Increasing offer-declines (Courtesy: HT Mumbai, 3rd Aug 2016)

Posted by: Date:Aug 08, 2016

As job market revives, candidates thumb their noses at poor offers

(Article Courtesy: HT Mumbai (3rd Aug 2016) Himani Chandna (

Candidates are increasingly rejecting salary offers during negotiations, or not joining after taking offer letters.

While it is a cause of worry for recruiters, the trend signals green shoots of recovery in the job market.

In most sectors, especially BPO, sales, e-commerce, FMCG and telecom, employers are witnessing an increase in no-shows and offer drop-outs.

According to data from Kelly Services, a US-based global recruitment and staffing company, the percentage of drop-outs is as much as 40% at the entry level, and 25% for mid and seniorlevel employees.

“Due to increase in job openings, there are several non-serious candidates, especially at the entry level. There is also a supply-demand mismatch at the mid to senior level,” said Kamal Karanth, MD, Kelly Services.

Other staffing firms also echoed similar concerns.

“No-shows and drop-outs have noticeably gone up in sales and logistics profiles. Also, it is quite high in consumer durable, FMCG and telecom — mostly sectors with a high demand for sales or sales-related profiles,” said Rituparna Chakraborty, co-founder, staffing firm Team lease Services.

Syed Azfar Hussain, global head, human resources at Zensar Technologies, confirmed the trend. “There has been an increase in this trend over the last one year and by at least 3% to 4% over the previous years.”

“The changing business strategies of the IT Industry is leading to companies bidding and winning projects based on skills, which are either very niche or more generic, but where demand is very high. In both cases, since demand outstrips supply, we see candidates having the most required skills shopping for offers, which lead to drop-outs.”

Headhunters also cite the practice of ‘just in time’ hiring is also one of the reason. “When a business opportunity does materialise, more often than not the company resorts to external recruitment, and in very tight timelines. The talent acquisition teams have no choice but to look for talent who are immediately available, or those with short-notice periods,” said Hussain.

Meanwhile, the cost of hiring shoots up for the company, since the candidate has a number of offers in hand.

Companies, including Aviva Life Insurance, Wipro, Godrej, LG and Droom, did not reply to mails sent by HT.

“Till last year, the major offer drop-outs occurred in the 5-8 year experience band, but now we are seeing an increasing trend in the next level, which is candidates with 9-15 years of experience,” said a recruiter at a telecom company.

Hiring activity in India increased 22% from a year earlier last month, according to the Naukri Job Speak Index. From May, hiring activity was up 6.8%.

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