to the growth in the stock market but companies are starting to hire for expansion and growth,” says E Balaji, CEO, Ma Foi, an international HR service provider.
Sachdev says companies such as his can provide greater challenges to senior professionals who have spent time in large companies and multinational firms. “They get a lot more recognition here, and get to play a crucial role in the growth of the business by bringing in their experience,” he says. He adds that as an entrepreneur himself, he gets to learn a great deal from their experience.
Hiring demand in the July-September quarter is up 40-50% over the previous quarter and about 60-70% higher than the January-March quarter, according to Amit Tandon, director, Empryean Partners, an HR services firm. Salary expectations today are 10-15% lower than before and some professionals who lost their jobs during the downturn are available at 30-35% lower salaries. Tandon also says that small and medium companies have got a better window now in campus recruitment, especially at tier-II colleges.
Apparel retailer Ritu Wears too faced a hard time during the recession with expansion plans put on hold. “Non-availability of capital was the main reason,” says Sanjay Sahni, managing director, Ritu Wears, a 116-crore (revenues) company. But it has still managed to open three stores this year.
The company is in the process of hiring 35 senior and mid-management people as it plans to open seven new stores in the next 12 months. It has hired people from larger retail companies such as Pantaloon, Shoppers Stop, Shahi Exports, Lifestyle and Wadhawan Retail. Sahni says he has been able to attract many people at around 10% lower salaries with the promise of faster growth opportunities.
Parag Tandon, who recently joined Ritu Wears as a business development manager from Pantaloon is excited about his new job. He conducted thorough research on Ritu Wears and other smaller retailers before deciding to join here. “The company has shown impressive growth over the last two years. It has professionalised and I feel I can add value to the company with my experience,” says Tandon.
Milagrow, which recently started an HR services division, has the hiring mandate for Ritu Wears. Karwal says professionals today are now looking for quality jobs rather than just basing their decisions on salary. “Even fresh MBA students are willing to work for small companies and take on responsibilities,” he says.
In the IT and ITeS space, hiring by small firms is also on the rise, though it`s not as much about the work culture as it is about opening up of new business opportunities. Almost 10% of SMEs (small and medium enterprises with up to 999 employees) in India are planning to hire additional staff, according to a recent study by New York-based Access Markets International (AMI) Partners. The study reveals that the impact of the current economic downturn on local and regional economies is of greater concern to small businesses than to their medium business counterparts. These same small businesses were not as greatly affected by changes in the national and global economy as the mid-market firms.
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Source:
http://economictimes.indiatimes.com/Small-businesses-are-now-hiring-in-large-num
